Built around five detailed country case studies of markets where LTE networks have been launched, LTE Business Models: Best Practices in Network Deployment, Positioning and Service Pricing to Maximize Market Opportunity, a new Report by Pyramid Research, examines LTE spectrum allocation and availability, network deployment considerations, product and pricing strategies and LTE adoption trends as well as drivers for market growth. Highlighting what works and what doesn’t – based on the experience of commercial operators – this report uncovers the pain points and the keys to success for LTE service providers worldwide.
• The availability of spectrum underpins the timing and scale of LTE deployments and operators’ competitive positioning long-term. The importance of access to appropriate LTE spectrum has resulted in high bids for auctioned spectrum, acquisitions of companies with relevant spectrum and loss of 2G market share for the sake of spectrum reframing.
• Adoption of LTE differs depending on the market. As competitive operators reach nationwide coverage, adoption accelerates. To retain their high-value customer bases and keep a network edge, market leaders have to launch LTE first; challengers must minimize this edge and consider disruptive pricing strategies.
Device strategies are important in order to drive upgrades:
• Ensuring the availability of a range of devices including popular, exclusive as well as low-cost devices that meet operator configuration requirements such as frequencies and backward compatibility with 2G and 3G networks is fundamental.
• LTE device adoption can be maximized by offering low-cost devices, providing financing and annual handset upgrade options, limiting the availability of non-LTE devices if appropriate (particularly among tablets) and offering smartphones that target less technology-savvy customers. Shared-data plans also help drive adoption, and more operators are targeting LTE car connectivity.
• Pricing LTE at a premium has clearly been the right strategy in markets where demand has been strong, thus boosting margins. However, premium pricing comes with downsides and risks, which have been exposed in different markets.
• Driving wide adoption of data-intensive services is crucial to a successful LTE strategy. Relevant services must not only take advantage of LTE’s better speeds and performance but also encourage greater data usage to boost ARPS.
• LTE drives data usage, typically increasing consumption by 80-120% compared with 3G.
• LTE can provide an attractive alternative to fixed broadband; just how attractive depends on the market.
• VoLTE will reinvigorate voice services and counter OTT providers, and operator approaches and plans to providing high-quality VoLTE services vary.
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Highlighting what works and what doesn’t – based on the experience of commercial operators – it uncovers the pain points and the keys to success for LTE service providers worldwide.
The report is structured as follows:
Section 1: LTE technology roadmap, network deployment update and market opportunity. This introductory section outlines why LTE has been successful against alternatives, provides details about the standards and evolutionary roadmap as well as VoLTE readiness, and gives the current global deployment status by frequency band. Also included is Pyramid Research’s assessment of the global market opportunity for LTE adoption through 2018.
Section 2: LTE Business Models and impact on operator KPIs. This core section of the report is a comparative analysis of lessons learned from commercial LTE networks worldwide, looking at network deployments, adoption, devices, pricing, data usage, ARPS (including an in-depth study of South Korea), services, VoLTE and LTE positioning against fixed broadband. The case studies are supplemented by further examples from around the world. The relative performance of market leaders and challengers as well as their respective strategies are examined.
Section 3: Analysis of leading and emerging LTE markets. Five in-depth country case studies analyze the impact of LTE on operators’ performance and compare how operators have competed in terms of network deployments, pricing and positioning. The countries covered are Japan, South Africa, South Korea, the UK and the US.
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Reasons To Buy
1. The “LTE Business Models” report provides a comprehensive examination of lessons learned and best practices from commercial LTE networks in different market environments to help executives develop business plans and product development plans effectively as well as optimize resource allocation and return on investment.
2. This report provides a five-year forecast of LTE subscriptions, developed using Pyramid Research’s rigorous bottom-up modeling methodologies, to enable executives to effectively position their companies for emerging trends in demand for their products and growth opportunities.
3. The report incorporates an easily digestible, executive-level assessment of LTE business models worldwide built around insights directly from the market players, which enables decision makers to quickly get up to speed with the current and emerging trends and make informed investment decisions.
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