LTE Launch Strategies Webinar - 29th Nov 2012
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Transcript of LTE Launch Strategies Webinar - 29th Nov 2012
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7/29/2019 LTE Launch Strategies Webinar - 29th Nov 2012
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LTE launch strategiesWhats working and what isntLondon, 2-3pm GMT, November 29, 2012
Paul Lambert Thomas WehmeierSenior Analyst Principal Analyst
Operator Strategy Operator Strategy
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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?
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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
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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
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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?
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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
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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
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Informa UK Limited 2012. All rights reserved
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Is there a smart follower advantage?
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Mature deviceecosystem
Pricing &
positioning clarityVoice over LTE
maturing
Advances in LTE
roaming
Network stability &reliability
Understanding ofusage patterns
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Speed
Coverage
Latency demos on operator websites
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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
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Are any LTE services emerging?
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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
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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
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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
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Informa UK Limited 2012. All rights reserved
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How are consumers using LTE? How much data
are they consuming?
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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
www.informatandm.com
Informa UK Limited 2012. All rights reserved
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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
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How can Informa Telecoms & Media help you to
develop your LTE strategy?
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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
www.informatandm.com
Informa UK Limited 2012. All rights reserved
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 -
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Thank you
Paul Lambert Thomas WehmeierSenior Analyst, Operator Strategy Principal Analyst, Operator Strategy
@lambertpaul @twehmeier