Gartner Research

Market Trends: What CSPs Can Learn From Initial LTE Deployments

Published: 25 October 2013

ID: G00255053

Analyst(s): Gyanee Dewnarain, Rishi Tejpal


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


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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