LTE Launch Strategies Webinar - 29th Nov 2012

7/29/2019 LTE Launch Strategies Webinar - 29th Nov 2012

1/13

LTE launch strategiesWhats working and what isntLondon, 2-3pm GMT, November 29, 2012

Paul Lambert Thomas WehmeierSenior Analyst Principal Analyst

Operator Strategy Operator Strategy


2/13

LTE is at the top of everyones priorities

What will be the single most important area of focus

for telecoms and TV operators in 2013?

Which technologies and strategies will drive profitable

top-line growth in your organization in 2013?

2

0% 5% 10% 15% 20% 25% 30%

Other (please specify)

Partnerships with other

operators and Internet players

Efficiencies, cost control and best

practice

New digital service developments

(digital services)

Customer experience

management

Network deployments and

developments (NGN and LTE)

% of respondents

Source: Informas Industry Outlook Survey 2013, Oct 2012, CSP respondents only, n=280

0% 10% 20% 30% 40% 50% 60% 70%

Other (please specify)

SDN

Ethernet

High-definition video

Wi-Fi

Multiscreen video

Machine to machine (M2M)

On-demand video

Converged billing

Apps and app stores

Superfast fixed-line broadband

Cloud computing

4G / LTE

% of survey respondents

www.informatandm.com

Informa UK Limited 2012. All rights reserved


3/13

Where is LTE today?

111 live networks in 50+ countries

Reaching more than 0.5 billion people

~50 million connections to LTE networks

Over 550 LTE-enabled devices, according to GSA

LTE connections by geography, 3Q12

Number of LTE-enabled smartphones by operator, Nov-12Global commercial LTE network deployments, Nov-12

Source: Informa Telecoms & Media

~90% of total global

connections




4/13

4

Not charging a premium for LTE

over 3G is used by some of the

most successful LTE operators,

measured by subscriptions.

Main strategic LTE tariffing

choice facing operators is:

charge a premium over 3G (if

so, how much?) or price LTE on

a par with 3G?

LTE operators that charged a

clear premium over 3G areadjusting their prices to bring

them in line with 3G rates.

Operator LTE connections % of total base Current premium v 3G (%)*

Verizon Wireless 14.9m 13 0

NTT DoCoMo 6.2m 10 0

SK Telecom 5.7m 21 0

AT&T Mobility USA 5.1m 5 0

LG U+ 3.6m 36 0

KT Corp 2.5m 15 0

Metro PCS 1.1m 1 0

Rogers Wireless 0.8m 8 0Yota 0.7m 100** n/a

Telstra 0.6m 4 0

*Lowest-priced LTE monthly subscription compared with lowest price 3G subscription

**LTE-only network operator

Source: Operators, Informa Telecoms & Media

Top 10 largest LTE operators by connections, 3Q12

Which operators have had the most success?




5/13

Ready, set, go. Whens the right time to launch?

Spectrum acquisition

Spectrum refarming & liberalization

Technology leadership & 1st-mover adv

Technology transitions (CDMA, WiMAX)

Government stimulus

Competitive dynamics

Vendor push & lemming mentality

LTE ecosystem maturity

5

Key business case drivers

Increase total bandwidth availability

Improve customer experience

Lower the cost of data delivery

Alleviate traffic bottlenecks

Drive customer upsell (ARPU accretion)

Differentiate proposition and grow share

Open up new revenue streams

Enhance competitive positioning

External factors driving launch timings




6/13

Is there a smart follower advantage?

6

Mature deviceecosystem

Pricing &

positioning clarityVoice over LTE

maturing

Advances in LTE

roaming

Network stability &reliability

Understanding ofusage patterns




7/13

Speed

Coverage

Latency demos on operator websites

7

What can users DO with 4G?

What are the end-user benefits?

How will their experience change?

What are the lessons learned in how to position

and market LTE to consumers?

Source: AT&T




8/13

Are any LTE services emerging?

