LTE World Summit 2012 Day 1 T1 Bienaime UMTS FORUM & ORANGE

1,772 views
1,619 views

Published on

LTE World Summit Barcelona May 2012
Day 1 - UMTS FORUM & ORANGE

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,772
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
152
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

LTE World Summit 2012 Day 1 T1 Bienaime UMTS FORUM & ORANGE

  1. 1. LTE: wholesale business model & MVNO opportunities Jean-Pierre Bienaimé SVP Strategy and Communications Wholesale, Orange & Chairman, UMTS Forum LTE World Summit, 22-24 May, BarcelonaWRC 15 Project Kick-off Meeting, Brussels - 9 May 2012 1
  2. 2. Summary • 3G/3G+/4G LTE global market overview • the wholesale business model – is this the future for LTE ? • MVNO opportunities in a LTE worldLTE World Summit, Barcelona – 22-24 May 2012 2
  3. 3. Setting the scene Mobile broadband snapshot: 3G/4G subscriptions and commercial networks (mid-May 2012) Global 3G subscriptions (UMTS/WCDMA + EVDO + TD-SCDMA) 1.4 billion Global 3G/UMTS (WCDMA/HSPA/HSPA+) subscriptions 1.15 billion Global HSPA/HSPA+ subscriptions 870 million Global 4G/LTE subscriptions 15 million 3G/WCDMA/HSPA networks 390 3G/HSPA+ networks 175 LTE networks 75 Data: UMTS Forum, Wireless Intelligence and other industry sourcesLTE World Summit, Barcelona – 22-24 May 2012 3
  4. 4. LTE subscribers poised to ramp faster than 3G in its early days  The real ramp will begin at YE’12 and above all in 2013, when LTE handsets will be available at lower price points and with better autonomy.LTE World Summit, Barcelona – 22-24 May 2012 4
  5. 5. LTE World Summit, Barcelona – 22-24 May 2012 5
  6. 6. LTE 2015 Forecasts By the end of 2015, we forecast over 400m LTE subscribers worldwide, with around 180m in Asia-Pacific, 95m in North-America, 85m in Western Europe and 20m in Eastern Europe. In Asia, Japan and South Korea, leaders in terms of 3G penetration, will dominate in LTE subs, whereas China will drive the TD-LTE market. Source: UMTS Forum/IdateLTE World Summit, Barcelona – 22-24 May 2012 6
  7. 7. Orange LTE deployment strategy Commercial launch LTE / EPC is the when LTE end to end on going efforts new horizon for customer experience to cope with mobile superior to the one remaining technology with HSPA+ challenges  Higher spectrum efficiency  Multimode and multiband device availability  Reduced latency  LTE Performance in the DD  Compatibility with the band GSM/UMTS family  Open interfaces  Gradual roll out taking advantage of the HSPA+/LTE  SON features availability multimode operations  Easy roll-out of network  Technology adopted by both equipment GSM/UMTS and EVDO worlds LTE technology is ready to be deployed and is compliant with the 3GPP requirementsLTE World Summit, Barcelona – 22-24 May 2012 7
  8. 8. LTE adopted Business Models • « Classic » LTE model - offloading/capacity requirement: JV « Net4Mobility » Tele2 / Telenor: expanding network capacity • Mobile broadband centric solution - Telia Sonera, Telekom Austria, Verizon: offering high speed mobile BB services • FWA and substitution of Unbundling Local Loop - Vodafone Germany, O2 Germany: offering stationary BB via LTE modems (FWA) • Phasing out DSL via more efficient networks - Deutsche Telekom: providing BB services in rural areas / small cities • Niche services / Targeted B2B2C - WAN for backhaul solutions /offload data; solutions for automotive industry, travel & transportation,… • Wholesale LTE model – for MNOs and SPs: Lightsquared (USA: LTE/satellite), Yota (Russia), Clearwire (USA): reselling data traffic to interested parties via LTE network; solutions for MNOs for access to rural areas and lower Capex, MVNOs, Service providers Source: Orange/SofrecomLTE World Summit, Barcelona – 22-24 May 2012 8
