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The 7 habits of highly effective mobile fundraisers

14 Oct

The 7 habits of highly effective mobile fundraisers

It’s no secret that mobile Internet is disrupting technology markets, and according to McKinsey it could drive trillions of economic value within a decade. Gartner forecasts that mobile apps revenue will grow 5 from $15 billion in 2012 to more than $70 billion in 2016. So “thar’s gold in them thar hills.”

This is a huge opportunity, but it’s also a huge challenge. Even mobile app companies with millions of downloads can struggle to raise money in the current market (particularly mobile games, which currently generate ~3/4 of all mobile app revenues). Angels, accelerators, incubators and crowdfunding are great to get you started, but aren’t the solution for the “difficult” second album – Series A funding. The much talked about “Series A Crunch” (unfortunately not a breakfast cereal) means that there are >5x the number of unfunded early stage companies across industries today compared to 2008, and those make for tough odds even in a hot market.

So how do early stage mobile companies escape the Series A Crunch?

At Digi-Capital our deal flow is around 1,000 deals annually across America, Asia (China, Japan, South Korea) and Europe. Much of that comes from early stage mobile apps, mobile games and mobile technology companies, so we like to think we have a feel for the market. Our experience and pattern matching have guided us to focus on the 7 habits of highly effective mobile fundraisers:

1. Product meta-design

What do you need to demonstrate beyond beautiful graphics and great functionality/gameplay? Investors can look at a range of factors, including user interface/experience, user progression/conversion, user segmentation and app balancing, social co-operation, smartphone/tablet specific functionality, post-release content updates, sales events tied to content promotion, testing (user, black/white box), analytics, rapid low-cost development cycles, agile development, business model (including free vs paid), monetization balancing, app discovery, distribution (both local and global), localization, community management, virality/organic user acquisition, cross-platform approach, tech differentiation (hard to copy quickly) etc.

2. Product portfolio approach/roadmap

Are you a single product company, with a big investment in one product (i.e., more like Evernote)? Are you a platform developing multiple products, with low capital intensity per product launched (i.e., more like Supercell)? Is there something in your approach which can produce more than a single product success? Is your approach best for the types of investors you are targeting (VCs often prefer platforms/portfolios, industry investors can be more comfortable with one-way bets on products they deeply understand)? How can you persuade investors that the risk they might take on you is worth the potential reward?

3. Mobile sector/genre growth dynamics

Are you aiming at a sector/genre within the market that is growing or shrinking? Are you opening a new part of the market, or flying into the teeth of bigger, better funded competitors? Are you focused on iOS, Android or both? What about OTT (KakaoTalk, Line, WeChat, WhatsApp)?

4. Team track record and dynamics

Have you succeeded before? Have you failed before and survived? (Spoiler alert: that’s a good thing) Do you have everyone you need on the team to succeed? Beyond designers and engineers, who is your money person? Who in your team knows how to acquire users organically? Who on your team knows the snakes and ladders for your sector/genre (could be in the core team, or a mentor)?

5. Mobile money metrics/analytics

What are the mobile money metrics that could take you into the top 1% of mobile app companies by revenue? Digi-Capital ranks apps using its proprietary data set in terms of lifetime value, 7 day retention rate, ARPDAU, sessions per day, 3 day retention rate, ARPDPU, % of paid conversion in first 30 days, sessions in first 7 days/following 7 days, % of paid conversion in first 90 days, second session conversion rate, % of paid conversion in first 7 Days, sessions per week, average session length (minutes), and % of organic to paid users. Where do you rank against the best?

6. Company upside potential and downside protection

What is your company’s upside potential where investors could help (e.g., realize growth potential, partnerships, team augmentation, analytics, mentoring, outsourcing)? Where is the downside protection for investors in your company (e.g., underlying asset value, team, IP, user base, brand, marketshare, switching costs, commercial relationships, predictable revenue)?

7. Fundraising and exit relationships

Who are the VCs and industry investors investing in mobile apps today? Which mobile app categories are they investing in? What advantages and challenges do you face with each of them? Why could they want to invest (or not want to invest) in you? How do you get them to come to you, rather than you going to them? (Spoiler alert: that’s a really good thing). If they won’t come to you, how do you get to them? How do you pitch like an expert, not a newbie? Who might buy your company after you’re a hit, and how are you building relationships with them (VCs want an exit, IPOs are rare, industry investors want to own you)?