8

Consumer Business

DownloadHigh-definition video

streaming and VoD

High-speed file

transfers

Upload

Personal content

sharing; consumer

cloud applications

Enterprise cloud

applications

Latency

Online gaming; real-

time voice and video

communications

Real-time voice and

video communications;

corporate VPN

EE FilmEE (UK)

ViewdiniVerizon Wireless (US)

joynMetroPCS (US)

Source: Informa Telecoms & Media

Popular services used to promote LTE benefits




9/13

Operators will be able to charge a premium for VoLTE/RCS services

Operators will begin to win-back traffic lost to alternative providers

Operators will see some incremental increases in voice revenues

Best case scenario

VoLTE/RCS will have no impact on traffic erosion to alternative providersOperators will be unable to charge any premium and prices will continue to decline

Voice revenue declines will continue and, potentially, accelerate

Worst case scenario

VoLTE/RCS will help slow the decline of traffic loss to alternative providers

Operators will not be able to charge any premium

Voice revenues will continue to decline, but at a slower rate

Likely scenario

Voice for LTE, VoLTE and the prospects

for voice revenues

9

VoLTE branding in

South KoreaLive VoLTE deployments

SK Telecom (South Korea), August

2012

LGU+ (South Korea), August 2012

MetroPCS (US), August 2012

User perception of interim voice for LTE solutions has

been surprisingly positive

Clear evidence of a shift to unlimited voice, e.g.,

Verizon Wireless, EE, Swisscom

There is a deep level of scepticism about the ability

to monetise VoLTE/RCS

Rich and HD voice services are table stakes, not

premium services

The business case for VoLTE appears to be based

primarily on spectrum usage efficiency

Operators are generally committed to VoLTE, but will

not feel rushed to launch

Operators that begin to approach nationwide

coverage will move quickest to VoLTE

Potential scenarios for voice

Selected early conclusions on voice for LTE




10/13

How are consumers using LTE? How much data

are they consuming?

10

LTE accounts for 35% of

total data traffic

LTE will surpass 3G traffic in

early 2013

Customers on Vodafones

fixed-broadbandreplacement service use

11.5-12GB per month

LTE smartphone usersconsume ~50% more data

versus 3G smartphones

Average monthly LTE

smartphone usage is 1.6GB

vs. 1.1GB on 3G

LTE smartphone usersconsume 8x more data

compared to 3G users

Users on MetroPCSunlimited LTE data plans

consume 2-2.5GB on

average per month

LTE users consume 2-5x

more data than 3G users

LTE accounts for 10% of

traffic despite

Source: All data as reported by operators directly




11/13

Concluding remarks

LTE is an evolution, not a revolution

Focus marketing on tangible benefits

Align all functions internally around the launch

Price LTE for the mass market

11www.informatandm.com



12/13

How can Informa Telecoms & Media help you to

develop your LTE strategy?

12

Market status

Future market

scenarios

Businessmodels

Risk-reward

analysis

UnderstandBusiness casemodeling

Technology

strategy

Go-to-marketstrategy

Device

strategy

BuildPricingstrategy

Segmentation

strategy

M2M andwholesalestrategy

Roaming

strategy

Monetize

Further reading

Free white paper: http://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdf

Premium analysis: https://commerce.informatm.com/reports/successful-lte-strategies.html


http://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdfhttps://commerce.informatm.com/reports/successful-lte-strategies.htmlhttps://commerce.informatm.com/reports/successful-lte-strategies.htmlhttps://commerce.informatm.com/reports/successful-lte-strategies.htmlhttps://commerce.informatm.com/reports/successful-lte-strategies.htmlhttps://commerce.informatm.com/reports/successful-lte-strategies.htmlhttps://commerce.informatm.com/reports/successful-lte-strategies.htmlhttps://commerce.informatm.com/reports/successful-lte-strategies.htmlhttp://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdfhttp://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdfhttp://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdfhttp://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdfhttp://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdfhttp://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdfhttp://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdfhttp://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdfhttp://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdfhttp://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdfhttp://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdfhttp://www.informatandm.com/wp-content/uploads/2012/07/Successful-LTE-strategies-white-paper.pdf


13/13

Thank you

Paul Lambert Thomas WehmeierSenior Analyst, Operator Strategy Principal Analyst, Operator Strategy

@lambertpaul @twehmeier

[email protected] [email protected]

Documents

LTE Launch Strategies Webinar - 29th Nov 2012