1. MOBILE AND THE
DIGITAL ECONOMY
analysysmason.com

2. CONTENTS
Introduction p3
Mobile handset data revenue will be driven
by volume in emerging markets and value in
developed countries p4
OTT messaging volumes will nearly double
in 2014 p6
Almost 40% of tablet users worldwide use
devices bought by friends and family p8
Three essential M2M strategic
considerations for small operators
p10
Operators must play on current strengths
and develop new competencies to thrive
in the digital economy
p12
Big data will not automatically lead to
deep insights
p14
LTE predictions for 2014: operators will
reap the benefits of carrier aggregation
but VoLTE will have limited impact
p16
M2M services other than connectivity will
account for 53% of M2M revenue in 2016
p18
Customer experience management –
value-based delivery and service support
p20
The four critical policy criteria for mobile
spectrum renewal
p22
Network virtualisation opportunities for
CSPs begin in the core of next-generation
networks
p24
LTE to be deployed worldwide by 2018:
Asia–Pacific and Latin America dominate
network launch plans
p26
Monetising LTE services: developing new
revenue streams through differentiation
and innovative pricing
p28
What we offer
p30
2

3. Analysys Mason is proud to present our latest
insights on the most important trends driving
the development of the mobile sector.
As consulting and research specialists with over 25 years of experience in telecoms, media and
technology, the Analysys Mason team offers a winning combination of extensive industry knowledge,
advisory expertise and unique research methodologies. Our clients rely on us as a trusted partner in
developing strategies for success across the entire mobile telecoms and media value chain.
BRAM MOERMAN
Chief Executive Officer
Analysys Mason
Our expertise in mobile trends and topics is unsurpassed, drawing on the strategic expertise of our senior
consultants, the recognised thought leadership of our team of specialist mobile analysts, and a suite of
in-depth research programmes covering mobile services, networks, content, technologies and devices.
To help you get the most out of 2014, members of our team have shared their thoughts on some of the key
issues that will be important to you during the next 12 months.
Some of the key articles in this collection include:
• Three essential M2M strategic considerations for small operators
• Operators must play on current strengths and develop new competencies to thrive in the digital economy
• LTE predictions for 2014: operators will reap the benefits of carrier aggregation but VoLTE will have
limited impact
• The four critical policy criteria for mobile spectrum renewal.
We hope you find these opinion pieces and expert commentaries of interest and value. We welcome your
feedback and encourage you to contact the authors directly if you would like to discuss any of the points
they have raised, or are looking to understand how a specific issue or trend will affect your business.
To find out more about our experience and services, please visit www.analysysmason.com, and you can
also follow us on Twitter at @AnalysysMason.
We look forward to working with you to support your success in the mobile market in 2014 and beyond.
INTRODUCTION
3

4. Mobile handset data will be the single largest source of revenue
growth in telecoms markets during the next 6 years, as the shift from
voice to data looks robust in developed countries, and smartphone
penetration gains momentum in emerging markets.
Traditional voice and messaging services are
declining and new data services are taking their
place, driven by next-generation mobile networks
and the increased ownership of smart devices.
Telecoms retail revenue worldwide will reach
USD1.64 trillion in 2018, up from USD1.50 trillion in
2012. Mobile handset data revenue will lead the
growth – it will increase by about USD160 billion, at a
CAGR of more than 10%, to reach USD358 billion in
2018 – 22% of total retail revenue.
Our report Global telecoms market: interim forecast
update 2013–2018 (available at www.analysysmason.
com/GTF-interim-2013), presents our latest analysis
of the key trends in telecoms markets worldwide.
Compared with our previous forecasts, we have
revised up our expectations for mobile handset data
revenue to take into account the faster-thanexpected shift from voice to data in the mostdeveloped markets, and the better-than-expected
take-up of smartphones in some emerging markets.
Our new forecast for mobile handset data revenue
during 2013–2018 is about 3% higher than our
previous forecast.
Growth drivers: value in developed countries,
volume in emerging markets
Mobile handset data revenue will grow during the
next 6 years in all eight geographical regions that we
have modelled (see Figure 1).
However, market dynamics and challenges for
telecoms service providers vary substantially by
region. We have identified two major drivers of
mobile handset data revenue growth.