A lot to think about, but hopefully this might give you a better idea of how to increase your chances of raising Series A funding for your early stage mobile company. Get it right and you could do well, get it wrong and you risk being disrupted out of existence.



Western Europe: Base station deployments and forecast 2012-2017

5 Jan


According to their research, the need for additional GSM base stations will be limited in Western Europe during 2012–2017. About 22 000 units will be shipped in 2012, but this figure will decline to 13 000 in 2013. The number of new GSM base station shipments will be negligible during the remainder of the forecast period, although a substantial increase in shipments will occur in the form of RAN refresh deployments.

In addition, the constant growth in traffic per connection and the number of smart devices in use will drive demand for UMTS base stations in Western Europe during the forecast period. More than 140 000 UMTS base stations will be required in 2012, followed by an additional 140 000 in 2013. However, capacity upgrades (such as HSPA+, dual-cell and MIMO) between 2013 to 2016 will reduce demand for new base stations.

Finally, LTE capacity will largely replace UMTS capacity between 2015 and 2017. The demand for LTE in the region will remain fairly constant throughout the forecast period. The introduction of capacity enhancements will do little to offset the impact of traffic growth. LTE base station shipments will grow at an annual rate of 145% between 2012 and 2017. Slightly less than 280 000 additional LTE base stations will be required in Western Europe between 2012 and 2017.

PDF downloadAnalysys_Mason_Base_station_deployments_forecast_May2012_SAMPLES


Five Tech Trends To Watch In 2013

2 Jan

Global Wire Associates


A new year is upon us again, which means its time to analyze upcoming tech trends and issues that will make an impact in our lives.

Mobile Domination

According to IT research group Gartner, by 2013, more people will use mobile devices than PCs to access the Internet.  Mobile users are more likely to make fewer clicks on a website than users accessing sites from a PC.  While a growing number of websites have become mobile friendly, many still aren’t, which could become a barrier to reaching out to current and new markets, including a rapidly growing number of people in the developing world.

Broadband Deployment & Infrastructure

Prior to the UN General Assembly in New York City last September, the Broadband Commission for Digital Development released a report – The State of Broadband 2012: Achieving Digital Inclusion.  It is their first ever country-by-country analysis of broadband deployment…

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Europe Hurting Telecom Industry: Alcatel-Lucent CEO

28 Dec

Alcatel-Lucent CEO Ben Verwaayen says regulation is holding back innovation in the European telecommunication industry, while the U.S. is advancing rapidly.

European regulations are stifling innovation within the telecom industry and preventing its growth, Ben Verwaayen, CEO of Paris-based telecom equipment maker Alcatel-Lucent has told CNBC.

“It’s not just a French problem it’s a European problem. If you look to why it is that the U.S. is so much [more] ahead than Europe it’s because of the business environment and what you’re allowed to do because this is a regulated business. The situation in Europe is very unfortunate,” Verwaayen said in an interview telecast on Thursday.

He added that the 28 regulators in Europe had created rules focused on lowering prices for customers, whereas in the U.S. regulators had also focused on spurring innovation and new investments. “You don’t have the incentive to take risks and take the investments [in Europe],” Verwaayen said.

Verwayeen warned that the full effect of an overbearing regulatory system in Europe would eventually drive out innovation and limit the possibilities for growth within the industry.

“The realities are that if you have to invest as an operator your investment incentives in the U.S. and Latin America are very different — that is not blame, that is a fact. If the objective is only low prices for consumers, but then don’t expect that we’ll be at the forefront [of innovation], don’t expect that a lot of activities will start here in Europe,” he said.

Alcatel-Lucent shares have fallen 14 percent this year and the company has reported two successive quarters of losses, even as it has been weighed down by debt. (Read More: Alcatel CEO Promises Cost Cuts as Loss Widens)

Last month, Verwaayen indicated further cost cuts and said “the market had been awful for everybody.”

