LTE Operator Strategies: Key Drivers, Deployment Strategies, CAPEX, OPEX, Price Plans, ARPUs and Service Revenues 2012 - 2016


Hyderabad, Andhra Pradesh -- (SBWIRE) -- 05/29/2012 -- Skyrocketing mobile broadband demand is driving an ever increasing number of commercial LTE network deployments. This surge has seen the number of LTE subscriptions already surpass 7 Million subscriptions worldwide, and over 300+ commercial LTE user device launches. As Mobile Network MNOs (MNOs) remain committed to deliver mobile broadband services over their LTE networks, a number of critical questions remain unanswered:

How much revenue can an MNO generate with an LTE deployment ?

What is the typical ARPU for an LTE subscription worldwide or in particular regional market and how will it fluctuate in the next 5 years ?

What is the relative Total Cost of Ownership (TCO) of an LTE network in comparison to competing technologies such as HSPA + and WiMAX ?

What is the market outlook for VoLTE (Voice over LTE) and wholesale LTE networks, and when would the first VoLTE deployments take place ?

How much CAPEX and OPEX would an MNO require to deploy at LTE network, and what strategies can be adopted to minimize both CAPEX and OPEX ?

Covering over 325 global MNOs in 120 countries, this report answers the aforementioned questions by quantifying LTE service revenues, subscriptions, ARPUs, CAPEX and OPEX. In addition, the report reviews key trends in LTE deployment strategies such as VoLTE and SMS over LTE, the wholesale deployment model, Self-Organizing Networks (SONs) and the emergence of the data off-load (small cells, HetNets, Wi-Fi offload) equipment market.

The report further provides a global review of LTE price plans and key MNO strategies for LTE pricing and marketing. The report is supplement by an excel based interactive forecasting suite that can be used to forecast LTE service revenue, ARPUs, and subscriptions for particular regional markets, countries or MNOs from 2011 till 2016.

ARPUs and Operator Service Revenues

Driven by early adoption among the enterprise users, LTE ARPUs will peak in 2012 reaching 88 USD per month, and drop down by a YoY decline of 16 % over the next five years as the consumer market segment gains a higher market share.

Having already surpassed 7 Million subscriptions, LTE subscriptions are set to grow at a CAGR of 150 % over the next five year period.

Growing at a CAGR of 80 % global LTE service revenues will reach 291 Billion, representing a lucrative market for worldwide MNOs. LTE service revenues presently account for 15 Billion USD.

While the Asia Pacific region will attain the highest number of subscriptions by 2016, the North America and Western Europe region will retain market leadership in terms of service revenues according for almost 60 % of all LTE service revenues worldwide.

Deployment Strategies

Mind Commerce estimates the first VoLTE deployments will take place in Q4'2012, with US and Korean MNOs the first to enter the market.

While early market prospects in the US appear to be deteriorated, the wholesale LTE model will increasingly gain momentum over the next 5 years, and we expect to see the first commercial launch by UK Broadband in 1H 2012.

CAPEX and OPEX Strategies

By 2016, the Total Cost of Ownership (TCO) for LTE will remain 44 % lower than HSPA+ and 50 % than WiMAX.

If used to full potential, SON technology has the potential to reduce worldwide LTE deployment CAPEX $ 55 Billion, and $ 15 Billion in OPEX by 2016

Pricing Strategies

Most MNOs are adopting tiered based price plans based on volume and speed in order to maximize revenue while managing capacity. Unlimited plans may gain momentum as MNOs learn to divert revenues with OTT (Over-The-Top) players with technologies such as VoLTE, and as they attain cheaper network TCO by deploying small cells and WiFi offload equipment.

Mobile Network Operators (MNOs): Will make well-informed decisions about deployment strategies, CAPEX/OPEX reduction and price plans. Furthermore, ""Greenfield"" operators will understand how to capitalize on LTE technology by assessing the strategies of well established CSPs and MNOs.

Mobile Network Infrastructure Vendors and Handset Manufacturer: Will assess particular issues faced by MNOs investing in LTE and align their product offerings accordingly.

Application Developers: Will evaluate opportunities to invest in developing applications and services that run on LTE networks by understanding the market dynamics of LTE.

Investors: Will better understand the LTE technology and its market potential, its value chain and potential. This report will help investors evaluate the investment prospects in the promising LTE ecosystem."

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