Increasing LTE Revenues: Top 10 Innovations and Operator Examples

Increasing LTE Revenues: Top

10 Innovations and Operator

Examples

James Middleton,Managing Editor,

Telecoms.com

Corine SuscensSenior Marketing Manager,

Openet

2w w w . o p e n e t . c o m© Copyright 2013 Openet – Company Confidential

For Use Under Non-Disclosure Only

Strong growth

forecast

0

1

2

3

4

5

6

7

4G connectionsworldwide 2017

% of globalpopulation inLTE coverage

today

% of globalpopulation inLTE coverage

2017





“This is about enabling more

communications services for

our customers, on one network,

hopefully. Better QoS, better

control over the call, the ability

to open data sessions, add

video streams, this kind of

RCSe functionality.”

Michel Lenoir, programme manager for LTE at Vodafone Netherlands

VoLTE



LTE roaming



Wifi



Customer

experience



The importance

of agility

Webinar | Increasing LTE Revenues: Top 10 Innovations and Operator Examples*

Corine Suscens, Senior Marketing Manager, Openet

21st May 2014 *Operator examples as per April 2014



• LTE: High speed and capacity driving data usage and innovation

• LTE users ~1.5GB of data per month= almost twice non-LTE users (GSMA, Nov 2013)

• LTE subscribers often exceed data limits

• Innovative offers and business models

• LTE users ARPU higher than non-LTE users (GSMA, Nov 2013)

• Developing markets: 7-20 times

• Developed markets: 10%-40%

LTE Drives New Revenue Opportunities

Source: Modibia / Informa “Understanding today’s smartphone user”, 2014

288 live LTE networks in 104 countries + 550 operators investing in 161 countries (GSA, May 2014)

64% of the world population to be covered by LTE in 2020 (GSMA)



• Create perceptible value with LTE and stimulate upgrade to higher tiers

• EE: Double speed (peak 60 Mbps) and double data for extra £3

• Telia (world’s first LTE operator): 4G pre-paid - 20 Mbps speed cap

• 4G Postpaid: 100 Mbps + data tiers + shared data + unlimited calls/SMS

• Orange France: main contracts (150 Mbps), sub-brand“Sosh”(14-150Mbps)

• Swisscom: unlimited data plans with differentiated speeds, speeds throttled to 64 kbps when a certain amount of data is consumed “Figures from recent quarters shows that customers switching to Natel infinity are generating higher revenues (ARPU).” (Swisscom 2013 annual report)

1. Differentiating with LTE Speed: Speed Tiers



• Upselling high speed add-ons and temporary speed boosts

• A1 Telekom Austria: 42 & 150Mbps add-ons + base tiered packages (4 to 42 Mbps)

• Upselling data (volume) add-ons to restore speed

• Wataniya: tiered data packages - speed reduced when limits reached before end of the month > various data add-ons to restore speed

2. Differentiating with LTE Speed: Upselling



• T-Mobile US: unlimited international data and text on all Simple Choice plans

• Low speed 128Kbit/s + fair usage rules

• Customers can purchase high speed roaming passes (total cost control)

• 1 day / 100 MB, 1 week / 200 MB, 2 weeks / 500 MB

• Attractive for customers + roaming revenue from high speed upsell

• Solution for Europe with abolition of roaming charges?

3. Driving Roaming Revenues… With No Roaming Charges: High Speed Roaming Passes Upsell



• Offers based on real-time context: maximize upsell opportunities + uptake

• E.g. Subscriber on low speed data package accessing Netflix => high speed add-on offer

• Attempt to access Facebook with no data plan => data pass with unlimited Facebook

• Operator success story: stimulating data adoption

4. Maximizing Upsell Opportunities and Uptake: Real-time Contextual Upsell

Telecoms.com Intelligence, “Operators’ BSS

Strategies”, global survey of 100 operators

• 26% growth in data users• 10% conversion to recurring

monthly data plans• 17% growth in data revenue

Subscribers with no data plan trying to access data

Data pass offer in real time: e.g. 10MB/1 day (total cost control)

http://www.openet.com/bestofbreed



• As voice becomes data, more opportunities arise for innovative voice/data bundles

• Voice/SMS ~ 60% operators’ revenue globally (GSA)

• Enriched voice experience, high audio quality

• Better compete with OTT (VoLTE + RCS/IM/Video)

• No legacy voice networks => simplicity, cost savings

• 7 VoLTE launched, 40 deployments and trials

• Being deployed at AT&T(23 May), Verizon, Telus, EE etc

• South Korea Telecom - VoLTE in August 2012

• 50% of LTE subscribers use VoLTE (Analysys Mason, Jan 2014)

• LG U+ in Korea: Voice = 100% VoLTE

• “Our 100% LTE voice call success rate is as high as

99.89%” (Korea Joongang Daily, Aug 2013)

5. Enriching the Voice Experience and Competing with OTT: VoLTE

Source: Telecoms.com Intelligence, February 2013

Germany

USA

CSL, Hong Kong Korea

Azerbaijan



• Multiple users and devices can share a common pot of data

• Leverage LTE capacity to accelerate data usage and extend user base

• AT&T shared data “Mobile Share” results 2014Q1:

• Share accounts tripled year over year to 11.3 million

• 45% postpaid subscribers, ~3 devices per account

• High take rate (46%) of larger data plans (10 GB+) = 70% growth from 2013Q4

• Extending shared data to cars…

• “Audi's AT&T-powered in-car LTE service starts at $99 for 6 months, 5 GB”

• “Additionally, starting this summer Audi will become the first car maker to offer an AT&T Mobile Share shared data plan option to AT&T customers who would like to add their vehicle to their existing Mobile Share plan”

Source: Fierce Wireless, March 11, 2014

6.1. Accelerate Data Usage and Revenues: Shared Data Plans…Extended



• Smartphone app to make sharing/gifting easy + full visibility and control

6.2. Shared Data: Illustration



• Enables customers to access mobile content, apps and data services free of charge, with no impact on their data allowance

• Data charge paid by sponsoring company: e.g. content provider, advertiser, retailer, business (BYOD: sponsor business apps & services) etc

• Sponsor: access operator subscriber base, more appealing “free” data => drives traffic & revenue

• Hershey’s premium line of Scharffen Berger chocolate: AT&T’s sponsored data ads

• Ad banners within the Pandora iPhone app

• Clicking through brings up a landing page showing a video, with a message explaining that watching the clip is free

7. Creating New Sources of Revenue: Sponsored Data

Source: Mobile Marketer



8. Leverage Popular Applications to Stimulate Data Adoption and Usage: Application Service Passes

• Application specific variation of data service passes

• Total cost control and simplicity removes fear of bill shock + popularity of some applications & social media => stimulates data adoption and usage

• Movistar Mexico: 30 / 7 / 3 days passes with unlimited access to Facebook, Twitter, WhatsApp and email (hotmail, yahoo!mail, Gmail) + data allowance

• 1GB at max speed, then 64Kbps



• Wi-Fi: an extension of the cellular network?

• ANDSF & Hotspot2.0 standards to enable seamless handover

• Only 40% of data traffic over cellular networks by 2017 (Juniper Research)

• Wi-Fi = 69% -78% mobile data usage from 4G Android smartphone users in 2013 (Mobidia)

• TCO per bit of Wi-Fi = 10% of 3G, 43% of 4G(Senza Filli consulting: Carrier Wi-Fi for mobile operators, June 2013)

• Bundling Wi-Fi with data plans: Vodafone UK

• Wi-Fi in roaming plans: AT&T data roaming $60+ add-ons include 1GB of Wi-Fi roaming

• Prepaid Wi-Fi bundles: Telkom Mobile

9. Enhancing & Monetizing the Network Experience: Wi-Fi Offload and Packaging



• Real-time visibility and control to customers

• Stimulates trust, satisfaction and loyalty

• Real-time notifications for all

• Self-care dashboards – on the device

• Real-time notifications : opportunity to upsell

• LTE subscribers often exceed their data limits

• EE: Notifications at 80% & 100% of usage

• Includes link to buy a one-off data pass: 500 MB/ £6 or 2GB / £15

• Buy or data access blocked until next bill

• On-device purchase and service activation

• Revenue maximization and customer satisfaction

• Cost savings: e.g. customer service /sales

10. Maximizing Loyalty and ARPU: Real-time Interaction & Purchase

Selfcare app with Dashboard

“Charging &

billing for the

digital economy”,

Survey of 80+

operators,

Openet, 2013



The Foundation for LTE Service Innovation: Evolving Legacy Business Support Systems (BSS)…

89%

11%

1. In your opinion, do you think that existing BSS limitations can delay new

product innovation and launches?

Yes

No

23.8%

7.9%

30.2%

38.1%

0.0%

2. If yes, in your experience what is the main reason for legacy BSS delaying product launches?

Systems are heavily reliant onvendors to set up new offers

New rate plans can be toocomplex

System integration work is toocomplex

No one single system to centrallydevelop, launch and manageoffersN/A (Answered "No" to questionone)

“Charging & billing for the digital economy”,

Survey of 80+ operators, Openet, 2013

1 & 2: Survey of 70+ operators, Openet, 2014

http://www.openet.com/chargingresearch



…Towards Real-time, Agile BSS

Charging & billing for the digital

economy”, Survey of 80+

operators, Openet, 2013

Telecoms.com Intelligence,

“Operators’ BSS Strategies”,

global survey of 100+ operators


http://www.openet.com/bestofbreed



• LTE: opportunity to innovate and drive new revenues

• Requires real-time, agile BSS

Summary

Shared dataApplication

service passesSponsored

data

High speed

roaming passesReal-time context

aware upsell

Upselling

Add-Ons

VoLTE

Real-time dashboards

& notifications

Wi-Fi offload

& packaging

Speed-based

offers



Thank you

Corine Suscens, Senior Marketing Manager, Openet [email protected]

Download research reports:

• Operators’ BSS Strategies www.openet.com/best-of-breed

• Charging & Billing for the Digital Economy www.openet.com/chargingresearch

mailto:[email protected]

http://www.openet.com/best-of-breed


Increasing LTE Revenues: Top

10 Innovations and Operator

Examples

James Middleton,Managing Editor,

Telecoms.com

Corine Suscens

Senior Marketing Manager,

Openet

Technology

Increasing LTE Revenues: Top 10 Innovations and Operator Examples