LTE in Asia Pacific: Outlook and Monetization Strategies

34
© Analysys Mason Limited 2014 LTE in Asia-Pacific: Outlook and Monetization Strategies Webinar LTE in Asia-Pacific: Outlook and Monetization Strategies 14 October 2014 Sherrie Huang and Nipun Jaiswal

Transcript of LTE in Asia Pacific: Outlook and Monetization Strategies

Page 1: LTE in Asia Pacific: Outlook and Monetization Strategies

© Analysys Mason Limited 2014

LTE in Asia-Pacific: Outlook and Monetization Strategies

Webinar

LTE in Asia-Pacific: Outlook and

Monetization Strategies

14 October 2014

Sherrie Huang and Nipun Jaiswal

Page 2: LTE in Asia Pacific: Outlook and Monetization Strategies

© Analysys Mason Limited 2014

LTE in Asia-Pacific: Outlook and Monetization Strategies

APAC

Our research portfolio includes 30 programmes covering

the complete depth and breadth of the telecoms sector

2

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Analytics Software Strategies

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Page 3: LTE in Asia Pacific: Outlook and Monetization Strategies

© Analysys Mason Limited 2014

LTE in Asia-Pacific: Outlook and Monetization Strategies 3

LTE Adoption in Asia–Pacific and forecast

LTE network deployment status and key LTE technologies

Impact of LTE on mobile data traffic

Consumer behavior towards LTE

How to monetize LTE?

Sneak peak at 5G

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LTE in Asia-Pacific: Outlook and Monetization Strategies 4

Emerging Asia–Pacific (EMAP)

Bangladesh

China

India

Indonesia

Malaysia

Pakistan

Thailand

Vietnam

Developed Asia–Pacific (DVAP)

Hong Kong

Singapore

Taiwan

Japan

South Korea

Australia

Australia

South Korea

Singapore

Hong Kong

Taiwan

India

Pakistan

Malaysia

Indonesia

Bangladesh

China

Thailand

Japan

Vietnam

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LTE in Asia-Pacific: Outlook and Monetization Strategies

DVAP drove early global LTE uptake, but the number of

LTE connections in EMAP will overtake DVAP’s by 2017

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Figure 1: Global LTE connections, and DVAP’s and EMAP’s shares,

2009–2018 [Source: Analysys Mason, 2014]

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The world had more than 200 million

LTE connections by the end of 2013,

accounting for just 3% of total mobile

connections.

1

LTE has been concentrated in a few

key markets, particularly Japan, South

Korea (DVAP) and the USA. 2

EMAP is set to become the dominant

world LTE market – its 420 million

connections will account for 27% of

LTE connections worldwide by 2018. 3

By then, only 11% of connections in

EMAP will have migrated to LTE, so

the region will continue to have

considerable untapped potential

beyond 2018.

4

HISTORICAL FORECAST

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LTE in Asia-Pacific: Outlook and Monetization Strategies

LTE has already achieved sharp adoption in DVAP…

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2G 3G 4G

2G 3G 4G

Connections:Share:

Figure 2: Mobile connections in DVAP, breakdown by technology,

2009-2018 [Source: Analysys Mason, 2014] Japan’s NTT DoCoMo launched the

world’s second commercial LTE

network – behind TeliaSonera in

Sweden – in December 2010.

1

LTE has seen fast adoption in the

region, reaching 28% of SIMs by the

end of 2013 (and over 35% currently).

LTE will overtake 3G in DVAP in 2015.

2

3G connections have shown a sharp

decline since 2012, a year after LTE

launch in the region. 3

2G has been in strong decline since

before the launch of 4G, and will

almost disappear entirely from the

region by 2018.

4

HISTORICAL FORECAST

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LTE in Asia-Pacific: Outlook and Monetization Strategies

…while it is only just taking off in EMAP right now…

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2G 3G 4G

Connections:Share:

Bharti Airtel in India launched the

region’s first commercial LTE services

in April 2012, although this was only a

pure broadband service. The first full

scale LTE service (including mobile

handsets) was launched in Malaysia

by Maxis, in January 2013.

1

EMAP will be the region with the most

number of LTE connections in the

world, given its size (accounts for half

of the world’s population).

