LTE Profit Mantras 2012-2016

u       Profits – That’swhat this research intends to deliver to as many mobile operators，infrastructure providers and device manufacturers as possible， worldwide.u       Mantras (Vedicchants) – Not for any religious pursuits， but aimed solely towards realisingprofits. You might be startled to know that the roadto LTE Profits could be absurdly simple.So， what’s the unique charm of LTE ProfitMantras??nbsp;           The purpose ofour Report is to ensure profits from your LTE ambitions， but the solutions we proposeare simple – and not complex， as you might think. ?nbsp;           But again – Mindthat LTE isn't for every operator out there， as of now. However， when you domove to LTE， how you do so could well decide whether you would continue toexist in business or not. We tell you how you would.?nbsp;           Our study coversall 3 sets of mobile operators – Those who are currently in the planning/execution stages of LTE; those who have already launched LTE networks; and eventhose who haven't yet given LTE any serious thoughts. Our experts haveprioritised the various approaches required to be adopted by each set of operatorsand presented prototypes to help guide them in a manner that not only wouldpossibly ensure optimum monetisation， but enable doing so in simplified ways.As a mobile network operator you might haveeverything going for you – a great network， various device & serviceofferings， a substantial customer base， sufficient quantity & quality ofspectrum etc. Enough， you might feel， to make a consistent headway to a profitablenext 5 years. However， this isn't 2010， when LTE networks just started to bud.The telecoms industry is at possibly its most crucial phase this year， whenwhat the operators， infrastructure providers and device makers do or plan woulddecide if they actually manage to stay in business or not – forget aboutmonetising LTE networks. In a time where consumerloyalty changes faster than the blink of an eye， compounded with the disruptivescenario of takeovers and mergers during last 18 months， survival comes beforeyou even think of profits. Contrary to what many might believe， there's been asignificant shift in consumer psychology in recent times - What we found overthe course of our research and various consumer surveys was that in manygeographies – more so in emerging markets like South-East Asia， Africa， EasternEurope and Latin America， people crave mobiletelephony solutions that are easy for them to understand， particularly keepingin mind the vast demographical challenges of such areas. Even in developedmarkets like North America and Western Europe，where 'affordability' might not always be an issue， people are 'downshifting' –it's like they have been exposed to an overdose of technology and now thehigh-tech charm has rubbed off. 'Low-tech' is what they are looking for. To putit in a different way – LTE is supposed to make people's lives simpler， right? That's what many operators and vendorsseemingly fail to understand. When you have made/ are thinking of 'massinvesting' in regards to LTE wouldn't you want to 'mass customise' it as well?And for that you need to focus on users' 'needs' rather than 'desires'. To reap profits from your LTE launches，aside focusing upon seamless quality you need to first 'bring customers ontothe network' – and always throwing LTE products loaded with a plethora offeatures at the customers won't work each time， and everywhere. Suppose you arean established mobile operator looking for expanding your LTE opportunities inemerging markets – Would you want to pitch a high-end device in a market like，let's say， rural India?Probably not. Moreover， the market is already overcrowded with over 12operators， all having experienced the dismal 3G uptake in the country. Howwould your 4G succeed in such a scenario where masses shunned even 3G? Oneapproach could be: As such people use basic handsets what youcould try is handsets upgrade/ exchange offer at pay schemes that suit them.Not only advertise in native language but also incorporate it into the handsetsto overcome the language barrier. Essentially， give them the same services buton new handsets， with a faster speed – no '4G' features as of now. Point is tobring them onto your network. Gradually， you could start to 'simplify' thingsfurther – for example， by making banking/ transportation services easier forthem to avail as these are scattered and far off in such areas by introducing a mobile money transfer/ hospital alertservice. As you 'better' their socio-economic standard you could then graduallystart offering more features which would prod them towards higher-end devices. Indirect promotion in such areas acts as astrong lever for people living there in communalising your LTE services –Primarily， you would find it easier to 'lead' such a population towards yourservice offerings， whereas you mostly might tend to 'overmarket' your servicesin the case