Mobile operators planning to implement Long Term Evolution (LTE) are looking for guidance to optimally evolve their next-generation networks, structure services and better serve key markets. And they’ll need the answers soon, because it’s looking like demand for 4G is strong.
According to Pyramid Research, based in Cambridge, Massachusetts, LTE subscriptions will reach 136 million by 2014, growing faster than any previous mobile standard to date. Subscriptions in the early stage will come from developed markets, such as Japan and the U.S., but China will lead in emerging markets, which will grow 30% faster than developed ones. (See Figure) [1]
When end users move to wireless broadband, what types of applications will people use? How will they use them? What will they expect from the applications? And how much will they pay for contracts, plans, advertising and monthly fees?
To help mobile operators understand end-user expectations, the Alcatel-Lucent Market Advantage and Americas Marketing research teams are undertaking an extensive enterprise and consumer study to reveal end-user demand and willingness to pay for LTE-enabled applications.
(Click to continue)
Breakdown of LTE adoption into emerging and developed markets
Two waves of testing
Alcatel-Lucent is conducting LTE market research in Europe, Japan and North America. The ongoing study, which began in November 2008, enlists thousands of respondents, and is being conducted in two phases.
In the first phase, respondents looked at descriptions of LTE-enabled applications and identified those most appealing for leisure and business activities. They offered detailed information on the quality of service expected from 4G as well as ideas for new or improved applications.
The second phase of the study offers a prioritized list of applications (narrowed down in the first phase), and asks how much respondents would be willing to pay for the service, how they feel about advertising, and what plans and contracts they prefer.
Phase 1 research has been completed in Japan and Europe. Both phase 1 and 2 are complete in North America.
In most cases the research was conducted online. The feedback from Japan was collected using small focus groups.
LTE improves user experience
Respondents expect that anything clumsy or slow in 3G is going to be faster, smoother and improved in an LTE environment. They want faster Internet browsing, improved video resolution, and the ability to run multiple applications without compromise. The improved user experience is a key motivator for LTE interest. Users report that this will drive increased service consumption.
North American consumer and enterprise respondents viewed 4G service as a premium service and reported a willingness to pay more. Willingness to pay for 4G service as a premium service is currently being tested in Europe and Japan. In addition, respondents indicated a willingness to switch carriers and contracts in order to get new 4G services with an enhanced user experience.
Globally, consumers and enterprises embrace an improved experience with applications offered in an LTE environment. Video will play a key role in many new applications for both consumers and enterprises. Overall, consumers and enterprises look forward to the high-speed and low-latency nature of an LTE environment as a key enhancement to evolving network services.
Consumers want connectivity and content
High-quality video calling was appealing to consumers in North America, Europe and Japan. Seeing the person you are talking to allows you to interact on a more personal level – critical to building a relationship. In Europe and Japan, consumers indicated a preference for High Definition Music Access. This application would allow consumers to listen to high-quality music streamed to their mobile phone in real time instead of downloading/storing music files into the memory on their phone.
In addition, European and Japanese consumers found Mobile Video Monitoring, an application that allows the user to check on a pet at home or monitor the well-being of elderly parents quite appealing.
Enhanced performance of location- and geographic-based services were also popular. In North America, consumers like the idea of getting directions and finding locations while still being able to talk or surf the web on their phone. In Europe and Japan, consumers would welcome a service that allows them to receive customized, geographic location-specific information on their mobile phone (such as self-reminders, messages from friends, as well as coupons, advertising, directions, or special promotions from retailers or restaurants). In an LTE environment consumers will benefit from an improved quality of experience.
Taking work out of the office
In the business environment, LTE-enabled applications create a world where people can share information in real time to be highly productive in the field. Because LTE would increase productivity for employees who are away from the corporate office, businesses expect that LTE will provide a competitive edge and improve their bottom line.
Video conference sharing (two-way or by multiple parties), navigation helper, mobile broadband file sharing, and presence-enabled contact lists appealed to enterprise respondents in North America, Europe and Japan.
Navigation helper helps respondents by identifying their location while they are traveling and providing turn-by-turn directions and local information.
Mobile broadband file sharing provides end users with the ability to share large files while carrying on a conversation. “My activity is linked to the financial markets,” wrote a respondent. “I must be in contact with the real-time analysis of my colleagues.” These and other examples demonstrate how 4G services are expected to make corporate communications a deeper and richer experience.
Respondents also valued presence-enabled contact lists, where a worker can see the availability of their address book contacts. For example, they can see if a co-worker is in a meeting and that they are only available to receive email, IM, or text messages. “I like to know who is connected and if I can contact someone immediately,” wrote one business owner.
Again, respondents look forward to the high-speed and low-latency nature of the LTE network as key to evolving real-time information services.
Slight variations in preferences
Respondents showed slight variations in response by country. Japan has an advanced mobile phone market, so Japanese respondents were familiar with some of the concepts in the study.
This may be why mobile crowd casting, which is the ability to view multiple video streams from an event such as a soccer game, tested well in Japan, but not as well in Europe. “When I’m at an event, I’m usually busy enough with one perspective,” wrote a respondent from Germany.
On the flip side, Japan did not respond as well to using a mobile phone as a wallet to pay bills and make purchases, perhaps because it was not seen as unique, as a similar service already exists in Japan. In Europe, however, respondents were enthusiastic about the concept.
Age groups also tested differently. Students and young people liked the idea of being able to stream high-definition music on mobile devices, whereas older consumers tended toward more practical applications.
A global opportunity
Findings from Pyramid Research indicate that global uptake of LTE will be faster than any previous mobile standard. Growth in emerging markets will be driven largely by China with 36.1 million subscriptions in 2014. Additionally, it is expected that new players in emerging markets may leapfrog 3G and move directly to deploy LTE. [2]
The Alcatel-Lucent research suggests that receptivity to LTE services is strong with a willingness to pay. Benefits to consumers and enterprises in the form of faster communication, increased productivity, innovative services and flexibility will be key to adoption.
These research projects show some very interesting results and there’s more that we can share. If you are interested in learning more about the burgeoning LTE opportunities, contact us at enrich.editor@alcatel-lucent.com. You can also ask a question in the comment section below.
To contact the author or request additional information, please send email to enrich.editor@alcatel-lucent.com.
Footnotes
(Average: 3.67 out of 5)
Loading ...
Loading ...
Comments
Comments are moderated and will be published/addressed upon review.Sure 4G will revolutionize the Mobile user space & will completely change the way people use Mobility as a primary way of communication anytime, anywhere, & for anything. Though the expectations will be higher, which have to be, to fill the gaps left over by 3G. 4G will lead to a series of evolution from Customer end Mobile equipment, to exchange end equipments; to the way of transmitting information… BUT IN THE END,, there is NO END OF EVOLUTION.. IT GOES ON….
Post a Comment
Comments are moderated and will be published/addressed upon review.