2

Although 2G is declining rapidly, it will

continue to be dominant in EMAP

even through 2018 (helped largely by

India), while 3G’s share of total mobile

connections is starting to plateau due

to 4G (influenced heavily by China).

3

Figure 3: Mobile connections in EMAP, breakdown by technology,

2009-2018 [Source: Analysys Mason, 2014]

HISTORICAL FORECAST

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LTE in Asia-Pacific: Outlook and Monetization Strategies

0%

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Singapore

South Korea

Taiwan

Bangladesh

China

India

Indonesia

Malaysia

Pakistan

Thailand

Vietnam

…though intra-region is very diverse, with China and

Malaysia expected to drive most of EMAP penetration

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Figure 4: LTE adoption in APAC, by country, 2009-2018 [Source: Analysys Mason, 2014]

HISTORICAL FORECAST

LTE adoption in

DVAP took off after

(due to two-year

contract obligations)

a year of launch

DV

AP

E

MA

P

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LTE Adoption in Asia–Pacific and forecast

LTE network deployment status and key LTE technologies

Impact of LTE on mobile data traffic

Consumer behavior towards LTE

How to monetize LTE?

Sneak peak at 5G

Page 10: LTE in Asia Pacific: Outlook and Monetization Strategies

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LTE in Asia-Pacific: Outlook and Monetization Strategies

DVAP operators have successfully switched-on their LTE networks

whereas most EMAP operators are still at a planning or trial stage

Figure 5: Operational and planned LTE networks, June 2014, [Source:

Analysys Mason’s Wireless network tracker, 2014]

Figure 6: Status of EMAP LTE networks, June 2014, [Source: Analysys

Mason’s Wireless network tracker, 2014]

EMAP has the highest number of LTE networks in

planning and trial stages in the world. EMAP also has

the second highest number of LTE networks in world.

Majority (59.0%) of LTE networks in EMAP are in

planned/trial stage whereas majority (58.8%) of the

networks in DVAP are already operational.

Countries such as India, Indonesia and Vietnam are the

leading countries in terms of the number of planned and

trail LTE networks in EMAP.

Western Europe has the highest number of operational

LTE networks in the world.

Figure 7: Status of DVAP LTE networks, June 2014, [Source: Analysys

Mason’s Wireless network tracker, 2014]

10

16 1830 30 25 34 29

626 12

12 24 28 17 32

10

65

6 2 1 1214

11

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of

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Operational Planned Trials in progress

In deployment

Operational

Planned

Testing

Trials in progress

EMAP

Total number of LTE

NWs: 78

In deployment

Operational

Planned

Testing

Trials in progress

DVAP

Total number of LTE

NWs: 51

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LTE in Asia-Pacific: Outlook and Monetization Strategies

FD-LTE achieves widespread adoption in the region whereas TD-LTE

to remain specific to a few niche markets such as China

Figure 8: FD-LTE and TD-LTE network deployments, Asia-Pacific, June 2014 [Source: Analysys Mason, 2014]

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India

Pakistan

Malaysia

Indonesia

Bangladesh

China

Thailand

Japan

Australia

South Korea

Singapore

Hong Kong

Taiwan

India

Pakistan

Malaysia

Indonesia

Bangladesh

China

Thailand

Japan

Australia

South Korea

Singapore

Hong Kong

Taiwan

Vietnam Vietnam

Planned deployments or trials

in progress Operational network

FD-LTE TD-LTE

Sri Lanka

No Activity

Sri Lanka

Total FD-LTE

networks: 61

Total TD-LTE

networks: 24

Page 12: LTE in Asia Pacific: Outlook and Monetization Strategies

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LTE in Asia-Pacific: Outlook and Monetization Strategies

LTE-A Releases 10, 11 and 12 will change the way operators use and

manage spectrum for mobile services

12

Figure 9: Key features in LTE-A Releases 10, 11 and 12 [Source: Analysys Mason, 2014]

Release 11 (available 2014)

Gigabit download speeds and improved automated management functions

Release 10 – initial LTE-A release (available in 2013)

CA , improved network performance and HetNets

Release 12 (available about 2015)

Improved operations benefits and technology upgrades

LTE TDD-FDD joint operation including carrier aggregation.

