LTE: opportunities and impact on operators
About LTE:
LTE
is an acronym for Long Term Evolution,
it is a 4G wireless communications standard developed by the 3rd Generation
Partnership Project (3GPP) that is designed to provide upto 10 times the speeds
of 3G networks for mobile devices such as smartphones
, tablets
and wireless hotspots.
4G technologies
are designed to provide IP-based
voice, data and multimedia streaming at speeds of at least 100 Mbit/sec and up
to as fast as 1 GBit/sec. It is basically dealing with much more high speed
than one would have expected. For example: while downloading, a movie gets
downloaded in just one second...that is the speed they are provided by the
operators.
The first commercial LTE networks were launched
by TeliaSonera in Norway and Sweden in December 2009; as of 2012, there
were 117 commercial LTE networks in various stages of commercial service.
But, the plan is for 130 LTE deployments by the end of 2013 or in start-ups of
2014.
Opportunities and
Impact on Operators:
As per recent stats new Long Term Evolution
(LTE) mobile phones and proclamations of unsurpassed network speeds, Mobile
Network Operators (MNOs) are invested heavily in the role. As LTE will play in
their future competitiveness. LTE network rollouts are underway
at various stages in major U.S. and global markets, so as per this the time is
now for MNOs to monetize these investments by delivering new, innovative
advanced communications services alongside voice to enterprise end-users and
consumers.
According to research firm Informa 70% of global operators
believe 4G services should be launched everywhere by 2013. The sense of urgency
is not simply perceived but very real, resulting from a small but closing
window of opportunity for MNOs to be the provider of choice when it comes to
delivering unified communications services – including mobile video calling,
instant messaging and presence, and Web collaboration – to customers. Top players
such as Apple and Google are
chomping at the bit to seize mobile subscribers and revenues, while the
increasingly mobile workforce now demands a consumer-grade communications
experience that matches what they have come to expect on their tablet, iPhone,
Android and BlackBerry devices.
The ability of MNOs to
capitalize on this opportunity will go a long way toward shaping the future of
mobile broadband communications, including but not limited to what services are
available to enterprise end users and consumers, who delivers these services
and, of course, what customers will have to pay for these services. A better
word than capitalize is monetize. Mobile operators must start the process of
monetizing LTE today.
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. 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. Various survey by mobidia’s data shows significant
decreases in unlimited plans and increases in larger-sized, volume-limited
plans. As an example, only seven percent of LTE subscribers are using unlimited
plans compared to 24 percent of 3G subscribers. Additionally, the percentage of
subscribers on 2G or higher plans increased from only 10 percent of 3G
subscribers to 62 percent of LTE subscribers. So, to conclude the impact is severe
at present on operators but the future is hopeful and operators can invest in
this technology.
Vivek Chaturvedi
Class of 2015