New Research: LTE Business Models - Best Practices In Network Deployment, Positioning And Service Pricing

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Built around five detailed country case studies of markets where LTE networks have been launched, LTE Business Models: Best Practices in Network Deployment, Positioning and Service Pricing to Maximize Market Opportunity, a new Report by Pyramid Research, examines LTE spectrum allocation and availability, network deployment considerations, product and pricing strategies and LTE adoption trends as well as drivers for market growth. Highlighting what works and what doesn’t — based on the experience of commercial operators - this report uncovers the pain points and the keys to success for LTE service providers worldwide.

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Key Findings

The availability of spectrum underpins the timing and scale of LTE deployments and operators’ competitive positioning long-term. The importance of access to appropriate LTE spectrum has resulted in high bids for auctioned spectrum, acquisitions of companies with relevant spectrum and loss of 2G market share for the sake of spectrum reframing.
Adoption of LTE differs depending on the market. As competitive operators reach nationwide coverage, adoption accelerates. To retain their high-value customer bases and keep a network edge, market leaders have to launch LTE first; challengers must minimize this edge and consider disruptive pricing strategies.
Device strategies are important in order to drive upgrades: 
Ensuring the availability of a range of devices including popular, exclusive as well as low-cost devices that meet operator configuration requirements such as frequencies and backward compatibility with 2G and 3G networks is fundamental.

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LTE device adoption can be maximized by offering low-cost devices, providing financing and annual handset upgrade options, limiting the availability of non-LTE devices if appropriate (particularly among tablets) and offering smartphones that target less technology-savvy customers. Shared-data plans also help drive adoption, and more operators are targeting LTE car connectivity.
Pricing LTE at a premium has clearly been the right strategy in markets where demand has been strong, thus boosting margins. However, premium pricing comes with downsides and risks, which have been exposed in different markets.
Driving wide adoption of data-intensive services is crucial to a successful LTE strategy. Relevant services must not only take advantage of LTE’s better speeds and performance but also encourage greater data usage to boost ARPS.
LTE drives data usage, typically increasing consumption by 80-120% compared with 3G. 
LTE can provide an attractive alternative to fixed broadband; just how attractive depends on the market.
VoLTE will reinvigorate voice services and counter OTT providers, and operator approaches and plans to providing high-quality VoLTE services vary.
Synopsis

This report examines LTE spectrum allocation and availability, network deployment considerations, product and pricing strategies and LTE adoption trends as well as drivers for market growth. Highlighting what works and what doesn’t — based on the experience of commercial operators — it uncovers the pain points and the keys to success for LTE service providers worldwide.

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