10 Predictions for 2015: Some key trends and developments in mobile telecommunications

www.hartwoodgroup.co.uk Connecting for the future

10 Predictions for 2015: Some key trends and developments in

mobile telecommunications

Frank Masson - Commercial Director


The immediate future of our wonderful, exciting and innovative mobile telecoms industry

•  Across the world, the telecoms sector is the largest employer and an enabler

for the economic success of the other

sectors of the economy

•  The outlook for 2015 is of interest to

many, both inside the industry, and

outside as tech-savvy consumers and

those with business or other

professional interests

•  In this slide deck we'll pick out some key trends and factors that are set to

shape the next 12 months

2


1.  An Emphasis on Increasing Capacity and Quality

3

In 2015 networks are likely to have an

increasingly stronger focus on

delivering both increased capacity

and quality

The ability to deliver value-added services that drive increased

margins are dependent on the

stability and reliability of connections

This may drive an increasing trend

for Quality Assurance and

Continual Improvement programmes


2.  Rapid growth of the IoT & M2M

Wearables market and M2M (Machine to machine) connectivity to be the drivers of the (IoT) Internet of Things

4

By 2020 estimates show there will be the thick end of…50 BILLION smart devices

The sub-text of marketing next-gen mobile data services is likely to be 'it's good for devices to talk'


3. Continuing significant investment in 4G

•  By 2017 the major UK networks

will invest a further £2 - £4 billion

on 4G commissioning,

maintaining or managing cellular

infrastructure

•  National roaming a major talking

point between the industry and

the UK Government

•  A key challenge in rolling out 4G to

less densely populated areas is

squaring the investment versus

profitability calculation

5


4.  A continuing dialogue to enable the development of national roaming

6

•  Progress should be made on network sharing and the

development of national roaming

•  Commonly identified issues that

need to be addressed include

differentiation; technical

complexity; legal and investment

•  A national roaming debate is a big

opportunity for the industry to

broaden the scope of the discussion with Government to

reach agreement on other issues


5.  Further development on the specification of 5G

•  A new set of higher bandwidth cellular

protocols emerge every 10 years or so

and if 5G is to avoid breaking the

pattern, then it needs to appear before

the end of this decade

•  Currently, there is no definition and new

capabilities are still being grouped

under the current ITU-T 4G standards

•  If Boris Johnson's comment that London

is to have 5G by 2020 is to become a

reality, then work defining 5G needs to

get moving over the next 12 months

7


6.  The quest for differentiation will continue

•  Very difficult to achieve clear and meaningful differentiation based on

network quality, service pricing and customer service

•  MVNO model lets budget brands like supermarkets enter the market but its

low margin, low value differentiation, and a 'race to the bottom’

•  Delivering value added services is a much stronger pillar around which to build

differentiation – it monetises infrastructure better and delivers faster ROI

8

QUALITY PRICING CUSTOMER SERVICE


7.  Rapid growth of the connected wearable tech market

•  Wearables set to shift significant volumes in

the forthcoming year and by 2016 the

market will be worth a staggering £3 billion

•  Healthcare and wellbeing is the 'frictionless'

end of the Wearable market as the benefits

are enormous and privacy issues negligible

•  Public use of full blown wearable computers

such as Google Glass offer 'maximum

friction' on privacy issues, however

commercial applications will drive the

9


8.  Focus on leveraging the infrastructure with services that add value

•  Many operators believe regulatory pressure on pricing may damage short term profitability and hamper the injection of regular and sizeable investment

•  With profits earned from subscribers under pressure, a renewed focus on

value-added services is likely to be a key strategic objective

•  M2M/IoT in the shape of home automation or connected business devices

such as smart cabinets or vending machines may open the way to developing

these services

10


9.  Providing value for customers across multiple devices

•  The importance of shared data tariffs is

likely to increase

•  In the UK's highly developed economy

subscribers own multiple devices and

want the most flexibility and convenience

as well as the best value for money

•  Shared data tariffs letting a single

subscriber share data allowances across

multiple devices provide differentiation

through delivering value

11

Shared Plan

10 £

per month

1 GB Bandwith

10 MB Max File Size

3 GHZ CPU

256 MB Memory

Get Shared Plan


10.  Increasing M&A and market consolidation

12

•  2015 looks like a very interesting year

for M&A with quadplay perceived as

a key battleground

•  BT has formally indicated its interest

in M&A of existing network

operators and SKY is tipped by some

to enter the market

•  M&A activity could originate from a

consortium led by sportswear

brands, sporting clubs or the owners

of sports broadcasting rights


Summary

2015 is set to be at least as challenging as any other year as the mobile industry attempts to bring together the needs of

government, regulators and subscribers

13

There is a need to avoid a simplistic point of view that casts network operators as the good guys and the Government and the

regulator as baddies

It is a long game where strategy and innovation are the keys to success and Hartwood remains a trusted strategic and technical adviser


Hartwood Group

Find out more about how Hartwood helps network operators and those commissioning, maintaining or managing cellular infrastructure.

14

Visit us at www.hartwoodgroup.co.uk

Call us on 01256 334 755

10 Predictions for 2015: Some key trends and developments in mobile telecommunications

Devices & Hardware

Transcript of 10 Predictions for 2015: Some key trends and developments in mobile telecommunications