of urban areas， where anyways the consumer psychology isn't soreceptive and enduring. In the long run， and after due consideration of varioussuch suggestions offered within our research， you might actually end up being apioneer on a national/ international scale in the sense of identifying anentire region by your company name， and connect on much higher and broaderlevel with your customers and affect their social and economic lives in waysnot entirely possible in urban areas – and even benefit from a political/regulatory perspective while optimising your costs. These are just a few examples we havepresented within – You could try a lot more after going through our report. Coming to the post-deployment phase ourteam has analysed and provided solutions to the most daunting challenges suchMNOs are facing worldwide. Spectrum harmonisation， roaming， VoLTE， choice ofsmall or large cells， backhaul and traffic are just a few out of the manyissues our experts examined and blasted away at by providing varioussuggestions and guidelines. Unpaired spectrum that's becoming availablein higher frequency bands is somewhat less expensive than paired， sub-1GHz bands，and with TDD， which permits uplink as well as downlink to be carried by thesame frequency bands， is a way out for those looking to add capacity tonetworks. But TDD comes with its disadvantages， which need to be managed. Whatare these and how can you overcome them is one of the few problems we havesolved vis-?-vis LTE TDD. Besides， we examined the practical viability ofintegrating TDD and FDD – as in earlier mobile telephony generations like 3Gthis was a major hurdle for operators. However， the orthogonal frequencydivision multiple access (OFDMA) makes it possible that both TDD and FDD usethe same air interface scheme， leading to eventual TDD/ FDD integration. Wehave taken a deeper look within the report， and also studied the case of SKTelecom， which's become the world's first operator to launch integrated TDD/FDD LTE services in June this year. This draws attention towards the urgentneed for device makers to come up with multi-mode handsets. Device makers wouldwant to make handsets that work on all networks – even 2G， atleast for now， atsome places. However， simplified offerings keepingconsumer/ device segmentation in mind would bear profits only if the pricing&cost mechanisms are flexible. The report entails a critical analysis andcomparison of many pricing models based on the various stages the operators andvendors community stand regarding LTE. In particular， TDD/ FDD LTE pricing andits comparison and differentiation from HSPA+/ WiMAX etc. has been studied.Quality of Service (QoS) might not top yourpriority at the very early stage of your launch – Rather， as we mentionedbefore， it would be bringing customers onto your LTE network first. How best to'break-even' at this stage by optimising your pricing and cost model has beenevaluated with roadmaps to ultimately move on to value-based pricing gradually. This again leads us to the question ofnetwork deployment strategies， which involves huge CAPEX and OPEX. So what can those mobile carriers do whoare not (yet) at the level of， say， Verizon Wireless? Say， someone like IdeaCellular， which， though a big player， has its subscriber base scattered and notas big as that of Verizon， AT&T etc.? Besides  an indepth  analysis  of alternate  cost models  we also  included  a separate  section  on Self Organising Networks (SON) andassociated challenges in deploying them， with exhaustive case studies on 4 MNOsthat have benefitted  by  this technology.  Moreover，  a detailed  study  of over  20  network-sharing  models and  charging mechanisms was donewhich could help those mulling over how to monetise LTE economically. Talking of costs， device subsidies are atouchy issue for many operators. We are moving into a period where prepaidofferings are on the rise to drive more subscribers – A development we feelthat's healthy for mass uptake of LTE services. However， this could raiseconcerns over churn rate for many operators. But then your OPEX won't sufferdue to device subsidies associated with contract customers. But subsidies couldbe a double-edged sword. Some of our findings towards the sharpeningendeavour of MNOs worldwide to cut back the amount of handset subsidies thatthey are providing their customers with were: Operators are either making additions to，or raising upgrade charges for those subscribers looking to switch – VerizonWireless now has a fee of $30 and AT&Tand Sprint have doubled theirs to$36. Operators are gradually raising monthlydata subscription rates – This implies the end-user has lesser money to splurgeon new handsets. The stocks of major wireless providers haveincreased recently during our study period – While that of Google and Appledeclined. This indicates there could be a change in the equation-quo in timesahead. It's crucial to understand two aspectshere:?nbsp;           