Successful Lte Strategies White Paper 140212072329 Phpapp02

White paper
Successful LTE strategies

How to use LTE to build a compelling
broadband strategy
www.informatandm.com
2012 Informa UK Ltd. All rights reserved. www.informatandm.com
2
Contents
Introduction .................................................3
Market status ..............................................4
Different LTE operator types ..................5
Aggressive LTE operators ......................7
Cautious LTE operators .........................8
Market development ...................................9
LTE subscription forecasts .....................9
LTE voice ................................................9
Recommendations .......................................11
Successful LTE strategies: How to use
LTE to build a compelling broadband
strategy
Paul Lambert, Senior Analyst
What are the ingredients of a successful LTE launch?
There are already examples of best practice that have helped
to underpin hugely successful LTE launches by operators in
markets such as the US, Japan and South Korea. We have
meticulously researched and analysed the go-to-market strategy
of these leading operators and every other live LTE deployment
to build a comprehensive and unrivalled base of knowledge.

Who are the most successful LTE operators to date, and why?
How have they positioned LTE to drive customer uptake? How
are operators effectively positioning LTE? How can operators
maximize the value of their LTE investments? What pricing
and value propositions are working in the market and which
arent? How have different operator strategies influenced LTE
subscription uptake?

Our latest LTE report is based on in-depth and extensive
interviews with LTE operators as well as a full assessment of the
launch strategies of all 52 (as at April 24, 2012) live LTE networks
globally. In conjunction with ITMs industry knowledge, the report
distils the lessons learned to date by LTE operators to arrive
at concrete examples of best practice that have proved to be
successful with end users.

