Successful LTE strategies - White paper How to use LTE to build a compelling broadband strategy
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White paper
Successful LTE strategies
How to use LTE to build a compelling
broadband strategy
www.informatandm.comContents Successful LTE strategies: How to use
LTE to build a compelling broadband
strategy
Introduction .................................................3
Market status ..............................................4 Paul Lambert, Senior Analyst
Different LTE operator types ..................5 What are the ingredients of a successful LTE launch?
Aggressive LTE operators......................7
There are already examples of best practice that have helped
Cautious LTE operators .........................8
to underpin hugely successful LTE launches by operators in
Market development ...................................9 markets such as the US, Japan and South Korea. We have
meticulously researched and analysed the go-to-market strategy
LTE subscription forecasts .....................9
of these leading operators and every other live LTE deployment
LTE voice ................................................9 to build a comprehensive and unrivalled base of knowledge.
Recommendations .......................................11
Who are the most successful LTE operators to date, and why?
How have they positioned LTE to drive customer uptake? How
are operators effectively positioning LTE? How can operators
maximize the value of their LTE investments? What pricing
and value propositions are working in the market and which
aren’t? How have different operator strategies influenced LTE
subscription uptake?
Our latest LTE report is based on in-depth and extensive
interviews with LTE operators as well as a full assessment of the
launch strategies of all 52 (as at April 24, 2012) live LTE networks
globally. In conjunction with ITM’s industry knowledge, the report
distils the lessons learned to date by LTE operators to arrive
at concrete examples of best practice that have proved to be
successful with end users.
The report provides clear and actionable conclusions of what has
worked for the early LTE launches, ones that are applicable to
all operators looking to launch LTE, and which will help them to
avoid replicating the mis-steps some LTE operators have made
and are making.
© Informa UK Limited 2012. All rights reserved.
The contents of this publication are protected by international copyright laws,
database rights and other intellectual property rights. The owner of these rights
is Informa UK Limited, our affiliates or other third party licensors. All product and
company names and logos contained within or appearing on this publication are the
trade marks, service marks or trading names of their respective owners, including
Informa UK Limited. This publication may not be:-
(a) copied or reproduced; or
This is an extract from Successful LTE
(b) lent, resold, hired out or otherwise circulated in any way or form without the Strategies report
prior permission of Informa UK Limited.
Whilst reasonable efforts have been made to ensure that the information and content
of this publication was correct as at the date of first publication, neither Informa UK
Limited nor any person engaged or employed by Informa UK Limited accepts any
To find out more visit:
liability for any errors, omissions or other inaccuracies. www.informatandm.com/successfulLTE
Readers should independently verify any facts and figures as no liability can be
accepted in this regard - readers assume full responsibility and risk accordingly for
their use of such information and content. Contact:
Any views and/or opinions expressed in this publication by individual authors or Giovanni Cerrini
contributors are their personal views and/or opinions and do not necessarily reflect
the views and/or opinions of Informa UK Limited.
giovanni.cerrini@informa.com
+44 (20) 701 75296
2 © 2012 Informa UK Ltd. All rights reserved. www.informatandm.comIntroduction
LTE launches are accelerating, but not all operators have the right business model
2G-to-3G migration offered the promise of a whole new business model – from voice and SMS services to the mobile
Internet and rich content. Unlike 2G-to-3G, 3G-to-4G is evolutionary. However, the advantages that 4G/ LTE offers –
much greater capacity to offer DSL-like services on the move, not to mention the prospect of the "Internet of things"
– are likely to turn out to be more revolutionary over time than even the migration from 2G-to-3G. This is because a
combination of 3G and 4G, in tandem with the boom in smartphone adoption and use, will bring about a major leap
in the number of people using mobile broadband, the way they use it, and the amount they use it.