• Value. Increased spend per user on mobile
handset data services will be the main driver of
growth in developed regions (Central and Eastern
Europe (CEE), developed Asia–Pacific (DVAP),
North America (NA) and Western Europe (WE)).
We forecast that about 85% of mobile handset data
revenue growth during 2013–2018 will come from
increased spend on data services as existing users
upgrade to smartphones, and about 15% from new
users entering the market. The average spend per
user (ASPU) on handset data will increase by
double digits in Europe, and single digits in NA
and DVAP.
• Volume. An increased number of smartphone
users will be the main driver of growth in emerging
regions (emerging Asia–Pacific (EMAP), Latin
America (LATAM), Middle East and North Africa
(MENA) and Sub-Saharan Africa (SSA)). The
number of smartphones will increase at a CAGR of
26% – twice the rate that we expect in developed
regions. Smartphone penetration of handsets will
reach about 50% in EMAP in 2018 and about 60%
in LATAM – we assume that handset subsidies,
cheaper devices, and data package offerings will
stimulate demand in countries where the
addressable market is still very high but new users
have less disposable income than established
subscribers. Handset data ASPU will continue to
be low in 2018 – about USD2 per month in EMAP
and LATAM, and about USD1 per month in MENA
and SSA.
PABLO IACOPINO
Senior Analyst
Global Telecoms Forecasts
and European Country
Reports research
programmes
EMAP, NA and WE offer the greatest opportunities
for handset data revenue growth
Figure 1 shows that about 75% of mobile handset
data revenue growth will come from three regions
during the next 6 years.
• Emerging Asia–Pacific. The region will account for
about half of the growth in smartphone numbers
during 2013–2018 because the addressable market
in China and India is enormous. We forecast a solid
smartphone growth (CAGR 24%) because
MOBILE HANDSET DATA REVENUE
WILL BE DRIVEN BY VOLUME IN
EMERGING MARKETS AND VALUE
IN DEVELOPED COUNTRIES
4

5. “Telecoms retail revenue worldwide will reach USD1.64 trillion in 2018, up from USD1.50 trillion in
2012. Mobile handset data revenue will lead the growth – it will increase by about USD160 billion,
at a CAGR of more than 10%, to reach USD358 billion in 2018 – 22% of total retail revenue.”
affordable devices such as the inexpensive Android
handsets that are manufactured in the region will
become abundant, which will drive handset data
services among lower-spending users. EMAP will
generate around USD80 billion in handset data
revenue in 2017 when it will overtake DVAP to
become the second-largest market after NA (about
USD100 billion).
• North America. Growth in the number of
smartphones will continue to be solid, as the
success of tethering plans for smartphones and
multi-device plans shift to data spend from mobile
broadband USB modems. At the end of 2018, 84%
of handsets will be smartphones in NA, up from
54% in 2012. LTE take-up is stronger than we had
expected in the USA, and most nationwide
operators were expected to have widespread 4G
coverage by the end of 2013. Mobile handset data
revenue will grow at a CAGR of 10%, mainly driven
by an 8% growth in handset data ASPU. The USA
will remain the leading market in the world, with
handset data revenue of about USD90 billion in 2018.
• Western Europe. We expect handset data ASPU to
double in WE (from USD4 per month in 2012 to
USD8 in 2018), but will remain substantially lower
than in NA and DVAP (both above USD20), and will
not be enough to offset the big decline of voice and
messaging. The actual growth of handset data
revenue in the first half of 2013 slightly exceeded
our
expectation as the shift from mobile broadband
continues, and operators tend to attribute more
revenue to the data element, when this is part of a
voice and data package. In 10 of the 16 Western
European countries covered, year-to-date data
suggests that the decline in large-screen mobile
broadband connections is happening even faster
than we previously forecast, with the Netherlands,
Portugal, Spain and the UK representing some
significant examples.
