Studie - The LTE business case: survey

We recently surveyed our clients regarding the LTE business case, giving respondents the chance to voice their opinions on the topic. This report summarises the responses received for the survey and highlights the most common and atypical views.

Executive summary

In a nutshell

Ovum view

About the LTE business case

Survey results

LTE drivers

New revenues, new services and cost efficiencies are the key drivers for LTE

LTE deployment issues

The majority of LTE launches expected by 2013

Credit crunch will push LTE plans back a year or two

No consensus on spectrum

Greatest increase in capex expected one year before launch

Operations

Interoperability between networks challenging for LTE operators

LTE operators must be patient and wait for opex rewards

Devices

Modems and data cards will be the first LTE devices

First LTE handsets to have similar features as today’s devices

First LTE handsets will be expensive versions of today’s HSPA handsets

Services

Internet access expected to be a vital revenue stream for LTE operators

There are few services that people would pay more for on LTE

Subscriptions expected to be capped by data allowances and transfer rates

Data ARPU expected to rise, and voice ARPU to fall

Data traffic to increase for LTE, but less certainty with voice









List of Tables

Table 1: Summary of all LTE survey results













List of Figures

Figure 1: Drivers for rolling out LTE

Figure 2: Timescales for LTE spectrum assignment and launch

Figure 3: Impact of macroeconomic conditions on unannounced LTE commercial launches

Figure 4: Spectrum bands expected to be set aside for LTE

Figure 5: Percentage increase of annual capex in order to deploy LTE

Figure 6: Potential challenges for operators launching LTE

Figure 7: Opex movements for LTE operators

Figure 8: Time of launch for different LTE devices

Figure 9: Features in the first LTE handsets

Figure 10: Comparison of LTE handsets with equivalent HSPA handsets

Figure 11: Potential of services to generate revenues using LTE

Figure 12: Services LTE operators may be able to charge a premium for

Figure 13: Likelihood of LTE operators to implement the following business models to generate revenues

Figure 14: ARPU fluctuation following LTE implementation

Figure 15: Change in traffic volumes post LTE launch

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