WP LTE Pricing and Packaging A4 7426

8/3/2019 WP LTE Pricing and Packaging A4 7426

1/14 Copy ight Openet Telecom, 2009

White PaperLTE Pricing and Packaging- Current Operator LTE Pricingand Packaging Overview

Copy ight Openet Telecom, 2011



LTE P icing and Packaging Current Operator LTE Pricing and Packaging Overview2

Index

Int od ction ............................................................................................................ 3Ove view of C ent P ice Plans Models ................................................................. 4TeliaSone a G o p ................................................................................................... 4TeliaSone a Sweden .............................................................................................. 4Netcom No way ..................................................................................................... 5Telia Denma k ........................................................................................................ 5Sone a Finland ....................................................................................................... 6EMT Estonia ........................................................................................................... 6Omnitel Lith ania ................................................................................................... 6Met oPCS ................................................................................................................. 7 A1 A st ia ................................................................................................................. 8Ve izon Wi eless ...................................................................................................... 9CSL .......................................................................................................................... 10Vodafone Ge many .................................................................................................. 11NTT DoCoMo - xi ..................................................................................................... 12De tsche Telekom ................................................................................................... 13What Next? ............................................................................................................... 14




INTrODuCTIONLTE is c ently live in 14 co nt ies, with fo ecasts p edicting that by the end of 2011 the ebe some 16 million s bsc ibe s sing LTE mobile devices1. Also the Global Mobile S pplie s Association (GSA), epo ts that the e is a total of 208 ope ato s in 80 co nt ies investing in and epo ts that LTE is the fastest developing mobile system technology eve2. As we app oach

a c itical mass of deployments, this pape looks at how some of the most advanced ea lyadopte s of LTE a e packaging and p icing data plans to thei s bsc ibe s.

The LTE deployments eviewed in this pape a e globally dive se, incl ding the united StatesJapan, Hong Kong, and seve al f om E ope. The deployments a e eviewed in ch onologico de . Fo many ope ato s thei LTE deployments a e at a ve y ea ly stage, often est icteto limited met opolitan a eas, and limited to mobile dongles. To date, only two uS ope ato s,Ve izon Wi eless and Met oPCS, have la nched LTE sma tphones.

In most ma kets, we a e seeing a p emi m being cha ged ove 3G. This has been as low as a19% inc ease and in one case whe e LTE is positioned as an alte native to xed line DSL, theLTE offe is act ally less expensive than the eq ivalent 3G offe . Howeve , one o two ope ado cha ge as m ch as 100% ext a. Ope ato s, who al eady have speed tie s fo 3G data, hav

ns p isingly taken the oppo t nity to extend this fo thei LTE offe s. Fai usage limits ain place with all of the ope ato s. Howeve , not all fai sage policies a e listed explicitly andexcessive sage on nlimited data plans is left to the disc etion of the ope ato .

The speci c sage limits imposed by mobile ope ato s va y d amatically, anging f om 20-3GB/month in many E opean ma kets, to 10GB/month o less in the uS and 5GB/month inothe ma kets like Japan. Once these caps a e eached, ope ato s a e applying a mixt e ofth ottling and ove age cha ges, with no nifo mity.

This pape examines some of the p icing and packaging sed by ope ato s in la nching LTEse vices. Altho gh only a handf l of ope ato s have la nched comme cial LTE se vices thea e seve al diffe ent ways ope ato s a e packaging and p icing these se vices. These incl d

Good p ice compa ison with 3G se vices pa ity with 3G p icing, o a elatively smap emi m on speed Ve izon Wi eless, NTT DoCoMo, TeliaSone a Sweden, EMT Esto

relatively high p ice diffe ential ove 3G foc s on netwo k speed to get ea ly adoptema ket Netcom, A1, Telia Denma k, Sone a Finland

New mobile b oadband se vice b ndling with voice and text as mobile inte net psellMet oPCS

DSL alte native fo home / of ce se Vodafone Ge many, De tsche Telekom B ndling with 3G as High Speed Netwo k foc sed on speed Hong Kong CSL

As of May 2011, it can be seen that LTE is foc sed on meeting the needs of a small s bsetof se s. Ope ato s a e sta ting to innovate with thei data plans and d ing the w iting of

epo t seve al ope ato s changed thei p icing plans in a d ive to att act new LTE s bsc ibHoweve , it is fai to say that at this stage LTE ep esents an evol tion of thei c ent 3Gp icing models, athe than a discontin o s b eak; foc sing on a combination of data vol mand netwo k speed, with most imposing a fai sage limit. The stando t exception of c entope ato s is the Hong Kong based CSL, which has int od ced a p icing plan cha ging byspeed only.