For more information, please contact Pablo Iacopino,
Senior Analyst, at pablo.iacopino@analysysmason.com
1
80%
40%
40%
Connectivity (share of respondents
using 3G/4G tablet SIM)
60%
20%
Share of handsets:
LTE
Worldwide
Middle East and North
Africa
Sub-Saharan Africa
Central and Eastern
Europe
Latin America
Developed Asia–Pacific
Western Europe
North America
0%
Revenue
4
16
14
20
OTT IP
messaging
Operator IP
messaging
SMS
venue (USD billion)
40
25
25%
20%
15%
10%
U
50%
Smartphone
45
30
30%
0%
50
35
35%
5%
Figure 1: Mobile handset data revenue growth (2012–2018), and smartphones’ share and LTE’s share of
handsets (2018), by region, worldwide [Source: Analysys Mason, 2014]
essages (trillion)
2
45%
Percentage
of handsets
100%
160
140
120
100
80
60
40
20
0
Emerging Asia–Pacific
Revenue growth
(USD billion)
3
12
10
8
6
5

6. More than half of smartphone owners worldwide are already
active users of OTT messaging apps, and there are no signs of the
market slowing.
Technological enablers and widespread adoption of
mobile Internet access have lowered the barriers to
entry in communication services markets.
Over-the-top (OTT) messaging services, in particular,
have proved popular and adoption levels soared
in many countries in 2012 and 2013. This article
provides an outlook for the messaging market
to 2018 and considers the implications for
mobile operators.
IP messaging is turning out to be a ‘killer app’ for
the mobile Internet
Major Internet players such as Apple, Facebook and
Google have identified the messaging market as a
target for market disruption and one that can
complement their core businesses. In addition,
specialist start-ups such as Kakao, Line and
WhatsApp have driven innovation in feature sets and
supporting business models. The segment proved
wildly successful, and we estimate that 55% of
smartphone owners worldwide were active users of
IP messaging services at the end of 2013.
The services are driving much higher levels of user
engagement compared with SMS. WhatsApp recorded
an all-time high of 10 billion outgoing messages in a
single day in June 2013, which equated to an average
of more than 30 messages per user per day. We
estimate that the total volume of messages sent from
mobile devices via IP services exceeded the volume of
SMS messages for the first time in 2013, at more
than 10.3 trillion compared with 6.5 trillion worldwide
(see Figure 1). These trends are set to continue,
driven by increased adoption levels. We forecast the
number of users on smartphones to increase from
about 1 billion in 2013 to almost 3 billion in 2018.
Messaging volumes associated with OTT services are
expected to almost double in 2014 and will reach 37.8
trillion messages sent in 2018.
Operators need to reassess their role in the
messaging market
The weakening role of operators in the messaging
value chain suggests that it is only a matter of time
before SMS services are dislodged from their current
default position on smartphones. OEMs and OS
providers are moving aggressively into the
messaging market and it will be increasingly
commonplace for alternative messaging services to
be set as the default. The ubiquity of operator
services is often cited as their key strength or unique
selling point (USP). However, in messaging, intensive
usage tends to be clustered within relatively small
user groups, and many users switch rapidly between
different services. Any interoperability issues are
solved by an easy download of another app. In this
fragmented market, operators could potentially be
left as the third-rate fallback option, behind native
capabilities provided by the OS (Android, iOS or
Windows Phone) and behind the large-scale,
cross-platform apps.
Operators’ IP-based initiatives, whether industrystandard such as RCS or based on proprietary
platforms, could serve to limit substitution in some
markets, but are likely to only secure minority
market shares. In most cases, the momentum
behind OTT alternatives is too strong, and operators
are lacking compelling means of differentiation in
messaging.
As operators decide whether or not to seriously
compete in messaging, they should focus on
the following.
• Support for a broader consumer proposition built
around voice and video: Operators will struggle to
compete directly with the major Internet players
and niche providers of messaging services.
OTT MESSAGING VOLUMES
WILL NEARLY DOUBLE IN 2014
6
STEPHEN SALE
STEPHEN SALE
Principal Analyst
Principal Analyst
Mobile Services and
Next-Generation Services
research programmes

7. “Major Internet players such as Apple, Facebook and Google have identified the messaging market as
a target for market disruption and one that can complement their core businesses.”
Instead, they need to focus efforts on supporting
services where they are able to differentiate and
derive revenue.
3
Revenue
80%
40%
40%
Connectivity (share of respondents
using 3G/4G tablet SIM)
60%
20%
Worldwide
Middle East and North
Africa
Sub-Saharan Africa
0%
discussion of the different approaches available to
players, whether mobile operators or alternative
providers of OTT services.