LTE-A core features:

Carrier aggregation

HetNet

SON

Page 13: LTE in Asia Pacific: Outlook and Monetization Strategies

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LTE in Asia-Pacific: Outlook and Monetization Strategies

Carrier Aggregation makes the spectrum-rich richer: MNOs are

testing and launching peak download speeds of 200Mbps+

CA: Carrier Aggregation

Figure 10: Peak download speeds demonstrated through LTE Carrier

Aggregation [Source: Analysys Mason, 2014]

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Country Operator Maximum

download speeds

(Mbps)

• Australia • Telstra

• Optus

• 300 (Launched)

• 220 (TD-LTE)

(Launched)

• China

• China

Telecom

• China

Mobile

• 260 (FDD-TDD)

(Trial)

• 250 (FDD-TDD)

(Trial)

• Hong Kong • CSL • 300 (Demo)

• Singapore • SingTel • 300 (Launched)

• Philippines • Smart • 200 (Trial)

• South Korea

• LG Uplus

• KT

• SK

Telecom

• 150 (Launched)

• 225 (Launched)

• 225 (Launched)

2 Operators with multiple spectrum

positions benefit the most.

3

DVAP operators are front runners

in terms of commercializing LTE-A

CA.

1 LTE-A CA changes the strategy for

spectrum use in mobile networks.

Page 14: LTE in Asia Pacific: Outlook and Monetization Strategies

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LTE in Asia-Pacific: Outlook and Monetization Strategies

DVAP operators are the first and only ones (besides US operators) in

the world to launch VoLTE services

Country Operator VoLTE status

Hong Kong HKT-PCCW Launched

Hong Kong 3 HK Launched

Japan NTT DoCoMo Launched

Singapore SingTel Launched

South Korea SK Telecom Launched

South Korea KT Launched

South Korea LG Uplus Launched

USA AT&T Launched

USA Verizon Wireless Launched

USA T-Mobile-

MetroPCS

Launched

Figure 11: VoLTE launch status, June 2014, [Source: GSA, Analysys

Mason, 2014]

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2

Operators are offering VoLTE

calls for LTE subscribers at no

extra cost

1

DVAP has dominated VoLTE

deployment and adoption thus

far.

3 Benefits of VoLTE for consumers

Page 15: LTE in Asia Pacific: Outlook and Monetization Strategies

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LTE in Asia-Pacific: Outlook and Monetization Strategies 15

LTE Adoption in Asia–Pacific and forecast

LTE network deployment status and key LTE technologies

Impact of LTE on mobile data traffic

Consumer behavior towards LTE

How to monetize LTE?

Sneak peak at 5G

Page 16: LTE in Asia Pacific: Outlook and Monetization Strategies

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LTE in Asia-Pacific: Outlook and Monetization Strategies

EMAP will have the highest growth rate in the world for

cellular data traffic, but still lag behind DVAP in usage

16

Figure 12: 5-year growth multiples for cellular data traffic, by region,

2013–2018 [Source: Analysys Mason, 2013]

Figure 13: Average monthly cellular data usage, 2013, and 5-year

growth multiple for mobile data traffic, 2013–2018, Asia–Pacific

[Source: Analysys Mason, 2013]

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Usage (MB/month/pop)

Bangladesh

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IndonesiaMalaysia

TaiwanAustralia

South Korea

Japan

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Singapore

China

EmergingAsia–Pacific

DevelopedAsia–Pacific

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LTE in Asia-Pacific: Outlook and Monetization Strategies

0.0

1.0

2.0

3.0

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5.0

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ta u

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/4G

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B p

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nth

pe

r u

se

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DVAP EMAP

Mobile data usage proliferates as subscribers transition

from 3G to LTE and as LTE adoption increases

17

Figure 14: Growth multiples for cellular data traffic, by operator

[Source: Analysys Mason, 2014]

Figure 15: Growth multiples for cellular data traffic, by region [Source:

Analysys Mason, 2014]

0.0

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Japan SKT (Korea)

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ta u

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Vodadone(Italy)

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Data

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3G LTE

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Mobile consumers’ data usage clearly

shoots up on a 4G network as

compared to on a 3G network as the

faster speeds allow the consumer to

access more.

1

The difference between data usage on

a 3G network and on a 4G network is

lesser in markets of heavy data use

such as Japan and South Korea.

2

Data usage in DVAP (predominantly

LTE) will grow 5 times from 2013–

2018, but only 4 times in EMAP. 4

Data usage in DVAP will grow much

faster than in EMAP, despite its

existing higher level, driven by mass

adoption of 4G in the region.