The report provides clear and actionable conclusions of what has
worked for the early LTE launches, ones that are applicable to
all operators looking to launch LTE, and which will help them to
avoid replicating the mis-steps some LTE operators have made
and are making.
Informa UK Limited 2012. All rights reserved.
The contents of this publication are protected by international copyright laws,
database rights and other intellectual property rights. The owner of these rights
is Informa UK Limited, our affiliates or other third party licensors. All product and
company names and logos contained within or appearing on this publication are the
trade marks, service marks or trading names of their respective owners, including
Informa UK Limited. This publication may not be:-
(a) copied or reproduced; or
(b) lent, resold, hired out or otherwise circulated in any way or form without the
prior permission of Informa UK Limited.
Whilst reasonable efforts have been made to ensure that the information and content
of this publication was correct as at the date of first publication, neither Informa UK
Limited nor any person engaged or employed by Informa UK Limited accepts any
liability for any errors, omissions or other inaccuracies.
Readers should independently verify any facts and figures as no liability can be
accepted in this regard - readers assume full responsibility and risk accordingly for
their use of such information and content.
Any views and/or opinions expressed in this publication by individual authors or
contributors are their personal views and/or opinions and do not necessarily reflect
the views and/or opinions of Informa UK Limited.
This is an extract from Successful LTE
Strategies report
To find out more visit:
www.informatandm.com/successfulLTE
Contact:
Giovanni Cerrini
giovanni.cerrini@informa.com
+44 (20) 701 75296
3
LTE launches are accelerating, but not all operators have the right business model
2G-to-3G migration offered the promise of a whole new business model from voice and SMS services to the mobile
Internet and rich content. Unlike 2G-to-3G, 3G-to-4G is evolutionary. However, the advantages that 4G/ LTE offers
much greater capacity to offer DSL-like services on the move, not to mention the prospect of the "Internet of things"
are likely to turn out to be more revolutionary over time than even the migration from 2G-to-3G. This is because a
combination of 3G and 4G, in tandem with the boom in smartphone adoption and use, will bring about a major leap
in the number of people using mobile broadband, the way they use it, and the amount they use it.
According to the latest survey conducted by Informa Telecoms & Media to gauge the industrys perceptions on LTE,
the majority see a clear need to launch LTE networks now, with two-thirds of respondents saying the time is right
to launch LTE in their market today. However, while there is broad agreement on the need to launch LTE, there are
diverse opinions on both why operators need to launch LTE now and also the reasons for doing so.
While some operators are looking to LTE primarily to alleviate capacity from stressed legacy networks, others are
looking to add value and increase brand value through technology leadership and enhancing the overall mobile
broadband proposition. And, while some operators are looking to LTE generate additional revenues, it is surprising
that the majority are not expecting LTE to create new revenue streams. This raises a fundamental question: If LTE
doesnt create new revenue streams, how can operators make a return on their LTE investments?
Our research into the LTE market explores the core business and strategic questions operators need to answer
before launching services:
How can operators maximize the value of their LTE investments?
How can operators effectively position LTE?
What LTE pricing and value propositions are working in the market and which arent?
To approach these core issues, weve sought to answer these three key questions:
Which are the most successful LTE operators to date, and why?
How have they positioned LTE to drive customer uptake?
How have different operator strategies influenced LTE subscription uptake?
In this White Paper, weve approached these topics and questions by drawing on our recently-published research
into the LTE business case. During our research, we found that operators that have launched LTE to date fall into
two groups those that have been successful in driving uptake of services and those who havent. Or, put another
way, some operators have found what is for them a successful LTE business model while others have yet to do so.
It is crucial that operators make a return on their LTE investments and, with the right business model, the evidence
