This document discusses top innovations for increasing LTE revenues and provides operator examples. It identifies 10 innovations including differentiating LTE speeds through speed tiers and upselling, driving roaming revenues through high-speed roaming passes, maximizing upsell opportunities through real-time contextual offers, enriching voice experiences with VoLTE, accelerating data usage and revenues through shared data plans, and leveraging Wi-Fi offload and bundling. It argues that these innovations require evolving legacy billing support systems to enable real-time, agile monetization of LTE networks.

1. Increasing LTE Revenues: Top
10 Innovations and Operator
Examples
James Middleton,
Managing Editor,
Telecoms.com
Corine Suscens
Senior Marketing Manager,
Openet

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Strong growth
forecast
0
1
2
3
4
5
6
7
4G connections
worldwide 2017
% of global
population in
LTE coverage
today
% of global
population in
LTE coverage
2017

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“This is about enabling more
communications services for
our customers, on one network,
hopefully. Better QoS, better
control over the call, the ability
to open data sessions, add
video streams, this kind of
RCSe functionality.”
Michel Lenoir, programme manager for LTE at Vodafone Netherlands
VoLTE

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LTE roaming

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Wifi

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Customer
experience

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The importance
of agility

9. Webinar | Increasing LTE Revenues: Top 10
Innovations and Operator Examples*
Corine Suscens, Senior Marketing Manager, Openet
21st May 2014 *Operator examples as per April 2014

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• LTE: High speed and capacity driving data
usage and innovation
• LTE users ~1.5GB of data per month
= almost twice non-LTE users (GSMA, Nov 2013)
• LTE subscribers often exceed data limits
• Innovative offers and business models
• LTE users ARPU higher than non-LTE users (GSMA, Nov 2013)
• Developing markets: 7-20 times
• Developed markets: 10%-40%
LTE Drives New Revenue Opportunities
Source: Modibia / Informa “Understanding today’s smartphone user”, 2014
288 live LTE networks in 104
countries + 550 operators investing
in 161 countries (GSA, May 2014)
64% of the world population to be
covered by LTE in 2020 (GSMA)

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• Create perceptible value with LTE and stimulate upgrade to higher tiers
• EE: Double speed (peak 60 Mbps) and double data for extra £3
• Telia (world’s first LTE operator): 4G pre-paid - 20 Mbps speed cap
• 4G Postpaid: 100 Mbps + data tiers + shared data + unlimited calls/SMS
• Orange France: main contracts (150 Mbps), sub-brand“Sosh”(14-150Mbps)
• Swisscom: unlimited data plans with differentiated speeds, speeds throttled to
64 kbps when a certain amount of data is consumed
“Figures from recent quarters shows that customers switching to Natel infinity
are generating higher revenues (ARPU).” (Swisscom 2013 annual report)
1. Differentiating with LTE Speed: Speed Tiers

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• Upselling high speed add-ons and temporary speed boosts
• A1 Telekom Austria: 42 & 150Mbps add-ons + base tiered packages (4 to 42 Mbps)
• Upselling data (volume) add-ons to restore speed
• Wataniya: tiered data packages - speed reduced when limits reached before end of
the month > various data add-ons to restore speed
2. Differentiating with LTE Speed: Upselling

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• T-Mobile US: unlimited international data and text on all Simple Choice plans
• Low speed 128Kbit/s + fair usage rules
• Customers can purchase high speed roaming passes (total cost control)
• 1 day / 100 MB, 1 week / 200 MB, 2 weeks / 500 MB
• Attractive for customers + roaming revenue from high speed upsell
• Solution for Europe with abolition of roaming charges?
3. Driving Roaming Revenues… With No Roaming
Charges: High Speed Roaming Passes Upsell

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• Offers based on real-time context: maximize upsell opportunities + uptake
• E.g. Subscriber on low speed data package accessing Netflix => high speed add-on offer
• Attempt to access Facebook with no data plan => data pass with unlimited Facebook
• Operator success story: stimulating data adoption
4. Maximizing Upsell Opportunities and Uptake:
Real-time Contextual Upsell
Telecoms.com Intelligence, “Operators’ BSS
Strategies”, global survey of 100 operators
• 26% growth in data users
• 10% conversion to recurring
monthly data plans
• 17% growth in data revenue
Subscribers with
no data plan trying
to access data
Data pass offer in real
time: e.g. 10MB/1 day
(total cost control)

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• As voice becomes data, more opportunities arise for
innovative voice/data bundles
• Voice/SMS ~ 60% operators’ revenue globally (GSA)
• Enriched voice experience, high audio quality
• Better compete with OTT (VoLTE + RCS/IM/Video)
• No legacy voice networks => simplicity, cost savings
• 7 VoLTE launched, 40 deployments and trials
• Being deployed at AT&T(23 May), Verizon, Telus, EE etc
• South Korea Telecom - VoLTE in August 2012
• 50% of LTE subscribers use VoLTE (Analysys Mason, Jan 2014)
• LG U+ in Korea: Voice = 100% VoLTE
• “Our 100% LTE voice call success rate is as high as
99.89%” (Korea Joongang Daily, Aug 2013)
5. Enriching the Voice Experience
and Competing with OTT: VoLTE
Source: Telecoms.com Intelligence, February 2013
Germany
USA
CSL, Hong Kong Korea
Azerbaijan

