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From<br />
The international business newsletter of Mobile Communications Markets<br />
March 19, 2013 • Volume 20 / Issue 6<br />
Global Mobile will be taking an editorial break. The next <strong>issue</strong> will be published April 16.
MEET OUR ANALYSTS<br />
Paul Lambert, Senior Analyst<br />
Paul has over eight years’ experience<br />
covering the mobile sector. Paul’s areas of<br />
focus are mobile operator strategy,<br />
technology trends and regulation.<br />
paul.lambert@informa.com<br />
Matthew Reed, Principal Analyst<br />
Matthew is head of Middle East and Africa<br />
mobile research at <strong>Informa</strong> <strong>Telecoms</strong> &<br />
<strong>Media</strong>. He is based in Dubai, travels<br />
frequently in the region and is regularly<br />
quoted in the international and regional<br />
business press.<br />
matthew.reed@informa.com<br />
Mai Barakat, Senior Analyst<br />
Mai is editor of MEAWA and a research<br />
analyst with <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong>.<br />
She tracks and analyzes the progress of<br />
the ICT industry in the Middle East and<br />
North Africa with a particular focus on the<br />
mobile and broadband sectors.<br />
mai.barakat@informa.com<br />
Thomas Wehmeier, Principal Analyst<br />
Thomas Wehmeier is a principal analyst<br />
in <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong>’s Industry<br />
Research division. His specialized interests<br />
lie in analyzing mobile operator strategies,<br />
in particular looking at the impact of technology,<br />
competition and regulation<br />
on operator business models.<br />
thomas.wehmeier@informa.com<br />
James Moore, Research Analyst<br />
James is a member of the Data & Forecasting<br />
team, focusing primarily on the World<br />
Cellular <strong>Informa</strong>tion Service. He maintains<br />
and updates the Handset Database and<br />
plays an integral role in the publication<br />
of the quarterly World Cellular Handset<br />
Tracker.<br />
Dario Talmesio, Principal Analyst<br />
Dario is a senior analyst for <strong>Informa</strong>’s Mobile<br />
Operator Intelligence Centre. His main areas<br />
of expertise include mobile broadband, the<br />
mobile Internet, MVNOs and retail, mobile<br />
operator strategies and business models.<br />
dario.talmesio@informa.com<br />
james.moore@informa.com<br />
<strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> analysts regularly attend industry conferences, either to deliver presentations, chair a session or simply to<br />
research a specific topic. Below we list those events that our analysts are due to attend over the coming months.<br />
Please e-mail the relevant analyst directly if you would like to set up a meeting at or around one of the conferences.<br />
Event City, Country Date Website<br />
Broadband MEA Dubai, UAE 19-20 Mar www.telecoms.com/www.broadbandmea.com<br />
Cloud World Forum MENA Dubai, UAE 19-20 Mar www.cloudworldseries.com/mena<br />
TV Connect 2013 London , UK 19-21 Mar www.tvconnectevent.com<br />
Eurasia Com Istanbul, Turkey 26-27 Mar http://eurasia.comworldseries.com<br />
Managed Services Growth Markets Dubai, UAE 4-5 Apr http://conference.managedservicesevent.com<br />
Broadband & TV Connect Asia 2013 Hong Kong, China 9-10 Apr http://asia.broadbandworldforum.com<br />
IMS World Forum Barcelona, Spain 12-14 Apr http://worldforum.imsvision.com<br />
Telecom Cloud Services Summit 2013 London , UK 15-17 Apr http://telecomcloudservices.com<br />
LTE Latin America Rio, Brazil 16-17 Apr http://latam.lteconference.com<br />
Policy Control & Data Pricing Amsterdam, Netherlands 17-18 Apr http://policycontrolconference.com<br />
TD LTE Summit Singapore, Singapore 23-24 Apr http://td-lte.lteconference.com<br />
IMS 2.0 World Forum Barcelona, Spain 23-25 Apr http://worldforum.imsvision.com<br />
Terabit San Francisco, US 23-24 Apr http://www.broadbandworldforum.com/terabit-2013<br />
MVNOs World Congress Rome, Italy 23-25 Apr http://mvnosworldcongress.com<br />
LTE MENA Dubai, UAE 13-14 May http://mena.lteconference.com<br />
LTE World Summit Amsterdam , Netherlands 17-19th May http://ws.lteconference.com<br />
WiFi Asia + Small Cells Asia Singapore 28 -29 May http://asia.smallcellsevent.com<br />
www.informatandm.com<br />
© 2013 <strong>Informa</strong> UK Ltd. All rights reserved.
Contents<br />
Analysis<br />
Emerging Asia operators market LTE to high-end users but need to evolve pricing<br />
models to make a return on investment.........................................................................1<br />
Data<br />
Public WLAN hotspots to end-4Q12.............................................................................. 13<br />
News<br />
News.................................................................................................................................17<br />
Comment<br />
Operators revisit old concepts at MWC ‘13 to sketch out new objectives...................19<br />
Country Subscriptions data, Western Europe, 4Q12<br />
Western Europe subscriptions by country, 4Q12..........................................................20<br />
www.informatm.com<br />
© 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong>
Emerging Asia operators market LTE<br />
to high-end users but need to evolve<br />
pricing models to make a return on<br />
investment<br />
Analysis<br />
Anubhuti Belgaonkar<br />
Executive summary<br />
• Operators in emerging Asia are positioning LTE as a high-end data service aimed<br />
predominantly at high-ARPU users willing to pay a premium for enhanced datatransmission<br />
speeds.<br />
• Even entry-level LTE is priced at a premium to 3G, with operators using high bundled<br />
data limits in conjunction with higher speeds to encourage high-ARPU users to sign<br />
up to LTE services.<br />
• In terms of branding, operators have launched new campaigns with LTE logos<br />
integrated with their own brand to leverage the strength of their brands while keeping<br />
marketing expenses low.<br />
• The early LTE operators in the region will need to evolve their pricing strategies to<br />
expand their LTE user bases. Experience from other markets shows that operators that<br />
don’t charge a significant premium for LTE have been the most successful in signing<br />
up new users.<br />
• Operators in emerging markets should aim to use LTE to increase the overall number of<br />
postpaid data users rather than to “generate LTE revenues.” To do this, operators need<br />
to isolate segments of their prepaid user bases they can target for 2G-to-LTE migration<br />
by offering service plans at attractive prices that encourage usage, leveraging the<br />
enhanced capacity characteristics of LTE over 3G.<br />
• Experience from other markets, with both 3G and LTE, shows that operators with the<br />
best-quality networks can gain a clear competitive advantage over rivals. Operators<br />
that have rapidly expanded their LTE networks after launch have also been the most<br />
successful in signing up new users. Because of the challenges to doing this in rural<br />
