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LTE: Show Me The Money!

by on November 12th, 2010

Or to paraphrase: how can we monetise LTE? Yes that’s definitely the question on the industry’s lips. This week at Juniper we published our new report looking at LTE Business Models and Scenarios. In fact we produced a special report for Computer Weekly which includes a video that you can see here on their site. There’s further coverage in both the Juniper opinion piece and the Computer Weekly news story.

Judging from the Huawei Analyst Conference this week, whilst of course technical capabilities are always going to be front of mind, revenues and service monetisation are central to thinking now as we begin to see LTE networks rolled out into commercial service. The Huawei Mobile Broadband Trailer, for example, had a number of examples including the Digital Shopping Mall.

In the research that Juniper conducted across the industry, there was almost universal conviction that flat rate will not continue and that new tariffs will arrive. Based on our research, tiered plans were a popular choice but positioning LTE as a premium service was an option that our interviewees saw very possible. Again this week, this option has been a popular choice.

After all, most business users will have experienced the scenario of being in a station or airport, logging on and then waiting …and waiting longer for those emails to download, or once logged on waiting for the updated version of that mission critical customer presentation to be sent.

Because of that, we’ve modelled how revenues will look over the next 5 years making assumptions about the cost of premium services, with a 4 tiered approach across three usage scenarios.

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3 Responses to “LTE: Show Me The Money!”

  1. Anders Borg on November 12th, 2010 at 7:47 pm

    My spin is two-fold:

    Enabler for high quality commercial media streaming, both ways and both B2B (surveillance, video conference, advertising etc) and B2C (video chat, movies, XXX etc), but to make full use of the value of this there’s need for specially priced premium bandwidth through the operators that the service providers would pay for. Technically simple to handle, but politically a sensitive area, what with the Google/Verizon debacle, and potential operator/region roaming pricing issues.

    Also, 3G/HSxPA is quickly being deployed as alternative to fixed broadband worldwide, and most people don’t even know 3G/HSxPA is involved. LTE will continue that trend for both mobile and non-mobile use. In other words Internet access in general, with the operators as ISPs, even more than now.

    As happened with fixed broadband, home/outside-work users will be the biggest (as in used bandwidth per capita), what with all the piracy, XXX, YouTube streaming etc.

  2. Howard Wilcox on November 15th, 2010 at 10:17 am

    Hi Anders
    Yes thanks for your comment. Certainly the premium bandwidth approach came up as a popular one in our research. The fixed broadband alternative with LTE is being initially offered in Germany so it will be interesting to see how it goes.

  3. Anar on December 5th, 2011 at 10:32 pm

    Thank you, very interesting research.

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