The iPhone nowcomprises more than half of Apple's revenues – So any shift in its rise pathwill have a huge affect on the company's performance.?nbsp;           A negative impacton iPhone sales doesn't spring from operators necessarily having to end subsidies– They could not get into the practice of frequent upgrades and coax theirsubscribers to stick to their handsets for a longer duration. The second point leads us to observe thatfrequency with which the iPhone and other smartphones for that matter aregetting better over older generations is not that fast anymore. Consequentlythe advantage to subscribers of upgrading to the newest handsets would growpaler and paler. The smarter the smartphones become so will the customers' need to upgrade to a new handsetevery year; and this enthusiasm  wouldslow down more if operators really get down to subsidising all their deviceofferings.So， selectively subsidising your deviceofferings is what we advice. Point is – You need to cover the MASSES – andselectively differing your LTE positioning from one region to other can helpraise your ARPUs dramatically. Speaking of ARPUs the role of convergencecouldn't be sidelined - a segment that many players have not yet thought ofseriously. Giving the topic the respect it deserves we have delved into both Mobile-to-Mobile as wellas Fixed-toMobile convergence. The role of cloud computing herein demandsspecial attention. Cloud and mobile computing convergence iscatching on. In the USboth the civilian and defense agencies have commenced issuing RFPs formobile-cloud convergence solutions that could well turn out to become abillion-dollar arena. A mobile workforce gets supported at any place owing tothe high-end user interface that smartphones and tabs provide while the cloudoffers mammoth data processing capabilities. Security is the prime business enabler formobile-cloud convergence. Conventional security approaches based upon the themeof mere protective measure and overhead cost won't do. Companies must look intonew security strategies to benefit from the tremendous opportunitiesmobile-cloud convergence have in store for them. What are these and how to goabout them have been presented in our report.Policy management has been one area that'shad a significant impact on operators and with LTE is more so. Our survey showsthat the prime catalyst for deploying policy tools， majorly PCRF-based policyservers and related enforcement (PCEF) appliances and software is trafficmanagement. Frequently the initial application is the 'fair use management' that divides customers tosimple tiers and restricts what they can do depending upon the time of the day，such as peak， off-peak or tier， app etc. Still， many vendors are looking towardsmore ambitious plans to use policy platforms to construct highly personalisedservices which require a greater array of policy triggers and demand tighterintegration with charging mechanisms， customer profile information and thirdparty app providers. Can this really take off? Our surveyresults do happen to say so – The desire for personalised services anddifferentiating factors vis-?-vis competitors was second only to fair usemanagement as amongst prime catalysts for deploying policy， with numerouscarriers infact citing this as their major catalyst. Besides， innovative policy apps areappearing – We witnessed a stirring desire towards deployments of packages thatinculcate unlimited access to Facebook， newer approaches to parental monitoringand low priced initiatives in underdeveloped economies that use policy toolsfor data access restriction to just a single app such as email. But for policy to actually succeed fullynumerous things need to be ensured， some of which are:?nbsp;           Operators andvendors community need to work together on product development and marketing departmentswithin telcos. The time has come when equal importance  needs to be given to network engineeringgroups that more often than not command a greater say in policy， and to productgroups that need to design innovative new policy-enabled suggestions which aresignificant to making a wider business case for policy deployment. ?nbsp;           Following fromthe above point policy creation mechanisms need to be simplified so thatmarketing can make and launch policies independently， without the need forinternal/ external assistance.?nbsp;           Network carriersneed to ensure that costs for integration with subscriber data stores andcharging systems?nbsp;           that will providethe desired results are viable. Our research revealed the foremost restrictionto broader use of policy tools was the concern stemming  from challenges of integrating policy withlegacy charging mechanisms. Policy monetisation is crucial for operators if themore ambitious intentions for such platforms are to be realised. These are merely glimpses of a few policydeployment issues – There're plenty more we have covered within our report，like – What's the ideal policy enforcement location/ function of optimisingtools， particularly for video/ offloading and policy dynamics etc.  