areas and the likely returns on investment on LTE in these typically low-ARPU areas,<br />
operators in emerging markets should instead focus on building widespread LTE<br />
networks in major urban centers with excellent capacity, at least in the first phases of<br />
rollout.<br />
• LTE operators in emerging Asia will, if they execute their launches well, put pressure on<br />
rivals to launch their own LTE services. Experience from more-developed LTE markets<br />
shows that once an operator starts gaining traction with LTE subscriptions, it becomes<br />
imperative for rivals to follow suit to prevent that operator from taking a strong lead<br />
among high-end users.<br />
• Emerging markets in Asia Pacific will see some new LTE-network launches in 2013. Sri<br />
Lankan operators Dialog Axiata and Mobitel announced on Dec. 31, 2012, that their LTE<br />
services were up and running. Maxis Malaysia launched LTE on Jan. 1, 2013, in some<br />
parts of the Klang Valley region, and this year is likely to see many other launches from<br />
other 2600MHz licensees. However, emerging-market LTE launches will be patchy,<br />
with the majority of leading operators in these markets likely to launch LTE in 2014,<br />
with smaller operators adopting a “wait and see” approach.<br />
Market status<br />
Although Asia Pacific is the leading region in terms of the rate of LTE subscription take-up,<br />
because of early LTE launches in South Korea and Japan, the migration to LTE among emerging<br />
markets in the region has, as expected, been comparatively slow. The main reason is that<br />
emerging markets are not as ready for high-speed data services as more-developed markets,<br />
with 3G serving the needs of the relatively small percentage of the market that is regularly<br />
using mobile data. The number of 3G subscriptions is relatively low as a percentage of 2G<br />
subscriptions in the majority of markets in the region (see fig. 1).<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 1
Fig. 1: Asia Pacific, 3G as % of total subscriptions, key markets, 3Q12<br />
LTE launches have also been delayed because most countries have yet to release LTE-ready<br />
spectrum, often because governments are still unclear about which spectrum band to allocate<br />
for LTE. Analog-to-digital-TV migration has also affected the launch timelines, since the slow<br />
migration has led to delays in the availability of digital-dividend spectrum. Moreover, in<br />
countries where 3G services have yet to take off, such as Vietnam, regulators are reluctant<br />
to give the go-ahead to LTE because of the difficulty many operators in the region are having<br />
breaking even on their 3G investments.<br />
Four markets in Asia Pacific have seen early LTE launches (see fig. 2).<br />
Fig. 2: Asia Pacific, in-service and planned LTE networks, emerging markets<br />
Despite the challenge of making a return on their investment in mobile broadband networks,<br />
operators in two key emerging markets in the region – India and the Philippines – launched<br />
LTE services in 2012. Although Smart Philippines has been upgrading and trialing LTE since<br />
2011, India’s Bharti Airtel was the first to launch commercial LTE services, in April 2012. But it<br />
had just 3,890 LTE subscribers at end-September 2012 (see fig. 3). Current LTE deployments in<br />
these markets focus on urban centers, and none of the operators in these countries that have<br />
launched LTE have announced plans to expand offerings to rural markets in the near future.<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 2
Fig. 3: Bharti Airtel, Smart, Globe, LTE subscriptions, 2Q12 and 3Q12<br />
Targeting fixed-broadband users<br />
Operators in India and the Philippines are marketing LTE services primarily to high-end<br />
subscribers, a group that inevitably includes fixed-broadband users in urban markets. The LTE<br />
speeds offered by these mobile operators, via USB modems, are typically much higher than<br />
the fixed-broadband alternatives, giving them a clear advantage in terms of performance. To<br />
attract fixed-broadband users, operators are promoting the superior speeds and the mobility<br />
advantage of LTE among high-end users. And the increasing user affinity for smart devices,<br />
compared with their desire for traditional PCs and laptops, is helping operators target LTE at<br />
the broadband market in general. LTE is priced aggressively compared with fixed broadband,<br />
though typically with much lower monthly data allowances (see fig. 4).<br />
Fig. 4: India, LTE (Bharti Airtel) and DSL/FTTH (BSNL) price comparison<br />
The LTE plans offered by Bharti Airtel provide speeds up to 40Mbps, compared with entrylevel<br />
speeds of just 2Mbps offered by BSNL with its FTTH plan and of 16Mbps with its xDSL<br />
plan. Although the costs per megabyte for entry-level LTE and FTTH plans are similar, the xDSL<br />
plan offers significantly more data, resulting in the lowest cost-per-megabyte of the plans<br />
compared. LTE entry-level and high-end plans are significantly cheaper on a monthly basis<br />
than xDSL and FTTH plans.<br />
However, unlike developed markets, such as Japan, where LTE has had a direct impact on<br />
the number of fixed-broadband users, emerging countries are unlikely to see significant LTEdriven<br />
cord-cutting in terms of subscriptions in the near term, largely because of the limited<br />
availability of high-speed next-generation fixed-broadband services to begin with.<br />
Market dynamics<br />
The LTE strategies of Bharti Airtel, Smart and Globe are similar in terms of the market<br />
segments they are targeting and the premium they charge for accessing higher speeds.<br />
The operators are positioning LTE as a premium data service designed to provide quality<br />
connectivity to higher-value users willing to pay additional data charges for higher download<br />
and upload speeds. The three operators are only offering data services, focusing on data cards,<br />
and do not offer voice-based services to their users on the LTE network.<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 3
The operators have begun developing a clear strategy for differentiating LTE networks from 3G<br />
in terms of exclusive service or content offerings: Bharti Airtel is focusing on exclusive content<br />
for its LTE users, whereas the Filipino operators are exploring technology and device strategies.<br />
LTE pricing strategies<br />
Although basic service pricing, measured as cost per megabyte, is considerably lower than 3G<br />
pricing, the monthly cost of bundles is significantly higher, because services are aimed largely<br />
at high-end data users, with plans bundling much larger chunks of data limits compared with<br />
3G plans.<br />
India<br />
Bharti Airtel’s LTE pricing strategy is clearly aimed at high-monthly-data users. The entry-level<br />
LTE plan offers 6GB of data for US$18.40 a month, compared with US$13.80 for a 4GB 3G<br />
plan and US$27.70 for a 10GB 3G plan. In terms of a comparable monthly gigabyte allowance,<br />
Bharti offers 9GB of LTE data for US$25.80, compared with 10GB of 3G data for US$27.70 (see<br />