Notes:

1. All p ices a e q oted in uS$ in o de to help with di ect p icing compa isons.2. Exchange ates sed a e listed as an addend m to this doc ment.3. In compa ing 4G offe s with 3G offe s, the w ite s of this doc ment have sed themost elevant 3G data offe (in compa ative te ms of speed and vol me). This istypically the highest speci cation 3G plan, nless othe wise stated.4. All ope ato p icing info mation is acc ate at the time of w iting and may have changedsince p blication of this doc ment (May 2011).

LTE PricingandPackaging CurrentOperatorLTE PricingandPackagingOverview

1: Mobile E ope, May 3 d 2011, http://www.mobilee ope.co. k/news/p ess-wi e/8738-16-million-mobile-lts bsc ibe s-by-yea s-end2: http://www.gsacom.com - May 11th 2011




OVErVIEW OF CurrENT PrICE PLANS MODELSTeliaSonera Group

In Decembe 2009, TeliaSone a AB staked its claim on being the wo lds st ope ato tola nch LTE se vices comme cially to cons me s by t ning on its LTE netwo ks in No waySweden. The G o p has comme cial LTE se vices live in Sweden, No way, Denma k, FinlanEstonia and Lith ania. This pape looks at the p icing and packaging of the LTE se vice inSweden and p ovides p icing s mma ies fo the G o ps ope ations in the othe co nt ies.

Telia Sweden

Ope ating nde the e b and name Telia in Sweden, Telia is the leading mobile ope ato inSweden with 5.9M mobile s bsc ibe s. In addition, the Company also has 1.13 xed lineb oadband s bsc iptions.

LTE se vices we e initially available in 28 Swedish locations incl ding Stockholm, GothenbMalm, L nd, and Visby. By the end of 2011, TeliaSone a aims to have LTE se vices availablein ove 200 locations th o gho t Sweden.

C ently, Telia in Sweden offe s LTE modems. As it ope ates in co nt ies with a high

penet ation of s bsc ibe s on 3G mobile data plans, LTE is offe ed as an pg ade to 3G plan(g and and medi m plans), and the e a e n me o s p ompts on its website to get existingc stome s to pg ade to LTE se vices.

Being the longest established ope ato with LTE, Telia has evolved its data plans. It offe stie ed data plans based on speeds and monthly data allowances. TeliaSone a in Sweden isoffe ing th ee LTE plans Total, G and and Medi m. These offe ve y diffe ent p o les in of speed and vol me.

* Othe T&Cs apply; all plans come with Wi-Fi b ndled; th ee months f ee s bsc iption toSpotify as well as one months f ee movie package. Cont act te m is 18 months.** P emi m to pg ade f om Telia3G G and plan*** P emi m to pg ade f om Telia3G Medi m plan

The p ices listed above a e no mal list p ices. C ently Telia is nning a n mbe ofp omotions to get c stome s to sign p fo LTE se vices. These incl de a ed ced monthlys bsc iption cha ge of $56.55 fo its G and 4G and Total 4G plans. This p omotional ate issix months.

They a e also offe ing f the disco nts fo existing Telia 3G o xed b oadband c stometo pg ade to LTE. Fo example, existing c stome s pg ading get an $8.10 disco nt onthe p omotional fee when pg ading to the Medi m and the G and package. S bsc ibe s

pg ading to the Total 4G package eceive a $16.20 disco nt. These disco nts a e appliedalong with the c ent p omotional p ice and n fo six months. So an existing Telia 3G o

xed b oadband c stome co ld get the Medi m 4G package fo $40.35 a month fo the s6 months. When compa ed to the eq ivalent Medi m 3G package existing s bsc ibe s can

pg ade fo an additional $8.10/month, and fo new s bsc ibe s the e is a $16.20 diffe enti

between the Medi m 3G and 4G monthly s bsc iption cha ges.

Name Max SpeedDownload

Volume Post-Paid Pre-Paid Premiumto 3G

Enforcement

Total 80 Mbps 30GB $97.05 - 40%** Th ottle back

to 120 kbpsG and 20 Mbps 20GB $59.79 - 30%** Th ottle backto 120 kbps

Medi m 10 Mbps 10GB $48.44* - 20%*** Th ottle backto 120 kbps




Telia does not cha ge ove ages. Instead, when s bsc ibe s each thei limit, thei netwo kspeeds a e th ottled back to 120Kbps. Howeve , it is possible fo s bsc ibe s to p chase avol me top- p to get them to the next months data allocation. The cost of these data top psa e as follows:

Telias LTE oll o t is well nde way and thei p icing st ategy of offe ing f ee content anddisco nted monthly s bsc iptions to get c stome s to sign p indicate that they a e sta ting tagg essively ma ket this new se vice.