All these are of vital significance to bothoperators and vendors. Focusing and analysing the peculiardemographical challenges is another aspect vis-?-vis LTE rollouts， devices andpolicy charging that our experts looked into – something we feel that not everyof our esteemed fellow research houses are paying close attention to. For instance， an outlook that manyoperators harbour is that they visualise LTE as a Greenfield network venture in a particulargeography/ application， and as a Brownfield network opportunity (migrating fromthe current infrastructure) in other instances. In cases where mobile carriersalready have a 3G network deployed their targets may lead them to make acompletely parallel and independent LTE infrastructure. On the other hand somenew LTE players may ponder over interoperability with 3G service providers forfacilitating roaming/ or even interoperability amongst their own wireless andLTE networks. An amalgamated approach towards LTE is probably that would proveuseful to such operators at some stage. These and many more areasof segmentation such as devices/ charging mechanisms/ corporate/ household/urban/ rural have been probed inside the report.

●Executive Summary●Table of Contents1.Executive Summary/ Intricacy of LTE Business Models & Charging Mechanisms – Beware 1 before it's Too Late2. Intricacy of LTE Business Models & Charging Mechanisms – Beware before it's Too Late2.1 LTE Deployments– Where should you begin for ensuring the shortestturnaround?Figure 2-1 Network Deployment Strategies Adopted by Early Movers2.2 LTE Operator Types and Business Models – Where do you fit in?2.2.1 Why mustn't all follow in Verizon's footsteps? A Critical Analysis2.2.1.1 Verizon's LTE Rollout RoadmapFigure 2-2  Verizon's LTE Rollout Roadmap， 2010-20132.2.1.2 What lies behind Verizon's aggressive LTE pricing strategies?2.2.1.2.1 Apple's iPad 4G LTE Plan Pricing Detail: Verizon Vs. AT&TTable 2-1 LTE Price Plans- Verizon Vs. AT&T， 20122.2.1.2.2 Verizon's Family Shared Data PlansTable 2-2 Verizon's Unlimited Talk & Text + Shared Data Plans， 20122.2.1.2.3 Verizon Killing its Unlimited Data Plans2.2.2 TeliaSonera， Sweden – What made it the pioneer where others couldn't?2.2.2.1 Telia's LTE Rollout RoadmapFigure 2-3  TeliaSonera's LTE Rollout Roadmap， 2009-20122.2.2.2 TeliaSonera LTE Pricing StrategyTable 2-3  Telia's Sweden LTE Plans2.2.3 New Service Models by Tele2， Telenor-Net4Mobility2.2.3.1 Net4Mobility's LTE Deployment Plans2.2.3.2 Net4Mobility's Conservative LTE Pricing StrategyTable 2-4  Telenor's Net4Mobility LTE Price Plan， 20122.2.4 CyFrowy Polsat – Bundling LTE with other Telecom Services2.2.5 Offering DSL-like Services in Rural Areas – Vodafone， Germany2.2.5.1 Vodafone LTE Rollout Roadmap， 2010 - 20122.2.5.2 Vodafone Germany LTE PricingTable 2-5  Vodafone's Germany LTE Tariffs， 20122.2.6 The Rise of MVNOs' Significance in LTE Deployments， 2012-20162.2.6.1 Proposed MVNO Launches 2012-20162.2.6.1.1 Ting to Offer LTE through Sprint Network2.2.6.1.2 MegaFon's TD-LTE MVNO2.2.6.1.3 Rostelecom to offer LTE on Yota's Network2.2.6.1.4 FreedomPop Sprint LTE2.3 Wholesale/ Under-the-Floor Players' (UtF) LTE Network Business Model2.3.1 Wholesale Business Model: Operators Getting Aggressive?Figure 2-4  Mobile Broadband Wholesale Market (In US$ billion)， 2012， 2016 & 20202.3.2 SWOT AnalysisFigure 2-5  LTE Wholesale Business Model SWOT Analysis2.3.3 Future of LTE Wholesale Business Model2.3.4 Case Studies: Major LTE Network's Wholesalers2.3.4.1 Clearwire Corp.， USA2.3.4.2 LightSquared， USA2.3.4.3 YOTA， Russia2.3.4.4 Aero2， Poland2.3.4.5 MVS communications， Mexico2.3.4.6 Kenya's LTE Wholesale Network: PPP Model2.3.5 Significant LTE Wholesale Network Deals 2012-20162.3.5.1 Cricket Communications Inc. – Clearwire Corp.2.3.5.2 Yota- Rostelecom2.3.5.3 LightSquared - NetTALK2.3.5.4 LightSquared – EarthComm Solutions2.3.5.5 PowerNet Global - LightSquared2.3.5.6 LightSquared Inc - Sprint Nextel2.3.5.7 Quantum Networks – LightSquared2.4 Global LTE Price Plans- A Comparative AnalysisTable 2-6  Comparison of LTE Price Plans for Commercial Offerings， 20112.4.1 LTE Early Mover – Ensuring profits or burning your fingers?Table 2-7  Advantages and Disadvantages of LTE for Early Movers2.4.2 Throttling Unlimited Data Plans – Who should and who shouldn't?2.4.2.1 Orange， UK2.4.2.2 AT&T， USA2.4.3 LTE Pricing – How does the end-user perceive it?2.4.4 Flexible LTE Tariffs – A temporary solution?2.5 Positioning of LTE Services – A Make or Break Strategy for MNOs2.5.1 Urban/ Rural/ Unserved/ Underserved/ Developed Areas – Suggestions &GuidelinesFigure 2-6  LTE Oriented Services in Consumer SegmentFigure 2-7  LTE Oriented Services in Business Segment3. LTE CAPEX & OPEX Strategies – keys to Profit…or Doom3.1 Global LTE Capital Spending on the RiseFigure 