3

Page 18: LTE in Asia Pacific: Outlook and Monetization Strategies

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LTE in Asia-Pacific: Outlook and Monetization Strategies 18

LTE Adoption in Asia–Pacific and forecast

LTE network deployment status and key LTE technologies

Impact of LTE on mobile data traffic

Consumer behavior towards LTE

How to monetize LTE?

Sneak peak at 5G

Page 19: LTE in Asia Pacific: Outlook and Monetization Strategies

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LTE in Asia-Pacific: Outlook and Monetization Strategies

More than 60% of people know what LTE is, and put more

importance on speed than price, especially for EMAP

19

Do you know what 4G LTE is and do you have it?

What would make you use your mobile Internet

service more? (choose more than one)

Approximately 35% of respondents in

Malaysia and Indonesia do not know

what LTE is. Advertising and educating

them is important for operators.

1

Nearly 40% of consumers in Malaysia

and Indonesia know what LTE is but

still do not have it. Operators should

make a bigger push to find out why.

2

Consumers, especially in Indonesia,

are being constrained in their data

usage by the data allowance, and

would like to use more if affordable.

4

Although cheaper price for data is

extremely important for consumers,

faster data speeds are still higher up in

their priority list.

3

0% 20% 40% 60% 80%

South Korea

Malaysia

Indonesia

Percentage of respondents

Cheaper pricefor data

Higher dataallowance

Faster dataspeed

0%

20%

40%

60%

80%

100%

SouthKorea

Malaysia Indonesia

Pe

rce

nta

ge

of

resp

on

de

nts

No, I do not knowwhat it is

No, but I have heardthe term

Yes, I know what it isbut I do not have it

Yes, and I have a 4GLTE mobile servicealready

Source: Connected consumer survey 2013, Analysys Mason.

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LTE in Asia-Pacific: Outlook and Monetization Strategies

Although a faster network ranks highly on consumers’

wishlist, LTE is quite low, likely due to high device prices

20

What attracted you to this provider? (choose more

than one)

In developed markets, consumers take

fast networks and adequate coverage

as given and these become less of a

differentiating factor.

1

4G is still viewed as expensive in price

sensitive developing markets

(probably due to devices which are

limited and very costly).

2

Some of the other key considerations

for consumers are handsets offered

and their price, and which operator

their friends and family use.

4

The good news for operators is that as

much as the price of data is important

for consumers, it does not dwarf the

importance of network coverage,

quality and speed.

3

0% 10% 20% 30% 40% 50% 60%

South Korea

Malaysia

Indonesia

Percentage of respondents

Price of data Better coverage

Faster network It has 4G LTE

Source: Connected consumer survey 2013, Analysys Mason.

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LTE in Asia-Pacific: Outlook and Monetization Strategies

Majority of people are willing to pay a premium for LTE;

this behavior is more pronounced in emerging markets

21

When you next change your contract or handset,

would you be prepared to pay extra for 4G LTE?

The readiness of consumers to pay a

premium for LTE services decreases

as the service becomes more

commonplace.

1

Nearly 40% of consumers in South

Korea are unwilling to pay any

premium for LTE services, but this

resistance reduces in markets where

LTE is still not widespread.

2

Nearly 80% of consumers in Indonesia

are willing to pay a premium for LTE. 3 0%

20%

40%

60%

80%

100%

South Korea Malaysia Indonesia

Pe

rcen

tage

of

resp

on

de

nts

Sorry, I don't understand the question

Yes (more than EUR5 per month)

Yes (EUR3 - 5 per month)

Yes (EUR1 - 2 per month)

No

In emerging markets, people are more

willing to pay a premium for LTE,

especially where there’s no LTE yet.

4

Source: Connected consumer survey 2013, Analysys Mason.

Page 22: LTE in Asia Pacific: Outlook and Monetization Strategies

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LTE in Asia-Pacific: Outlook and Monetization Strategies 22

LTE Adoption in Asia–Pacific and forecast

LTE network deployment status and key LTE technologies

Impact of LTE on mobile data traffic

Consumer behavior towards LTE

How to monetize LTE?