Verwaayen told CNBC the company was “determined to execute” a restructuring plan, which includes 5,500 jobs worldwide despite a backlash from French labor unions and the French government.

In the latest interview, Verwaayen said a number of factors would need to change to enable Europe to get up to speed with the U.S. and other regions in terms of telecom technology.

These included cross-border mergers to consolidate the industry, stimulus for smaller companies and greater competition.

“We need to bring competition to where it really matters and that’s in choice and at the moment the regulator decides my choice and I don’t think that’s great,” he said.

Verwayeen was less than optimistic of a turn-around in the telecom equipment market in the short term, warning that business in Europe would remain weak in 2013.

He added that Europe lacked an ability to harness competition and talent and this was leaving it in the slow lane.

“I’m afraid Europe is ultra-conservative and ultra-defensive. With employment we try to protect what’s here instead of creating [it],” he said.


“Sender-pays” rule doesn’t necessarily increase telecom investment

5 Dec

Study casts doubt on ITU proposal; says regulatory reforms, not cash, spark growth.


We recently made the case against a proposal to institute a “sender-pays” rule for Internet interconnection. The idea was submitted by European telecom incumbents and it’s under discussion at this week’s International Telecommunications Union confab in Dubai. Telecom incumbents love this because it could force Google, Netflix, and other major Internet services to pony up more cash. They argue they need these revenues to fund network upgrades and keep the Internet working smoothly.

new study from the Mercatus Center at George Mason University, a libertarian think tank, casts doubt on this argument. There has never been a sender-pays Internet, so we can’t be sure what it would look like. But the international telephone network does operate on a sender-pays model. And Mercatus economist Eli Dourado realized this system could provide insights about how the same billing scheme might work online.

To do this, he collected statistics about international calling rates from the United States, as well as statistics measuring the growth of various nations’ telecommunication sectors. If the advocates of sender-pays were right, we might expect countries with high long-distance calling rates to experience faster development of their communications networks than countries with low rates.

Surprisingly, Dourado found just the opposite:

Dourado charted international billing rates against four statistics that measure the development of telecommunications networks: fixed telephone lines per 100 people, mobile subscribers per 100 people, Internet users per 100 people, and broadband subscribers per 100 people. Dourado found little correlation between long distance rates and fixed telephone line construction. For the other three variables, he found a negative correlation. The higher a nation’s long-distance rates were, the slower the pace of progress in its telecommunications sector.

Of course, correlation is not causation. The observed correlation could be based on other factors, such as a country’s average income or its region of the world. But Dourado found that even after controlling for these factors, there was an inverse correlation between long-distance billing rates and telecommunications development. In short, when you give a telecommunications firm more money, there’s no guarantee it will invest the cash in improving its network.

The paper also considers the possibility that causation could run in the opposite direction: maybe network upgrades make lower rates possible. To check this possibility, he re-ran his regressions on a year-to-year basis, incorporating a lag to reflect the fact that one year’s higher rates could lead to higher investment in subsequent years. “If high rates today are used to fund expansion in the future, then lagged values of the rate coefficient should be positive—that is, high rates today should correlate with high growth a few years from now,” Dourado wrote.

Yet even after making these adjustments, the correlations were still negative. The more expensive it was to make long distance calls to a nation, the more slowly its telecommunications sector developed.

“My results contradict the hypothesis that the ability to charge more for international Internet traffic is all that is needed to build out telecommunications infrastructure in poor countries,” Dourado concludes. “High international telephone collection rates have not led to greater buildout and adoption of telecommunications infrastructure in the past two decades. It seems unlikely, therefore, that adopting a sender-pays model for Internet traffic would increase buildout of Internet infrastructure today.”

Rather, Dourado suggests the quality of a nation’s telecommunications network is dependent on the quality of its domestic institutions. Some countries have telecommunications industries that efficiently put new revenues to work on network improvements. Other countries have corrupt or incompetent telecommunications incumbents that will upgrade their networks slowly no matter how much money they’re given. He argues that regulatory reforms, not more cash, are needed to improve global network quality.


Mobile operators increase investments in Wi-Fi: spotlight is now on creating a ‘carrier-class’ service

24 Aug

China Mobile’s latest network traffic data provides an insight into the growing importance of Wi-Fi to MNOs.