Netcom Norway

NetCom is the second la gest mobile phone ope ato in No way and is owned by TeliaSone aNetcom has app oximately 1.2m s bsc ibe s. In pa allel with TeliaSone as LTE la nch inSweden, Netcom also la nched its netwo k in No way, in Decembe 2009.

Netcom a e ma keting LTE p ima ily on speed and it is c ently available with mobileb oadband modems. Netcom diffe entiate thei two LTE plans, sing both bandwidth speedsand diffe ent data vol me allowances. Fo any sage ove the monthly allowances, speedsa e ed ced to 120kb/s. Data top ps (at f ll speed) can be p chased e.g. 1GB top p datacosts $18.25.

*Netcom is offe ing a half p ice monthly fee fo the st fo months. P ices listed above ano mal post p omotion monthly p ices.

Looking at Netcoms 3G mobile b oadband plans, the most expensive is $46.17 with a faise limit of 6 GB. This is signi cantly less expensive that the lowest cost LTE plan at j stnde $74). With 3G+ offe ing expected se download speed of p to 14Mbps, then it will be

inte esting to see the adoption of LTE, given the p ice diffe ential ove 3G plans. In Ap il 20Netcom have sta ted to offe half p ice LTE monthly s bsc iptions fo the st fo monthso de to att act new LTE s bsc ibe s.

Telia Denmark

Ope ating nde the b and name Telia in Denma k, Telia Denma k is the second

telecomm nications ope ato in Denma k. The Company has 1.45M mobile c stome s,67,000 b oadband c stome s, and 153,000 xed line voice s bsc ibe s.

In Decembe 2010 Telia la nched the st comme cial LTE se vices in Denma k. The se viccove ed the cities of Copenhagen, Aa h s, Odense and Aalbo g. Telia is contin ing to oll oLTE and is fo ecasting that 75% of the Danish pop lation will have cove age in 2011.

The se vice is c ently only available with uSB modems, and the p icing is as follows:

Both options have a 6 month cont act and a modem p ice of $97.92.3G compa ison is with Telias 5GB allowance, 2Mbps 3G offe at $17.56/month.

Data Top ups 1GB 2GB 5GB 10GBP ice $4.70 $9.55 $16.03 $28.97



Enforcement

Total 80 Mbps 30GB $92.38* - 100% Th ottle backto 120 kbps

G and 20 Mbps 15GB $73.81* - 60% Th ottle backto 120 kbps



Enforcement

Mobile BB4G 20Mbit/s

20 Mbps 20GB $58.68 - 234% Th ottle back to57 kbps

Mobile BB4G 80Mbit/s

80 Mbps 30GB $78.32 - 345% Th ottle back to57 kbps




Sonera Finland

P evio sly called Telecom Finland, the once gove nment owned Sone a, joined fo ceswith Telia of Sweden in 2002 to c eate TeliaSone a. In Finland the Company has 3.2 millionmobile s bsc ibe s, 276,000 xed line voice s bsc ibe s and 476,000 xed line b oadbands bsc ibe s.

Sone as LTE se vice was la nched in Novembe 2010 in the cities of Helsinki and T k . Tse vice is available with a uSB modem that is incl ded in the package p ice.

This is fo a 24 month cont act.

EMT EstoniaIn Estonia, TeliaSone a ope ates nde the EMT b and. EMT has 797,000 mobile s bsc ibe333,000 xed line voice s bsc ibe s and 190,000 xed b oadband s bsc ibe s.

EMTs LTE se vice was la nched in Decembe 2010 in the city cente s of Tallinn, Ta t andKohila. The se vice is available only with a uSB modem which costs $560.

*TeliaSone a4G site epo ts a fai se policy of 30GB

Omnitel Lithuania

TeliaSone a ope ates nde the b and name Omnitel in Lith ania. Omnitel has 2M mobiles bsc ibe s, 689,000 xed line voice s bsc ibe s and 345,000 xed line b oadbands bsc ibe s.

LTE was la nched by Omnitel in Lith ania in Ap il 2011 in the cities of Vilni s, Ka nas,Klaipeda, ia liai and Paneveys. As all othe TeliaSone a companies the LTE offe of Omnitis c ently only available with a uSB modem.