Central and Eastern
Europe
Latin America
Developed Asia–Pacific
Western Europe
North America
Emerging Asia–Pacific
Our recent report OTT communication services
worldwide: forecasts 2013–2018 (www.
analysysmason.com/OTT-WWF-2013) provides a
quantitative outlook for traditional and IP-based
communication services in 47 countries and 8
regions. The report is partnered with OTT
communication services worldwide: stakeholder
strategies (www.analysysmason.com/OTTstrategy-2013), which provides more detailed
45%
Percentage
of handsets
100%
Revenue growth
(USD billion)
• Improving the feature set available to the B2B,
B2B2C and wholesale sectors: Given the limited
opportunity in the consumer retail space,
operators should focus their efforts on using their
network assets and brand strengths to ensure that
1 they are well positioned to address opportunities in
other segments. Working with partners and
fostering ecosystems is critical to success in the
broader communication services market.
160
140
• Cost reduction: Competition from major players
120
with extensive financial resources and indirect
100
business models further underlines the need for
80
operators to focus on cost reduction. Messaging
60
margins are very 40
vulnerable when services such as
WhatsApp Messenger can run on operating costs
20
in the tens of cents per subscriber per year.
0
For more information, please contact Stephen Sale,
Principal Analyst, at stephen.sale@analysysmason.com
Share of handsets:
LTE
35%
30%
25%
20%
15%
10%
5%
U
0%
50%
Smartphone
2
4
50
16
45
14
35
OTT IP
messaging
30
Operator IP
messaging
25
20
SMS
15
10
Revenue (USD billion)
Messages (trillion)
40
12
10
8
6
4
2
5
0
2018
2017
2016
2015
2014
2013
2012
2011
2010
0
2013
Figure 1: Messages sent via mobile handsets by service type, worldwide, 2010–2018
[Source: Analysys Mason, 2014]
Product management
7
20

8. On 22 October 2013 Apple announced that it has sold 170 million
iPads since the launch of the tablet in 2010. The unprecedented use
of tablets at a mass-market level in Western countries has many
implications for operators and device manufacturers.
According to Analysys Mason’s major worldwide
survey of 43 000 tablet users across 17 countries
(available at www.analysysmason.com/tabletsurvey-2013), 43% of respondents did not buy the
tablet that they use. Instead, many tablets were given
as gifts by friends and family (39%) or provided by an
employer (4%). This partly explains the under-use of
3G/4G on tablets, because people are more likely to
receive non-cellular tablets as gifts. Our survey
shows that less than 10% of tablet respondents in
the UK and the USA use cellular networks to connect
their tablet, highlighting simultaneously the
opportunity and the challenge that this market
represents for operators.
Wi-Fi availability and connectivity costs are major
inhibitors to 3G and 4G adoption on tablets
The survey results highlighted that usage of tablets
varies widely by region. However, we observed some
common trends, particularly when looking at the
opportunities for cellular connectivity on tablets
– 47% of respondents had a tablet with cellular
connectivity, but only half of them actually used that
capability. We identified the following three key
factors that affect cellular connectivity attachment
rates on tablets.
• Wi-Fi satisfies the connectivity needs of most
tablet users. 45% of respondents with a 3G/4G-
capable tablet who did not use this capability
stated that Wi-Fi availability was the main reason
for not enabling a SIM in their device. Tablets are
mostly used at home, at work and in public places,
where Wi-Fi is commonplace, particularly in
developed markets. Wi-Fi is also used while on the
move via smartphone tethering.
• The price of cellular connectivity is not declining
as fast as the average retail price of tablets. This
has increased the percentage of the total cost of
ownership (TCO) that is attributed to service
charges. For example, the TCO over 12 months for
the LTE version of Amazon’s Kindle Fire HDX with a
5GB monthly data plan on AT&T is four times
higher than the cost of a Wi-Fi-only Amazon Kindle
Fire HDX, because of the high data charges.
• There is a direct link between mobility and the
use of 3G/4G on tablets. The shaded area in
Figure 1 illustrates this link. However, some
countries fall outside this correlation, particularly
in the Middle East, where mobility is high but
connectivity is low; and in South Africa, where
mobile data connectivity is often used as a
replacement for fixed services.