to date shows that they will such is the appetite among end users, if stimulated in the right way, for faster and
better mobile internet access. I hope that this White Paper provides both a valuable insight into the business models
we have seen to be a solid foundation for profitable LTE strategies, as well as an introduction to our latest research.
Introduction
4
Market status
The market push by the few early
and aggressive LTE launchers
obscures market reality, with the
majority of operators cautious on
subscriber uptake.
While LTE is the fastest-growing
cellular technology in history in terms
of subscription-number growth, it
is still very much a new technology
both in terms of the total number of
subscriptions and also the maturity
of the service proposition. With a few
notable exceptions in the US, Japan
and South Korea, a combination of
factors most notably the lack of a
clear value proposition for LTE, high
service prices, a limited selection of
LTE smartphones and limited network
coverage has led to the vast majority
of operators moving very cautiously
on LTE subscription uptake. LTE
has been deployed initially in urban
hotspots, with only three rollouts to
date focused on rural areas first, all in
Germany and as a result of regulatory
requirements.
A snapshot of the market at this early
stage around 27 months after the
first LTE network went live shows
that 57 networks have been launched
in 30 countries (see fig. 1).
In terms of subscription uptake,
there are two clear categories of LTE
operators: those that have pushed the
technology aggressively the clear
minority; and those that havent. The
US operators Verizon Wireless and
AT&T, NTT DoCoMo in Japan and
SKT and LGU+ in South Korea have
all pursued LTE subscription growth
aggressively.
However, the majority of operators
have seen very weak LTE subscription
growth, for the reasons already
Fig. 1: Global, LTE operators, by region and country, Apr-12
Country Operator Technology Start date
Asia Pacic
Australia Telstra LTE1800 Sep-11
Hong Kong CSL New World LTE1800/2600 May-11
CSL New World LTE2600 May-11
India Bharti LTE2300 Apr-12
Japan eAccess LTE1800 Mar-12
NTT DoCoMo LTE2100 Dec-10
Softbank Mobile LTE2500 Feb-12
South Korea KT Corp LTE1800 Jan-12
LG U+ LTE800 Jul-11
SK Telecom LTE800 Jul-11
MobileOne LTE1800/2600 Jun-11
Singapore SingTel Mobile LTE1800/2600 Dec-11
Eastern Europe
Armenia K-Telecom LTE2600 Dec-11
Belarus Yota Bel LTE2600 Dec-11
Estonia EMT Estonia LTE1800/2600 Jan-12
Hungary T-Mobile Hungary LTE1800 Jan-12
Latvia LMT LTE1800 Jun-11
Lithuania Omnitel LTE1800 May-11
Poland Centernet LTE1800 Sep-10
Mobyland LTE1800 Sep-10
Polkomtel LTE1800 Nov-11
Russia Yota LTE2600 Dec-11
Western Europe
Austria Hutchison 3G Austria LTE2600 Nov-11
mobilkom Austria LTE2600 Oct-10
T-Mobile Austria LTE2600 Jul-11
Denmark TDC Mobil LTE2600 Oct-11
Telia Denmark LTE2600 Dec-10
Finland DNA Finland LTE2600 Dec-11
TeliaSonera Finland LTE2600 Nov-10
Germany O2 Germany LTE2600 Jul-11
Telekom LTE2600 Apr-11
Vodafone D2 LTE2600 Dec-10
Norway Netcom LTE2600 Dec-09
Portugal TMN LTE2600 Mar-12
Vodafone Portugal LTE2600 Feb-12
Note: Figures refer to quarter-end.
Source: Informa Telecoms & Media
5
stated. Even the early running that the
Nordic operators made on launching
LTE hasnt resulted in meaningful LTE
subscription uptake (see fig. 2).
The number of LTE launches and
the LTE subscription numbers are
poised to accelerate dramatically.
The responses to Informa Telecoms
& Medias 2012 LTE Survey showed
that the largest proportion of
operators, 34.1%, plan to launch LTE
services this year, and a considerable
number, 25.4%, are planning to
launch in 2013 (see fig. 3).
LTE rollouts to date highlight the
problem of spectrum fragmentation
between regions and within
regions between countries. While
the majority of LTE rollouts are
in the 2600MHz band (see fig. 4),
North America and Asia Pacific are
deploying LTE in their own bands,
Europe is focused on 800MHz and
2600 MHz, with 1800MHz rollouts
to follow. While the vast majority
of LTE rollouts to date have been
FDD-based, LTE rollouts using TDD
spectrum have taken place in Poland
and Saudi Arabia, while China has
a significant commitment to the
technology.
According to the survey, the 2600MHz
band will continue to dominate LTE
launches, with 1800MHz also set to
remain prevalent, although LTE band
fragmentation is also reflected in the
survey responses, with the majority of
available bands seeing some operator
commitment to a greater or lesser
degree (see fig. 5).
Different LTE operator types
The aggressive early adopters have
used LTE to reinforce existing market
positioning, typically to improve
perceptions about the quality of their
networks and the performance they
offer.
Its crucial for operators to adopt
the right approach to launching LTE
as soon as possible, given the broad