  9. 9. LTE changing environment • New business segments – content, M2M, connected devices* • New entrants – emergence of wholesale only or wholesale led operators • Intensified regulatory interest and more requirements attached to rollout and competition  mandated MVNO support • Less common than rural requirements but MVNOs being considered as a way of promoting service competition beyond infrastructure competition. • France and Japan only regulators to include this with LTE licences so far. South Korea is considering it following failure of a credible applicant for a 4th LTE licence. • Single LTE network for multiple access • Kenya – public private partnership for a national LTE network. • Australia – LTE as an extension to the fiber National Broadband Network (NBN) to cover 400,000 rural homes. Services to be offered at the same price as fixed rural and urban services. Source: Orange/OvumLTE World Summit, Barcelona – 22-24 May 2012 9
  10. 10. The LTE wholesale model (Source: Idate)LTE World Summit, Barcelona – 22-24 May 2012 10
  11. 11. Interest is growing worldwide in LTE wholesale model (source: Idate/Orange) • In the USA, newcomers such as LightSquared, Dish and Clearwire have based their strategy upon the availability of new spectrum which can provide capacity in a context of growing saturation of the mobile networks. • LightSquared have also put considerable effort in very quickly signing deals with resellers in order to strengthen its business case. Among them are MVNOs, regional mobile operators, cable TV operators and electronic goods distributors. Nevertheless Lightsquared is now out of the game (temporarily ?...) since the FCC rejected its disruptive wholesale LTE capacity plans, due to the interference problem with GPS • Countries such as Kenya and perhaps Mexico seem to be considering a regulatory obligation for LTE wholesale operation. The objective is to enable the provision of LTE services in markets where it would not be sustainable for existing mobile operators to implement separate LTE infrastructures. The French regulator has imposed wholesale agreements and MVNOs hosting conditions at the occasion of the recent 4G auctions.LTE World Summit, Barcelona – 22-24 May 2012 11
  12. 12. Wholesale mobile services become more relevant with high speed data and LTE (Source: Orange/Ovum) LTE a credible high Regulation speed broadband •Rural rollout •Mandated technology and being MVNO support regulated as such 500% Connected Increased data 50 billion devices Wholesale increase in usage connected devices •M2M demand •Backhaul data traffic in by 2020? •Embedded •Offload next 5 years? Convergence •Triple/quad play capabilities from Few have the all players capabilities to deliver mobileLTE World Summit, Barcelona – 22-24 May 2012 themselves 12
  13. 13. European MVNO Market Update Norway Sweden Sweden Poland Poland Netherlands Netherlands Norway 3+1 3+2 3+2 MNOs (Ice.net MNOs 3 (Ice.net+Hi3G) MNOs (Centernet+Mobiland) MNOs 3 ) MVNOs + BL 47+ 11 - MVNOs 24 MVNOs + BL ~21 ~20 MVNOs + BL 13 + 3 Sweden 14.3* Sweden MVNO Pen. rate 2-3% 6% MVNO Pen. rate 1.5 / 1.2 MVNO Pen. Rate (+14%) MVNO Pen. rate 26% 3 M* Nb Subscribers 2.3 M Nb Subscribers 0.15 M Nb Subscribers 0.75 M Nb Subscribers (+1.9% ) Norway Germany Romania Germany Slovakia Slovakia UK MNOs 4 3 MNOs 3 Belgium Belgium MVNOs + BL 952+ 10 MVNOs + BL 45 + 2 3 2 + MNOs 3 MVNO Pen. rate 22 na / 14.7 22 / 14.7 MVNO Pen. rate 0.3 / na 0.3% 26+10 Netherlands MVNOs + BL UK Poland Nb Subs in M 22.7na / 14.4 Nb Subscribers Subs. (M) 0.05M MVNO Pen. rate 17 / 13,5 Germany Poland Belgium Nb Subscribers 2.23M Slovakia Austria Austria France Romania UK UK Switzerland Austria Romania MNOs 4 MNOs 4 MVNOs + BL 6+1 5+1 MVNOs + BL 55 Italy MVNO Pen. Rate 1.5 / 1.35 Spain Italy MVNO Penetration 11.5 Nb Subs M Sub 0.2 / 0.16 Nb Subscribers 10 Including BL na Spain Spain France France Italia Italia <5% 3 + 1 (Free MNOs 4 MNOs Mobile) MNOs 4 Switzerland Switzerland 5<10% MVNOs + BL ~ 26 MVNOs + BL ~ 39 14 + 2 MNOs 3 10<15% MVNOs + BL MVNO Penetration 6 (+30%) MVNO Pen. rate 12 / 7.5 15<20% MVNO Pen. rate 3 MVNOs + BL 8+5 3.6 M >20% Nb Subscribers (+44%) Nb Subs in (M) 9.5 / 6 Nb Subs in M 2.7M MVNO Pen. rate .5% 8,5 / 3LTE World Summit, Barcelona – 22-24 May 2012 Nb Subs in M 0.95 / 0.35 13 Sources: Regulators, Sofrecom estimatesPenetrationare end 2011 * Netherlands: 3Q 2011 at