fig. 5). This shows that Bharti has what can be termed a conservatively aggressive approach<br />
to signing up LTE customers, given the premium it is charging for just 1GB of monthly data<br />
on a 3G plan.<br />
Fig. 5: Bharti Airtel India, LTE and 3G pricing comparison<br />
Bharti Airtel’s cost per megabyte is lower for LTE services than for comparable 3G services<br />
(see fig. 6). For instance, an entry-level LTE plan costs US$0.003 per megabyte, compared with<br />
US$0.006 per megabyte for an entry-level 3G plan. Similarly, the high-end LTE plan costs US<br />
$0.002 per megabyte, compared with US$0.003 for 3G. Although the lower cost per megabyte<br />
of LTE data is not likely to be a significant deciding factor for subscribers looking at LTE, it will<br />
enable operators to aggressively push 2G/3G-to-LTE migration because of the lower amount<br />
it costs them to carry data over LTE networks compared with 2G/3G.<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 4
Fig. 6: Bharti Airtel, per-megabyte premium, 3G vs. LTE<br />
In terms of overall package pricing, LTE is considerably more expensive on a monthly basis,<br />
though data bundles come with a much higher proportion of free data. Bharti Airtel’s entrylevel<br />
plan includes 6GB data for a monthly commitment of US$18.40, while the high-end plan<br />
costs US$55.30 a month with a 30GB data-download limit, three times the volume bundled<br />
with the high-end 3G data plan, which costs US$27.70.<br />
Bharti Airtel offers LTE services for both prepaid and postpaid users, but the plans are identical<br />
and have no lock-in period. Although it is offering a special limited-period price for the LTE<br />
dongle, the devices are sold without subsidy and cost about INR8,000 (US$150) for both<br />
prepaid and postpaid users. This again indicates that Bharti is adopting a conservatively<br />
aggressive approach to signing up LTE users across its entire base, not just postpaid users.<br />
Philippines<br />
The Filipino operators offer LTE as a postpaid service with a two-year lock-in period. Both<br />
operators bundle the LTE USB dongle free of charge, a feature made possible by the long<br />
contract lock-in. The operators’ LTE pricing strategies clearly have similar goals: to sign up<br />
high-monthly-gigabyte users to LTE, keeping 3G for low-monthly-data users (see fig. 7).<br />
Fig. 7: Philippines, Smart and Globe LTE and 3G pricing, Dec-12<br />
Smart’s two LTE plans offer standard download speeds up to 42Mbps, with the pricing varying<br />
based on the amount of data in the bundle. Globe, on the other hand, offers differentiated<br />
pricing based on both download speed and bundled data. Its entry-level plan offers 28Mbps<br />
access speed, though users can increase it to 42Mbps by paying an extra PHP300 (US$7.35)<br />
a month.<br />
There is a significant disparity in cost per megabyte between LTE and 3G services (see fig. 8):<br />
Smart’s entry-level LTE plan costs 91.4% less than its entry-level 3G plan, whereas Globe’s LTE<br />
plan costs 92.6% less. For high-end plans, the difference declines somewhat, with the LTE plans<br />
of both Globe and Smart over 66% cheaper than corresponding 3G plans.<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 5
Fig. 8: Globe and Smart, per-megabyte premium, 3G vs. LTE<br />
Like Bharti Airtel, in terms of monthly commitment the entry-level LTE plans are even more<br />
expensive than the high-end 3G options. In Smart’s case the disparity is about 76%, while in<br />
Globe’s case it is just over 260%.<br />
Additional data-usage management<br />
Given that the LTE service aims to target heavy data users in both India and the Philippines, the<br />
operators are offering add-on data-usage plans that users can subscribe to once their monthly<br />
data-bundle limit is exhausted (see fig. 9).<br />
Fig. 9: Bharti Airtel and Globe Telecom, additional LTE data-plan comparison<br />
Globe and Smart are offering introductory promotions of unlimited browsing to attract new<br />
users but plan to offer new add-on plans. Globe has already announced its pricing, while Smart<br />
has not yet made its pricing public.<br />
Bharti Airtel is also offering an LTE version of Smartbytes, a 3G plan that provides add-on data<br />
for users who exhaust the monthly limit on their existing plans. The cost per megabyte for<br />
these plans is slightly higher than the cost per megabyte for regular LTE plans but provides<br />
a cushion to avoid bill shock. In Globe’s case, the cost per megabyte for add-on plans is lower<br />
and provides users an incentive to increase data usage even beyond the bundled limit.<br />
Branding differentiation<br />
Like the majority of operators in other markets, with the exception of DoCoMo in Japan,<br />
Bharti Airtel, Smart and Globe have not launched distinct brands to market their LTE services<br />
but have instead initiated new campaigns with LTE logos integrated with their own brand,<br />
highlighting both the “4G” and “LTE” aspects (see fig. 10). Using existing brands enables<br />
operators to leverage the strength of their brands while keeping marketing expenses low.<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 6
Fig. 10: LTE Logos and branding<br />
Device strategy<br />
Because of the limited availability and high cost of LTE handsets, as well as the absence of any<br />
LTE-based voice services, the three operators’ LTE strategies are to focus mainly on LTE dongles.<br />
Each operator launched LTE with a USB data dongle and a Wi-Fi sharing device (see fig. 11).<br />
But Globe was the first to launch LTE-compatible smartphones in the Philippines, soon after<br />
the launch of its LTE service (see fig. 12).<br />
Fig. 11: LTE devices offered by Bharti Airtel, Globe and Smart<br />
Fig. 12: Globe Telecom’s LTE-smartphone portfolio<br />
Service positioning<br />
Bharti Airtel offers LTE-only content in a bid to encourage take-up of services, offering<br />
exclusive services for its LTE users (see fig. 13).<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 7
Fig. 13: Bharti Airtel’s LTE value-added services<br />
For instance, it offers 35 HD movies in collaboration with Bigflix, a movies-on-demand service,<br />
with free access to 10 movies in the first month, followed by INR149 a month for unlimited<br />
access.<br />
Globe and Smart are focusing on offering plain-vanilla data access to their users, though<br />
<strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> does expect them to offer exclusive content and services for their<br />
LTE users in 2013 to differentiate their offers. In the meantime, Smart has chosen to highlight<br />
its triband LTE network, which enables it to cater to a larger geographic market and in the<br />
future to a wider range of compatible handsets.<br />
Market development<br />
Emerging markets in Asia Pacific will see some new LTE-network launches in 2013, though<br />
the pace and number are likely to be significantly lower than their developed counterparts.<br />
New markets<br />
A number of emerging markets in Asia Pacific are expected to see commercial LTE launches<br />
