59 per cent of operators are planning to launch 4G services this year (33.7 per cent) or next (24.9 per cent), according to a survey by Informa Telecoms & Media. And 70.5 per cent believe there is a viable business case for launching 4G today.
“Because LTE technology, at the moment at least, is an extension of the mobile broadband experience, initial evidence suggests that mobile users aren’t prepared to pay a significant premium for LTE access,” says Paul Lambert, senior analyst at Informa Telecoms & Media. “Most of the operators that have been successful in signing up LTE subscribers have decided not to charge a premium for 4G access, but instead are bundling it into existing data plans. When operators have done this, and effectively communicated the benefits 4G offers, market reaction has been very positive.”
The survey also found that the main reasons operators are launching LTE are to create new revenue streams (34.7 per cent), to increase capacity to offer mobile broadband services (23.3 per cent); and to build brand value through technology leadership (31.3 per cent).