In the first half of 2012, only 31.4% of China Mobile’s data traffic was carried over the traditional cellular network, according to figures recently published by the mobile network operator (MNO). This is a significant increase from 2010, when Wi-Fi accounted for only about 19% of China Mobile’s data traffic (see Figure 1). The majority of the operator’s data traffic is now carried via WLAN connections.

Figure 1: China Mobile’s wireless data traffic by network type, 2010–1H 2012 [Source: China Mobile, Analysys Mason, 2012]1


1 The 2010 figure is an estimate based on China Mobile reports.

China Mobile may be something of a special case. The MNO has adopted an unorthodox 3G standard, TD-SCDMA, which is not used elsewhere in the world. Support for this standard is limited to Chinese handset manufacturers, so economies of scale cannot be fully realised. Consequently, China Mobile has invested heavily in Wi-Fi, rolling out more than 1 million hotspots in major Chinese cities, to provide support for a wider range of devices – such as Apple’s iPhone. Nevertheless, the impact of investing in Wi-Fi on data traffic carriage patterns is clear.

Many MNOs worldwide are using Wi-Fi to help manage the growing data demand, despite its challenges

Wi-Fi is becoming an increasingly important element of mobile operators’ infrastructure plans, thanks to technological advancements that make it an increasingly attractive option for offloading the rapidly growing volume of data traffic. Many leading MNOs outside China are investing heavily in Wi-Fi to help relieve pressure on their macro cellular networks – for example, AT&T in the USA, SoftBank in Japan and Telefónica UK.

The MNOs’ ultimate goal should be a ‘carrier-class’ Wi-Fi deployment – that is, a network that delivers a user experience comparable to that of the macrocell network. Such a service can be used as a competitive differentiator, and should also encourage usage, which would optimise the degree of data offload.

Few Wi-Fi networks currently meet these aims. The factors that make Wi-Fi so attractive to MNOs also present challenges. For example, it operates in licence-exempt industrial, scientific and medical (ISM) spectrum, which means it is relatively inexpensive to use, but it is also becoming crowded. The spectrum is also used by appliances such as microwave ovens and baby-monitors, as well as an increasingly wide variety of smartphones and other Wi-Fi enabled devices. The operation of multiple devices in close proximity to one another can cause congestion and interference, which can degrade the user experience and leave subscribers with a negative view of MNOs’ Wi-Fi services.

In addition, subscribers may experience difficulties in identifying and connecting to MNOs’ Wi-Fi networks, because of the complexity of the connection procedure. As a result, an operator could investment in thousands, or hundreds of thousands, of Wi-Fi hotspots, but fail to meet user expectations in terms of service quality.

Operators will need to implement a suite of solutions to create truly ‘carrier-class’ Wi-Fi

Fortunately, Wi-Fi technology is beginning to evolve to address these issues, and this is generating renewed interest in the technology from an even wider group of MNOs. Operators will need to implement a suite of solutions to enable a ‘cellular-like’ user experience on Wi-Fi networks, all while dealing with the broader physical challenges and strategy issues of deploying another network layer. A carrier-class Wi-Fi roll-out is likely to include:

  • implementation of the Wi-Fi Alliance’s (WFA’s) Passpoint framework and the Access Network Discovery and Selection Function (ANDSF), to facilitate connection to the network
  • use of higher-frequency ISM spectrum, to avoid the congestion in the crowded low-frequency band.

MNOs will need to have a carrier-class network if they eventually make the strategic decision to monetise their Wi-Fi service. Presently, this is almost impossible to do because established deployments of the technology do not provide a reliable, seamless and secure user experience. By enhancing the service to address those shortcomings, operators will have the necessary pieces in place to justify charging subscribers (directly or indirectly) to use hotspots. The ongoing decline in mobile ARPU rates in many countries provides a strong incentive for MNOs to invest in a Wi-Fi network that they can monetise. Those that are aware of what is necessary to create a carrier-class Wi-Fi service are likely to have a distinct advantage over their competitors.