Sneak peak at 5G

Page 23: LTE in Asia Pacific: Outlook and Monetization Strategies

© Analysys Mason Limited 2014

LTE in Asia-Pacific: Outlook and Monetization Strategies 23

Category Strategy Rationale

Tariff

structures

Speed as tier differentiator Focus on quality of experience

No need to worry about right-sizing

4G only on top-level tiers Effective for upselling early adopters on to the highest price.

Unlimited Effective marketing

Unlimited voice & SMS: Focus on value of data while monetising legacy.

Content and

services

4G-specific content

bundles

Best-in-class content: A strong differentiator

Focus: ↑ Customer stickiness & Data consumption.

Potential revenue-share: a new revenue stream

Cloud storage

Requires fast & reliable Internet connectivity: Differentiate 4G

Utilise increased uplink capacity

Data-intensive: ↑ Data consumption.

Extending

connectivity

Multi-device or shared data Those on multi-device plans Get more subsidized devices

Those on family plans Use more data

Tethering Connecting other devices Use more data (typically > mobile broadband price)

Can be problematic for unlimited tariffs

Wi-Fi out-of-home access Wi-Fi hotspots: Complementary to cellular coverage

↑ Data usage out of the house.

Other International roaming

Voice/messaging roaming: Useful value-add for many higher-end customers

Bundled data roaming: ↑ Data consumption abroad & Monetization potential

Need to exam roaming agreements

Many of the strategies designed to differentiate 4G tariffs

involve bundling with other service elements Figure 16: Potential operator strategies for differentiating 4G services [Source: Analysys Mason, 2014]

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LTE in Asia-Pacific: Outlook and Monetization Strategies

Tariff structures: In the long term, operators’ tier structures for

handset data must tackle the ‘running out of runway’ problem

24

Tariff

Structure

Content &

Services

Extending

Connectivity

Figure 17: Approaches to structuring mobile handset data tariffs [Source: Analysys Mason, 2014]

The main approaches: volume-based and speed-based pricing; many tariff structures are, in practice,

‘two dimensional’.

Operators need to move customers up the price tiers faster than prices decline. If there are no upsell

opportunities, then only price erosion remains. ‘Running out of runway’ problem.

Approach Advantages Disadvantages

Volume-based Addresses the ‘running out of runway‘

problem

Volumes might appear abstract to many users

and difficult to self-monitor

Need to manage overage

Does not differentiate between 3G/4G/LTE-A

Speed-based

No overage problem if unlimited

Hybrid speed–volume pricing addresses

the ‘running out of runway problem’

Easy to communicate to customers

Aligns well with fixed broadband pricing

Unpredictability of cellular environment equates

to poor speed level guarantees

Potential cost impact of high-volume users

A service deemed to be ‘fast enough’ might limit

upsell opportunities

Unlimited

Unlimited voice & SMS vs Unlimited data

Strong differentiator

Easy to communicate to customers

No overage problem

Fewer active upsell opportunities

Potential cost impact of high-volume users

Restrictions imposed (for example, not allowing

tethering) may prove unpopular

The most

common

Normally

3G vs 4G

Disruptive

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LTE in Asia-Pacific: Outlook and Monetization Strategies

Core Tariff

Elements

Music

Video

Cloud Storage

Gaming

VoIP

Content and services: Operators should offer premium content for

high-end and popular OTT apps for lower-end customers

Increasingly, the bundling of video content

with LTE is considered a key way to

differentiate and upsell LTE.

Operators should focus on bundling

services that foster high engagement, to

make their tariffs more attractive and to

gain high-usage customers.

Example: SK Telecom (South Korea)

T freemium: content for LTE subscribers

Movies, TV shows, e-Books and other

multimedia content only available to LTE

subscribers

Source: SK Telecom, Analysys Mason, 2014

25

Tariff

Structure

Content &

Services

Extending

Connectivity

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LTE in Asia-Pacific: Outlook and Monetization Strategies

Singapore: Operators increasingly partner with providers of OTT

communications services to drive the take-up of mobile data

All offer a selection of core prepaid tariffs + Top-

up plans and add-ons (catering for specific

usage patterns, such as high volumes of

international calls or mobile data).

All offer top-up plans: Retail value >> The

combined theoretical value.

Partnership with popular regional OTT players

Starhub WeChat and Line Plans for Prepaid

Customers: Happy is non-stop WeChat from

40 cents/day.