The p ice fo the LTE modem is $295 witho t a cont act o $0.42 with a 24 month cont act



Enforcement

Tysnetti 4G(Sone a F llNet 4G)

80 Mbps 30GB $67.31 - 157% Th ottle back to3G/2G



Enforcement

EMT Inte net4G*

100 Mbps unlimited $51.10 - 28% Th ottle back to120Kbps

Name Max Speed

Download

Volume Post-Paid Pre-Paid Premium

to 3G

Enforcement

Inte net PC4G 5

30 Mbps 5GB $29.22 - 41% Th ottle back to120 Kbit / s

Inte net PC4G 10

80 Mbps 10GB $41.93 - 100% Th ottle back to120 Kbit / s

..




MetroPCS

Met oPCS is a united States based ope ato , with ove 8.1 million s bsc ibe s. It offe swi eless b oadband pe sonal comm nication se vices (PCS), on a no long-te m cont act,

at ate, nlimited sage basis in selected majo met opolitan a eas in the united States.Met oPCS la nched its LTE se vices in Septembe 2010, laying a claim to being the st to

comme cially offe this se vice in the uS.unlike othe ope ato s they do not ma ket LTE mobile b oadband modems, b t have gonest aight to p oviding LTE se vices on sma tphones. It offe s th ee LTE plans, and these a eonly available as pa t of a voice, messaging and data b ndle. Met oPCS has a no cont act,pay monthly p f ont se vice. It p incipally ta gets cons me s on a b dget and mid- angespende s, with val e, no cont acts and content as the main messages.

Looking at Met oPCS LTE p ice plans, its impo tant to nde stand the diffe ence betweenbasic web b owsing and data sage. Data sage involves downloading mate ial, so ifc stome s want downloads othe than Yo T be theyll need to go the $50 plan whe e theyllget 1GB of additional data sage. Met oPCS have b ndled LTE data sage and content inwith voice and text.

* Web b owsing with nlimited Yo T be access** Same as above, b t with access co po ate e-mail and 1 GB of additional data access andcontent-based se vices*** Same as above, b t with pl s nlimited data access and additional content se vices

Met oPCS position nlimited in thei ma keting messaging e.g. nlimited Yo T be accesin the $40 plan. Howeve , this is excl ding othe video st eaming se vices, and if a c stomewants additional content downloads then they need to move p to the next plan and payby sage. Content b ndling is also sed in the plans s ch as p emi m m sic and videocontent f om Met oPCS content site, Met oSTuDIO, in the $60 plan. Altho gh Met oPCSnot p blish sage g es elating to fai sage policy thei te ms of se state that If we notexcessive data t af c coming f om yo phone, we ese ve the ight to s spend, ed ce thespeed of, o te minate yo Met oWEB Se vice.

unlike most othe mobile ope ato s Met oPCS did not have a 3G netwo k and is makingthe leap st aight f om 2G to 4G. So nlike othe ope ato s they dont have a 3G netwo k tofall back on if a LTE c stome goes o t of cove age, and speci c netwo k speeds a e a elymentioned in thei ma keting messages.


Volume Post-Paid

Pre-Paid Premiumto 3G

Enforcement

$40 se viceplan

8 Mbps rest icted* - $40 N/A Ove ages

$50 se viceplan**

8 Mbps rest icted**pl s 1GB

- $50 N/A Ove ages

$60 se viceplan***

8 Mbps unlimited*** - $60 N/A unlimited




A1 Austria

A1 Telekom A st ia, pa t of the Telekom A st ia G o p, is the ma ket leade in A st ia wapp oximately 42% of the ma ket, and 4.9m s bsc ibe s nde its diffe ent mobile b ands.It s ccessf lly completed its LTE t ial in J ne 2010 and ca ied o t a comme cial la nch inOctobe 2010. A1 a e in the p ocess of pg ading thei netwo k to HSPA+ and while they

have a LTE offe ing, thei CFO has commented that thei HSPA+ netwo k is still s f cient.LTE is not a necessity ight now, said Hans Tsch den, CFO of Telekom A st ia. (so ce:totaltelcom.com)

It c ently offe s one LTE data plan fo mobile dongle se s and offe s se vice limited toce tain a eas of Vienna and St. Polten. It does not c ently offe LTE fo sma tphones. Fothose s bsc ibe s who exceed thei data allowance, an ove age cha ge is applied.