in 2013 (see fig. 14).<br />
Fig. 14: Asia Pacific, key LTE networks launched in/planned for 2013<br />
Operators must implement effective LTE-migration strategies<br />
With several LTE launches planned for 2013, emerging-market operators will need to start<br />
outlining a clear strategy to drive service adoption, especially in light of the low 3Gsubscription<br />
levels in markets in the region. Limiting themselves to targeting postpaid users<br />
might be futile in these predominantly prepaid markets. Instead, operators should consider<br />
migrating high-end prepaid data users to entry-level LTE postpaid plans to maximize the LTE<br />
opportunity (see fig. 15).<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 8
Fig. 15: 2G-prepaid-to-LTE-postpaid migration plan<br />
Smartphones<br />
The availability of compatible smartphones will play a key role in driving the take-up of LTE<br />
services in emerging Asia Pacific markets. Penetration of PCs and laptops is low in these<br />
countries, limiting the potential of dongle-based LTE services. Take-up of smart devices, on<br />
the other hand, is increasing rapidly, even in developing markets, and this is expected to drive<br />
service take-up.<br />
VoLTE<br />
Although emerging-market operators are looking at LTE as a data/broadband service, they<br />
would also have to offer voice service to improve the customer experience. 3G voice offload<br />
is likely to be another reason to offer VoLTE, as operators look to manage 2G- and 3G-network<br />
congestion. Whatever the individual reasons might be, operators in emerging countries will<br />
have to adopt VoLTE services in the near future, and it will become a key parameter in<br />
determining the value of their LTE offerings.<br />
VoLTE services will also enable operators to offer new voice-based services, such as HD voice<br />
and voice conferencing, helping them offset the decline in traditional voice revenues.<br />
Subscription forecast<br />
<strong>Informa</strong> forecasts that Asia Pacific will account for the largest percentage of LTE subscriptions<br />
from 2014 onward. The launch of LTE services in China will play a key role, with the country<br />
expected to have 144 million LTE subscriptions at end-2017 (see fig. 16).<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 9
Fig. 16: LTE subscription forecast by region, 2013-2017<br />
The global LTE-subscription count is expected to reach 940.2 million by end-2017, of which<br />
China and India are likely to account for about 26.7% (see fig. 17).<br />
Fig. 17: Asia Pacific, LTE subscriptions by country, 2013-2017<br />
Conclusions and recommendations<br />
Conclusions<br />
LTE services are targeting high-end data users<br />
LTE services in India and the Philippines, where the availability of next-generation fixedbroadband<br />
services is poor, are being marketed almost exclusively to high-end subscribers as a<br />
substitute for high-speed fixed-line broadband services. The new services are targeted at highvalue<br />
heavy data users who are willing to pay a premium for service availability, improved<br />
service quality and mobility. The plans are designed with this in mind and all operators are<br />
including significantly more data in these plans than in 3G plans, though Bharti Airtel is the<br />
most aggressive in targeting midrange data users with attractively priced LTE plans, whether<br />
prepaid or postpaid.<br />
Smartphones key to driving service take-up<br />
A limited selection of LTE-compatible smartphones and their steep pricing, in the context of<br />
the overall markets, is a key challenge to driving the take-up of LTE services. Although LTE<br />
dongles are offered by the operators, and are even subsidized to some extent, the fact that<br />
the majority of mobile data usage is via smartphones in emerging markets will be a severe<br />
near- and mid-term factor limiting the popularity of LTE services. Operators will need to focus<br />
on offering a strong LTE-smartphone portfolio to ensure wider adoption of the service while<br />
avoiding the heavy-subsidies route.<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 10
Focus on urban markets continues<br />
The LTE networks deployed by emerging-market players focus on urban centers. This is the<br />
right approach, given the pricing and premium associated with the positioning of LTE services<br />
in these countries. It is unlikely that the deployments would be expanded to cover rural<br />
markets in the medium term. Operators are instead likely to expand their 3G coverage to<br />
semiurban and rural markets while keeping LTE as a premium service for urban areas with<br />
high demand for data services and high customer willingness to pay a premium for service<br />
quality.<br />
LTE price competition will accelerate<br />
Although the <strong>sample</strong> size for LTE services in emerging Asian markets is small for now, the<br />
competitive offers launched by the Filipino operators provide a view of the price competition<br />
that is likely with LTE services.<br />
Recommendations<br />
Operators need to adopt more-innovative pricing<br />
Operators will have to introduce lower-priced LTE services before mass-market adoption<br />
takes place. Despite the high-end target segment, offering the LTE experience with small<br />
amounts of data per month can help encourage take-up, since even many high-end users<br />
might not be willing to subscribe to expensive and data-heavy services without first trying<br />
them out. Moreover, as the competition increases, operators will also have to move beyond<br />
just a basic volume/pricing game to offer more innovative services to differentiate their LTE<br />
offers. They could look at examples of innovative pricing from developed-market peers, such<br />
as NTT DoCoMo, which charges customers who add a second LTE device to their original LTE<br />
subscription a reduced amount, driving LTE usage and revenues.<br />
Offer attractive additional data plans for high-end customers<br />
There is a stark contrast between the Indian and Filipino operators when it comes to the price<br />
of data for users who have reached their monthly bundled limit. Globe’s cost per megabyte<br />
for add-on usage is lower than the calculated cost per megabyte of bundled data, which<br />
works as a good strategy to encourage even higher usage among its subscribers. Bharti Airtel,<br />
on the other hand, charges more per megabyte for add-on usage. Such pricing discourages<br />
heavy users from going beyond their bundled data, limiting the service’s revenue-generating<br />
potential.<br />
Provide value-added services<br />
Building a clear value proposition for LTE is essential for the growth of LTE services. Operators<br />
need to highlight the quality differences between 3G and LTE so that end-users understand<br />
the perceptible value of the service. A key part of this will be offering exclusive LTE services<br />
to attract new users and retain existing ones. Services might focus on exclusive content, such<br />
as that provided by CSL in Hong Kong, or on voice-based services, such as the VoLTE service<br />
