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Monday, November 25, 2013

1.3 billion 4G LTE connections expected in five years' time

There’ll be 1.3 billion 4G LTE subscribers worldwide by the end of 2018, according to a new forecast from Informa Telecoms & Media. That compares with just 188.6 million users at the end of this year.

The increase represents a compound annual growth rate of 44% over the five-year period, with the USA becoming the largest market for LTE throughout the forecast period.

A forecast from Strategy Analytics last May painted a similar picture, anticipating that 4G LTE connections would pass the billion subscriber mark in early 2017.

Paul Lambert, senior analyst at Informa Telecoms & Media, said “LTE is providing operators with a new lease of life, and not just in terms of being able to offer an improved user experience, a chance to sharpen branding messages and an opportunity to differentiate themselves from rivals. Operators are also seeing changes in consumer behavior, and the initial signs are that LTE users are consuming more data than 3G customers: 28% of the operator respondents said they saw an increase in data usage of 11% or more when a subscriber migrates to 3G.”

“The most successful LTE operators have shown that not charging a premium for LTE is the key ingredient in ensuring LTE subscription take-up. Even if they price their LTE services on a par with 3G, LTE operators nonetheless have to position the new network in new ways to ensure they realize the maximum value from their investments in the LTE network.”

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Opinion Articles

Hanging on the Telephone

Are we waiting for mobile marketing to make a move?

Mark Bridge writes:

At the beginning of the 21st century I moved from Vodafone to work for its Vizzavi multimedia portal, wooed by talk of context-specific advertising that would one day use a customer’s location and search history to ensure any ads were precisely targeted. And I’m not the only person who’s been seduced. Consumers, ad agencies, client companies and mobile networks have all been promised much by mobile marketing.

Yet more than a decade later that kind of sophistication seems to be lacking from most mobile marketing messages.

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Last week at The Fonecast: 29th April 2013

Money, messaging, microphones and M2M

Mark Bridge writes:

This week there was only one set of financial results that attracted the mainstream tech media. Apple reported the first drop in quarterly profit for several years as figures fell by 18% to around £6.1 billion. On the positive side, it made around £6.1 billion profit. It also announced dates for its developer conference in June and promised a new version of iOS.

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Fixed line nightmares vs simple mobile

...and why Mobile Termination Rates need to fall

James Rosewell writes:

Due to growth in staff numbers my business (51Degrees.mobi) is in the process of moving offices. Coincidentally I'm also moving our home broadband. It’s not been a pleasant experience.

This got me thinking, because a few weeks ago on thefonecast.com we discussed why Ofcom isn’t treating Mobile Termination Rates (MTR) in the same way as fixed-line termination rates. The mobile industry justifies higher MTRs on the assumption that a mobile network costs more to run than a fixed-line network. It was certainly true when the fixed costs of running a mobile network had to be shared across a relatively small number of customers, even if they did pay a fortune for their contracts and terminals. Intuitively I'd say that’s just not true anymore.

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Last week at The Fonecast: 22nd April 2013

Spring in the air

Mark Bridge writes:

The past few days have seen the arrival of two familiar seasons. Not only has the sun peeked its head from behind the clouds in an approximation of Spring but the mobile industry has been releasing its quarterly results.

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Last week at The Fonecast: 15th April 2013

Going up...

Mark Bridge writes:

It’s claimed there’s recently been some dodgy equine activity in the mobile industry. No, I’m not talking about the dancing pony that promoted Three UK. I’m not even making lasagne jokes. I’m talking about the ‘Trojan horse’ threatening to monopolise the mobile marketplace.

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