According to the latest survey conducted by Informa Telecoms & Media to gauge the industry’s perceptions on LTE,
the majority see a clear need to launch LTE networks now, with two-thirds of respondents saying the time is right
to launch LTE in their market today. However, while there is broad agreement on the need to launch LTE, there are
diverse opinions on both why operators need to launch LTE now and also the reasons for doing so.
While some operators are looking to LTE primarily to alleviate capacity from stressed legacy networks, others are
looking to add value and increase brand value through technology leadership and enhancing the overall mobile
broadband proposition. And, while some operators are looking to LTE generate additional revenues, it is surprising
that the majority are not expecting LTE to create new revenue streams. This raises a fundamental question: If LTE
doesn’t create new revenue streams, how can operators make a return on their LTE investments?
Our research into the LTE market explores the core business and strategic questions operators need to answer
before launching services:
• How can operators maximize the value of their LTE investments?
• How can operators effectively position LTE?
• What LTE pricing and value propositions are working in the market and which aren’t?
To approach these core issues, we’ve sought to answer these three key questions:
• Which are the most successful LTE operators to date, and why?
• How have they positioned LTE to drive customer uptake?
• How have different operator strategies influenced LTE subscription uptake?
In this White Paper, we’ve approached these topics and questions by drawing on our recently-published research
into the LTE business case. During our research, we found that operators that have launched LTE to date fall into
two groups – those that have been successful in driving uptake of services and those who haven’t. Or, put another
way, some operators have found what is for them a successful LTE business model while others have yet to do so.
It is crucial that operators make a return on their LTE investments and, with the right business model, the evidence
to date shows that they will – such is the appetite among end users, if stimulated in the right way, for faster and
better mobile internet access. I hope that this White Paper provides both a valuable insight into the business models
we have seen to be a solid foundation for profitable LTE strategies, as well as an introduction to our latest research.
© 2012 Informa UK Ltd. All rights reserved. www.informatandm.com 3Market status
“The market push by the few early Fig. 1: Global, LTE operators, by region and country, Apr-12
and aggressive LTE launchers Country Operator Technology Start date
obscures market reality, with the Asia Pacific
majority of operators cautious on Australia Telstra LTE1800 Sep-11
subscriber uptake.”
Hong Kong CSL New World LTE1800/2600 May-11
CSL New World LTE2600 May-11
While LTE is the fastest-growing
India Bharti LTE2300 Apr-12
cellular technology in history in terms
of subscription-number growth, it Japan eAccess LTE1800 Mar-12
is still very much a new technology NTT DoCoMo LTE2100 Dec-10
both in terms of the total number of Softbank Mobile LTE2500 Feb-12
subscriptions and also the maturity South Korea KT Corp LTE1800 Jan-12
of the service proposition. With a few
LG U+ LTE800 Jul-11
notable exceptions in the US, Japan
SK Telecom LTE800 Jul-11
and South Korea, a combination of
factors – most notably the lack of a MobileOne LTE1800/2600 Jun-11
clear value proposition for LTE, high Singapore SingTel Mobile LTE1800/2600 Dec-11
service prices, a limited selection of Eastern Europe
LTE smartphones and limited network Armenia K-Telecom LTE2600 Dec-11
coverage – has led to the vast majority
Belarus Yota Bel LTE2600 Dec-11
of operators moving very cautiously
Estonia EMT Estonia LTE1800/2600 Jan-12
on LTE subscription uptake. LTE
has been deployed initially in urban Hungary T-Mobile Hungary LTE1800 Jan-12
hotspots, with only three rollouts to Latvia LMT LTE1800 Jun-11
date focused on rural areas first, all in Lithuania Omnitel LTE1800 May-11
Germany and as a result of regulatory Poland Centernet LTE1800 Sep-10
requirements.