3-1  Global LTE Capital Spending (In US$ Billion)， 2012-2016 3.2 LTE CAPEX/ OPEX Model3.2.1 MNOs CAPEX and OPEX- Developed Vs. Emerging MarketsFigure 3-2  MNO’s Typical CAPEX Costs per Site- Developed Vs. Emerging MarketsFigure 3-3  MNO’s Typical OPEX Costs per Site- Developed Vs. Emerging Markets3.2.2 OPEX CategorisationFigure 3-4 OPEX Break Down for an LTE Operator (In %)3.2.3 Base Station Deployment， Upgradation and RAN Deployment CostFigure 3-5  LTE Base Station Deployment Forecast (In Numbers)， 2011 and 2016Figure 3-6  Global 4G Equipment Expenditure on Base Stations (In US$ Billion)，2011-2016 Figure 3-7  Global Small Cell Base Stations’ Deployment Forecast (In Million)， 20112016 3.2.4 Core network Deployment CostFigure 3-8  LTE Evolved Packet Core (EPC) Capital Expenditure (In %)， 20123.2.5 Small Cell Deployment CostFigure 3-9  Global Small Cells Backhaul Capital Expenditure Forecast (In US$Billion)， 2011 - 20163.2.6 Mobile Backhaul CostFigure 3-10  Global Mobile Backhaul Operational Cost Forecast (In US$ Billion)， 2011 -20163.3 LTE Investment Priorities: Operator’s Capital Allocation to Maximise ROITable 3-1  Top Five Investment Areas to Maximise ROI Figure 3-11  Top Five Investment Areas to Maximise ROI3.4 How Self Organising Networks (SON) can reduce CAPEX & OPEX?3.4.1 SON’s Overview and MeritsFigure 3-12  Merits of SON Functions in Operator’s Operations & MaintenanceWorkflow3.4.2 SON Saves You MoneyFigure 3-13  Large US Operators’ Cost Savings with SON (In Euro Million)Figure 3-14  Various Global Operators Cost Savings with SON (In Euro Million)3.4.3 MNO Leveraging SON 3.4.3.1 AT&T Mobility， USA3.4.3.2 TeliaSonera， Sweden3.4.3.3 T-Mobile， Austria3.4.3.4 KDDI， Japan3.5 Network Sharing – Only way out for smaller players?3.5.1 How operators are monetising network sharing models?Table 3-2  Financial Benefits of Different Network Sharing Models3.5.2 So， how much would you save over 5 years by a network sharing model?Figure 3-15  Accumulated CAPEX and OPEX Savings from Network Sharing over 5Years (In %) 3.5.3 Active Network Sharing3.5.3.1 Major LTE Network Active Sharing CasesTable 3-3  Major LTE Network Active Sharing Deals3.5.4 Passive Network Sharing3.5.4.1 Major LTE Network Passive Sharing CasesTable 3-4  Major LTE Network Passive Sharing Deals3.6 How unpaired spectrum can serve as a cost effective solution for theOperators?3.7 How Cloud Solutions Reduces CAPEX/ OPEX?3.7.1 Samsung SmartCloud Solution3.8 What is the potential in LTE RAN and EPC market?3.8.1 LTE RAN (E-UTRAN) Infrastructure Equipment Revenue ForecastFigure 3-16  Global LTE RAN Infrastructure Equipment Revenue Forecast (In US$Billion)， 2010-20163.8.2 LTE EPC (Core Network) Infrastructure Equipment Revenue ForecastFigure 3-17  Global LTE EPC Infrastructure Equipment Revenue Forecast (In US$Billion)， 2010-20164. LTE Uptake Prophecy on Data ARPUs & Subscriptions4.1 Global LTE Industry MarketFigure 4-1  Global LTE Industry Market Forecast (In US$ Billion)， 2011-20164.2 Global LTE Industry Market Forecast by Service Revenue， InfrastructureSales and DeviceFigure 4-2  Global LTE Industry Market Forecast by Type (In US$ Billion)， 2011-2016Table 4-1  Global LTE Industry Market Share and CAGR (In %)， 2011-20164.3 Regional LTE Service Revenues Forecast4.4 Global LTE Subscribers ForecastFigure 4-3  Global LTE Subscribers Forecast (In Million)， 2011-20164.5 Regional LTE Subscribers ForecastFigure 4-4  Regional LTE Subscribers Forecast (In Million)， 2011-2016Table 4-2  Regional LTE Subscribers Market Share and CAGR (In %)， 2011-20164.6 Global LTE Subscribers by Type (LTE TDD and LTE FDD)Figure 4-5  Global LTE Subscribers Forecast by Type (In Million)， 2011-20164.7 Global LTE Subscriptions ForecastFigure 4-6  Global LTE Subscriptions Forecast (In Million)， 2011-20164.8 Global LTE Subscriptions Market Share by OperatorsFigure 4-7  LTE Subscriptions Market Share (In %)， 20114.9 Regional LTE Subscriptions ForecastFigure 4-8  Regional LTE Subscription Forecast (In Million)， 2011-20164.10 Global LTE ARPU MantrasFigure 4-9  Global LTE ARPU (In $)， 2011-20175. LTE Mantras for Successful Deployments5.1 Global LTE Deployment TrendFigure 5-1  Global LTE Deployments and Commitments， 2012Figure 5-2 Commercial LTE Network Launches (In Numbers)， 2009-20125.2 LTE Growing Faster than HSPAFigure 5-3  Number of Network Commitments after 6 months and 12 Months of 1stCommercial Launches5.3 LTE Deployments’ Current State in Key Countries (TDD/ FDD)Table 5-1  LTE Deployment by Countries， Operators & Launch Data， September2009 - May 2012 5.4 FDD and TDD Bands5.4.1 Bands Available GloballyTable 5-2  Different FDD and TDD Bands Defined by 3GPP5.4.2 Regional Analysis of Spectrum Bands AvailableTable 5-3  Spectrum Bands Available in Different Regions5.5 LTE TDD Market – A New Rising Wave5.5.1 LTE TDD Market OverviewTable 5-4  LTE TDD Market Overview， December 2011Figure 5-4  LTE TDD Trial Networks， December 20115.5.2 Operators’ Activities in LTE TDD AreaTable 5-5  Activities Conducted by Key Operators in LTE TDD Area， May 20125.5.3 TDD Spectrum BandsTable 5-6  3GPP TDD Spectrum BandsTable 5-7  Global LTE Deployments Status in 1800 MHz: Current & Future， May20125.6 LTE Deployments in 1800 MHz Band5.7 LTE Deployment Future Plans (FDD & TDD)Figure 5-5  LTE Future Deployment Trends5.8 LTE Policy Management:  Providing Optimised Solutions5.8.1 Minimising Network Congestion5.8.2 Enhancing QoS (Quality of Service)5.8.3 Service Monetisation5.9 Deployment Strategies – Who should follow which， and why?5.9.1 Operators’ Key LTE Requirements5.9.2 What are the deployment paths for LTE?Figure 5-6  Various Deployment Paths towards LTE5.9.3 LTE Deployment Strategies: A Solution for ALLFigure 5-7  Deployment Strategy for Operators5.9.4 What is the viability of integration of FDD and TDD Networks?Table 5-8  European Countries with Potential for Hybrid LTE FDD/ TDD Networks5.9.5 US LTE Time BuildoutsFigure 5-8  US LTE Time Buildouts5.10 LTE Advanced: Don’t Run or You might Trip!5.10.1 What's so great about LTE Advanced?5.10.2 LTE Advanced Drivers5.10.3 Planned LTE Advanced Trials/ Rollouts5.10.3.1 T-Mobile USA5.10.3.2 Clearwire5.10.3.3 Dish Network5.10.3.4 AT&T5.10.3.5 Sprint5.10.3.6 NTT DoCoMo5.11 LTE Convergence: Facilitating New Avenues of Profits for Operators5.11.1 Live TV Broadcast: LTE to Deliver Seamlessly5.11.2 Case Studies5.11.2.1 Telefonica5.11.2.2 Verizon5.11.2.3 Telesonera5.11.3 LTE Connected Cars5.11.3.1  Case Study: Verizon’s 4G Venture Forum for Connected Cars5.11.4 Opportunities in Rail Industry5.11.5 Health Surveillance5.11.6 Machine Tele-monitoring5.11.7 Vehicle Tracking5.11.8 Video Surveillancefety LTE Market5.11.9 Utilities5.11.10 Public Safety LTE MarketFigure 5-9  Global Public Safety LTE Market Forecast (In US$ Million)， 2011-20165.11.11 Will LTE & WiMAX Coexist?5.11.12 New Streams of Revenues for LTE OperatorsTable 5-9  Value Added Services in LTE Environment5.11.12.1 Mobile Cloud Services: GenEx Applications5.11.12.2 Rich Voice5.11.12.3 P2F Messaging5.11.12.4 Browsing5.11.12.5 Paid information5.11.12.6 Personalisation5.11.12.7 Games5.11.12.7.1 G Cloud: World’s First LTE Cloud Gaming Service5.11.12.8 Mobile Video: TV/ VoD5.11.12.9 Music5.11.12.10 Content Messaging and Cross Media5.11.12.11 M-Commerce5.11.12.12 Mobile Data Networking6. LTE Mantras for Overcoming Post-Deployment Challenges6.1 Top LTE Issues – Analysis & SolutionsFigure 6-1  Building a Right Strategy to Monetise LTE6.2 Lack of Spectrum Harmonisation Affecting Interoperability， Roaming andQoS6.2.1 Spectrum in DemandFigure 6-2  Spectrum Demand Vs. Supply (In Gbytes)， 2010-20166.2.2 What is the Operators’ Spectrum requirement?Figure 6-3  Operator Spectrum Requirement (In MHz of Spectrum)， 2010-20166.3 How spectrum crisis affects operators’ LTE plans?6.4 Band Fragmentation Leading to ComplexitiesFigure 6-4  Core Band Market Share as a Proportion of Global Addressable Market(In %)， 2011 and 20166.5 Voice over LTE (VoLTE)6.5.1 Circuit Switch Fallback (CS Fallback)Figure 6-5  The 3 Phases of LTE Voice Evolution6.5.2 VoIP Approach as Proposed by NSN6.5.3 IMS based VoIP6.6 Traffic Management6.6.1 Global Mobile Data Consumption Landscape6.6.2 Soaring Bandwidth: Mobile Devices Boom6.6.3 Data OffloadingFigure 6-6  Wi-Fi Vs. Femtocells' Penetration (In %)， 2011 and 2015Table 6-1  Global Monthly Mobile Data Traffic by Geographical Region (In TB)， 20112016Figure 6-7  Global Mobile Data and Internet Traffic by Geographical Region (In %)，2011-20166.7 Backhaul Costs and OptionsTable 6-2  Backhaul Options and their Suitability to Meet Future Demand6.8 Evolving to an All-IP NetworkTable 6-3  IP Overlay and ALL-IP – Network AttributesFigure 6-8  IP Overlay Network ArchitectureFigure 6-9  ALL-IP Network Architecture6.9 Intellectual Property Rights (IPR)6.10 LTE Handset Availability and Compatibility IssuesFigure 6-10  Smartphones' Penetration in Selected Countries (In %)， 20116.11 Security6.12 Pricing6.13 Roaming7. What are the key LTE Operators upto?7.1 Verizon Wireless7.1.1 Company Overview7.1.2 Data Price PlansTable 7-1  Verizon Data on Share Everything Plan， June 2012Table 7-2  Verizon Data-Only Plan7.1.3 Verizon’s LTE SubscriptionFigure 7-1  Verizon's Quarterly LTE Subscribers’ (In Million)， 2011 and 2012Figure 7-2  Verizon's 4G LTE POP (In Million)， 2011 and 20127.1.4 Verizon’s 4G LTE Devices SoldFigure 7-3 Verizon 4G LTE Devices' Quarterly Sales (In Million)， 2011 and 20127.1.5 Future Plans and Challenges7.2 AT&T Mobility7.2.1 Company Overview7.2.2 What advantage does AT&T carry over Verizon?7.2.3 LTE Price PlansTable 7-3   AT&T LTE Pricing PlanTable 7-4  New iPad Comparisons， AT&T Vs. Verizon7.2.4 Future Plans and Strategies7.3 Sprint Nextel7.3.1 Company Overview7.3.2 4G WiMAX SubscribersFigure 7-4  Sprint-Clearwire Quarterly 4G WiMAX Subscribers’ (In Million)， 2011 and20127.3.3 Switching from WiMAX to LTE – Why now?7.3.4 Future Plans and