offered by the South Korean operators.<br />
Hone the marketing message to increase LTE take-up<br />
LTE operators must decide which segments of the market they are targeting for LTE and<br />
determine marketing messages that clearly communicate to those users the benefits of LTE.<br />
Operators in markets that have launched LTE successfully have clearly highlighted the speed<br />
advantages LTE offers over 3G, an advantage that has been well received by a broad base of<br />
users. Although communicating speed advantages can be a challenge, what has proved to be<br />
successful is communicating how much faster LTE is over 3G in the context of using popular<br />
services, such as downloading or streaming media.<br />
Define a clear and profitable 2G/3G-to-LTE migration strategy<br />
Operators need to determine which of their users they can most profitably migrate to LTE. LTE<br />
is not for every user, and operators shouldn’t fall into the trap of aiming for LTE-subscription<br />
growth for the sake of it. Rather, operators need to isolate their most profitable users and<br />
find ways through existing CRM channels to migrate them to more-valuable LTE plans. More<br />
valuable to the operator should mean offering LTE plans with little or no additional cost to the<br />
end-user to ensure longer contract tie-ins, such as over 24 months. This will be a challenge<br />
for operators with predominantly prepaid user bases, but operators need to carefully segment<br />
prepaid users and target those who would most benefit from an LTE plan. LTE can be a way<br />
to significantly increase the number of postpaid users an operator has rather than a way to<br />
generate “LTE revenues.”<br />
Expand coverage outside major urban centers<br />
Although operators are focusing on deployment in urban centers, it’s essential to expand<br />
coverage to other areas to drive LTE take-up in all markets over the longer terms. Emerging-<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 11
market players are likely to use 3G to cater to relatively price-sensitive semiurban and rural<br />
markets while using LTE to cater to affluent subscribers in urban areas. However, such a<br />
strategy will restrict the service’s potential over the long haul, since rural markets account for<br />
a substantial portion of the population in most of these countries, and there is a good business<br />
case to be made for using LTE in these areas because of the lack of fixed broadband options.<br />
Smartphone subsidies will help drive subscription growth but must be well-targeted<br />
Operator-driven device subsidies are rare in emerging Asia Pacific markets because of the<br />
predominantly prepaid base, which makes it almost impossible for an operator to ensure that<br />
subscribers taking advantage of the subsidy will remain on its network for the entire lockin<br />
period. However, for LTE services, the high-end user base represents a viable segment for<br />
such deals, potentially in conjunction with handset-financing approaches that are gaining<br />
popularity in some markets in Europe. The premium charged for LTE services compared with<br />
3G can be justified by offering heavily subsidized LTE handsets. This will not just increase<br />
smartphone penetration but also drive usage, since LTE access on smartphones will find a<br />
wider potential user base than dongle-based access, given the low penetration of laptops and<br />
PCs in these markets. Most high-end, affluent users would be willing to agree to a fixed lockin<br />
period in exchange for larger direct handset subsidies.<br />
Work closely with device manufacturers to offer competitively priced LTE devices<br />
Operators in emerging markets should work closely with LTE-device makers to produce<br />
devices specific to their markets. This strategy could be particularly effective in increasing<br />
LTE take-up if vendors produce low-end and midrange devices that meet the needs of lowto<br />
medium-data-usage subscribers. 2014, rather than 2013, is a realistic time frame in which<br />
to do so. Operators might be able to work together through the regional operator alliances to<br />
achieve these goals.<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 12
Public WLAN hotspots to end-4Q12<br />
Data<br />
Operator Type Commercial PWLAN End-3Q11 End-4Q11 End-1Q12 End-2Q12 End-3Q12 End-4Q12 Selected roaming agreements<br />
launch<br />
Asia Pacific<br />
Australia<br />
Internode Startup 2004 283 281 286 286 290 287 Citylan<br />
DoCoMo interTouch Startup 37712 250 250 250 250 250 250 iPass, Boingo<br />
Telstra Fixed/mobile 37803 49 21 21 0 0 0 WBA*, iPass<br />
Azure Wireless Startup 37530 0 0 0 0 0 0 Acquired by DoCoMo<br />
InterTouch<br />
China<br />
China Mobile Mobile 37681 1,800,000 2,200,000 2,250,000 2,300,000 2,340,000 2,380,000 Swisscom, NTT<br />
Communications, Boingo<br />
China Telecom Fixed Jun-05 450,000 600,000 700,000 800,000 850,000 900,000 Chunghwa, Boingo<br />
China Unicom<br />
Fixed Nov-01 105,000 105000 105000 110000 110000 110000 WBA*, Swisscom, Boingo<br />
(Netcom)<br />
Homg Kong<br />
PCCW Fixed Apr-02 2,639 2,564 2,438 2,460 2,499 2,820 Chunghwa, iPass<br />
Y5Zone Startup 2003 748 765 786 820 880 901 Chunghwa, iPass, Boingo,<br />
Airpath<br />
India<br />
Aircel Mobile Jan-11 637 773 773 773 773 773 Spectranet<br />
O-zone Networks ISP Jul-07 468 468 707 707 707 701 Airtel, iPass, Boingo, Comfone<br />
Tata/VSNL Fixed Nov-03 499 499 499 499 499 499 WBA*<br />
Spectranet ISP Jun-10 236 404 404 404 404 404 Aircel, iPass, Boingo<br />
BSNL Fixed/mobile 38565 350 350 350 350 350 350 Dishnet<br />
Airtel Mobile 38264 112 112 112 112 112 112 None<br />
Sify ISP Oct-03 107 107 107 107 107 107 Pronto Networks<br />
Microsense Startup Jun-05 23 23 23 48 48 48 None<br />
Indonesia<br />
Indosat M2 ISP Aug-04 146 146 146 146 146 146 WBA*, Boingo<br />
Japan<br />
Softbank Telecom ISP Jun-05 140000 200000 250000 270000 295000 320000 T-Systems, Boingo, iPass,<br />
WeRoam<br />
KDDI Mobile Jun-11 30,000 55,000 81,800 120,000 200,000 220,000 iPass<br />
NTT DoCoMo Mobile Jul-02 3,266 3,266 4,640 14,200 56,700 66,000 NTT West, NTT Com,<br />
TeliaSonera, iPass, Boingo<br />
NTT West Fixed Jun-02 4,011 4,082 4,085 4,104 4,119 4,121 NTT Com, NTT DoCoMo<br />
NTT Communications Fixed 37377 1,395 1,395 1,395 1,350 1,319 1,319 WBA*, NTT West, China Mobile,<br />
iPass<br />
Malaysia<br />
TM Net ISP 37926 2,720 2,735 2,735 2,735 2,735 2,735 None<br />
Airzed Startup Aug-02 202 202 202 202 202 202 None<br />
Maxis Fixed/mobile Mar-03 111 111 111 111 111 111 WBA*, Boingo<br />
New Zealand<br />
CafeNET/CityLink Startup Jun-05 175 175 171 171 171 171 None<br />
Telecom New Zealand Fixed/mobile Jul-04 364 364 364 101 101 101 iPass<br />
Philippines<br />
Smart Bro (Airborne) Startup NA 483 483 483 483 483 483 None<br />
GlobeQUEST Startup May-03 88 88 88 88 88 88 None<br />
Singapore<br />
SingTel Fixed/mobile Sep-02 718 718 718 718 718 718 iCell, QMax, iPass, Airpath<br />
Qmax/M1 Startup Jan-07 684 684 684 684 684 684 SingTel, iCell<br />
iCell/PC Connect Startup NA 491 491 491 491 491 491 SingTel, QMax, StarHub,<br />