Mobyland LTE1800 Sep-10
Polkomtel LTE1800 Nov-11
A snapshot of the market at this early
stage – around 27 months after the Russia Yota LTE2600 Dec-11
first LTE network went live – shows Western Europe
that 57 networks have been launched Austria Hutchison 3G Austria LTE2600 Nov-11
in 30 countries (see fig. 1). mobilkom Austria LTE2600 Oct-10
T-Mobile Austria LTE2600 Jul-11
In terms of subscription uptake,
Denmark TDC Mobil LTE2600 Oct-11
there are two clear categories of LTE
operators: those that have pushed the Telia Denmark LTE2600 Dec-10
technology aggressively – the clear Finland DNA Finland LTE2600 Dec-11
minority; and those that haven’t. The TeliaSonera Finland LTE2600 Nov-10
US operators Verizon Wireless and Germany O2 Germany LTE2600 Jul-11
AT&T, NTT DoCoMo in Japan and
Telekom LTE2600 Apr-11
SKT and LGU+ in South Korea have
Vodafone D2 LTE2600 Dec-10
all pursued LTE subscription growth
aggressively. Norway Netcom LTE2600 Dec-09
Portugal TMN LTE2600 Mar-12
However, the majority of operators Vodafone Portugal LTE2600 Feb-12
have seen very weak LTE subscription Note: Figures refer to quarter-end.
Source: Informa Telecoms & Media
growth, for the reasons already
4 © 2012 Informa UK Ltd. All rights reserved. www.informatandm.comFig. 1: Global, LTE operators, by region and country, Apr-12 (continued) a significant commitment to the
Country Operator Technology Start date technology.
Western Europe (continued)
Sweden HI3G LTE800/900/2600 Dec-11 According to the survey, the 2600MHz
band will continue to dominate LTE
Tele2 Sweden LTE800/900/2600 Nov-10
launches, with 1800MHz also set to
Telenor Sweden LTE800/900/2600 Nov-10
remain prevalent, although LTE band
TeliaSonera Sweden LTE800/900/2600 Dec-09
fragmentation is also reflected in the
North America survey responses, with the majority of
Canada Bell Wireless Affiliates LTE2100 (IV) Sep-11 available bands seeing some operator
Rogers Wireless LTE2100 (IV) Jul-11 commitment to a greater or lesser
Telus Mobility LTE2100 (IV) Feb-12
degree (see fig. 5).
US AT&T Mobility USA LTE700/2100 (IV) Sep-11
Different LTE operator types
Leap Wireless LTE1900/2100 (IV) Dec-11
“The aggressive early adopters have
Metro PCS LTE1900/2100 (IV) Sep-10 used LTE to reinforce existing market
US Cellular LTE700/2100 (IV) Mar-12 positioning, typically to improve
Verizon Wireless LTE700/2100 (IV) Dec-10 perceptions about the quality of their
Latin America networks and the performance they
offer.”
Brazil Sky Brazil LTE2500 Dec-11
Puerto Rico America Movil Puerto Rico LTE700 Feb-12
It’s crucial for operators to adopt
AT&T Mobility Puerto Rico LTE700/2100 (IV) Nov-11
the right approach to launching LTE
Open Mobile LTE700 Apr-12 as soon as possible, given the broad
Uruguay ANCEL LTE Dec-11 commitment to roll out networks
Middle East this year and next. This is especially
the case given that the majority of
Kuwait Viva Kuwait LTE Jan-13
operators believe there is a market
Saudi Arabia Saudi Telecom Company LTE2300 Sep-11
for launching LTE now (see fig. 6).
SMTC Saudi Arabia LTE1800 Sep-11
UAE Etisalat UAE LTE2600 Dec-11 What are the key drivers for operators
Africa launching LTE now? The majority
Angola Movicel LTE1800 Apr-12 of operators, 35.1%, are looking to
Note: Figures refer to quarter-end.
LTE to create new revenue streams,
Source: Informa Telecoms & Media
according to Informa’s LTE survey.