StrategiesFigure 7-5  Sprint’s LTE Roadmap7.4 T- Mobile USA7.4.1 Company Overview7.4.2 HSPA+ Coverage and Data ConsumptionFigure 7-6  T-Mobile Smartphone MB Consumption， 2009-2012Figure 7-7  T-Mobile USA 4G HSPA+ Coverage， June 20127.4.3 Future Plans and Strategies7.5 MetroPCS7.5.1 Company Overview7.5.2 LTE price PlansTable 7-5  MetroPCS' Latest LTE Price Plans， June 20127.5.3 Why lower adoption rate?Figure 7-8  MetroPCS' LTE Subscriber Base (In Million)， 2011 and Q1 20127.5.4 Future Plans in LTE Segment7.6 TeliaSonera， Sweden7.6.1 Company Overview7.6.2 Strategy behind being the Global LTE Pioneer7.6.3 TeliaSonera’s LTE Subscriber Base7.6.4 LTE Price PlansTable 7-6  TeliaSonera's LTE Pricing Plans， 20127.6.5 Future Plans in LTE Segment7.7 Vodafone7.7.1 Company OverviewTable 7-7  Key Regions of Vodafone Group (In Million)， March 31， 20127.7.2 Increase in Vodafone’s Data VolumeFigure 7-9  Vodafone Data Volume (In Petabyte)， 2010-20127.7.3 Mobile License Held by VodafoneTable 7-8  Vodafone's Mobile Licenses Across Key Regions， March 31， 20127.7.4 LTE Price PlansTable 7-9  Vodafone’s LTE Usage Based Tariffs7.7.5 Future Plans in LTE segment7.8 Telefonica， Spain7.8.1 Company OverviewTable 7-10  Telefonica's Global Subscriber Base (In Million)， March 20127.8.2 LTE Price PlansTable 7-11  Telefonica's Various LTE Price Plans， June 20127.8.3 Future Plans in LTE Segment7.9 Telecom Italia， Italy7.9.1 Company Overview7.9.2 Why the delay in LTE service commercial launch?7.10 France Telecom – Orange， France7.10.1 Company Overview7.10.2 Reasons for Delay in the Launch of LTE in France7.11 Yota， Russia7.11.1 Company Overview7.11.2 What made Yota shift to LTE?7.11.3 LTE Unlimited Data Pricing Strategy7.11.4 Future Plans in LTE Segment7.12 NTT DoCoMo， Japan7.12.1 Company Overview7.12.2 LTE Price PlansTable 7-12  NTT DoCoMo's New LTE Billing PlansTable 7-13  NTT DoCoMo's Monthly Charges (including Tax) for Voice Calls， 2012Table 7-14  NTT DoCoMo's Monthly Charges (including Tax) for Packet Data BillingPlans， 20127.12.3 LTE SubscribersFigure 7-10  NTT DoCoMo's LTE Subscribers (In Million)， December 2010-June 20127.12.4 Future Plans in LTE Segment7.13 KDDI， Japan7.13.1 Company Overview7.13.2 WiMAX SubscribersFigure 7-11  KDDI's WiMAX Quarterly Subscribers (In Thousand)， 2011 and 20127.13.3 Future Plans in LTE Segment7.14 SoftBank， Japan7.14.1 Company Overview7.14.2 LTE SubscribersFigure 7-12  SoftBank's Monthly LTE Subscribers (In Numbers)， March-June 20127.14.3 Data Price PlansFigure 7-13  SoftBank's Unlimited Data Plan for ULTRA SPEED7.14.4 Future Plans in LTE Segment7.15 SK Telecom， South Korea7.15.1 Company Overview7.15.2 LTE SubscribersFigure 7-14  SK Telecom's LTE Subscribers (In Million)， December 2011-May 20127.15.3 LTE Price PlansTable 7-15  SK Telecom's LTE Price Plans， April 20127.15.4 Future Plans in LTE Segment7.15.5 World’s First MultiCarrier LTE7.16 Telstra， Australia7.16.1 Company Overview7.16.2 LTE Price PlansTable 7-16  Telstra's LTE Price Plans， 20127.16.3 Future Plans in LTE Segment7.17 SingTel， Singapore7.17.1 Company OverviewTable 7-17  SingTel’s LTE Roadmap7.17.2 LTE Price PlansTable 7-18  SingTel Mobile Prestige 75 LTE Price Plan， January 2012Table 7-19  SingTel New LTE Data Plans (Flexi and iFlexi plans) for SmartphoneUsers， July 20127.17.3 Future Plans in LTE Segment7.18 LG U+， South Korea7.18.1 Company Overview7.18.2 LTE subscribersFigure 7-15  LG U+ LTE Subscribers (In Million)， February 2012–May 20127.18.3 LTE Price PlansTable 7-20  LG U+ LTE Price Plan， 20127.18.4 Future Plans in LTE Segment7.19 KT， South Korea7.19.1 Company Overview7.19.2 LTE SubscribersFigure 7-16  KT's LTE Subscribers (In Million)， March 2012–June 20127.19.3 LTE Price PlansTable 7-21 KT's LTE Price Plans， 20127.19.4 Future Plans in LTE Segment7.20 China Mobile， China7.20.1 Company OverviewFigure 7-17  China Mobile's Deployment History and Plans7.20.2 What restricts China Mobile’s 3G Growth?Figure 7-18  China Mobile's 3G Numbers (In Million)， 2011 & 20127.20.3 Reasons for Delay in Launch of LTE Services7.20.4 LTE Future Plans7.21 Bharti Airtel， India7.21.1 Company OverviewFigure 7-19  Airtel’s BWA Deployment History & Plans7.21.2 Data Price PlansTable 7-22  Airtel's New 3G Data Plans， May 2012Table 7-23  Airtel's 4G LTE Price Plans， May 20127.21.3 4G take-off on 3G struggle?Table 7-24  India’s 3G Upgrade by Operator， Q1 20127.21.4 Future Plans in LTE Segment7.22 VivaCell-MTS， Armenia7.22.1 Company Overview7.22.2 LTE Price Plans7.23 Etisalat， UAE7.23.1 Company Overview7.23.2 LTE Price PlansTable 7-25  Etisalat's LTE Price Plans， 20127.23.3 Etilslat’s Future Strategies7.24 Zain， Saudi Arabia7.24.1 Company Overview7.24.2 LTE Price PlansTable 7-26  Zain 4G Broadband Data Plans， May 20127.24.3 Future Plans in LTE Segment7.25 Ucell， Uzbekistan7.25.1 Company Overview7.25.2 How Ucell cut CAPEX?7.25.3 Future Plans and Strategies7.26 Qubee， Bangladesh & Pakistan7.26.1 Company Overview – WiMAX