Cloud Telephony Firm Infratel Gets $3 Million Investment from Runa, Prostor

8 Aug

An illustration of Infratel’s Infra Cloud Receptionist technology, which the company will develop further with funds from Runa Capital and Prostor Capital

Cloud telephony provider Infratel announced on Tuesday that it has secured $3 million in Series A funding from investment firms Prostor Capital and Runa Capital, money it intends to use on building out its platform for small businesses.

Runa Capital is an investment firm with close ties to the hosting industry. Started just over a year ago by a group that includes former Parallels CEO (and current chair and chief architect) Serguei Beloussov and 1&1 Internet founders Andreas Gauger and Achim Weiss, as well as several others. Runa has focused on investing in software companies that address some of the needs of the hosting market, or could benefit from using hosting providers as a channel.

That list includes NGINX, Ecwid and Jelastic, and included Infratel prior to today’s announcement, though it may be that Tuesday’s announcement references the original investment in Infratel made previously by Runa.

“The unique technology platform and business model make Infratel a significant acquisition for our portfolio,” says Beloussov, quoted in the press release announcing the investment. “Our long-term relationship, hosting service providers network, and technical expertise can help Infratel in the cloud telephony market to provide unique solutions to millions of small businesses around the world.”

Prostor Capital, says Infratel, is an investment firm with a “deep knowledge of the telephony and service provider industry.”

Infratel’s telephony products, while designed for small businesses, are designed to be distributed through service providers, and through hosting providers in particular. In the press release announcing the investment, Infratel says it has built a “cloud based solution that integrates directly into the provider’s infrastructure,” providing a better ROI for service providers. For Infratel, the advantage of distributing through service providers is a faster, broader market penetration than possible by targeting the fragmented SOHO market directly.

The company’s main offering is a “cloud receptionist” platform that includes a set of telephony tools that enable a small business with limited staff and resources to handle incoming telephone calls in a more “professional” way, and to better manage their responses. In July, the company spun out the “click-to-call” portion of its platform as a separate, entry-level option, based on the popularity of the individual function.

Part of the company’s efforts to approach the hosting market has been the integration of the Infratel tools with the Parallels platform, which Jon McCarrick discussed earlier this year at the Parallels Summit.

“There are more than 11 million small businesses in North America and Europe that have a website but don’t have a basic telephony presence, hindering their ability to interact with customers”, says Bryan Goode, CEO of Infratel, quoted in the press release. “Our goal in closing this investment round with Prostor and Runa is to bring intuitive, easy to use communications solutions to help these small businesses grow and prosper.”

Source: – Liam Eagle on August 7, 2012

Heavy investments shrink Globe Telecom H1 income

7 Aug

HEAVY investments targeted to lure in more subscribers and upgrade the network led to a 10- percent decline in Globe Telecom Inc.’s net income for the first half of the year as against the same period last year.

The cellular firm’s net income stood at P4.965 billion at end June this year from last year’s level of about P5.499 billion. The cellular firm noted continued investments in subscriber acquisitions and network and IT infrastructure.

“The company continued to re-invest in marketing and subsidy to acquire new and re-contract open postpaid subscribers as well as defend its market position through brand-building initiatives and various product and service launches. This period’s expenses also include sustained investments and maintenance costs for Globe’s existing network infrastructure and incremental charges for the bigger network modernization and IT transformation program,” it said. 

Its second-quarter income was also down from P2.51 billion from P2.26 billion. 

Excluding foreign exchange and mark-to-market gains and losses as well as nonrecurring items, however, core net income for the first half of the year was up two percent year-on-year from P5.6 billion to P5.7 billion. 

From January to June this year, Globe posted consolidated service revenues of P40.8 billion, 6-percent higher than last year’s level of P38.4 billion. This was Globe’s strongest semester performance yet as the mobile business remained upbeat with a six percent year-on-year increase in revenues and 13 percent improvement in broadband revenues. Its second quarter service revenue was also an all-time high of P20.5 billion.

Mobile revenues, which accounted for 82 percent of consolidated service revenues as of the first half of the year, increased from about P31.4 billion last year to P33.3 billion.

However, its operating expenses (opex) and subsidy rose 13 percent in the first half of the year from P20.3 billion last year to P23.1 billion driven mainly by higher subsidy and marketing expenses. 