However, many operators are also
stated. Even the early running that the LTE rollouts to date highlight the launching LTE to relieve capacity on
Nordic operators made on launching problem of spectrum fragmentation their existing networks, as well as to
LTE hasn’t resulted in meaningful LTE between regions and within build brand value through technology
subscription uptake (see fig. 2). regions between countries. While leadership (see fig. 7).
the majority of LTE rollouts are
The number of LTE launches and in the 2600MHz band (see fig. 4), On the one hand, LTE is a new
the LTE subscription numbers are North America and Asia Pacific are technology offering operators
poised to accelerate dramatically. deploying LTE in their own bands, the opportunity to launch new
The responses to Informa Telecoms Europe is focused on 800MHz and broadband services in new ways,
& Media’s 2012 LTE Survey showed 2600 MHz, with 1800MHz rollouts potentially generating new revenues;
that the largest proportion of to follow. While the vast majority on the other hand, it is simply an
operators, 34.1%, plan to launch LTE of LTE rollouts to date have been extension to the strategies operators
services this year, and a considerable FDD-based, LTE rollouts using TDD are already pursuing with 3G
number, 25.4%, are planning to spectrum have taken place in Poland technology to drive uptake of their
launch in 2013 (see fig. 3). and Saudi Arabia, while China has data plans.
© 2012 Informa UK Ltd. All rights reserved. www.informatandm.com 5Fig. 2: Global, LTE subscriptions (000s), by country and operator, 1Q10-1Q12
Country Operator 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
Asia Pacific
Australia Telstra 100.0 248.5
Hong Kong CSL New World 0.1 0.8 1.5 2.2
Japan NTT DoCoMo 1.2 25.6 121.4 388.6 1,139.4 1,913.2
South Korea KT Corp 110.0
LG U+ 230.0 560.0 895.7
SK Telecom 200.0 700.0 1,119.7
Singapore MobileOne 0.8 0.9 1.1
SingTel Mobile 0.1 0.4
Eastern Europe
Armenia K-Telecom 0.5 0.6
Belarus Yota Bel 0.1 0.2
Estonia EMT Estonia 0.2 0.3 0.6 0.8 0.8
Latvia LMT 0.5 1.2 2.0 2.2
Lithuania Omnitel 0.8 1.7 2.6 2.9
Poland Polkomtel 10.0 13.0
Russia Yota 200.0 275.0
Western Europe
Austria Hutchison 3G 5.0 20.0
mobilkom 0.2 0.5 0.9 2.0 5.0 6.2
T-Mobile 2.0 6.0 9.2
Denmark TDC Mobil 1.0 2.1
Telia 0.5 1.3 2.0 4.0 6.0 10.0
Finland DNA 1.0 1.3
TeliaSonera 0.5 1.5 2.5 3.9 4.6 5.1
Germany O2 1.1 3.2 5.1
Telekom 15.0 26.0 47.0 64.2
Vodafone D2 0.1 9.0 27.0 52.0 88.0 110.0
Norway Netcom 1.0 1.1 1.5 2.5 3.1 3.7 4.1 4.9 5.2
Sweden Tele2 1.0 1.5 2.3 3.2 5.0 10.0
Telenor 0.7 1.5 2.1 3.0 7.0 10.0
TeliaSonera 0.8 1.0 1.8 2.5 3.5 4.3 10.0 14.0 20.0
North America
Canada BWA 2.0 50.0 98.0
Rogers 6.0 20.0 30.8
Telus 6.0
US AT&T Mobility 25.0 747.0 1,469.0
Leap Wireless 1.0 1.9
Metro PCS 20.0 150.0 285.7 357.1 428.6 500.0 593.5
US Cellular 2.0
Verizon 65.0 504.2 1,705.8 3,102.3 5,330.3 8,004.6
Note: Figures refer to quarter-end.
