Increasing LTE Revenues: Top 10 Innovations and Operator Examples

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This webinar presents recent LTE service innovations, with examples from leading operators.

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Increasing LTE Revenues: Top 10 Innovations and Operator Examples

  1. 1. Increasing LTE Revenues: Top 10 Innovations and Operator Examples James Middleton, Managing Editor, Telecoms.com Corine Suscens Senior Marketing Manager, Openet
  2. 2. 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 connections worldwide 2017 % of global population in LTE coverage today % of global population in LTE coverage 2017
  3. 3. 3w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only
  4. 4. 4w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only “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
  5. 5. 5w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only LTE roaming
  6. 6. 6w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only Wifi
  7. 7. 7w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only Customer experience
  8. 8. 8w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only The importance of agility
  9. 9. 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
  10. 10. 10w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only • 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)
  11. 11. 11w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only • 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
  12. 12. 12w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only • 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
  13. 13. 13w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only • 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
  14. 14. 14w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only • 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)
  15. 15. 15w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only • 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
  16. 16. 16w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only • 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
  17. 17. 17w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only • Smartphone app to make sharing/gifting easy + full visibility and control 6.2. Shared Data: Illustration
  18. 18. 18w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only • 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
  19. 19. 19w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only 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
  20. 20. 20w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only • 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
  21. 21. 21w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only • 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
  22. 22. 22w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only 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 on vendors to set up new offers New rate plans can be too complex System integration work is too complex No one single system to centrally develop, launch and manage offers N/A (Answered "No" to question one) “Charging & billing for the digital economy”, Survey of 80+ operators, Openet, 2013 1 & 2: Survey of 70+ operators, Openet, 2014
  23. 23. 23w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only …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
  24. 24. 24w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only • LTE: opportunity to innovate and drive new revenues • Requires real-time, agile BSS Summary Shared data Application service passesSponsored data High speed roaming passes Real-time context aware upsell Upselling Add-Ons VoLTE Real-time dashboards & notifications Wi-Fi offload & packaging Speed-based offers
  25. 25. 25w w w . o p e n e t . c o m © Copyright 2013 Openet – Company Confidential For Use Under Non-Disclosure Only Thank you Corine Suscens, Senior Marketing Manager, Openet corine.suscens@openet.com Download research reports: • Operators’ BSS Strategies www.openet.com/best-of-breed • Charging & Billing for the Digital Economy www.openet.com/chargingresearch
  26. 26. Increasing LTE Revenues: Top 10 Innovations and Operator Examples James Middleton, Managing Editor, Telecoms.com Corine Suscens Senior Marketing Manager, Openet

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