Given the cove age, the p ice p emi m and existing alte natives f om A1 (DSL and 3G),it co ld be viewed that Mobilkom is going afte ea ly adopte s who a e willing to paya signi cant p emi m to enjoy the high speed enabled by LTE. As the se vice olls o tnationwide, one can expect these p ices to come down in o de to att act 3G and DSLc stome s to LTE.



Enforcement

A1 B eitbandLTE

150 Mbps 30GB $131.71 - 100% By ove age$10.10 pe GB




Verizon Wireless

Ve izon Wi eless is one of the la gest ope ato s in the wo ld with ove 94 million s bsc ibThey la nched thei LTE netwo k in Novembe 2010 in 38 majo ma kets, eaching one-thiall Ame icans. They plan on do bling thei cove age in 2012 to each 200 million people, anto blanket the u.S. by the end of 2013.

Ve izon has diffe ent data p ice plans by device, c ently offe ing LTE mobile b oadbandmodems, sma tphones and tablets with LTE plans. As can be seen in the table below,Ve izon offe s LTE at no p ice p emi m to its 3G modem offe . Its LTE offe s a e not c

sing bandwidth speed tie s, offe ing the same speed to all LTE s bsc ibe s. It has howeve ,int od ced a data cap fo modem se s, and c stome s a e eq i ed to sign- p fo a 2 yeacont act.

unlike many othe ope ato s LTE deployments, Ve izon has a 4G sma tphone offe ing (HTCTh nde Bolt). Howeve , sma tphone se s need to p chase a $40 voice plan to be able top chase a 4G sma tphone data plan. This b ings the total cost to $70 a month, on a 2 yeacont act.

Modem dongle, hotspot, and tablet se s who go ove thei cap inc an ove age cha ge.

Sma tphone se s do not need to wo y abo t ove age cha ges as thei data plans a e at-ated / nlimited.

* Othe T&Cs apply;** Ve izon does not have a ha d fai se policy fo nlimited data plans. Howeve , they domonito sage to identify high sage, and ese ve the ight to ed ce the netwo k speed of ttop 5% of data se s.

The p ima y foc s of Ve izons ma keting to date has been on speed, and p ovides seve alexamples of compa ative speed with 3G e.g. LTE co ld handle a download of a 10MB le i10 seconds o so, instead of abo t 100 seconds with the c ent 3G netwo k, and positionsLTE as p to 10 times faste than 3G. In its ann al epo t Ve izon exp essed a desi e toq ickly embed its LTE se vices in seve al M2M oppo t nities. Well also see LTE chips b iltinto a wide ange of p od cts, s ch as cons me elect onic devices, home appliances andvehicles. Fo example, GMs OnSta se vice will se Ve izons LTE netwo k in vehicles withadvanced came as, senso s, navigation and monito ing tools to f the enhance the d ivingexpe ience.

Howeve , the $30 a month nlimited sma tphone data plan fo LTE offe may not last too lonwith Ve izon having stated that they will move to some type of sage-based p icing this yeaVe izon exec tives have said LTE also gives s the capability to p ice ve y diffe ently than wp iced befo e. Not j st on cons mption, b t also possibly on speed diffe entiation.1


Volume Post-Paid Pre-Paid

Premiumto 3G

Enforcement

Tablet 5-12 Mbps 1GB $20 - 0% By ove age$20 pe GB

Tablet 5-12 Mbps 3GB $35 - 0% By ove age$10 pe GB

Modem / Tablet/ Hotspot 5GB

5-12 Mbps 5GB $50 - 0% By ove age$10 pe GB

Modem / Tablet/ Hotspot 10GB 5-12 Mbps 10GB $80 - 0% By ove age$10 pe GBSma tphone 5-12 Mbps nlimited $30* - 0% none**

1: ZDNet, Ma ch 1st 2011 - http://www.zdnet.com/blog/btl/ve izon-htc-th nde bolt-coming-ve y-sho tly-lte-tie ed-p icing-too/45482




CSL

CSL, based in Hong Kong, is a s bsidia y of Telst a Co po ation Limited and hasapp oximately 2.7m s bsc ibe s. It commenced LTE t ials in Feb a y, 2010 and followed tlate that yea in Novembe with the la nch of the wo lds st LTE/DC-HSPA+ netwo k.

CSL offe a hyb id 3G / 4G netwo k. They p omote netwo k speed as a majo diffe entiatand ma ket thei 1O1O b and as the fastest mobile b oadband in Asia-Paci c. As theyoffe a hyb id 3G / 4G se vice, its dif c lt to make a di ect compa ison between its offe inand othe s. CSL does not ma ket LTE capable phones. So, LTE speeds a e only available tomobile b oadband modem se s.