Source: Informa Telecoms & Media
6 © 2012 Informa UK Ltd. All rights reserved. www.informatandm.comFig. 2: Global, LTE subscriptions (000s), by country and operator, 1Q10-1Q12 (continued)
Country Operator 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
Latin America
Puerto Rico America Movil 0.4
AT&T Mobility 0.6 1.2
Uruguay ANCEL 0.6 1.3
Middle East
Saudi Arabia STC 1.0 5.0 9.0
SMTC 0.5 2.0 3.5
UAE Etisalat 3.0 5.5
Global total 1.8 2.1 23.3 224.4 837.6 2,246.0 4,500.6 9,575.1 15,089.8
Note: Figures refer to quarter-end.
Source: Informa Telecoms & Media
The ways that the early-launchers Fig. 3: When are you planning to launch commercial services using LTE?
of LTE are approaching LTE reflects (If you have already launched, please state the launch year)
this dichotomy:
2009: 0.6%
• Some are positioning LTE in new 2016+: 4.0% 2010: 4.0%
2015: 8.1% 2011: 6.4%
ways, mainly as a direct substitute
or replacement for fixed broadband
services. This is happening in rural 2014: 17.3%
areas in particular when regulatory
2012: 34.1%
requirements have demanded it,
most notably in Germany.
• The majority are positioning LTE
2013: 25.4%
as an extension of their 3G mobile
broadband proposition, one that n=336
Source: Informa Telecoms & Media
many, but not all, are charging a
premium for.
• Operators that are positioning LTE Fig. 4: Global, LTE launches by technology and band, 1Q12
as a stand-alone premium mobile
broadband service are using 20
enhanced speed as the main, if not
Number of operators*
15
sole, benefit of paying the extra
monthly charges being made to
10
access the network.
5
Aggressive LTE operators
For the two main US mobile 0
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00
00
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0
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operators, Verizon and AT&T, the
(IV
(IV
70
60
60
80
18
21
23
25
26
E
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/2
E
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00
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LT
LT
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decision to move so aggressively
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on LTE was, and still is, a function
E
E
LT
LT
LT
of the particular characteristics
of that market – the early award *Where available
Source: Informa Telecoms & Media
of spectrum suitable for LTE
deployments, combined with
stressed legacy networks. in December 2010. It was very from the dwindling CDMA ecosystem
aggressive in terms of both build-out to a global standard while at the
Verizon Wireless was the first and subscriber acquisition targets same time ensuring that it made its
operator in the US to launch LTE, because it needed to transition away network investments in a technology
© 2012 Informa UK Ltd. All rights reserved. www.informatandm.com 7with a stronger future than 1xEV-DO. AT&T, meanwhile, needed to relieve country’s nascent LTE market,
To this end, the operator is trying the much-publicized strain on its demonstrating that, once a strong
to migrate its 1xEV-DO subscribers 3G network, which was particularly competitor launches LTE, operators
to its LTE network to minimize acute in key markets such as are pressured to respond to remain
the amount of investment it needs New York City and San Francisco. competitive.
to make on its 1xEV-DO network, Equally as important, AT&T had
and aims to have LTE coverage to ensure that its main rival didn’t Japan’s NTT DoCoMo is pushing
comparable with 3G by mid-2013. create an uncatchable lead in the LTE aggressively to capture the
high ground with early adopters
Fig. 5: Which spectrum bands do you intend to use to deploy LTE? (multiple and enterprise users. Based on the
choice) advantages it derived from launching
50 3G early, DoCoMo perceives that
there are clear benefits in being first
Number of operators*
40
to market with a new technology
30 in its extremely tech-savvy home
20 market. DoCoMo had 2 million LTE
users at end-March, surpassing
10
its end-March annual target of 1.3
0 million, meaning that the service
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early-adopter segment and into the
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n= 336 broader market.
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(p
Source: Informa Telecoms & Media
Cautious LTE operators
Fig. 6: Do you believe there is a viable business case to launch LTE in your Operators that haven’t been
market today? successful in signing up users cite a
combination of three main factors:
No
29.2% • Although LTE dongles are in the
market, the fact that the fast-
increasing majority of mobile data
Yes
70.8%
usage is via smartphones rather
than dongles has been a lag on
the uptake of services.