Provider7.26.2 WiMAX SubscribersFigure 7-20  WiMAX Subscribers in Bangladesh and Pakistan (In Numbers)， March2011 and March 20127.26.3 WiMAX Data PackagesTable 7-27  Qubee WiMAX Data Plan， February 20127.26.4 Uncertain Future in India8. LTE Device Market8.1 An Analysis of LTE User Devices LaunchedTable 8-1  Global LTE User Devices Launched (In Numbers)， February 2011–April2012Figure 8-1 Global LTE User Devices Launched (In %)， February 2011–April 2012Figure 8-2  Mobile Device Throughput Capability8.2 LTE User Devices Launched by Operating FrequenciesTable 8-2  Global LTE User Devices Launched by Operational Frequencies (InNumbers)， February 2011–April 20128.3 Device Subsidies8.3.1 How device subsidies are affecting Operators’ ROI?8.3.2 Should Operators refrain from device subsidies?8.3.3 Solutions for Device Subsidies8.3.3.1 Subsidies only for new customers8.3.3.1.1  Case Study: Verizon Offering Unlimited Data Plans without DeviceSubsidies8.3.3.2 Data Subsidy Substituting Device Subsidy8.3.3.3 Operators Poised to Reduce Subsidies8.4 Global LTE Devices Shipment Forecast8.4.1 LTE Device Shipment ForecastFigure 8-3  Global LTE Device Shipment Market Forecast (In Million)， 2011-20168.4.2 LTE Device Shipment Forecast by RegionTable 8-3  LTE Device Shipment Forecast by Region (In Million)， 2011-2016Figure 8-4  LTE Device Shipment Forecast by Region (In %)， 2011–20128.4.3 4G LTE Handset Shipment ForecastFigure 8-5  Global 4G LTE Handset Shipments Forecast (In Million)， 2011-20168.5 Global 4G Devices Activated Market8.5.1 LTE and WiMAX Devices Activated ForecastFigure 8-6  Global 4G Devices Activated Market Forecast (In Million)， 2011-2016Figure 8-7  Global LTE Devices Activated as a % of Total 4G Devices Activated (In%)， 2011-2016Figure 8-8  Global WiMAX Devices Activated as a % of Total 4G Devices Activated (In%)， 2011-20168.5.2 Global Dual Mode Activated Devices Forecast (FDD+TDD)Figure 8-9  Global Dual Mode Active Devices Market Forecast (In Million)， 2011-20168.5.3 Global Multi Mode Device Activated Market Forecast (FDD-LTE+3G， TDDLTE+ WiMAX)Figure 8-10 Global Multi Mode Active Devices Market Forecast (In Million)， 2011-20168.5.4 Global LTE Devices Revenues ForecastFigure 8-11  Global LTE Devices Revenues Forecast (In US$ Billion)， 2011-20168.6 Smartphones Vs. Tablets for LTE Monetisation8.6.1 LTE Smartphones Market8.6.1.1 Top Ten Economical LTE Smartphones8.6.1.1.1 Samsung Galaxy S 2 Skyrocket8.6.1.1.2 Motorola Droid Bionic8.6.1.1.3 Nokia Lumia 9008.6.1.1.4 Samsung Stratosphere8.6.1.1.5 LG Viper 4G LTE8.6.1.1.6 LG Lucid8.6.1.1.7 Samsung Focus 28.6.1.1.8 HTC Vivid8.6.1.1.9 Pantech Breakout8.6.1.1.10 LG Nitro8.6.2 Smartphones Shipment ForecastFigure 8-12  Global Smartphones Shipment Forecast (In Million)， 2010-20168.6.3 Smartphones Sales ForecastFigure 8-13 Worldwide Smartphones Sales and Operating System Market Share，2011-20168.6.4 Smartphones’ Quarterly Sales by Key PlayersTable 8-4  Smartphones’ Quarterly Sales by Top Players (In Million)， 2010， 2011 &2012Figure 8-14 Smartphones’ Quarterly Sales by Top Players (In %)， 2010， 2011 & 20128.6.5 Tablet  Sales by Top PlayersTable 8-5  Tablets’ Sales by Top Players (In Million)， 2010 & 2011Figure 8-15 Apple the Leader of Tablets Market (In %)， 20118.7 Multimode Chipsets Market8.8 Understanding Consumers’ Psychology in Different Socio-EconomicRegions-Tone Down the ‘High-tech’ and Look towards ‘Low-tech’ offerings 9. LTE Ecosystem9.1 A Look at the Key LTE Infrastructure ProvidersTable 9-1 Key LTE Infrastructure Providers9.2 LTE Vendor Market Share9.3 Vendors’ Profitability Analysis9.4 What are the major handset vendors’ planning?Table 9-2  Key LTE Handset Vendors9.4.1 LTE Vendor Market Share9.5 What new offerings would the big LTE chipset providers come up with?Table 9-3 Key LTE Chipset Providers9.6 Primary LTE Backhaul Solution VendorsTable 9-4  Key LTE Backhaul Solution Vendors9.7 Major LTE EPC Solution ProvidersTable 9-5  Key LTE EPC Solution Providers9.8 Other Communities Participating in LTE DevelopmentsTable 9-6  Other Key Communities' Role10. An Exclusive Case Study on LTE Deployments in Europe10.1 LTE Deployment Area – Too Much Somewhere， Too Less at Others’Table 10-1 LTE Deployment Area with Population Density per Km?10.2 Understanding Varying LTE Tariffs in EuropeTable 10-2  LTE Tariffs in Europe10.3 LTE Services’ Expected PenetrationTable 10-3  Technical Assumptions for LTE Deployment and Penetration Figure 10-1 LTE Service Penetration Forecast (In %)， 2015-202210.4 Annual CAPEX & OPEX BreakupTable 10-4 Annual CAPEX BreakdownTable 10-5  Annual OPEX BreakdownFigure 10-2 Present Values of Future Cash Flows and Cash Balance11. Recommendations & Conclusions11.1 Recommendations for MNOs11.2 Recommendations for Vendors11.3 Recommendations for Technical Heads11.4 Recommendations for Device Manufacturers11.5 Recommendations for Infrastructure Providers11.6 Conclusions11.6.1 SWOT Analysis of LTE MarketTable 11-1  LTE SWOT Analysis