RONAN DESALE
STEPHEN RENESSE
Principal Analyst
Principal Analyst
Mobile Devices and
Digital Economy
research programmes
43% of tablet users did not buy the tablet that
they use
Operators need to effectively use retail channels to
promote and educate customers about their services
and offers directly at the point of sale. For example,
understanding ownership trends in terms of
replacement cycles is critical for synchronising
operator marketing strategies with actual tablet
demand from new and current tablet users. However,
a fundamental difference between purchase
behaviour for tablets and smartphones is the impact
that gifting or sharing has on their distribution and
access. Overall, 43% of survey respondents did not
originally buy the tablet that they used – 39% were
acquired from a family member or a friend, who had
either given it as a gift or who was simply lending or
sharing the tablet.
• 16% of respondents indicated that the tablet that
they used did not belong to them. Among those,
60% of the devices belonged to a family member,
most likely living in the same household, and 26%
belonged to an employer.
ALMOST 40% OF TABLET USERS
WORLDWIDE USE DEVICES BOUGHT
BY FRIENDS AND FAMILY
8

9. “Our survey shows that less than 10% of tablet respondents in the UK and the USA use cellular
networks to connect their tablet, highlighting simultaneously the opportunity and the challenge that
this market represents for operators.”
• Family members accounted for a significant
majority – 79% – of tablets given as gifts.
Replacement rates for tablets are relatively long,
particularly in the most mature markets. According
to the survey results, 49% of tablet owners in the
USA and 46% in the UK expect to keep their tablet for
more than two years. Tablet users that do not own
the device they use may therefore present a better
target sales demographic than existing tablet users
during the 2013 holiday season, particularly in
countries where tablet adoption growth has
significantly slowed down, potentially showing early
signs of market saturation.
1
Questions: “How do you connect your tablet to the Internet?
Please tick all that apply”, “Where do you regularly use your
tablet? (please select all that apply)”.
For more information, please contact
Ronan de Renesse, Principal Analyst, at
ronan.derenesse@analysysmason.com
8
3
100%
45%
Connectivity (share of respondents
using 3G/4G tablet SIM)
35%
Fixed substitution?
30%
Malaysia
25%
20%
15%
10%
5%
Percentage of ARPC
South Africa
40%
Italy
Singapore
Poland
Brazil
Turkey Saudi Arabia
Sweden Germany
UAE
Missed
Spain
opportunity?
China
UK
France
Mexico
USA
47%
75%
79%
50%
32%
25%
13%
21%
8%
0%
3Q 2013
3Q 2016
0%
50%
60%
70%
80%
90%
Mobility (share of respondents
using their tablet out of home)
4
9
Figure 1: Relationship between tablet 3G/4G connectivity and tablet user mobility, by country
[Source: Analysys Mason, 2014]1
16
Profit
Revenue (USD billion)
14
Sell m
produ
and se
12
10
Net new
subscribers
8
6
4
2
0
2013
2014
2015
2016
2017
2018
Loss
Customer
acquisition
9
Global head of M2M
Tim

10. M2M is a growing market and is expected to generate USD15 billion
of cellular connectivity revenue worldwide in 2018, according to our
latest M2M forecasts (see Figure 1).
Much of the value is tied to a small number of large
contracts with players such as automotive
manufacturers and utilities, but there is considerable
value in the long tail of smaller contracts. We believe
that small mobile network operators (MNOs) can
position themselves effectively to win these M2M
contracts, even if they lack the resources to win large
single contracts. This article outlines three steps
that smaller operators can take to strengthen their
M2M strategy.
Getting the basics right: infrastructure and
dedicated teams
The tools and processes that MNOs use for the
consumer retail market cannot be used for M2M.
Small MNOs (typically those that cover a local or
small regional market) that want to compete with
larger players need to recognise this and invest in
the following two basic elements of an M2M service.
• A device connectivity platform: For M2M, MNOs
need the systems in place to automate the
provisioning, in-life management (for example,
fault monitoring and policy management) and
decommissioning of SIMs because of the
potentially large volume of M2M connections.