• There is a perceived lack of a
n= 341 strong need for mobile broadband
Source: Informa Telecoms & Media
speeds faster than 3G offers, in
tandem with a lack of a clear
Fig. 7: What is your primary motivation for deploying LTE? value proposition for LTE that is
distinct from 3G.
Other (please specify)
3.0% • Operators with robust 3G
To enter mobile data
market for the first time networks don’t face capacity
7.1% constraints compelling them
Current networks do not
offer sufficient capacity to migrate subscribers to LTE
23.8%
quickly.
Build brand value through
technology leadership
31.0%
Create new revenue
streams based on LTE
35.1%
n=341
Source: Informa Telecoms & Media
8 © 2012 Informa UK Ltd. All rights reserved. www.informatandm.comMarket development
“With the ongoing increase in iPhone expected in 3Q12, will have vary and operators need to decide
the amount of data that existing a significant positive impact on LTE between a handset and a network-
mobile users consume, as well as subscription uptake in markets where based solution.
the accelerating penetration of the device works on those networks.
mobile broadband into new user Regional US mobile operator
groups, operators will increasingly LTE subscription forecasts MetroPCS was the first operator to
differentiate themselves on the Informa Telecoms & Media forecasts launch LTE in the US, in 3Q10. It says
quality of their mobile broadband indicate that Asia Pacific will be it will be the first operator in the
experience.” the region with the most LTE world to offer VoLTE, in 3Q12, with a
subscriptions from the end of 2013 device supplied by Samsung in the
Many new LTE networks will be onwards, driven by expected large- first instance. MetroPCS wants to shift
launched in 2012 in tandem with scale rollouts in China. The global voice traffic from its CDMA network so
broadly conservative approaches total is forecast to reach 609.1 million it can re-use that spectrum for LTE,
to positioning and pricing services. by the end of 2016. LTE subscriptions while Verizon Wireless is set to launch
Greater innovation, albeit very will see the highest year-on-year VoLTE services by the end of this year.
gradual, will be seen in the market in growth between 2012 and 2013, as
2013 and beyond. This innovation will operators worldwide, in particular in How operators approach VoLTE
be driven by the availability of a wider Europe and Asia Pacific, launch LTE will be a key factor in determining
range of LTE devices running different networks (see fig. 8). the value of their service offerings
operating systems (iOS, Android and in general and LTE services in
Windows) in conjunction with more LTE voice particular. According to Informa’s
widespread rollouts of LTE networks, Although an industry-wide approach LTE survey, IMS voice will be the
as well as the broad deployment has been agreed for VoLTE, there main approach to VoLTE (see fig. 9).
and uptake of an industry-standard are no VoLTE-enabled devices in the However, LTE networks will give rise
approach to voice over LTE (VoLTE). market. Therefore, operators will have to more competition on voice than at
to take a phased approach to LTE present because consumers will have
Smartphones offering a compelling voice. Most operators have launched more choice on how they make voice
user experience drove mass-market LTE with circuit-switched fallback calls. This means that operators will
uptake of 3G subscriptions and (CSFB) for voice before transitioning have to ensure their voice offerings
LTE will be no different. Again, just to VoLTE in the longer term once the remain competitive in terms of pricing
like the iPhone kick-started mass- core network elements have been and features as OTT players launch
market mobile broadband use, LTE deployed and a wider range of devices increasingly innovative and compelling
smartphones, in particular the LTE are available. Approaches to CSFB offers.
Fig. 8: Global, LTE subscriptions by region, 2011-2016
North America Latin America Asia Pacific Western Europe Eastern Europe Middle East Africa
700
600
Subscriptions (mil.)
