Today's network service provider is charged with finding ways to
reduce overall network costs, while also fully monetizing their
network assets for more revenue and better margins. A new report
from Mobidia Technology and Informa suggests that 4G LTE may
present one of the best opportunities to execute such a
Findings from their research suggest LTE subscribers on average
are taking advantage of greater 4G bandwidth and using
more mobile data, such as video services, than their 3G
counterparts. As a result, 4G LTE business models appear to provide
better monetization opportunities than previous wireless
Examining the leading LTE markets of Japan, Korea and the U.S.,
Mobidia's data also indicates the makings of a trend toward reduced
Wi-Fi usage both in relative and absolute terms. The data included
in their "Understanding Today's Smartphone Users" report also shows
an increase in adoption of new pricing plans and a shift away from
Taken together these "suggest a positive opportunity for the
more than 100 mobile operators that have already deployed LTE,"
according to Mobidia's press release. "The generational change to
LTE is driving increased demand for mobile data and presenting
operators with the ability to monetize that data in more
sustainable ways," they write.
In their analysis of LTE usage in September 2012,
Mobidia and Informa found, among other things, the
- In all markets, LTE subscribers used significantly more mobile
data than 3G subscribers. Specifically, in Korea and Japan, markets
often used as leading indicators of mobile trends, Mobidia recorded
increases of 132 percent and 67percent, respectively.
- At the same time, decreases in relative Wi-Fi usage in all
markets were also noted and Korea registered an absolute decrease.
While Wi-Fi usage is still very significant, the data points to a
possible trend towards a decrease in reliance, suggesting an
opportunity for LTE operators.
- LTE operators' strategy to reset pricing plans during the
transition to 4G appears to be working. Mobidia's data shows
significant decreases in unlimited plans and increases in
larger-sized, volume-limited plans. As an example, only seven
percent of SKT LTE subscribers are using unlimited plans compared
to 24 percent of SKT 3G subscribers. Additionally, the percentage
of SKT subscribers on 2G or higher plans increased from only 10
percent of 3G subscribers to 62 percent of LTE subscribers.
Commented Derek Sprat, Mobidia's president and CEO, "Based on
our analysis of early LTE usage, it looks like operators have a
strong opportunity to increase demand for mobile data while
implementing stronger and more sustainable ways to monetize that
data during the transition to 4G."
carriers should study these trends within their own markets closely
and adjust their business models accordingly. These trends also
favor Wireline only carriers, at least to the extent that they
continue to build robust fiber backhaul facilities for wireless
backhaul and small cell opportunities. Continued growth in wireless
data means continuing needs for more robust backhaul, which only
comes from rich fiber and Ethernet connectivity.
CHR Solutions has vast experience in helping both wireless and wireline
carriers identify these market opportunities and develop and
execute business strategies to capitalize on them.