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Long Term Evolution (LTE) Mobile Broadband Pricing Worldwide - 2012 - Product Image

Long Term Evolution (LTE) Mobile Broadband Pricing Worldwide - 2012

  • ID: 1998468
  • December 2011
  • Region: Global
  • Tariff Consultancy

Some countries are introducing Long Term Evolution (LTE) services - which are also described as 4G (4th Generation mobile services) – as both a licence needs to be granted and a variety of wireless spectrum is required in order to allow a commercial LTE service to be launched.

But it should be noted that not all Mobile Broadband services that are commonly described as “4G” are based on a 4th Generation LTE service. T-Mobile in the USA for example offers a 4G-branded service which is based on a 3G-derived HSDPA network with theoretical download access speeds of up to 21 Mbps.

To-date LTE Mobile Broadband services have been introduced by a number of MNOs across the world - including, There are around 30 LTE Mobile Broadband providers with commercial services launched worldwide – all of which are included in the TCL survey. Some 18 of which have been launched in Europe.

Coverage

This report provides pricing and product information for LTE Mobile Broadband services from 30 MNOs in 16 countries. There are comparisons between LTE operator pricing, download access speeds and monthly data user allowances in each region and worldwide. The report also includes a 5-year forecast for LTE Mobile Broadband subscribers and revenues to the end of 2016.

Methodology
Introduction – a definition of LTE Mobile Broadband
Executive Summary – LTE Mobile Broadband pricing worldwide
The development of LTE Mobile Broadband services
Pricing for LTE Mobile Broadband services in Europe
Pricing for LTE Mobile Broadband services in North America
Pricing for LTE Mobile Broadband services in the Asia-Pacific
LTE Mobile Broadband pricing worldwide
A forecast for the adoption of LTE Mobile Broadband services
Conclusions – the growth in LTE Mobile Broadband services
Appendices
Appendix One – A table showing the currency exchange rates used in this report
Appendix Two – A list of MNOs mentioned in this report

A list of Figures used in this report

Figure 1 – A pie chart showing the distribution of the LTE Mobile Broadband providers by region
Figure 2 – A table of MNOs that have introduced LTE Mobile Broadband services worldwide
Figure 3 – A table showing Telia Sweden’s LTE Mobile Broadband tariff structure
Figure 4 – A table showing NetCom Norway’s LTE Mobile Broadband tariff structure
Figure 5 – A table showing LMT Latvia’s LTE Mobile Broadband tariff structure
Figure 6 – A table showing Omnitel Lithuania’s LTE Mobile Broadband tariff structure
Figure 7 – A table showing Telia Denmark’s LTE Mobile Broadband tariff structure
Figure 8 – A table showing A1 Austria’s LTE Mobile Broadband tariff structure
Figure 9 – A table showing T-Mobile Austria’s Internet All Inclusive LTE tariff structure
Figure 10 – A table showing Elisa Finland’s 4G/LTE Mobile Broadband tariff structure
Figure 11 – A table showing Telekom Germany’s Web n Walk Mobile Broadband tariff structure
Figure 12 – A table showing iPlus Poland’s LTE Mobile Broadband tariff structure
Figure 13 – A chart showing the spread of European LTE Mobile Broadband pricing (in Euro per month)
Figure 14 – A chart showing the spread of European LTE Mobile Broadband access speeds (in Mbps)
Figure 15 – A chart showing the spread of European LTE Mobile Broadband monthly data download allowance (per GB)
Figure 16 – A table showing Bell Mobility Canada’s Internet Flex Plan - LTE tariff structure
Figure 17 – A table showing Rogers Canada’s LTE Flex Rate for Mobile Broadband
Figure 18 – A table showing Rogers Canada’s LTE-enabled Tablet PC tariff structure
Figure 19 – A table showing Rogers Canada’s smartphone additional tariff structure
Figure 20 – A table showing Rogers Canada’s introductory smartphone LTE tariff structure
Figure 21 – A chart showing the spread of North American LTE Mobile Broadband pricing (in Euro per month)
Figure 22 – A chart showing the spread of North American LTE Mobile Broadband access speeds (in Mbps)
Figure 23 – A chart showing the spread of North American LTE Mobile Broadband monthly data download allowance (per GB)
Figure 24 – A table showing the NTT DoCoMo Japan Xi Data Plan Ninen tariff structure
Figure 25 – A table showing the NTT DoCoMo Japan Xi Data Plan tariff structure
Figure 26 – A table showing SK Telecom Korea’s LTE Mobile Broadband tariff structure
Figure 27 – A chart showing the spread of Asia-Pacific LTE Mobile Broadband pricing (in Euro per month)
Figure 28 – A chart showing the spread of Asia-Pacific LTE Mobile Broadband access speeds (in Mbps)
Figure 29 – A chart showing the spread of Asia-Pacific LTE Mobile Broadband monthly data download allowance (per GB)
Figure 30 – A chart showing the theoretical claimed maximum download speeds for selected LTE Mobile Broadband providers worldwide (in Mbps)
Figure 31 – A chart showing the monthly data usage limit for selected LTE Mobile Broadband providers worldwide (in GB per month)
Figure 32 – A chart showing selected LTE Mobile Broadband provider pricing worldwide
Figure 33 – A table showing the average Euro price per GB of selected LTE Mobile Broadband provider with out of data allowance cost (or reduced access speed)
Figure 34 – A chart showing the average Euro price per GB for selected Mobile Broadband service providers (Euro per GB)
Figure 35 – A chart showing the adoption of LTE Mobile Broadband subscribers – from the end of 2011 to the end of 2016 (millions)
Figure 36 – A chart showing the forecast growth in LTE Mobile Broadband revenues – from the end of 2011 to the end of 2016 (in millions of Euro)
Figure 37 – A chart showing the forecast percentage growth rate per annum in worldwide LTE subscriber numbers from the end of 2011 to the end of 2016 (millions)
Figure 38 – A chart showing the forecast percentage growth rate per annum in worldwide LTE revenues from the end of 2011 to the end of 2016 (millions of Euro)
Figure 39 – A table showing the exchange rate conversion to 1 Euro used in this report