commitment to roll out networks
this year and next. This is especially
the case given that the majority of
operators believe there is a market
for launching LTE now (see fig. 6).
What are the key drivers for operators
launching LTE now? The majority
of operators, 35.1%, are looking to
LTE to create new revenue streams,
according to Informas LTE survey.
However, many operators are also
launching LTE to relieve capacity on
their existing networks, as well as to
build brand value through technology
leadership (see fig. 7).
On the one hand, LTE is a new
technology offering operators
the opportunity to launch new
broadband services in new ways,
potentially generating new revenues;
on the other hand, it is simply an
extension to the strategies operators
are already pursuing with 3G
technology to drive uptake of their
data plans.
Fig. 1: Global, LTE operators, by region and country, Apr-12 (continued)
Country Operator Technology Start date
Western Europe (continued)
Sweden HI3G LTE800/900/2600 Dec-11
Tele2 Sweden LTE800/900/2600 Nov-10
Telenor Sweden LTE800/900/2600 Nov-10
TeliaSonera Sweden LTE800/900/2600 Dec-09
North America
Canada Bell Wireless Afliates LTE2100 (IV) Sep-11
Rogers Wireless LTE2100 (IV) Jul-11
Telus Mobility LTE2100 (IV) Feb-12
US AT&T Mobility USA LTE700/2100 (IV) Sep-11
Leap Wireless LTE1900/2100 (IV) Dec-11
Metro PCS LTE1900/2100 (IV) Sep-10
US Cellular LTE700/2100 (IV) Mar-12
Verizon Wireless LTE700/2100 (IV) Dec-10
Latin America
Brazil Sky Brazil LTE2500 Dec-11
Puerto Rico America Movil Puerto Rico LTE700 Feb-12
AT&T Mobility Puerto Rico LTE700/2100 (IV) Nov-11
Open Mobile LTE700 Apr-12
Uruguay ANCEL LTE Dec-11
Middle East
Kuwait Viva Kuwait LTE Jan-13
Saudi Arabia Saudi Telecom Company LTE2300 Sep-11
SMTC Saudi Arabia LTE1800 Sep-11
UAE Etisalat UAE LTE2600 Dec-11
Africa
Angola Movicel LTE1800 Apr-12
6
Fig. 2: Global, LTE subscriptions (000s), by country and operator, 1Q10-1Q12
Country Operator 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
Asia Pacic
Australia Telstra 100.0 248.5
Hong Kong CSL New World 0.1 0.8 1.5 2.2
Japan NTT DoCoMo 1.2 25.6 121.4 388.6 1,139.4 1,913.2
South Korea KT Corp 110.0
LG U+ 230.0 560.0 895.7
SK Telecom 200.0 700.0 1,119.7
Singapore MobileOne 0.8 0.9 1.1
SingTel Mobile 0.1 0.4
Eastern Europe
Armenia K-Telecom 0.5 0.6
Belarus Yota Bel 0.1 0.2
Estonia EMT Estonia 0.2 0.3 0.6 0.8 0.8
Latvia LMT 0.5 1.2 2.0 2.2
Lithuania Omnitel 0.8 1.7 2.6 2.9
Poland Polkomtel 10.0 13.0
Russia Yota 200.0 275.0
Western Europe
Austria Hutchison 3G 5.0 20.0
mobilkom 0.2 0.5 0.9 2.0 5.0 6.2
T-Mobile 2.0 6.0 9.2
Denmark TDC Mobil 1.0 2.1
Telia 0.5 1.3 2.0 4.0 6.0 10.0
Finland DNA 1.0 1.3
TeliaSonera 0.5 1.5 2.5 3.9 4.6 5.1
Germany O2 1.1 3.2 5.1
Telekom 15.0 26.0 47.0 64.2
Vodafone D2 0.1 9.0 27.0 52.0 88.0 110.0
Norway Netcom 1.0 1.1 1.5 2.5 3.1 3.7 4.1 4.9 5.2
Sweden Tele2 1.0 1.5 2.3 3.2 5.0 10.0
Telenor 0.7 1.5 2.1 3.0 7.0 10.0
TeliaSonera 0.8 1.0 1.8 2.5 3.5 4.3 10.0 14.0 20.0
North America
Canada BWA 2.0 50.0 98.0
Rogers 6.0 20.0 30.8
Telus 6.0
US AT&T Mobility 25.0 747.0 1,469.0
Leap Wireless 1.0 1.9
Metro PCS 20.0 150.0 285.7 357.1 428.6 500.0 593.5
US Cellular 2.0
Verizon 65.0 504.2 1,705.8 3,102.3 5,330.3 8,004.6
7
The ways that the early-launchers
of LTE are approaching LTE reflects
this dichotomy:
Some are positioning LTE in new
ways, mainly as a direct substitute
or replacement for fixed broadband
services. This is happening in rural
areas in particular when regulatory
requirements have demanded it,
most notably in Germany.
The majority are positioning LTE
as an extension of their 3G mobile
broadband proposition, one that
many, but not all, are charging a
premium for.
Operators that are positioning LTE
as a stand-alone premium mobile
broadband service are using
enhanced speed as the main, if not
sole, benefit of paying the extra
monthly charges being made to
access the network.
Aggressive LTE operators
For the two main US mobile
operators, Verizon and AT&T, the
decision to move so aggressively
on LTE was, and still is, a function
of the particular characteristics
of that market the early award
of spectrum suitable for LTE
deployments, combined with
stressed legacy networks.
Verizon Wireless was the first
operator in the US to launch LTE,
in December 2010. It was very
aggressive in terms of both build-out
and subscriber acquisition targets
because it needed to transition away
from the dwindling CDMA ecosystem
to a global standard while at the
same time ensuring that it made its
network investments in a technology
2016+: 4.0%
2015: 8.1%
2014: 17.3%
2013: 25.4%
2012: 34.1%
2011: 6.4%
2010: 4.0%
2009: 0.6%
Fig. 3: When are you planning to launch commercial services using LTE?
(If you have already launched, please state the launch year)
n=336
N
u
m
b
e
r