CSL offe s diffe ent monthly ates dictated by download speed fo nlimited mobile datasage Howeve , it offe s only one se vice plan that eq ates to 4G-capable speeds.

* CSLs fai se policy, which will not impose any additional cha ges fo sage, b t will seth ottling to est ict the netwo k speed of ve y high bandwidth se s.** The 21% p emi m ove 3G se vices is the diffe ential ove CSLs 1010 mobile b oadbanoffe p ovided at 7.2 Mbps.



Enforcement

1010 21Mbps nlimited $68.07 - 21%** Excessive seas de ned byCSL will beth ottled*




Vodafone Germany

Vodafone Ge many is a wholly owned s bsidia y of Vodafone Plc. It has 36.191 millionmobile s bsc ibe s (34.1% of ma ket sha e), and 3.851 million xed line DSL s bsc ibe s.The Company la nched LTE se vices in Decembe 2010. Vodafones oll o t of LTE se vicesfoc ses on a eas whe e the e is no, o limited, xed b oadband access. The eason fo this i

that as a p ovision in the LTE spect m a ction, al a eas with no xed b oadband get LTcove age st.

Vodafone Ge manys LTE Z ha se (LTE At home) se vice is being ma keted as an alte nativse vice fo xed line b oadband connection, whe e the existing line is too slow, o the e isno DSL connection available. Pl s the e is the added bene t of mobility. Like seve al otheope ato s they desc ibe LTE as t bo inte net.

On thei website Vodafone says that it is d iving the expansion plans fo nive sal cove agein Ge many with a fast b oadband Inte net. This is the type of message that no mally wo ldcome f om a xed line ope ato . As initial LTE oll o t is foc ssed on al a eas, the e is a foc s on pselling 3G data c stome s, o adding heavy data offe s to enco age sage.Howeve , the table below does p ovide a p icing p emi m compa ison with Vodafones 3Gse vice in o de to p ovide consistency. This compa ison is based on the c ent speed base3G offe s that Vodafone Ge many p ovides. The p ices listed in the table below a e fo sagonly. Basic ha dwa e (dongle) is available fo additional $3.66/month.

The p icing ses a combination of speed and vol me based tie s and will th ottle back speedonce monthly data vol me has been sed p.

Fo a eas with DSL cove age, Vodafone Ge many also offe an existing xed line DSL (160DSL) offe . This p ovides downst eam speeds of p to 16Mbps and pst eam of p to 800kbps. Basic p icing sta ts at $29.19/month, p to $51.13/month Vodafone DSL + TV Package.This p ovides 16 Mbps DSL, b ndled xed line to mobile calls, inte net sec ity package placcess to ove 50 f ee TV / HD TV channels as well as video on demand channels. A di ectcompa ison between the p icing fo Vodafones LTE and thei DSL se vices may indicatepa ity at the lowe end, b t the b ndling of TV channels at the highe end packages co ldindicate that the DSL s bsc ibe s a e getting additional content. It will be inte esting to see ifthe Vodafone TV package is olled o t to LTE c stome s, and if b ndled content will be sedas an option in p icing diffe entials.

Vodafone Ge many is also nning a ec it a f iend ma keting campaign, whe ebys bsc ibe s can ecommend a f iend and if this f iend signs p fo Vodafones LTE se vice f iend gets a $73.13 disco nt and the ec ite s get a $73.13 ec itment fee.



Premiumto 3G

Enforcement

LTE Z ha seInte net 3600S

3.6 Mbps 5GB $29.24 - 25% Th ottle backto 3G/2G


7.2 Mbps 10GB $43.87 - 0% Th ottle backto 3G/2G


21.6 Mbps 15GB $54.50 20%less

Th ottle backto 3G/2G


50 Mbps 30GB $87.74 NA Th ottle backto 3G/2G




NTT DoCoMo - Xi

NTT DoCoMo se ves ove 56 million c stome s in Japan and has 54 million s bsc ibe s sFOMA, the wo lds o iginal 3G mobile se vice based on W-CDMA. NTT la nched its Xi(p o-no nced C ossy) LTE se vice in Decembe 2010. Xi se vice is initially available inTokyo, Na-goya and Osaka a eas, with plans to each 70% of the Japanese pop lation by

Ma ch 2015. use s leaving the LTE se vice a ea a e handed ove to DoCoMos FOMA 3Gnetwo k, which has nation-wide cove age.