SingTel Prepaid social data plans: Facebook,

WhatsApp, Opera mini surf & mail, Line,

WeChat Prepaid subscriber base ↑ 4.9% in

the year to December 2013 (highest growth in

Singapore).

KPI 4Q 2013

Mobile (active SIM) penetration of the

population 145.3%

Prepaid subscribers as a percentage of the

subscriber base 43.6%

Prepaid ARPU (per month) SGD14.0

Postpaid ARPU (per month) SGD63.2

Figure 18: Mobile KPIs for Singapore [Source: Analysys Mason, 2014]

Operator Description Pricing

SingTel Separate Social Data Plans

offer unlimited usage of

individual services:

Facebook, LINE, Opera

Surf, WeChat and

WhatsApp

SGD0.50 per day or

SGD6.00 for 30

days for all services

except LINE, which

is double the price

StarHub LINE Prepaid Plan offers

unlimited access to LINE

SGD0.40 per day,

or SGD6.00 for 30

days

Figure 19: Selected add-ons featuring popular OTT communication

and online services [Source: SingTel, StarHub, 2014]

26 26

Tariff

Structure

Content &

Services

Extending

Connectivity

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© Analysys Mason Limited 2014

LTE in Asia-Pacific: Outlook and Monetization Strategies

Extending connectivity: Multi-device plans fitting to multi-device

ownership are increasingly adopted to maximise potential revenue

Shared data tariffs encourages users to choose larger data

allowances.

Multi-device sharing plans are becoming more common

catering to the multi-device ownership are increasingly

adopted to maximise potential revenue.

Extending connectivity is an opportunity to increase tablet

connectivity; but operators need to reduce costs to match

perceived value

Pricing Type of plan Shared element

Monthly device or SIM

connection charge

Multi-device (Additional SIM for tablet,

USB modem or MiFi)

Data allowance

Multi-user (Also called “Family plans”) Data allowance

Voice and messaging service

No monthly device or SIM

connection charge

Second SIM for mobile broadband Data allowance

1According to our global connected consumer survey data.

27

Tariff

Structure

Content &

Services

Extending

Connectivity

About 29% of

smartphone

owners own

both a tablet

and a laptop. 1

Figure 20: Types of multi-device tariff structure [Source: Analysys Mason, 2014]

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LTE in Asia-Pacific: Outlook and Monetization Strategies

© Analysys Mason Limited 2014

LTE monetization: The availability of affordable handsets is the key

and prepaid will become important, especially for emerging APAC

28

• Premium & OTT

• OTT partnership

• Popularity ↑

• Preferred in EMAP

• Late movers in DVAP

• Plan structure

• Extending connectivity

• Multi-play

• Multi-mode

• Scale ↑

• Variety

• Affordability

Handset Tariff

Content Prepaid

Offering LTE to

more is important

for late movers.

First movers are

often able to charge

premium for LTE.

Page 29: LTE in Asia Pacific: Outlook and Monetization Strategies

© Analysys Mason Limited 2014

LTE in Asia-Pacific: Outlook and Monetization Strategies

Data gifting

Unlimited calling

Volume-based

flat-rate plans

M ulti-network

Mobile network

FTTH

CATV

Wi-Fi

other networks.

M ulti-device

smartphones

tablet computers

ebook readers

PCs, etc.

M ulti-use

available for use

in the manner the customer requires

at any place

and at any time

KDDI’s success story unpinned by its “3M strategy”:

Good tariff plans with the right bundles lead to synergies

Source: KDDI, Analysys Mason.

29

Conte

nts

, applic

ations,

serv

ices

Turn-around

in ARPU Subscriber

base ↑ Historical

low churn Data rev &

sub base ↑

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© Analysys Mason Limited 2014

LTE in Asia-Pacific: Outlook and Monetization Strategies 30

LTE Adoption in Asia–Pacific and forecast

LTE network deployment status and key LTE technologies

Impact of LTE on mobile data traffic

Consumer behavior towards LTE

How to monetize LTE?