Some global operators, such as Vodafone, have
developed their own systems, but small operators
should consider buying a device connectivity
platform from a vendor such as Ericsson or Jasper
Wireless as a low-cost and low-risk solution. At a
low volume of 500 000 connections, this option
represents an NPV increase of 78% in comparison
with using legacy platform infrastructure, when
calculated over a 5-year period.
• A dedicated M2M team: Successful MNOs in the
M2M sector have dedicated teams for M2M
business activities, including marketing
communications, product marketing, sales
support, platform support and partnership
management. These MNOs have the human
resources required to best address the unique
aspects of the M2M ecosystem, which include long
sales cycles, intensive presales effort and a
solutions-based sales approach. TeliaSonera
provides a good example of how an operator
should structure its M2M business unit
(see Figure 2). For a more-detailed discussion on
this, see Analysys Mason’s M2M insights for
mobile network operators, available at www.
analysysmason.com/M2M-insights-2013.
Targeting established customer bases
Challenger MNOs should prioritise their current
enterprise customers as targets for M2M solutions.
From interviews we have performed with enterprises
buying M2M services, we know that they are more
likely to look to their current telecoms provider than
a new operator when adopting M2M services.
To increase the effectiveness of their M2M business
development effort, MNOs should segment their
sales force based on the enterprise’s volume of
connections rather than its number of employees,
which is operators’ typical approach. Large
enterprises do not necessarily have a high number of
M2M connections, while small and medium-sized
enterprises (SMEs) might.
Avoiding highly competitive verticals
Small MNOs should avoid M2M applications such as
those for the automotive sector, in which large
operators (such as AT&T, Telefónica and Vodafone)
are likely to win the large contracts on offer. Instead,
the contender operators should focus on a small
number of verticals where they can offer greater
differentiation.
THREE ESSENTIAL M2M
STRATEGIC CONSIDERATIONS
FOR SMALL OPERATORS
10
NUNO AFONSO
Consultant
Custom Research

11. 100%
45%
South Africa
40%
5%
20%
Percentage of ARPC
Percentage of ARPC
Connectivity (share of respondents
Connectivity (share of respondents tablet SIM)
using 3G/4G
using 3G/4G tablet SIM)
75%
35%
As part of this approach, MNOs shouldFixed substitution? MNOs can struggle to decide which vertical markets
analyse their
8
3
to focus on when thinking about entering the M2M
established client base to identify groups of
30%
Malaysia
100%
45%
market because of the wide range of industries that
customers that will require similar solutions, and
50%
M2M can address. Large operators with significant
then partner with applications 25%
providers that can
Italy
Africa
financial resources may want to invest in solutions
help provide those solutions. For40%
example, operators South Singapore
Poland
for multiple vertical markets, but small operators 75%
could look to partner with companies such as:
20%
35%
Brazil
25%
need to be more selective in which applications they
Fixed substitution?
Turkey Saudi Arabia
Sweden Germany
• MB Connect Line (Germany) for remote
offer. We recommend that they do so through
15%
30%
maintenance of heavy equipment
UAEMalaysia
partnerships, rather than trying to develop their
Missed
Spain
50%
10%
own
opportunity?
• Aerotel Medical Systems (Israel) for remote patient China solutions.
25%
0%
Italy
Singapore
UK
monitoring systems and personal trackersFrance
1
Mexico
For further details, see Analysys Mason’s M2M device
Poland
connections and revenue: worldwide forecast 2013–2023,
USA
• Priva (the Netherlands) for building energy
Brazil
available at www.analysysmason.com/M2M-2013.
25%
Turkey Saudi Arabia
Sweden Germany
0%
management systems.
15%
For more information, please contact Nuno Afonso,
UAE
50%
60%
70%
80%
90%
Missed
Consultant, at nuno.afonso@analysysmason.com
Spain
10%
opportunity?
Mobility (share of China
respondents
0%
5%
4
UK using their tablet out of home)
France
Mexico
USA
50%
60%
4 12
4
2
0
32%
47%
79%
13%
21%
8%
3Q 2013
3Q 2016
32%
21%
8%
3Q 2013
70%
80%
90%
3Q 201
Profit
Sell m
produ
and ser
9
10
16
6
79%
13%
9
Mobility (share of respondents
using their tablet out of home)
14
8
47%
0%
16
Revenue (USD billion)
Revenue (USD billion)
P
“Small MNOs should avoid M2M applications such as those for the automotive sector, in8
which large
3
operators (such as AT&T, Telefónica and Vodafone) are likely to win the large contracts on offer.”
