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LTE Premium Pricing is Dead, but Emerging Service Models Demonstrate Promise

Leading market intelligence firm finds that carrier innovation is redefining the revenue potential of LTE

Sterling, VA, USA – February 18, 2014 – Current Analysis, Inc., a leading provider of timely, practical market intelligence and advice for the global IT and telecom industries, revealed today its analysis on new and emerging carrier service innovation models that are breathing life back into the mobile access business.

Carriers are giving up on LTE premium pricing in pure access terms. The experience of the last year has demonstrated that LTE is just as vulnerable to apples-for-apples pricing competition as any other access technology, and early attempts to retain value in Asia Pacific and Europe have failed. However, that’s not the end of the story. From the U.S. to Asia Pacific and Latin America, Current Analysis’ Innovation IMPACT team of analysts has witnessed a small but significant revolution in go-to-market models for LTE.

“Beyond access offerings, exploring the potential of secondary, ad-funded and freemium models to secure the profitability of the mobile access business are very much on trend,” said Peter Jarich, Vice President, Consumer Services and Infrastructure for Current Analysis. “Carriers are clearly ready to start thinking outside the box, and it’s heartening to see this level of experimentation and innovation in such a highly strategic area.”

This trend is both global and diverse. In just the last few weeks, Current Analysis has highlighted the launch of services in its Innovation IMPACT service that are trying to create a two-sided business model for mobile data: AT&T’s Sponsored Data service and China Mobile Hong Kong's 2cm. Also, other carriers such as KT, with its new Olleh service, are bringing Multimedia Broadcast Multicast technology to the forefront for a content viewing experience differentiation.

“For a disciplined study of innovation, the failures are just as valuable as the success stories,” stated Emma Mohr-McClune, Service Director, Global Consumer Services for Current Analysis. “Carriers are looking to uncover and adopt best practice in the context of their own markets.”

Current Analysis sees promising opportunities for content providers, OEMs and vendors prepared to align themselves with these emerging operator models to create new premium revenue streams from LTE access.
The Innovation IMPACT team systematically monitors the success and failure of carrier consumer services on a six-month basis, allowing carrier and vendor customer base to learn what’s working and what is not, potentially use this knowledge to accelerate their own innovation initiatives.

To learn more about Innovation IMPACT, click here, or contact Elizabeth Thompson to set up an analyst interview.

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About Current Analysis

Current Analysis is a leading provider of timely, practical market intelligence and advice that helps global IT and telecom professionals compete, innovate and improve performance. For over 15 years, our independent experts and proprietary services have empowered fast-paced companies to quickly identify opportunities to drive growth and market leadership. Our expert team of more than 45 globally dispersed analysts provide unbiased research and recommendations, offering clients a unique perspective on the impact of market, competitive and innovation activity with greater speed and clarity. Relied upon as a trusted partner, Current Analysis serves more than 35,000 professionals within over 1,400 global enterprises. Headquartered in the Washington, D.C. metro area, we provide global reach with offices in Paris, London, and Singapore.

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Media Contact:

Elizabeth Thompson
Marketing Manager

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