LTE: Show Me The Money!
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.