NTT DoCoMo offe s two LTE data plans fo mobile dongle se s and plans to int od ce LTEcompatible handsets, incl ding voice se vice ove the FOMA netwo k, by Ma ch 2012.

With the int od ction of LTE, NTT is taking the oppo t nity to p ovide data vol me based dacaps. Simila to Ve izon, NTT makes the same speed available to both plan se s. Apa t f omp ice the main plan diffe ence is that the lowe cost plan comes with a two yea cont act.

Compa ing this with 3G, NTT DoCoMo c ently cha ges $66.73 (Pake-hodai plan so ceDoCoMo Website) fo nlimited 3G se. This 3G plan is s bject to a two yea cont act. Ass ming 5GB LTE limit sho ld be eno gh fo most c stome s, 4G / LTE will cost a o nd19% mo e than c ent 3G cha ges on the Xi Ninen data plan. Most se s will pay only sligh

mo e fo LTE than they al eady do fo 3G data.The table below p ovides info mation on the two LTE plans that NTT DoCoMo p ovide.

.

*Xi Data Plan Ninen is s bject to a two yea cont act with cancellation cha ges applying - $3(1st month) to $124.69 (f om 24th month)

In addition to the cha ges o tlined in the table above NTT DoCoMo cha ges an pg ade and asign- p fee of $39.39 fo new c stome s o $26.26 fo existing FOMA 3G c stome s

S bsc ibe s who cons me mo e than thei data allowance a e cha ged an ove age fee. Ascan be seen f om the table above, a monthly cha ge) cove s p to 5GBs of data. Afte that,$32.82 will cove each additional 2GBs of data. These plans have an initial int od cto y offe

nlimited data vol me above a monthly 5GB limit, b t will move to sage based cha ging foall monthly sage ove the 5GB cap once the int od cto y offe expi es on Ap il 30th 2012



Premiumto 3G

Enforcement

Xi Data PlanNinen*

37.5 Mbps 5 GB $81.43 - 19% Additional $32.82pe 2 GB

Xi Data Plan 37.5 Mbps 5 GB $99.79 - 46% Additional $32.82pe 2 GB




Deutsche Telekom

With ope ations in ove 50 co nt ies, De tsche Telekom G o p is one of the la gest integ atelecomm nications companies in the wo ld. The G o p has a o nd 129 million mobilec stome s, app oximately 36 million xed-netwo k lines and mo e than 16 million b oadbanlines (as of Decembe 31, 2010). The G o p p ovides p od cts and se vices fo the xed

netwo k, mobile comm nications, Inte net and IPTV fo cons me s, and ICT sol tions fob siness c stome s and co po ate c stome s. La nched in Ap il 2011, De tsche Telekom isma keting its LTE se vice as a b oadband access technology to a eas of Ge many whe e DSaccess is limited o non-existent. Like Vodafone Ge many, this oll o t is pa t of the p ovisio

nde the spect m allocation di ected by the Ge man gove nment.

The p ovision of LTE is viewed as an extension of the De tsche Telekom b oadband netwo kand not a new netwo k in the way that some mobile ope ato s a e positioning LTE. IndeedLTE as a technology is ve y m ch nde played in De tsche Telekoms ma keting, and thepositioning is that the existing b oadband netwo k has been extended sing advanced mobiletechnology (which is HSPA High Speed Packet Access, 3G, and LTE) to b ing b oadband toa eas witho t DSL cove age. The fact that HSPA is being sed in a eas whe e the e is no LTcove age limits the speeds that a e being p ovided.

De tsche Telekom a e b ndling xed line voice calls with mobile b oadband access in ado ble play offe called Call & S f Comfo t via F nk (radio). This is availabe as an excl sivoffe fo a eas witho t DSL cove age. The table below ill st ates the cost.

This offe is b ndled with a xed line telephone se vice and has a cont act te m of 24 monthsThe p ice of $54.46 a month is fo cons me s, and the e is a $49.12 a month p ice tag fob siness c stome s. Given that LTE is being sed he e as a b oadband access technologyby a xed line telecoms ope ato , di ect compa ison with mobile ope ato s LTE p icing manot p esent a t ly acc ate compa ison. Howeve , th ottling back speed is sed when as bsc ibe ses p thei monthly data allocation.

De tsche Telekom p ovides s bsc ibe s with a wi eless o te tted with a location-speciSIM ca d. A LTE dongle offe is planned fo the nea f t e.