A new TCL study finds that LTE Mobile Broadband pricing is set to decline by 60% over the next 5 years but with 250 million users worldwide by the end of 2016

A new report published by Tariff Consultancy Ltd (TCL) called LTE Mobile Broadband Pricing 2012 finds that LTE Mobile Broadband pricing will fall substantially over the 5-year period to the end of 2016.

LTE Mobile Broadband Pricing 2012 evaluates pricing from around 30 LTE Mobile Broadband providers which are mainly located in Europe, North America and the Asia-Pacific regions of the world. It finds that LTE is currently being promoted as a premium Mobile Broadband product based on a high theoretical download access speed. The average theoretical download access speed across all LTE providers is in excess of 80 Mbps, with the most common download speed cited being 100 Mbps – and one provider (Zain Saudi Arabia) claiming download speeds of as high as 150 Mbps. It is the high download access speeds that are the main differentiator for LTE against other types of Mobile Broadband.

Average monthly user data allowances for LTE Mobile Broadband services are currently 22 GB per month – but can be as high as 80 GB per month (as in the case of Tele2 Sweden), with allowances for LTE operators in North America being typically lower.

From the TCL study 6 LTE providers offer separately an “unlimited” monthly user data allowance which is generally subject to an operators’ Fair Usage Policy (FUP). The initiative indicates that currently the LTE Mobile Broadband service is being positioned as a premium product, and is not currently subject to the same usage constraints that can face the 3G Mobile Broadband product, at least in the short term.

TCL research finds that the average price worldwide for a top of the range LTE Mobile Broadband service is currently 50 Euro per month, typically based on a Post Paid 24 month contract term.

The TCL study shows that the average LTE Mobile Broadband price in Euro per GB ranges from 0.5 Euro (Tele2 Sweden) up to 9.9 Euro (Omnitel Lithuania) per GB of data mobile user allowance. Most LTE operators reduce the service access speed (down to speeds as low as 64 Kbps) when the monthly user data allowance is reached, with the speed reduction particularly prevalent in Europe.

But already there is evidence of price erosion from selected LTE Mobile Broadband providers. Telstra (Australia) currently offers its BigPond USB 4G Mobile Broadband product with an 8 GB monthly data user allowance for the equivalent of 30 Euro per month, against 38 Euro for a 4 GB monthly data user allowance reported at the time of launch. And in Singapore M1 (Mobile One) is offering its Next Generation Mobile Network equivalent LTE service to existing M1 customers with a 40% discount off the monthly list price.

TCL anticipates that LTE Mobile Broadband pricing will decline as more operators worldwide adopt the technology worldwide. As of the end of 2011 around 60% of commercial LTE services have been launched so far in Europe. Into 2012 more LTE networks will be launched in other regions including the Asia Pacific and South America with LTE pricing set to become more competitive as LTE becomes a mass market service and enters other consumer segments using increased download access speeds as a key differentiator.

For the LTE Mobile Broadband 2012 report TCL has produced a forecast for LTE Mobile Broadband subscriber numbers and revenues for the 5 year period to the end of 2016. As a result TCL anticipates that LTE Mobile Broadband pricing will decline over time as more operators adopt the technology by around 60% from the end of 2011 to the end of 2016.

By the end of 2016 TCL forecasts that there will be over 250 million users of LTE Mobile Broadband services, but average pricing per subscriber will decrease to around 20 Euro per month – a decrease equivalent to more than 60% in LTE pricing over the 5 year period.

On the conclusions of the LTE Mobile Broadband 2012 report Margrit Sessions, Managing Director of Tariff Consultancy Ltd commented - “Although it is clear that LTE subscribers and revenues will grow substantially over the next 5 years, LTE Mobile Broadband services will start to adopt the same mass market characteristics of the existing Fixed Broadband and 3G Mobile Broadband services with increased speeds but price competition.

The onus will be on the operators to bundle other services into their LTE offer and develop more compelling user-based applications and content services as well as simply providing large LTE Mobile Broadband access capacity.”

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