2013 and Beyond: LTE Goes Full Steam Ahead

21 January, 2014

MonetizeLTE.com

Since the launch of the first commercial 4G-LTE networks in late 2009, deployments have accelerated

across the globe. However, 2013 was undoubtedly the year LTE flourished. The GSA confirmed that

there were 250 active LTE networks by the end of 2013[i], a 45 percent increase compared with 2012.

The rollout has been global, not only throughout developed countries but also in emerging markets such

as across Asia, Africa and Latin America. Furthermore, this growth has allowed both mobile operators

and device manufacturers to tap into the considerable opportunity to increase ARPU (average revenue

per user). With the roll out of LTE networks showing no sign of slowing down in 2014, the big question

on every mobile operators’ mind is ‘how long will it take for us to recoup our upfront investments?’

Critical to the timeframe in which operators will see a return on their LTE infrastructure investments is

the availability of LTE enabled devices. Over the last 12 months we have seen the number of LTE devices

double to 1,240, up by 680 from a year earlier[ii]. The launch of the iPhone 5s in September 2013 was

significant as Apple announced the device would support 13 LTE bandwidths, more than any other

smartphone currently on the market. This is a vital development as it allows users to take advantage of

LTE networks when roaming, which ultimately generates higher revenue for operators. To further

maximize this opportunity, a number of operators including Vodafone and Verizon have announced

plans for their own branded LTE handsets.

Last year’s developments in the U.K.’s LTE landscape is an interesting example of growth as all 4 major

UK operators had launched LTE networks by the end of 2013. EE, which launched its 4G network in

2012, leads the market with more than 2 million LTE subscribers and is set to achieve its target of

covering 98 percent of the population by the end of 2014[iii]. Hot on their heels, O2 and Vodafone

simultaneously launched LTE services in August 2013 and Three launched its 4G network in December

2013. With this increasing competition, operators have been working hard to differentiate themselves.

While some have invested heavily in marketing the benefits of LTE’s speed to consumers, others have

focused on how LTE can benefit businesses. In particular their message correctly focuses on LTE’s

potential to change the way in which businesses operate, boost productivity and reduce costs.

Despite rapid LTE growth in the UK, 2013 saw the US steal a march on the European market as a whole.

The GSMA criticized Europe for poor LTE investment and highlighted the more extensive offerings in the

2013 and Beyond: LTE Goes Full Steam Ahead

21 January, 2014

MonetizeLTE.com

US, which currently accounts for more than half the world’s 4G connections[iv]. In the US 4G is more

widespread with the largest operator, Verizon, available in more than 500 cities and covering 95 percent

of the U.S population[v]. In spite of the fact that Europe accounts for the highest number of mobile

subscribers in the world, it is the only region to see telecommunication revenues decline[vi]. In relation

to developing markets, growth continues to be strong, ABI Research predicts the total number of mobile

users in Africa will grow to 1.25 billion over the next five years and Informa predicts strong growth for

the Middle East region with subscriptions rising to 352 million at the end of 2016[vii]. Thus although

growth rates differ across the regions, overall the market is expanding.

Regardless of the growth in LTE deployment, consumer uptake and LTE handsets in 2013, the European

example shows operators have continued to struggle with recouping initial LTE investment.

Consequently, there is a need to better educate customers on the benefits of 4G and find other ways to

offer additional services. With the total number of 4G subscribers forecast to reach 1 billion by

2017[viii] , operators can capitalize on offering services such as Unified Communications (UC) to

enterprises. UC enables a fast and seamless communications experience, which in turn will satisfy an

increasingly connected, on-the-go workforce. Businesses that learn the benefits of LTE will find that

through a single subscription for employees, they can drive down both telecommunications costs and

management complexity.

For 2014, enterprises should be thinking beyond the initial introduction of LTE services to plan how they

can leverage existing customer relationships to better monetize their investments.

About MonetizeLTE.com

The movement is on. The majority of mobile operators are planning to launch LTE services in 2012 or 2013. Of those deploying LTE by 2013, 70% believe there is a viable business case today to introduce 4G/LTE services, according to a 2012 survey conducted by Informa Telecoms & Media. The MonetizeLTE website has been developed to offer our industry an unbiased, single source of

information to track the latest news, developments and expert opinions on LTE networks and

technologies. Learn more at MonetizeLTE.com.

2013 and Beyond: LTE Goes Full Steam Ahead

21 January, 2014

MonetizeLTE.com

[i] GSA confirms over 250 LTE networks now launchedhttp://www.gsacom.com/news/gsa_394.php

[ii] Number of LTE devices more than doubles in 12 months-

http://www.totaltele.com/view.aspx?ID=484250

[iii] EE adds 14 more towns to 4G network ahead of prepay rollout-

http://www.itproportal.com/2013/10/29/ee-adds-14-more-towns-to-4g-network-ahead-of-prepay-

rollout/

[iv] GSMA director slams ‘lagging’ Europe for poor investment in 4G-

http://www.computerworlduk.com/news/mobile-wireless/3480957/gsma-director-slams-lagging-

europe-for-poor-investment-in-4g/

[v] Verizon- http://www.verizonwireless.com/b2c/support/coverage-locator

[vi] European telecoms revenue fall accelerates http://www.ft.com/cms/s/51090f7e-538a-11e3-9250-

00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F

51090f7e-538a-11e3-9250-

00144feabdc0.html%3Fsiteedition%3Duk&siteedition=uk&_i_referer=#axzz2leZAQGCk

[vii] Africa LTE subs to reach 1.25 billion over the next 5

yearshttp://www.totaltele.com/view.aspx?ID=483063

[viii] Global 4G trends: 1 billion subscribers expected by 2017-

http://www.digitalstrategyconsulting.com/intelligence/2013/06/global_4g_trends_1_billion_subscrib

ers_expected_by_2017.php