Premiumto 3G

Enforcement

Call & S fComfo t viaF nk (radio)

3 Mbps 3 GB $54.46 - NA Above 3GB speeded ced to 1

Mbps. usageabove 5 GBspeed ed ced to384 kbps


14/14


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reston, Vi ginia, uSA11465 S nset Hills road / S ite 310 / reston, VA 20190T l 1 703 480 1820/ F 1 703 435 0730i f @

About OPENET Att act s bsc ibe s, p ovidethem a g eat expe ience,maximize even e f om them,and minimize the cost to se vethem. So nds simple ntilyo t y to do it with millionsof s bsc ibe s s ppo ted byin exible legacy inf ast ct eamidst an eve -changing setof b siness eq i ements. Tos cceed in this envi onment,yo m st st know yos bsc ibe s and how they seyo se vices, be capable ofdeploying innovative b sinessmodels that maximize even e,and be able to cont ol theallocation of yo netwo k

eso ces intelligently andef ciently. This is making themost of eve y s bsc ibe . And Openet can help witho S bsc ibe OptimizationSoftwa e.

At the co e of o sol tionsis the Openet F amewo k, aconve gent, mod la , eal-time event p ocessing andt ansaction managementplatfo m. This F amewo kenables ope ato s to t ansfo mthei BSS/OSS envi onmentsto capitalize on new se vices,b siness models and netwo kinvestments. A globalcompany, Openet is sed bythe wo lds la gest and mostinnovative se vice p ovide s

incl ding AT&T, BT, O ange,Telst a, Time Wa ne Cable,and Ve izon Wi eless. Lea nmo e at www.openet.com.

WHAT NEXT?It is impo tant to state, that with LTE p icing models many ope ato s a e still ve y m ch at texpe imental stage, and that whe e we a e p obably does not e ect thei end goals fo LTE As can be seen f om this pape existing LTE p icing models incl de ope ato s p oviding tie

sage plans based on:

combination of sage vol me and download speed sage vol me with no speed est ictions ntil a sage th eshold is hit, then speed is

th ottled back download speed with no vol me est ictions

This offe s a ange of p icing plans by a elatively small n mbe of c ent LTE ope ato swith most se vices in ea ly adoption stage p icing is not sed as the main ma keting toolto att act s bsc ibe s. As mo e ope ato s la nch LTE se vices and competition intensi esthen exible and innovative p icing, packaging and cont ols will be sed as a lead ma ketingelement, in o de to att act and etain s bsc ibe s and stim late sage.

ultimately, LTE based se vice offe ings m st espond to even e g owth and b siness modelchallenges. As the complexity and n mbe of data plans inc ease with apid changes top icing and q ota ope ato s will have to wo k ha d to manage this complexity and s bsc ibexpe ience. To do this ope ato s m st place the s bsc ibe cent e stage, optimizing se vicesand offe s fo the s bsc ibe , while managing costs.

LTE can p ovide the fo ndation fo ope ato s to delive a wide ange of se vices that canp ovide the oppo t nity to help them evolve f om being access p ovide s to expe iencep ovide s. This involves not only p oviding the connectivity ove which content is delive ed,b t also making thei netwo ks highly intelligent to ens e content is delive ed at the levelof q ality cons me s expect, and pe sonalizing and st eamlining access to content incompelling ways.

This can gene ate new income f om new b siness models and inc ease even e f om existins bsc ibe s. Howeve , the e is a q estion if t aditional B/OSS systems (many of which we e

o iginally designed fo 2G voice) can p ovide the exibility needed to f lly monetize theoppo t nities that LTE will p esent.

In te ms of LTE B/OSS will need to be capable of managing the dynamic inte actions betweens bsc ibe s, thei se vices, and the netwo k, to enable new b siness models and even est eams to be ealized. This incl des ope ato s having inc eased visibility of the s bsc ibeand the netwo k in o de to p ovide deepe insights into what the s bsc ibe s a e expe ienon yo netwo k. Also the B/OSS fo ndation needs to be in place to enable ope ato s tobette monetize existing and new b siness models. At the same time ope ato s will needcont ols b ilt into B/OSS to ens e that netwo k eso ces and costs a e optimally managed

This will p ovide the fo ndation fo ope ato s to make the most of eve y s bsc ibe and dthe s ccess of LTE.

Exchange Rates Used

The ates sed we e f om 5th May 2011 and we e as follows:

1: uS$ 1.46 NOK 1: uS$ 0.185SEK 1: uS$ 0.163 1 JPY = 0.0125 uSD1 HKD = 0.1286 uSD 1 DKK = 0.1962 uSD1 LTL = 0.4234 uSD

Documents

WP LTE Pricing and Packaging A4 7426