o
f

o
p
e
r
a
t
o
r
s
*
0
5
10
15
20
L
T
E
8
0
0
L
T
E
8
0
0
/
9
0
0
/
2
6
0
0
L
T
E
7
0
0
L
T
E
7
0
0
/
2
1
0
0

(
I
V
)
L
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E
2
6
0
0
L
T
E
2
5
0
0
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E
2
3
0
0
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2
1
0
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L
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E
1
9
0
0
/
2
1
0
0

(
I
V
)
L
T
E
1
8
0
0
L
T
E
1
8
0
0
/
2
6
0
0
Fig. 4: Global, LTE launches by technology and band, 1Q12
*Where available
Fig. 2: Global, LTE subscriptions (000s), by country and operator, 1Q10-1Q12 (continued)
Country Operator 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
Latin America
Puerto Rico America Movil 0.4
AT&T Mobility 0.6 1.2
Uruguay ANCEL 0.6 1.3
Middle East
Saudi Arabia STC 1.0 5.0 9.0
SMTC 0.5 2.0 3.5
UAE Etisalat 3.0 5.5
Global total 1.8 2.1 23.3 224.4 837.6 2,246.0 4,500.6 9,575.1 15,089.8
8
with a stronger future than 1xEV-DO.
To this end, the operator is trying
to migrate its 1xEV-DO subscribers
to its LTE network to minimize
the amount of investment it needs
to make on its 1xEV-DO network,
and aims to have LTE coverage
comparable with 3G by mid-2013.
AT&T, meanwhile, needed to relieve
the much-publicized strain on its
3G network, which was particularly
acute in key markets such as
New York City and San Francisco.
Equally as important, AT&T had
to ensure that its main rival didnt
create an uncatchable lead in the
countrys nascent LTE market,
demonstrating that, once a strong
competitor launches LTE, operators
are pressured to respond to remain
competitive.
Japans NTT DoCoMo is pushing
LTE aggressively to capture the
high ground with early adopters
and enterprise users. Based on the
advantages it derived from launching
3G early, DoCoMo perceives that
there are clear benefits in being first
to market with a new technology
in its extremely tech-savvy home
market. DoCoMo had 2 million LTE
users at end-March, surpassing
its end-March annual target of 1.3
million, meaning that the service
is beginning to move out of the
early-adopter segment and into the
broader market.
Cautious LTE operators
Operators that havent been
successful in signing up users cite a
combination of three main factors:
Although LTE dongles are in the
market, the fact that the fast-
increasing majority of mobile data
usage is via smartphones rather
than dongles has been a lag on
the uptake of services.
There is a perceived lack of a
strong need for mobile broadband
speeds faster than 3G offers, in
tandem with a lack of a clear
value proposition for LTE that is
distinct from 3G.
Operators with robust 3G
networks dont face capacity
constraints compelling them
to migrate subscribers to LTE
quickly.
N
u
m
b
e
r

o
f

o
p
e
r
a
t
o
r
s
*
0
10
20
30
40
50
O
t
h
e
r

(
p
l
e
a
s
e

s
p
e
c
i
f
y
)
2
6
0
0
M
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z
2
3
0
0
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2
1
0
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(
A
W
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)
2
1
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1
9
0
0
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1
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4
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5
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7
0
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4
5
0
M
H
z
Fig. 5: Which spectrum bands do you intend to use to deploy LTE? (multiple
choice)
n= 336
No
29.2%
Yes
70.8%
Fig. 6: Do you believe there is a viable business case to launch LTE in your
market today?
n= 341
Other (please specify)
3.0%
To enter mobile data
market for the first time
7.1%
Build brand value through
technology leadership
31.0%
Create new revenue
streams based on LTE
35.1%
Current networks do not
offer sufficient capacity
23.8%
Fig. 7: What is your primary motivation for deploying LTE?
n=341
9
With the ongoing increase in
the amount of data that existing
mobile users consume, as well as
the accelerating penetration of
mobile broadband into new user
groups, operators will increasingly
differentiate themselves on the
quality of their mobile broadband
experience.
Many new LTE networks will be
launched in 2012 in tandem with
broadly conservative approaches
to positioning and pricing services.
Greater innovation, albeit very
gradual, will be seen in the market in
2013 and beyond. This innovation will
be driven by the availability of a wider
range of LTE devices running different
operating systems (iOS, Android and
Windows) in conjunction with more
widespread rollouts of LTE networks,
as well as the broad deployment
and uptake of an industry-standard
approach to voice over LTE (VoLTE).
Smartphones offering a compelling
user experience drove mass-market
uptake of 3G subscriptions and
LTE will be no different. Again, just
like the iPhone kick-started mass-
market mobile broadband use, LTE
smartphones, in particular the LTE
iPhone expected in 3Q12, will have
a significant positive impact on LTE
subscription uptake in markets where
the device works on those networks.
LTE subscription forecasts
Informa Telecoms & Media forecasts
indicate that Asia Pacific will be
the region with the most LTE
subscriptions from the end of 2013
onwards, driven by expected large-
scale rollouts in China. The global
total is forecast to reach 609.1 million
by the end of 2016. LTE subscriptions
will see the highest year-on-year
growth between 2012 and 2013, as
operators worldwide, in particular in
Europe and Asia Pacific, launch LTE
networks (see fig. 8).
LTE voice
Although an industry-wide approach
has been agreed for VoLTE, there
are no VoLTE-enabled devices in the
market. Therefore, operators will have
to take a phased approach to LTE
voice. Most operators have launched
LTE with circuit-switched fallback
(CSFB) for voice before transitioning
to VoLTE in the longer term once the
core network elements have been
deployed and a wider range of devices
are available. Approaches to CSFB
vary and operators need to decide
between a handset and a network-
based solution.
Regional US mobile operator
MetroPCS was the first operator to
launch LTE in the US, in 3Q10. It says
it will be the first operator in the
world to offer VoLTE, in 3Q12, with a
device supplied by Samsung in the
first instance. MetroPCS wants to shift
voice traffic from its CDMA network so
it can re-use that spectrum for LTE,
while Verizon Wireless is set to launch
VoLTE services by the end of this year.
How operators approach VoLTE
will be a key factor in determining
the value of their service offerings
in general and LTE services in
particular. According to Informas
LTE survey, IMS voice will be the
main approach to VoLTE (see fig. 9).
However, LTE networks will give rise
to more competition on voice than at
present because consumers will have
more choice on how they make voice
calls. This means that operators will
have to ensure their voice offerings
remain competitive in terms of pricing
and features as OTT players launch
increasingly innovative and compelling
offers.
Market development
0
100
200
300
400
500
600
700
2016 2015 2014 2013 2012 2011
Eastern Europe Western Europe Asia Pacific Latin America North America Africa Middle East
S
u
b
s
c
r
i
p
t
i
o
n
s