Bluengine, NetRoam<br />
StarHub Fixed/mobile Aug-02 104 104 104 104 104 104 WBA*, Bluengine, iCell<br />
South Korea<br />
KT Olleh Fixed/mobile Feb-02 69,372 83,399 83,406 83,420 83,450 83,450 WBA*, NTT Communications,<br />
iPass, Boingo<br />
SK Telecom Fixed/mobile Jun-10 51,000 60,000 70,000 75,000 77,000 80,000 iPass, Boingo<br />
Hanaro Fixed Feb-02 184 184 184 184 184 184 iPass<br />
Taiwan<br />
Q-Ware/WiFly Startup 38687 6,712 6,712 6,715 6,720 6,721 6,721 Boingo<br />
Chunghwa Fixed/mobile 37408 969 969 969 969 969 969 PCCW, Y5Zone, China Telecom,<br />
Boingo<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 13
Operator Type Commercial PWLAN End-3Q11 End-4Q11 End-1Q12 End-2Q12 End-3Q12 End-4Q12 Selected roaming agreements<br />
launch<br />
Taiwan (Cont'd)<br />
Yaw Jenq/Easy-up ISP 37681 546 546 546 546 546 546 None<br />
Thailand<br />
TRUE Corp Fixed/mobile Nov-04 419 419 419 419 419 419 WBA*, KSC<br />
KSC Startup NA 137 137 137 151 151 151 TRUE Corp<br />
MilCom/WLANNet Startup Jun-05 57 57 57 57 57 57 Boingo<br />
North America<br />
Canada<br />
Bell Mobility Fixed/mobile Jun-05 2,100 2,100 2,100 2,100 2,100 2,100 Telus, Rogers Wireless,<br />
Microcell<br />
Rogers Wireless Mobile Oct-04 339 339 339 339 338 338 Telus, Bell Canada, Microcell<br />
FatPort Startup Mar-02 90 90 90 90 90 90 Airpath, Surf and Sip, BBX,<br />
Boingo, iPass, WeRoam<br />
Telus Fixed/mobile Oct-03 0 0 0 0 0 0 Rogers Wireless, Microcell, Bell<br />
Canada<br />
U.S.<br />
CableWiFi Fixed Jul-05 10,000 20,000 30,000 40,000 50,000 60,000 Time Warner, Cox, Comcast,<br />
Bright House Networks,<br />
Cablevision<br />
AT&T Fixed/mobile Sep-03 28,476 32,152 29,633 29,700 29,777 30,328 Wayport, Sprint Nextel,<br />
Airpath, iPass, Boingo<br />
Ethostream Startup 2001 2360 2360 2360 2360 2360 2360 None<br />
Airpath Startup Sep-01 1,922 1,922 1,922 1,922 1,922 1,922 Sprint Nextel, AT&T, Fatport,<br />
BT, PCCW, SingTel, iPass<br />
T-Mobile USA Mobile Jan-02 1,175 1,163 1,160 1,131 1,109 1,073 T-Mobile Europe, WBA*<br />
Tengo Internet Startup Jun-05 950 950 950 1,000 1,000 1,000 Acquired Nomad ISP Dec-09<br />
STSN/iBAHN Startup Mar-03 877 877 877 877 877 877 Boingo, iPass<br />
InnFlux Startup Jun-05 243 243 243 243 243 243 None<br />
WiFiFee (Deep Blue) Startup Mar-02 95 95 95 95 95 95 iPass, Boingo, Pronto<br />
ICOA Startup Oct-03 85 85 85 85 85 85 AT&T, Boingo, iPass<br />
Western Europe<br />
Austria<br />
T-Mobile/Metronet Mobile 37561 179 179 179 179 179 179 WBA*<br />
Vorarlberg Online ISP 2002 52 52 52 52 52 53 None<br />
Swisscom Startup Mar-03 28 28 28 28 28 28 TeliaSonera, iPass, O2 Germany<br />
Belgium<br />
Telenet Startup Jul-03 1,063 1,075 1,088 1,110 1,149 1,212 BT, iPass, Boingo<br />
Belgacom Fixed/mobile 37773 793 793 793 793 793 793 None<br />
Orange Mobile 2005 53 53 53 53 53 53 WBA*, Bouygues, TeliaSonera,<br />
Kubi, WeRoam<br />
Swisscom Startup 37681 33 33 33 33 33 33 TeliaSonera, iPass, O2 Germany<br />
TDC Fixed/mobile 37469 630 630 630 524 524 509 None<br />
Denmark<br />
TeliaSonera Mobile 2005 209 209 209 187 187 187 Swisscom, Orange, BT, Portugal<br />
Telecom, NTT DoCoMo, Boingo<br />
The Cloud Startup Jun-05 135 135 135 135 135 135 O2, Telenor, iPass, Boingo,<br />
WeRoam, PicoPoint<br />
Finland<br />
TeliaSonera Fixed/mobile Jun-00 218 218 218 164 164 164 Swisscom, Orange, BT, Portugal<br />
Telecom, NTT DoCoMo, Boingo<br />
The Cloud Startup Jun-05 78 78 78 78 78 78 O2, Telenor, iPass, Boingo,<br />
WeRoam, PicoPoint<br />
DNA/Wayport Mobile May-03 77 77 77 77 77 77 Kubi, Monzoon<br />
eService Bar Startup Sep-03 13 13 13 13 13 13 None<br />
France<br />
Orange France Mobile 37653 14,540 14,540 14,538 14,538 14,538 14,538 WBA*, Wifirst, SFR, Bouygues,<br />
WeRoam<br />
Adael Wireless Startup Jun-03 604 604 882 882 882 882 SFR, Boingo, iPass<br />
Meteor Networks Startup Jul-03 917 917 654 654 654 654 Boingo, iPass, WeRoam,<br />
RoamPoint, Excilan, T-Systems<br />
SFR Mobile 37653 380 380 380 380 380 380 Orange, Meteor Networks, All<br />
Telecom, Adael, Boingo<br />
Swisscom Startup Mar-03 213 213 213 213 213 213 TeliaSonera, iPass, O2 Germany<br />
Daclem Startup 37561 57 57 57 57 57 57 Orange, SFR, Meteor Networks,<br />
All Telecom, Bouygues<br />
Germany<br />
T-Mobile/T-Com Mobile Nov-02 9,476 9,996 9,996 10,057 10,057 10,057 WBA*<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 14
Operator Type Commercial PWLAN End-3Q11 End-4Q11 End-1Q12 End-2Q12 End-3Q12 End-4Q12 Selected roaming agreements<br />
launch<br />
Germany (Cont'd)<br />
The Cloud Startup Jun-03 781 781 781 780 780 780 Vodafone D2, E-Plus, WeRoam,<br />
iPass, Boingo<br />
Vodafone D2 Mobile Mar-03 366 366 366 366 366 366 O2 Germany, The Cloud<br />
M3 Connect Startup Jun-02 349 349 349 349 349 349 T-Mobile/T-Com, iPass<br />
Hotspot Deutschland Startup May-04 316 316 316 316 316 316 None<br />
Swisscom Startup 37681 287 287 287 287 287 287 O2 Germany, TeliaSonera, iPass<br />
Greece<br />
FORTHnet ISP Jun-05 364 365 365 398 398 398 Portugal Telecom, WINGS,<br />
Boingo<br />
Ireland<br />
eircom Fixed Feb-04 682 652 737 1,400 1,490 1,650 None<br />
BitBuzz Startup Jan-04 223 251 325 330 338 357 WeRoam, iPass, Boingo<br />
Esat BT Fixed Feb-03 60 67 69 42 42 34 WBA*, TeliaSonera, iPass<br />
Italy<br />
Linkem Startup 37773 570 571 571 580 600 600 Telecom Italia, TeliaSonera,<br />
Kubi, iPass<br />
Swisscom Startup Jan-04 216 216 216 216 216 216 TeliaSonera, iPass, O2 Germany<br />
Micso Startup Jun-05 99 93 93 93 93 93 Portugal Telecom, WINGS<br />
Telecom Italia Fixed/mobile Oct-03 194 88 88 88 88 88 WBA*<br />
Hiport Startup 2002 75 86 86 28 28 28 None<br />
Netherlands<br />
KPN HubHop Fixed/mobile 37742 974 986 1,007 1,360 1,490 1,530 Portugal Telecom, Picopoint,<br />
Boingo, iPass<br />
T-Mobile Mobile 38047 523 789 779 828 828 828 WBA*<br />
Swisscom Startup Mar-03 102 102 102 102 102 102 TeliaSonera, iPass, O2 Germany<br />
Norway<br />
Telenor Fixed/mobile 36923 330 330 330 330 330 330 The Cloud, Swisscom, Wayport<br />
Wayport (NetPower) Startup 37712 56 56 56 56 56 56 Telenor, TeliaSonera, iPass/<br />
GoRemote<br />
TeliaSonera Fixed/mobile Oct-99 111 111 25 25 25 25 Swisscom, Orange, BT,<br />
Megabeam, Portugal Telecom,<br />
NetPower, Kubi, NTT DoCoMo,<br />
YesIHotspot, Boingo<br />
The Cloud Startup Jun-05 25 25 25 25 25 25 O2, Telenor, iPass, Boingo,<br />
WeRoam, PicoPoint<br />
Portugal Telecom<br />
Portugal Telecom Fixed/mobile Jun-05 1,588 1,574 1,574 1,574 1,574 1,478 WBA*<br />
Vodafone Portugal Mobile Oct-03 120 120 120 120 120 120 Swisscom, SFR<br />
Spain<br />
Telefonica Fixed/mobile Jun-03 1,913 1,925 1,915 1,915 1,915 1,915 WBA*<br />
Kubi Wireless Startup Feb-02 255 255 255 258 258 258 TeliaSonera, Orange, Fatport,<br />
Monzoon, Boingo, iPass<br />
AWA Hotspot Startup Jun-05 219 205 196 200 203 201 WeRoam, Trustive, Boingo<br />
Swisscom Fixed/mobile Jul-03 153 153 153 153 153 153 TeliaSonera, iPass, O2 Germany<br />
Sweden<br />
TeliaSonera Fixed/mobile Oct-99 670 670 523 523 523 463 Swisscom, Orange, BT, Portugal<br />
Telecom, NTT DoCoMo, Boingo<br />
The Cloud Startup Nov-04 382 382 382 382 382 382 O2, Telenor, iPass, Boingo,<br />