  14. 14. MVNO development status NorwayPenetration % Germany 20% Belgium Netherlands 15% France +14%* Switzerland 10% Spain +44% 5% Italy Austria Portugal Sweden Poland 1% Nascent markets Slovakia Advanced markets Atomized markets End10 End 11 Romania 10 50 100 Nb. of MVNOs 5 20  Different development stage  Maturity of the MVNO market in relation to number of players LTE World Summit, Barcelona – 22-24 May 2012 * Netherlands: 3Q 2011 14
  15. 15. Orange France wholesale over over 200 customers 12 million Fixed, Public Initiative Fixed wholesale Networks access points MVNOs, Licences, 3,3 million MVNO end-clients 2.2 million clients under brand licence an operator serving other operatorsLTE World Summit, Barcelona – 22-24 May 2012 15
  16. 16. MNOs & MVNOs mutual interests  a contribution to the profitability of network CAPEX  major synergies in terms of Information System  a marketing feedback : communitarian, local, …  partnerships with new potential cooperation issues  Media & entertainment  Device and data management  Distribution, ethnics  Contactless, healthcare, transport, international travel  M2M platforms, connected devices MVNO is an enabling partner that can complement MNO’s horizontal scale with vertical reach & expertise 16LTE World Summit, Barcelona – 22-24 May 2012 16
  17. 17. MVNO (3.3m) Licences (2.2m) MVNO Licences MVNO SFR MVNO Licences MVNO market in France (end 2011)LTE World Summit, Barcelona – 22-24 May 2012 17
  18. 18. Value proposition is changing Orange is planning the progressive change of MVNO offers portfolio  from a all-inclusive offer with a single pricing  to a range of segmented services where all services will get a value Current MVNO Offer Portfolio Future Orange All inclusive with different potential proposition offer scenarios  Readability of the offer Simple  Simplified pricing strategy  Segmentation & interoperability of the services and their value Flexible  Adapt our value proposition to current MVNOs and candidate MVNOsLTE World Summit, Barcelona – 22-24 May 2012 18
  19. 19. Mobile broadband enabled Consumer Electronics devices: wholesale business model The business of wholesaling capacity and traffic to specialised MVNOs is set to become increasingly important to operators for CE enabled devices. Some reasons: Low traffic devices, which do not generate much revenue, and where the operator may prefer a third-party to manage the customer, and the billing. Examples include alarm systems or e-book readers such as Amazon’s Kindle 3G. Some operators favour letting specialised device vendors be MVNOs – network transparent to users. Famous case to date is Amazon’s Kindle. More generally, devices in large volumes using the same, well defined, applications. operators being armed with the best customer management systems, MVNOs can bring there a synergistic range of services to their portfolio.LTE World Summit, Barcelona – 22-24 May 2012 19
  20. 20. Future data MVNO trends • MVNOs in mature MVNO markets are about to embark on a new growth wave driven by a more diverse and data-orientated range of MVNOs: - M2M/ Connected devices - 4G LTE MVNOs: Japan (IIJ and Japan Telecom on Docomo’s LTE network , home appliance shops on e-Access LTE network), Russia (Rostelecom, Megafon and MTS on Yota LTE network), France ?... • MNOs in Europe are committed to the wholesale model: now a credible and important revenue stream • There are still many new markets opening up to wholesale and MVNOs: even if not so important than Europe was, there will be opportunities in the right markets for the right players Source: Orange/OvumLTE World Summit, Barcelona – 22-24 May 2012 20
  21. 21. graziegracias Dziękuję mercidanke obrigado thank youLTE World Summit, Barcelona – 22-24 May 2012 21
  22. 22. For more information www.umts-forum.org twitter.com/umtsforumWRC 15 Project Kick-off Meeting, Brussels - 9 May 2012

×