(
m
i
l
.
)
Fig. 8: Global, LTE subscriptions by region, 2011-2016
Note: Figures refer to year-end
10
At the moment, LTE operators are
continuing to treat voice and data
as separate services, but, as voice
becomes part of the LTE value
proposition, there will be more
innovation on bundling voice and
data into single tariffs. Given that
many operators already bundle large
numbers of voice minutes with data
allowances into 3G subscriptions, this
strategy is expected to develop in the
LTE domain, with increasing numbers
of minutes bundled into subscriptions
that cover voice and data access.
Other (please specify)
3.4%
Dual radio (e.g., Verizons model:
LTE for data, CDMA for voice)
12.4%
Circuit-switch fallback
(CSFB)
11.0%
Operator-managed
OTT VoIP
13.5%
Unmanaged OTT VoIP
(e.g., Skype, Viber, etc)
11.7%
IMS-based VoIP
(OneVoice/VoLTE)
47.9%
Fig. 9: What do you think will be the primary solution for voice over LTE?
11
Define the proposition: Is LTE another part of the mobile broadband jigsaw or an
entirely new picture?
Operators need to decide if they are going to position LTE as just another part of the mobile broadband jigsaw or
position the technology as offering significant benefits over 3G. If the latter, then evidence from operators that have
positioned LTE as a new proposition compared with 3G suggests that operators need to rely on more than just
speed to make a success of this strategy. Many operators have yet to articulate the LTE consumer value proposition
effectively, and those that havent must work to convey the real value of LTE to customers. Key questions operators
need to address are: Why should consumers sign up to LTE? What difference does speed make to them?
If operators dont charge a premium for LTE, they can still make a return on
investment by enhancing the overall mobile broadband proposition relative to rivals.
Old principles hold absolutely with the advent of LTE. The operator with the best network and the most
competitively-priced services that offer the best perceived value will still win on ARPU and churn. LTE should be
seen as a way to reinforce this fact rather than as a way to generate new revenues.
Build a story out of LTE dont just sell a technology at a competitive price
Operators are still positioning LTE as a technology rather than a service that can provide clear value benefits over
3G. They should attempt to clearly communicate the advantages of LTE over 3G in terms of the overall quality
of experience. The entire retail chain should be involved in this, including giving online demos of the benefits of
LTE over 3G in retail stores. Take customers on a journey of continually and incrementally improving the mobile
broadband experience.
Be ready to respond to first movers
Operators need to be prepared for launch so that they are in a position to react quickly if a main rival launches.
However, operators should also resist launching simply because the competition has the decision must be based
on a sound business case and a thorough examination of the risks of not launching. How much advantage can an
operator gain by waiting to launch while it expands its LTE coverage and hones its service proposition?
Offer a compelling user experience at low price points to drive uptake and further
usage over time
Users will consume more data over LTE if the experience is perceptibly better than 3G and so are more likely to
be prepared to pay to use the service more. Offering an LTE experience with small amounts of data per month
(e.g., sub 1GB) is a sound way to encourage the uptake of the service and, once the customer is signed up, to then
encourage a greater usage of it, rather than expecting customers to jump to significantly higher speeds and data
allowances than they are used to on 3G.
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