Sneak peak at 5G

Page 31: LTE in Asia Pacific: Outlook and Monetization Strategies

LTE in Asia-Pacific: Outlook and Monetization Strategies

© Analysys Mason Limited 2014

Early 5G specifications are expected to be introduced in 2015 in

3GPP Release-14, with initial deployment expected from 2020

31

2011 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019

5G (2015)

Standardization

begins

(3GPP Rel-14

onwards)

LTE

(2008)

Introduction

in Rel-8

LTE-Advanced

(2011)

Introduction in

Rel-10

2020 2021

5G vision &

requirements

(2013 –2014)

4G (2008-2017)

LTE and LTE-A standardization, 3GPP Release-8 to Release-14

5G Standardization

5G Deployment

2022

5G

targeted

launch

5G Trials and Testing

Figure 21: Evolution of mobile technology standards with timeline for 4G and 5G. [Source: Analysys Mason, 2014]

15G to be introduced in Release 14/15, Available at: http://www.3gpp.org/news-events/3gpp-news/1614-sa_5g.

Page 32: LTE in Asia Pacific: Outlook and Monetization Strategies

© Analysys Mason Limited 2014

LTE in Asia-Pacific: Outlook and Monetization Strategies

Key Takeaways

LTE has achieved sharp adoption in DVAP while its only just taking off in EMAP right now.

LTE-Advanced will change the way operators use and manage spectrum for mobile services

Mobile data usage proliferates as subscribers transition from 3G to LTE and as LTE adoption increases

Consumers are willing to pay a premium for LTE and this behavior is more pronounced in emerging markets.

The key to monetize LTE in the long term is offering affordable LTE to wider audience. Handset, content/service and multi-device are critical.

32

Page 33: LTE in Asia Pacific: Outlook and Monetization Strategies

© Analysys Mason Limited 2014

LTE in Asia-Pacific: Outlook and Monetization Strategies

We are uniquely positioned to offer research and consulting to

telecoms, media and technology TMT sectors

33

Our focus is exclusively on telecoms, media and

technology (TMT).

We support multi-billion dollar investments, advise

clients on regulatory matters, provide spectrum

valuation and auction support, and advise on

operational performance, business planning and

strategy.

We have developed rigorous methodologies that

deliver tangible results for clients around the world.

Consulting

Cambridge • Dubai • Dublin • Edinburgh • London • Madrid

Manchester • Milan • New Delhi • Paris • Singapore • Washington DC

We analyse, track and forecast the different

services accessed by consumers and enterprises,

as well as the software, infrastructure and

technology delivering those services.

Research clients benefit from regular and timely

intelligence in addition to direct access to our team

of expert analysts.

Our dedicated Custom Research team undertakes

specialised and bespoke projects for clients.

Research

TMT INDUSTRY

DYNAMICS

Maximising

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efficiency Reducing

churn and

acquiring

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Positioning for

the digital

economy

Leveraging

the next

generation

and virtual

networks

Monetising

data services

Page 34: LTE in Asia Pacific: Outlook and Monetization Strategies

LTE in Asia-Pacific: Outlook and Monetization Strategies

© Analysys Mason Limited 2014

Contact details

34

Boston

Tel: +1 202 331 3080

Fax: +1 202 331 3083

[email protected]

Cambridge

Tel: +44 (0)1223 460 600

Fax: +44 (0)1223 460 866

[email protected]

Dubai

Tel: +971 (0)4 446 7473

Fax: +971 (0)4 446 9827

[email protected]

Dublin

Tel: +353 (0)1 602 4755

Fax: +353 (0)1 602 4777

[email protected]

Johannesburg

Tel: +27 11 666 4786

Fax: +27 11 666 4788

[email protected]

London

Tel: +44 (0)20 7395 9000

Fax: +44 (0)20 7395 9001

[email protected]

Manchester

Tel: +44 (0)161 877 7808

Fax: +44 (0)161 877 7810

[email protected]

Milan

Tel: +39 02 76 31 88 34

Fax: +39 02 36 50 45 50

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New Delhi

Tel: +91 11 4700 3100

Fax: +91 11 4700 3102

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Paris

Tel: +33 (0)1 72 71 96 96

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Singapore

Tel: +65 6493 6038

Fax: +65 6720 6038

[email protected]

Madrid

Tel: +34 91 399 5016

Fax: +34 91 451 8071

[email protected]

Sherrie Huang

Head, Asia–Pacific Programme

[email protected]

Nipun Jaiswal

Analyst

[email protected]

Satvik Singhania

Research Analyst

[email protected]