WeRoam, PicoPoint<br />
Switzerland<br />
Swisscom Mobile Mobile Dec-02 1,297 1,297 1,297 1,297 1,297 1,297 WBA*<br />
Monzoon Startup Aug-01 952 942 971 971 990 1,061 sunrise, Kubi, BT, WeRoam,<br />
iPass, Boingo<br />
The Net ISP Oct-02 127 127 127 127 127 127 None<br />
Turkey<br />
TTNet ISP NA 7,500 7,250 7,039 7,039 7,039 7,039 iPass<br />
U.K.<br />
O2 Mobile Jan-11 2,500 3,400 5,000 6,300 6,700 6,808 BT Openzone<br />
BT Openzone Fixed/mobile Aug-02 3,515 3,565 4,095 4,100 4,107 4,341 WBA*<br />
The Cloud Startup May-03 4,068 4,044 4,044 4,043 4,043 4,043 O2, Orange, Boingo, WeRoam,<br />
PicoPoint, iPass<br />
Spectrum Startup 37469 2,000 2,100 2,100 2,100 2,100 2,100 BT Openzone<br />
iBAHN Startup 2002 235 235 235 235 235 235 BT Openzone<br />
Swisscom Fixed/mobile Mar-03 466 466 466 466 466 175 TeliaSonera, O2 Germany, iPass<br />
Orange Mobile Dec-05 70 70 70 70 70 70 WBA*<br />
T-Mobile UK Mobile Aug-02 327 327 327 327 56 56 WBA*<br />
Source: <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong><br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 15
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 16
News<br />
News<br />
Americas<br />
Colombia launches LTE spectrum auction<br />
Colombian ICT ministry Mintic and the national spectrum agency ANE have launched the LTE<br />
spectrum auction in the AWS and 2.5GHz bands. The process will consist of a single auction,<br />
and will offer seven 4G licenses, with two reserved for new entrants to the market, while Claro<br />
will only be allowed to participate in the 2.5GHz spectrum auction. There will be a condition<br />
attached that will require coverage in at least 50% of the county’s municipalities by the middle<br />
of 2014. The tender is due to take place 26 June.<br />
T-Mobile Metro PCS merger passes DOJ<br />
The proposed merger between T-Mobile USA and Metro PCS passed a hurdle in the approval<br />
process when the U.S. Department of Justice made no objections to it during the waiting<br />
period required by U.S. antitrust laws. Next the companies must gain approval from the<br />
Federal Communications Commission, as well as the Committee on Foreign Investment and<br />
Metro PCS shareholders.<br />
Canada timetables 700MHz 4G auction, paves way for new entrants<br />
Industry Canada set a November 19 start date for the country’s delayed 700 MHz 4G auction.<br />
The auction was delayed as the government sought to amend foreign ownership rules ahead<br />
of the auction. New loosened foreign ownership rules allow for small carriers, with less than<br />
10% revenue market share, to be 100% foreign owned. The government wants at least four<br />
companies to get spectrum in each license area, which means at least one block of prime<br />
spectrum in each market will be reserved for a new entrant or regional operator. There will<br />
also be build-out requirements aimed at enhancing rural mobile broadband coverage.<br />
Asia Pacific<br />
Bharti increases stake in Airtel Nigeria<br />
The Indian telecom group Bharti Airtel had increased its stake in Airtel Nigeria by acquiring<br />
13.36% stake in addition to its current holding which stands at 65.70%, bringing its total new<br />
interest in Airtel Nigeria to 79.06%. Airtel is the third largest operator in Nigeria’s crowded<br />
mobile market, with over 23 million active subscriptions and a market share of 20.5% at the<br />
end of 2012.<br />
MTS India wins 800MHz spectrum in eight service areas<br />
MTS India has won 800MHz spectrum in eight services areas in the 2G auctions held on<br />
March 11 2013. It was the sole bidder and won spectrum in Delhi, Kolkata, Gujarat, Karnataka,<br />
Tamil Nadu, Kerala, Uttar Pradesh (West) and West Bengal service areas. Its footprint already<br />
includes Rajasthan service areas where its license wasn’t cancelled by the Supreme Court<br />
verdict in February 2012. It will pay US$665 million for 3.75 MHz (in three slots of 1.25 MHz<br />
each) of 800 MHz spectrum covering 40% of country’s population. However, it will be closing<br />
its operations in Mumbai, Maharashtra and Uttar Pradesh (East) service areas where it didn’t<br />
bid for spectrum due to spectrum cost, competition and future data potential.<br />
Uninor launches "Rocket Recharge" in India<br />
Uninor has launched "Rocket Recharge" in Andhra Pradesh circle in India with plans to<br />
expand to five other operating circles within a month. As part of "Rocket Recharge", Uninor’s<br />
automated systems track and identify usage patterns and accordingly recommend ideal<br />
recharge amounts to individual users. Subscribers can use USSD code *234# to see these<br />
tailored recharge options that may include free additional talk time, SMSs and discounted VAS.<br />
According to Uninor, the pilot of the recharge has received positive response from 740,000<br />
users in Andhra Pradesh circle.<br />
Europe<br />
Telenor acquires digital coupons and loyalty cards provider<br />
Pan-European telecoms operating group, Telenor, has acquired Norwegian headquartered<br />
digital coupons and loyalty cards provider, Liquid Barcodes. Telenor says that Liquid Barcodes<br />
is Norway’s biggest provider of mobile coupons. Liquid Barcodes also delivers loyalty models<br />
and concepts for retail companies. Telenor aims to be the leading mobile coupon operator in<br />
Norway and says that its acquisition of Liquid bar codes will give it valuable expertise and<br />
experience to develop mobile loyalty concepts even more for brands and retailers.<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 17
O2 Germany introduces world data roaming package<br />
German operator O2 has introduced a new data roaming package for customers travelling<br />
outside of the EU. Data Pack World costs Eur11.99 (US$15.59) and can be used to browse the<br />
internet or download emails in countries such as Turkey, the US, Thailand and Egypt. On<br />
arrival, customers receive a text from O2, and if they respond they receive 6MB to be used<br />
within 24 hours. When this volume is used up, the customer gets another text message to<br />
order more, up to a statutory cost limit of Eur60. The package will be available from 2 April.<br />
Middle East & Africa<br />
Universal and Samsung launch Pan-Africa online music service<br />
Universal Music has announced the launch of a web-streamed music service, targeting<br />
audience across African countries. The users of the service, named Kleek, will have access to<br />
a library of African and international titles. The service is said to be optimised for Samsung<br />
smartphones.<br />
Vodacom and Samsung partner for enterprise business<br />
Samsung Electronics South Africa has partnered with Vodacom Business services, the<br />
business arm of South Africa’s giant mobile operator group Vodacom to collaborate on various<br />
business enterprise programmes in South Africa. Through the partnership, the two firms<br />
aim to accelerate access to enterprise mobility turn-key solutions by businesses through the<br />
development of a centralised all-round technology partnership based on their infrastructural<br />
