Unlock the Power of Digital Bundles: The Key to Boosting ARPU with SMBs

With the widespread adoption of 5G, the integration of emerging AI technologies, and evolving cyber threats, the competitive landscape for telco providers in 2025 is challenging, to say the least.

When you add customer acquisition costs, razor-thin margins on connectivity, and increased pressure from digital-first challengers to the mix, it’s clear telcos must find new ways to drive revenue and reduce churn.

Offering broadband and mobile services is no longer enough. A quick look at the data packages provided to consumer and business customers does little to allay the fear that telco’s core connectivity offering has become commoditised. 

Small business customers, who represent a sizable chunk of the future growth pie, expect more. They want value-added services (VAS) that help them run their businesses more effectively and grow.

Okay… so what do SMB customers actually want?

They want performance – in the form of high-speed, reliable internet, and convenience – with the digital tools they need to run their business at their fingertips when they need them.

A small business bundle from a telco in 2025 may look something like: 

• High-speed internet – the backbone of any modern business. It is the baseline service that business customers come to a telecom provider for, and it’s the foundation of the bundle.
• Security – Cybersecurity tools, firewalls, and endpoint protection safeguard business information and give small business customers peace of mind regarding data protection.
• Domain & web hosting – A professional online presence starts with a custom domain and reliable hosting.
• Website builder – Easy-to-use tools that help businesses launch and manage their website without technical expertise. A website builder goes hand in hand with domain and web hosting services.
• E-commerce software – Selling online can be transformative for small businesses, and providing them with the tools to do so can significantly increase their lifetime value (LTV).
• Professional email – To help your SMB audience improve their online credibility when communicating with their customers.

A bundle that combines connectivity, security, and everything a business needs to create a strong online presence removes the hassle of remembering multiple login details for different vendors and makes telcos a one-stop solution for SMB customers.

An entrepreneur wears many hats on any given day, from marketing to customer service, sales and finance. A bundle of the right products and services simplifies their tech stack and relieves them of a decision.

Provided you can back up your promise and continue to deliver connectivity, convenience and reliability – a customer who purchases a bundle from you will likely remain loyal for years to come.

Empower SMBs to thrive online.

In 2025, a strong digital presence is no longer optional. Whether selling products, booking appointments, or showcasing services, in the modern fast paced technical age, small businesses need an easy way to attract and serve customers online. However, many lack the technical expertise, design skills or time to set up a website.

This is where site builders and e-commerce software come in. With simple, intuitive tools, entrepreneurs can create a website, set up online payments, and manage inventory—all without coding knowledge.

When bundled with domain registration, email, and security, these tools provide an instant digital presence, helping small businesses compete in a crowded market.

Driving ARPU with thriving small business customers.

For telcos, bundling value-added services drives ARPU growth, customer retention, and differentiation. Adding site builders, e-commerce tools, and business services creates a stickier, higher-margin offering.

Bundled solutions also reduce churn. Small businesses that rely on multiple services from one provider are far less likely to switch. These value-added services also allow for upselling premium features, such as advanced cybersecurity, marketing tools, or expanded e-commerce capabilities.

In an industry facing price pressure, bundles help telcos move from the race to the bottom of competing on cost alone and instead compete on value and customer experience.

A package that resonates.

A telco’s small business bundle should be positioned as a growth enabler, not just a utility package. Successful promotion strategies include:

• Segmented marketing – Tailoring messaging for solopreneurs, startups, and growing businesses.
  
• Value-driven messaging – Emphasising time savings, simplicity, and the all-in-one convenience of the bundle. 
• Freemium or trial models – Offering a free website or domain for the first few months to drive adoption. 
• Cross-selling during internet sign-ups – Positioning the bundle as a business starter pack when customers purchase broadband. 
• Industry-specific solutions – Creating specialised bundles for retail, hospitality, or professional services.
  

Structuring the bundle.

A successful bundle needs to balance flexibility, affordability, and scalability. The most effective approach is a tiered model, such as:

• Basic Bundle – Core essentials (internet, email, security). 
• Growth Bundle – Adds unified communications, domain & web hosting, and a website builder. 
• Premium Bundle – Includes e-commerce software, managed devices, and advanced security.
  

Offering add-ons and customisation lets businesses tailor the bundle to their needs, preventing them from seeking external solutions. Additionally, discounted pricing for long-term commitments can further increase retention and LTV.

By structuring the bundle to scale with a business’s needs, telcos can create a sticky, high-value product that grows alongside their customers.

Partnering for success

At BaseKit, we work with some of the biggest telcos in the world. Companies such as Etisalat e&, Telefonica, Jazz, and Telia offer our site builder and e-commerce software under their own brand.

If you’d like to learn more about how we help our partners reduce churn and increase ARPU, contact us today. Our partnerships team will be happy to answer any questions and give you a tour of the platform.