500
400
300
200
100
0
2011 2012 2013 2014 2015 2016
Note: Figures refer to year-end
Source: Informa Telecoms & Media
© 2012 Informa UK Ltd. All rights reserved. www.informatandm.com 9At the moment, LTE operators are Fig. 9: What do you think will be the primary solution for voice over LTE?
continuing to treat voice and data
Other (please specify)
as separate services, but, as voice 3.4%
Dual radio (e.g., Verizon’s model:
becomes part of the LTE value LTE for data, CDMA for voice)
proposition, there will be more 12.4%
innovation on bundling voice and
Circuit-switch fallback
data into single tariffs. Given that (CSFB) IMS-based VoIP
11.0% (OneVoice/VoLTE)
many operators already bundle large 47.9%
numbers of voice minutes with data Operator-managed
allowances into 3G subscriptions, this OTT VoIP
13.5%
strategy is expected to develop in the
LTE domain, with increasing numbers Unmanaged OTT VoIP
(e.g., Skype, Viber, etc)
of minutes bundled into subscriptions 11.7%
that cover voice and data access.
Source: Informa Telecoms & Media
10 © 2012 Informa UK Ltd. All rights reserved. www.informatandm.comRecommendations
Define the proposition: Is LTE another part of the mobile broadband jigsaw or an
entirely new picture?
Operators need to decide if they are going to position LTE as just another part of the mobile broadband jigsaw or
position the technology as offering significant benefits over 3G. If the latter, then evidence from operators that have
positioned LTE as a new proposition compared with 3G suggests that operators need to rely on more than just
speed to make a success of this strategy. Many operators have yet to articulate the LTE consumer value proposition
effectively, and those that haven’t must work to convey the real value of LTE to customers. Key questions operators
need to address are: Why should consumers sign up to LTE? What difference does speed make to them?
If operators don’t charge a premium for LTE, they can still make a return on
investment by enhancing the overall mobile broadband proposition relative to rivals.
Old principles hold absolutely with the advent of LTE. The operator with the best network and the most
competitively-priced services that offer the best perceived value will still win on ARPU and churn. LTE should be
seen as a way to reinforce this fact rather than as a way to generate “new revenues”.
Build a story out of LTE – don’t just sell a technology at a competitive price
Operators are still positioning LTE as a technology rather than a service that can provide clear value benefits over
3G. They should attempt to clearly communicate the advantages of LTE over 3G in terms of the overall quality
of experience. The entire retail chain should be involved in this, including giving online demos of the benefits of
LTE over 3G in retail stores. Take customers on a journey of continually and incrementally improving the mobile
broadband experience.
Be ready to respond to first movers
Operators need to be prepared for launch so that they are in a position to react quickly if a main rival launches.
However, operators should also resist launching simply because the competition has – the decision must be based
on a sound business case and a thorough examination of the risks of not launching. How much advantage can an
operator gain by waiting to launch while it expands its LTE coverage and hones its service proposition?
Offer a compelling user experience at low price points to drive uptake and further
usage over time
Users will consume more data over LTE if the experience is perceptibly better than 3G and so are more likely to
be prepared to pay to use the service more. Offering an LTE experience with small amounts of data per month
(e.g., sub 1GB) is a sound way to encourage the uptake of the service and, once the customer is signed up, to then
encourage a greater usage of it, rather than expecting customers to jump to significantly higher speeds and data
allowances than they are used to on 3G.
© 2012 Informa UK Ltd. All rights reserved. www.informatandm.com 11ABOUT INFORMA TELECOMS & MEDIA
Informa Telecoms & Media is the leading provider of business intelligence and strategic marketing solutions to
global telecoms and media markets.
Driven by constant first-hand contact with the industry, our 65 analysts and researchers produce a range of
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For more details on Informa Telecoms & Media and how we can help your company identify future
trends and opportunities, please contact:
Giovanni Cerrini
Informa Telecoms & Media
giovanni.cerrini@informa.com
+44 (20) 701 75296
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