Still, the cellular firm remains optimistic. “We are very satisfied with our performance this period, allowing us to further extend our growth momentum for another quarter. This was achieved despite the challenges posed by competition that is beginning to leverage its scale advantages of having a bigger combined subscriber base and network,” said Ernest L. Cu, president and CEO of Globe. 

During the period, Cu said Globe’s network experienced ‘capacity constraints’ due to increased volume of voice and data traffic. “Nevertheless, we remain focused on our strategy blueprint and were able to extend our gains in key business segments,” said Cu. 

Globe’s cellular mobile subscribers stood at 31.7 million while its broadband subscribers grew to 1.6 million.

“We hope to build further on this momentum as we head into the second half of the year. While we expect competitive and market pressures to persist and even intensify, we believe that as we exert greater efforts to accelerate the completion of our network change-out and IT transformation initiatives, we will be in a better position to sustain these gains and adapt to this fast evolving market.”

The company’s total capex for the first half of the year stood at P11.7 billion, 35-percent higher than last year’s level of P8.6 billion. This year’s amount included investments in network modernization and IT transformation coupled with the usual spend to expand coverage and capacity of its broadband and mobile networks.

As of end-June, Globe has a total of 12,768 base stations and 7,258 cell sites.

Source: Tuesday, 07 August 2012 17:56 Lenie Lectura

LTE Operator Strategies: Key Drivers, Deployment Strategies, CAPEX, OPEX, Price Plans, ARPUs and Service Revenues 2012 – 2016

2 Aug

Skyrocketing mobile broadband demand is driving an ever increasing number of commercial LTE network deployments. This surge has seen the number of LTE subscriptions already surpass 7 Million subscriptions worldwide, and over 300+ commercial LTE user device launches.  As Mobile Network MNOs (MNOs) remain committed to deliver mobile broadband services over their LTE networks, a number of critical questions remain unanswered: 

How much revenue can an MNO generate with an LTE deployment ? 
What is the typical ARPU for an LTE subscription worldwide or in particular regional market and how will it fluctuate in the next 5 years ?
What is the relative Total Cost of Ownership (TCO) of an LTE network in comparison to competing technologies such as HSPA + and WiMAX ?
What is the market outlook for VoLTE (Voice over LTE) and wholesale LTE networks, and when would the first VoLTE deployments take place ?
How much CAPEX and OPEX would an MNO require to deploy at LTE network, and what strategies can be adopted to minimize both CAPEX and OPEX ?

Covering over 325 global MNOs in 120 countries, this report answers the aforementioned questions by quantifying LTE service revenues, subscriptions, ARPUs, CAPEX and OPEX. In addition, the report reviews key trends in LTE deployment strategies such as VoLTE and SMS over LTE, the wholesale deployment model, Self-Organizing Networks (SONs) and the emergence of the data off-load (small cells, HetNets,  Wi-Fi offload) equipment market. 
The report further provides a global review of LTE price plans and key MNO strategies for LTE pricing and marketing. The report is supplement by an excel based interactive forecasting suite that can be used to forecast LTE service revenue, ARPUs, and subscriptions for particular regional markets, countries or MNOs from 2011 till 2016. 
Key Findings:
ARPUs and Operator Service Revenues

Driven by early adoption among the enterprise users, LTE ARPUs will peak in 2012 reaching 88 USD per month, and drop down by a YoY decline of 16 % over the next five years as the consumer market segment gains a higher market share. 
Having already surpassed 7 Million subscriptions, LTE subscriptions are set to grow at a CAGR of 150 % over the next five year period.
Growing at a CAGR of 80 % global LTE service revenues will reach 291 Billion, representing a lucrative market for worldwide MNOs. LTE service revenues presently account for 15 Billion USD. 
While the Asia Pacific region will attain the highest number of subscriptions by 2016, the North America and Western Europe region will retain market leadership in terms of service revenues according for almost 60 % of all LTE service revenues worldwide.  