needs. The initial phase of the agreement is focused on mobile solutions for enterprise but<br />
will be extended to other multimedia devices based on customer requirements. Both firms<br />
plan to use a combination of operator offering, Samsung devices and horizontal and vertical<br />
enterprise solutions to provide new and premium services to business organisations.<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 18
Operators revisit old concepts at MWC<br />
‘13 to sketch out new objectives<br />
Comment<br />
Paul Lambert<br />
Those expecting major announcements from operators on new approaches they’ve devised to<br />
react to the fast-changing landscape of the telecoms industry would have been disappointed<br />
at MWC ’13. But despite the absence of a major announcement from any of the big operating<br />
groups, something that has come to be a hallmark of MWC, some of the major players did<br />
provide some detailed insight into their broad strategic near-term goals. Telefonica, Vodafone<br />
and DoCoMo this week each communicated how they see their businesses evolving to meet<br />
the new challenges they face in identifying new capabilities and opportunities, and how they<br />
are reviewing their core businesses. But how much of it was new thinking?<br />
Cesar Alierta, CEO of Telefonica, kicked the MWC week off by saying that the mobile industry<br />
needs to re-position in the mobile services value chain. On the face of it, these comments<br />
would no doubt have been met with another roll of the eyes by companies that have created<br />
the services people want to use on their smartphones, using what Alierta referred to as an<br />
unlevel playing field. Alierta’s comments could have been made any time in the past five<br />
years, and his suggestions that operators should now focus on offering enhanced connectivity<br />
embodies a strategy that has been emerging among telcos during this time.<br />
Looking more closely, that Alierta suggested operators should focus on offering simplified<br />
tariffs built around an “enhanced customer experience”, which actually shows how far<br />
operators have already gone in losing the battle to provide services consumers want to<br />
use. The fact is that mobile operators have already sunk significant resources into building<br />
applications and environments for mobile consumers, who have overwhelmingly chosen not<br />
to use them. Twitter, Facebook, Google’s suite of services, the Android and Apple app stores<br />
are probably some of the main reasons people actually buy smartphones – not for any service<br />
developed by telecoms operators.<br />
So what’s operators’ latest thinking on how to meet these challenges? Operators, Alierta says,<br />
now need to compete by offering the best quality experience of services. So the question<br />
that arises is: when will the mobile industry listen to Alierta’s often-sounded battle cry? The<br />
answer is, it’s already happening. Some operators, including Telefonica with its Telefonica<br />
Digital unit, are well advanced into looking at how they can use their networks in new ways<br />
to differentiate and add value to end users, a strategy based around new organizational<br />
structures that is gradually finding favor with other major telcos.<br />
Indeed, Vodafone and DoCoMo made announcements that heeded Alierta’s call for operators<br />
to focus on core assets at least as much as trying to beat Internet companies at their own game<br />
in services. In comments similar to Alierta’s, Vodafone CEO Vittorio Colao and NTT DoCoMo<br />
CEO Kaoru Kato each said this week that they plan to focus on core telecoms services as a<br />
platform for new services to grow revenues. In the case of Vodafone, this is offering unified<br />
services – fixed and mobile services – in core European markets, making acquisitions where<br />
necessary. And for DoCoMo, it is opening up its networks to allow partners to develop services<br />
within eight core vertical markets, and again, making acquisitions where necessary to fill the<br />
gaps.<br />
Whether these strategic goals, none of which are new, actually bear fruit depends, as always,<br />
on how companies execute on them. New core telecoms services, opening up the network to<br />
partners to leverage core network assets, and making acquisitions to plug gaps in capability<br />
have all been around for several years. Whether operators can actually now make good on<br />
these goals will require them first to change their corporate mentalities – before anything else,<br />
becoming organizationally more aligned and nimble to realising these new opportunities. In<br />
the absence of this top-level strategic thinking, we can expect more strategic announcements<br />
with a strong echo of what we heard this year, rather than evidence of success of initiatives<br />
underway, in subsequent MWCs.<br />
www.informatm.com © 2013 <strong>Informa</strong> <strong>Telecoms</strong> & <strong>Media</strong> 19
Country Subscriptions data, Western Europe, 4Q12<br />
Western Europe subscriptions by country, 4Q12<br />
Country 4Q11 1Q12 2Q12 3Q12 4Q12<br />
Andorra 65,040 64,800 64,340 63,335 62,330<br />
Austria 12,827,900 12,995,000 13,060,300 13,204,800 13,381,400<br />
Belgium 12,540,610 12,597,710 12,799,230 12,429,700 12,408,000<br />
Cyprus 1,685,100 1,702,000 1,729,700 1,756,900 1,780,400<br />
Denmark 7,570,910 7,621,860 7,715,370 7,718,270 7,694,910<br />
Faroe Islands 58,480 58,390 58,280 58,080 58,700<br />
Finland 9,189,500 9,267,900 9,384,200 9,524,500 9,580,500<br />
France 65,639,000 66,312,000 66,670,000 67,733,000 68,912,600<br />
Germany 108,321,800 107,270,800 107,689,200 108,296,300 107,429,900<br />
Gibraltar 33,700 33,100 32,000 31,900 31,500<br />
Greece 15,170,620 15,171,080 15,295,100 15,206,620 15,203,740<br />
Greenland 59,040 60,155 58,724 57,293 55,862<br />
Guernsey 70,230 70,480 70,730 70,960 71,130<br />
Iceland 388,220 391,060 393,300 394,630 403,679<br />
Ireland 5,367,230 5,306,960 5,273,790 5,205,500 5,336,430<br />
Isle of Man 92,000 93,450 94,890 96,240 96,000<br />
Israel 9,754,700 9,767,300 9,675,800 9,601,634 9,396,491<br />
Italy 86,343,030 86,607,060 86,401,420 86,551,383 94,520,566<br />
Jersey 174,000 173,190 172,200 171,290 179,200<br />
Liechtenstein 32,500 32,690 33,070 33,370 33,900<br />
Luxembourg 765,230 770,880 781,170 791,782 802,920<br />
Malta 521,730 521,200 535,500 549,600 519,610<br />
Monaco 28,400 28,900 29,100 29,400 29,500<br />
Netherlands 19,259,000 19,194,000 19,137,000 19,256,000 19,245,000<br />
Norway 6,120,900 6,128,000 6,196,900 6,225,800 6,238,622<br />
Portugal 17,301,400 17,232,900 17,084,000 17,219,300 17,227,600<br />
Spain 57,034,390 54,572,590 54,114,040 53,428,280 53,421,900<br />
Sweden 13,716,200 13,814,800 14,002,400 14,223,520 14,351,480<br />
Switzerland 9,779,000 9,824,900 9,879,800 9,943,400 10,010,000<br />
Turkey 65,291,000 65,647,000 66,052,000 67,113,000 68,174,000<br />
UK 77,612,500 77,547,400 77,875,070 78,383,100 79,543,910<br />
Total 602,813,360 600,879,555 602,358,624 605,368,887 616,201,780<br />
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