Improved data speed and new IP-based services drive LTE services


Telecom Lead Europe:
Improved data speed (36 percent) and new IP-based services (30 percent) for mobile users are the primary drivers for operators launching LTE services.

According to a survey conducted by SAP at the GSMA Mobile World Congress 2013 — results predict that new IP-based services will also be a main driver of revenue for operators in 2013.

Fifty-eight percent of respondents believe that new offerings, including rich communication services (RCS) and 4G/LTE and increased data usage by smartphone users, will drive operator revenue.

Key sources of revenue for operators differed across regions, with around one-third of respondents based in Europe and North America reporting that offering new services, such as video broadcast and movies on demand, to customers through a 4G network would be the key to generating revenue in 2013.

Meanwhile, given the more recent Asia-Pacific smartphone boom, findings showed that 40 percent of Asia-based respondents placed much greater significance on increased data usage by smartphone users.

Diarmuid Mallon, lead, Global Mobile Marketing Programs, SAP, said: “The survey results provide a roadmap for operators looking to expand their customer service portfolio through high speed 4G LTE networks.”

The lack of compatible devices continued to be an issue for mobile operators rolling out LTE offerings.

Twenty-six percent of respondents in this year’s survey cited device incompatibility as a major obstacle, echoing the 29 percent who considered incompatibility a barrier in the 2012 Mobile World Congress survey.

Additionally, 20 percent of respondents indicated that a lack of support for roaming would remain an issue.

Despite these challenges, the industry has made headway, with only 19 percent of global respondents citing lack of consumer awareness as the biggest barrier to LTE uptake.

editor@telecomlead.com

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