Deployment Strategies
Mind Commerce estimates the first VoLTE deployments will take place in Q4’2012, with US and Korean MNOs the first to enter the market.
While early market prospects in the US appear to be deteriorated, the wholesale LTE model will increasingly gain momentum over the next 5 years, and we expect to see the first commercial launch by UK Broadband in 1H 2012. 
CAPEX and OPEX Strategies

By 2016, the Total Cost of Ownership (TCO) for LTE will remain 44 % lower than HSPA+ and 50 % than WiMAX.
If used to full potential, SON technology has the potential to reduce worldwide LTE deployment CAPEX $ 55 Billion, and $ 15 Billion in OPEX by 2016 

Pricing Strategies
Most MNOs are adopting tiered based price plans based on volume and speed in order to maximize revenue while managing capacity. Unlimited plans may gain momentum as MNOs learn to divert revenues with OTT (Over-The-Top) players with technologies such as VoLTE, and as they attain cheaper network TCO by deploying small cells and WiFi offload equipment.
Report Benefits

A Global review of LTE price plans and pricing and marketing strategies for MNOs worldwide
LTE service revenues, ARPUs and subscriptions by region, country and operator for 2011, and forecasts till 2016
LTE deployment strategies and key trends including VoLTE, Wholesale deployment model and FDD/TD-LTE integration
CAPEX and OPEX requirements and strategies for LTE MNOs, including a review of CAPEX commitments by major MNOs worldwide
Overview of the LTE market including key market drivers, commercial network deployments, subscriptions and device launches (as of March 2012) and frequency spectrum selection and fragmentation  

Target Audience:
Mobile Network Operators (MNOs): Will make well-informed decisions about deployment strategies, CAPEX/OPEX reduction and price plans. Furthermore, “Greenfield” operators will understand how to capitalize on LTE technology by assessing the strategies of well established CSPs and MNOs.
Mobile Network Infrastructure Vendors and Handset Manufacturer: Will assess particular issues faced by MNOs investing in LTE and align their product offerings accordingly. 
Application Developers: Will evaluate opportunities to invest in developing applications and services that run on LTE networks by understanding the market dynamics of LTE.
Investors: Will better understand the LTE technology and its market potential, its value chain and potential. This report will help investors evaluate the investment prospects in the promising LTE ecosystem.

Source: –        By adminPublished: August 1, 2012 at 6:30

LTE Capex Spending Up

28 Jul

ABI Research says that capital spending is likely to surge 4.9% to US$10.5 Billion this year as North American operators continue upgrading to LTE. Their study, “Mobile Capital Expenditure Forecast: North America,” focuses on the North-American region and includes base station and core network data.

These spending plans include:

  • In      2Q-2012, Verizon Wireless announced it had discontinued investment in the      expansion and capacity enhancement of its 3G network as the operator has      allocated those resources to building out LTE. On a year-on-year basis,      capital expenditure should trend flat or slightly down. The operator is      confident its 4G footprint will at least be equal to its 3G footprint by      mid-2013.
  • AT&T      is still spending substantially on wireline upgrades, but in 1Q-2012,      wireless telecoms took 54% of its total CAPEX, up by US $454 million YoY      to US$2.3 billion.
  • T-Mobile      USA announced that it will invest US$4 billion in 2012 and 2013 to      strengthen its 4G network, including the planned launch of LTE in 2013.      Expenditures in 1Q-2012 were essentially neutral in 1Q-2012 due in part to      these network modernization efforts.
  • Sprint’s      wireless upgrades to support LTE are helping to drive up its capital      expenditure commitments to US$ 710 million in 1Q-2012, up 58% YoY.
  • Clearwire      will build out LTE-TDD capacity. The first phase of LTE overlay network      build-up saw the installation of 8,000 sites in “hot zones” in urban      centers as part of the company’s strategy to provide capacity offload      services to other operators. Clearwire expects CAPEX in 2012 will amount      to US$350 to 400 million.

Infonetics Research reports that LTE spending is up 128% from the year-ago first quarter, and the number of mobile operators committing to LTE continues to increase rapidly.


The research firm forecasts the LTE equipment market to grow to $17.5 billion globally in 2016. In 1Q12, Ericsson and Alcatel-Lucent are once again neck and neck in the race for global LTE revenue leadership, followed by Huawei.

Global smartphone users are expected to number almost 1 Billion by the end of 2013.

Source: – Posted by Sam Churchill on July 27th, 2012

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