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• Multiple users and devices can share a common pot of data
• Leverage LTE capacity to accelerate data usage and extend user base
• AT&T shared data “Mobile Share” results 2014Q1:
• Share accounts tripled year over year to 11.3 million
• 45% postpaid subscribers, ~3 devices per account
• High take rate (46%) of larger data plans (10 GB+)
= 70% growth from 2013Q4
• Extending shared data to cars…
• “Audi's AT&T-powered in-car LTE service starts at $99 for 6 months, 5 GB”
• “Additionally, starting this summer Audi will become the first car maker to offer
an AT&T Mobile Share shared data plan option to AT&T customers who would
like to add their vehicle to their existing Mobile Share plan”
Source: Fierce Wireless, March 11, 2014
6.1. Accelerate Data Usage and Revenues: Shared
Data Plans…Extended

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• Smartphone app to make sharing/gifting easy + full visibility and control
6.2. Shared Data: Illustration

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• Enables customers to access mobile content,
apps and data services free of charge, with no
impact on their data allowance
• Data charge paid by sponsoring company: e.g.
content provider, advertiser, retailer, business
(BYOD: sponsor business apps & services) etc
• Sponsor: access operator subscriber base, more
appealing “free” data => drives traffic & revenue
• Hershey’s premium line of Scharffen Berger
chocolate: AT&T’s sponsored data ads
• Ad banners within the Pandora iPhone app
• Clicking through brings up a landing page
showing a video, with a message explaining that
watching the clip is free
7. Creating New Sources of Revenue: Sponsored Data
Source: Mobile Marketer

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8. Leverage Popular Applications to Stimulate Data
Adoption and Usage: Application Service Passes
• Application specific variation of data service passes
• Total cost control and simplicity removes fear of bill shock + popularity of some
applications & social media => stimulates data adoption and usage
• Movistar Mexico: 30 / 7 / 3 days passes with unlimited access to Facebook,
Twitter, WhatsApp and email (hotmail, yahoo!mail, Gmail) + data allowance
• 1GB at max speed, then 64Kbps

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• Wi-Fi: an extension of the cellular network?
• ANDSF & Hotspot2.0 standards to enable
seamless handover
• Only 40% of data traffic over cellular networks
by 2017 (Juniper Research)
• Wi-Fi = 69% -78% mobile data usage from 4G
Android smartphone users in 2013 (Mobidia)
• TCO per bit of Wi-Fi = 10% of 3G, 43% of 4G
(Senza Filli consulting: Carrier Wi-Fi for mobile operators, June 2013)
• Bundling Wi-Fi with data plans: Vodafone UK
• Wi-Fi in roaming plans: AT&T data roaming
$60+ add-ons include 1GB of Wi-Fi roaming
• Prepaid Wi-Fi bundles: Telkom Mobile
9. Enhancing & Monetizing the Network Experience:
Wi-Fi Offload and Packaging

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• Real-time visibility and control to customers
• Stimulates trust, satisfaction and loyalty
• Real-time notifications for all
• Self-care dashboards – on the device
• Real-time notifications : opportunity to upsell
• LTE subscribers often exceed their data limits
• EE: Notifications at 80% & 100% of usage
• Includes link to buy a one-off data pass:
500 MB/ £6 or 2GB / £15
• Buy or data access blocked until next bill
• On-device purchase and service activation
• Revenue maximization and customer satisfaction
• Cost savings: e.g. customer service /sales
10. Maximizing Loyalty and ARPU: Real-time
Interaction & Purchase
Selfcare app with Dashboard
“Charging &
billing for the
digital economy”,
Survey of 80+
operators,
Openet, 2013

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The Foundation for LTE Service Innovation:
Evolving Legacy Business Support Systems (BSS)…
89%
11%
1. In your opinion, do you think that
existing BSS limitations can delay new
product innovation and launches?
Yes
No
23.8%
7.9%
30.2%
38.1%
0.0%
2. If yes, in your experience what is the main
reason for legacy BSS delaying product launches?
Systems are heavily reliant on
vendors to set up new offers
New rate plans can be too
complex
System integration work is too
complex
No one single system to centrally
develop, launch and manage
offers
N/A (Answered "No" to question
one)
“Charging & billing for the digital economy”,
Survey of 80+ operators, Openet, 2013
1 & 2: Survey of 70+ operators, Openet, 2014

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…Towards Real-time, Agile BSS
Charging & billing for the digital
economy”, Survey of 80+
operators, Openet, 2013
Telecoms.com Intelligence,
“Operators’ BSS Strategies”,
global survey of 100+ operators

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• LTE: opportunity to innovate and drive new revenues
• Requires real-time, agile BSS
Summary
Shared data
Application
service passesSponsored
data
High speed
roaming passes
Real-time context
aware upsell
Upselling
Add-Ons
VoLTE
Real-time dashboards
& notifications
Wi-Fi offload
& packaging
Speed-based
offers

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Thank you
Corine Suscens, Senior Marketing Manager, Openet
corine.suscens@openet.com
Download research reports:
• Operators’ BSS Strategies www.openet.com/best-of-breed
• Charging & Billing for the Digital Economy www.openet.com/chargingresearch

26. Increasing LTE Revenues: Top
10 Innovations and Operator
Examples
James Middleton,
Managing Editor,
Telecoms.com
Corine Suscens
Senior Marketing Manager,
Openet