Lte World Summit 2012 Lte Rollout And Devices In GccPresentation Transcript
Impact of LTE and Smart Devices GCC Region Perspective Presentation by Safdar Imam Sr. Costing Specialist Omantel
20 Minutes Talking Points• Introduction – Omantel – GCC• Telecoms Development in the Region• LTE Deployments in GCC countries• Smart phone and LTE Devices market – Global and GCC perspectives• Device bundled offers in GCC and Oman• Future outlook after LTE Rollouts
OMANTEL – Introduction A unique Story 1 OMR = 2 EURO
GCC – Introduction A jewel in the Arab crown Gulf Cooperation Council (GCC), formed in 1981 to create economic cooperation among six homogeneous nations of Persian Gulf GCC countries are among the richest in the world on per capita basis The Region has the highest ARPU levels in the world with triple digit teledensity Area 2,673,108 sq km “No other Region in the Population 42,100,000 world has grown as fast Per Capita GDP (PPP) US $ 45,184 as GCC” (IIF)
Technology Development in GCC GCC markets have been more Deployment of Telecom/ Broadband Technologies in GCC - by Countries/ Operators aggressive in deployment of Fixed Technologies Mobile Technologies Fixed 2G 3G new technologies. Wireless (GPRS/ (UMTS/ Country Operators PSTN DSL CDMA WiMAX FTTX VSAT EDGE) HSPA) LTE iDEN Govts have been promoting Batelco Viva broadband strategies; e‐edu. e‐ Bahrain Zain Mena Telecom gov., e‐biz. Nuetel Omantel Fondness for smart devices and Oman Nawras MVNOs online community growing fast STC Mobily to played important role in Saudi Arabia Zain KSA Bravo stimulating telecom Atheeb Alharbi Telecom deployment MOC Zain With 60% pop. comprising Watanya Viva youth, Social media, video Kuwait Zajil KEMS Gulfnet sharing portals fast adopted as Fast Telco Quality Net a lifestyle. Qtel Qatar Vodafone Qatar Growing demand for high‐ UAE Etisalat Du speed Internet and online services have pushed Operator into rollout race. Source: ITU Report – ICT adoption and Prospects in the Arab Region 2012; GSA LTE Report 8 May 2012
Mobile Broadband and LTE Deployment in GCC• GCC Operators tend to be the early adopters of Wireless NGAN technologies• Bahrain and UAE launched 3G services as early as 2003 followed by Kuwait, Qatar, Saudi Arabia in 2006 and Oman in 2007.• Kuwait, Saudi Arabia and UAE are currently the only Arab countries to have launched LTE networks. Oman and Qatar have had trials and may launch in the next few months Deployment of Wireless Broadband Access Networks in GCC WiMAX LTE Country 3G Launch Launch Launch Bahrain Dec. 2003 Sep. 2007 Jan. 2012 Oman Dec. 2007 May. 2010 Saudi Arabia Jun. 2006 Sep. 2008 Sep. 2011 Kuwait Apr. 2006 Jul. 2006 Dec. 2011 Source: ITU Report – Qatar Jun. 2006 Sep. 2007* ICT adoption in the UAE Dec. 2003 Sep. 2007 Sep. 2011 Arab Region 2012 * Discontinued in July 2011
Surging worldwide sale of smartphone expected to cross 650 m in 2012 • Smartphones sales grew 58% in 2011.• According to Gartner, worldwide smartphone sales in 2011 reached 472 million units and accounted for 31 % of all mobile devices sales• Expectations for 2012 are for the overall market to grow by about 7 %, while smartphone growth is expected to be around 39 % with > 650 million units of sales.
347 LTE Devices including 64 Smartphones Launched by March 2012
LTE Devices – Global Status• 2011 witnessed over 8.2 Million LTE enabled device shipments with revenues of over 2 Billion USD• Motorola and Huawei lead the LTE PC cards/Embedded Device/Router shipments with a combined market share of over 50 % in Q12012• Motorola, Samsung and HTC lead the LTE‐enabled smartphone shipments with a combined market share of over 60 % in Q12012• Driven by the reduction in production lifecycle times and aggressive marketing strategies, LTE device shipments are expected to reach 30 Million by the end of 2012. • US will continue leading the market with a projected market share of 65 % Source: Mind Digiworld Report Feb 2012; “The LTE Device Marketplace: Ecosystem, Roadmap, Key Trends, Shipments/Market Share, and Global Forecast by Vendor 2012 – 2016”
Omantel’s Devices Promotion Strategy• Omantel makes attractive offers for Smartphone customers bundling Data usage. • Vendor’s partnership is an integral part of the strategy
LTE Device Bundles in KSA, UAE, Kuwait & Bahrain• STC offers free 4G modem + SIM Card + monthly 10 GB with subscription to QUICKnet pro 1 package• Zain limited period offer – 4G modem for 499 SR with one month free unlimited subscription• Etisalat UAE provides LTE modem with monthly data plans with contract length of 6‐12 months.• VIVA Kuwait offers 42.2 Mbps USB device @ KD 40 per month with unlimited data (FUP applies).• VIVA Bahrain; “4G LTE will be offered with new broadband devices and packages”
Future Outlook • LTE subscriptions around the world may exceed 40 million by the end of 2012 – a fourfold increase over the 9 million LTE subscriptions in 2011. • The wide range of expected LTE smartphone launches in 2012 from major mobile manufacturers are the main reason behind the increase in LTE subscriptions.• 87 million 4G devices are expected to be sold in 2012. With 294% year‐on‐ year increase, 4G subscriptions are really going to take off in 2012. • Global TD‐LTE subscription numbers will grow to one million subscriptions by the end of 2012 and 139 million subscriptions by 2017. China, India, and Japan would account for 92 million TD‐LTE subscriptions (66% of total) • Driven by three early deployments (STC, Zain, Mobily), Saudi Arabia will lead LTE subscriptions in the GCC region with over 0.39 Million subscribers by Q4’2012, representing a YoY growth of 457 % over 2011. Source: ABI Research posted on 20 May 2012
Future Outlook• Middle Eastern market will primarily be dominated by the 1800 MHz FDD and 2.3 GHz TDD deployments.• Re‐farming of the sub‐1 GHz spectrum will be critical LTE’s success in both the Middle East and Africa.• E‐services/ killer applications shall be the key to LTE penetration• Cyber‐security shall remain an inhibitor for the adoption of online services in the region. • 52 and 75 per cent of Internet users in UAE and Saudi Arabia, respectively, consider e‐commerce transactions to be unsafe* • Operators would be keen to offer free LTE trials and mixed 3G/HSPA/LTE bundled price plans to increase early consumer adoption.• By 2015, it is estimated that the Middle East will account for 7.49 Million LTE subscriptions representing global market shares of 1.8 %. Source: Regional Research report, Arab Advisors Group
Take Away Proactive Positivity• Complement and partner with – Network Equipment vendors – Device Manufacturers• LTE Network Performance Advantage – First ensure and then capitalize• Owning the network is not enough; own the UE to improve customer experience• Deliver on LTE Promise to create value for customers and shareholders; Formula 1 experience, Premium contents• Our NG customer out there in the market; “Arab youth” loves Eagles for speed thrill and higher elegance• LTE must deliver on the performance promise; killer apps.• Business Value potential = Revenue growth > Cost cutting.
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