Gartner Research

Market Trends: What CSPs Can Learn From Initial LTE Deployments

Published: 25 October 2013

ID: G00255053

Analyst(s): Gyanee Dewnarain, Rishi Tejpal

Summary

Four key ecosystem elements — network, pricing, devices and apps — impact customer adoption of 4G. We select key lessons from early deployments to help communications service providers' network and marketing managers drive success in LTE.

Table Of Contents

Introduction

Market Trend

  • Trend 1. Network Coverage, Time to Market and Spectrum Mix Offer Opportunistic Differentiation Initially
    • Lesson 1. CSPs Can Increase Net Subscribers, Market Share and Average Revenue Per Unit Commensurate With Speed and Breadth of LTE Deployment
    • Lesson 2. Intelligent Spectrum and Network Technology Mix Enhances User Experience
    • Lesson 3. CSPs Go-To-Market Strategies Reflect How They Want to Position LTE
  • Trend 2. CSPs Struggle to Command a Price Premium for LTE But Innovative Pricing Can Lead to ARPU Uplift
    • Lesson 1. CSPs Renounce Premium Pricing to Drive Mass-Market Adoption
    • Lesson 2. Unlimited Plans Will Disappear From Most Markets
    • Lesson 3. Tiered Price Plans Lead To Commoditization and Shared Price Plans Can Drive Usage and ARPU
    • Lesson 4. Overage Can Present Another Monetization Opportunity for CSPs
    • Lesson 5. CSPs Engage With Key Partners to Drive Consumer Interest in LTE Service Plans
    • Lesson 6. CSPs Revamp Customer Experience Management in Conjunction With Their LTE Launches
  • Trend 3. LTE Smartphones and Tablets Are the Primary Drivers of Consumer Adoption of LTE
    • Lesson 1. CSPs Drive Consumer Interest and Adoption With Diverse Device Types
    • Lesson 2. CSPs Use Diversity of Price Points to Meet Different Segment Needs and Drive Mass-Market Adoption
    • Lesson 3. CSPs Move Away From Subsidies by Offering Device Financing and Leasing Plans
  • Trend 4: Apps, Content and Services Are Fundamental in Showcasing LTE Capabilities
    • Lesson 1. CSPs Use Multimedia Content and Cloud-Based Services to Showcase LTE
    • Lesson 2. New 4G Use Cases Are Emerging Beyond Smartphone and Tablet Apps
    • Lesson 3. While Horizontal 4G Services Apply to Most Businesses Some Industry Verticals Will Benefit More Than Others From LTE
    • Lesson 4. CSPs Leverage Partnerships With Popular Brands to Attract Customers to LTE; Some Promote Own-Brand Content With Their LTE Plans
    • Lesson 5. CSPs Have Five Go-to-Market Approaches When Offering Apps and Content With LTE
  • Conclusion

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