Profit
14
Net new
subscribers
Sell
pro
and s
12
10
8
6
2013
2014
2015
2016
2017
2018
Loss
Net new
subscribers
Customer
acquisition
Tim
4
Figure 1: M2M cellular connectivity revenue, worldwide, 2013–2018
2
1
[Source: Analysys Mason, 2014]
0
2013
Product management
Product management
Global head of M2M
2014
2015
2016
Special sales
Global head of M2M
Special sales
2017
2018
Loss
Customer
acquisition
Partner and marketing
Partner and marketing
Figure 2: TeliaSonera’s global M2M services business structure
[Source: Analysys Mason, 2014]
11
T

12. Kodak, once a giant in imaging in the pre-digital world, is now but a
shadow of its former self. As its analogue, physical market changed
to virtual and digital one, the company continued to focus on film, its
‘cash cow’, rather than planning for future opportunities.
The company went into bankruptcy and has since
sold off most of its assets. Researchers and business
planners at Kodak knew what was happening – and
what would happen – to its market, and were
planning a future of digital cameras, teleprocessing,
online storage and archiving, and near-instant image
production. However, the company chose not to
participate in that future, every year making
reasonable business-case-based decisions to
cost-reduce its current business to maintain margins,
rather than moving into some new, risky area.
Telecoms operators need to learn from the example
of Kodak, by recognising their business strengths
and planning how to use them in new digital
economy businesses. Analysys Mason’s Digital
Economy Software Strategies programme is
researching how the leaders in this digital revolution
are moving into the digital economy of the future.
This article examines the strengths that telecoms
operators can use to move beyond current telecoms
services, via a classic ‘core competency’ analysis.
Operators’ core competencies are impressive
Telecoms operators participate in one of the largest,
most dynamic industries in the world. They also have
almost inconceivable business and operational
strengths (see Figure 1), which they can use to move
into new areas.
Established customer relationships
Consumers are familiar with operators’ brands, and
in most cases trust them. This relationship could
help operators move into areas such as security
software and services, and mobile money.
Operators also know a significant amount about their
users, such as what kind of offers they take or reject,
where they live (in some cases), their family unit
members, and the locations in which they use their
services. Such knowledge could lend itself to the
provision of location-based services or predictive
marketing services.
Established billing relationships
Millions of people worldwide already give money to
the operators, some monthly via postpaid bills, and
some more often via prepaid top-ups. Operators
know their credit history, and often have stored credit
information about their users. They can make use of
these established billing relationships to sell new
services to their customers. Amazon.com, for
example, started by just selling books, but its product
range has expanded dramatically.
Large amounts of behavioural data
Even without advanced technologies like deep packet
inspection (DPI), operators have a large volume of
behavioural data on their users, including who they
call, when they call, and when they access the
Internet. DPI makes even more information
accessible, such as who they visit and, perhaps, what
they do (privacy laws may intervene here). In addition,
operators know if users are accessible (‘presence’),
and whether they are heavy users of BitTorrent or
exhibit other network-intensive behaviours.
MARK H. MORTENSEN
STEPHEN SALE
Practice Head, BSS
Principal Analyst
Service Fulfilment,
Customer Care and
Digital Economy Software
Strategies research
programmes
Knowledge of these behavioural data points gives an
operator the opportunity not only to market targeted
or even personalised services and service packages
to its users, but also to provide information to other
businesses that can benefit (subject to privacy laws).
Operational strengths
Operators are experts at hiring, training, and moving
to exactly the right place, technicians who can
perform complex tasks to plan, add to, configure and
maintain a complex network with a vast array of
services – with very high quality. They have spent
more than USD30 billion per year for the past 15–20
years on buying or building BSS and OSS to improve
efficiency, increase service quality, and speed up the
OPERATORS MUST PLAY ON CURRENT
STRENGTHS AND DEVELOP NEW
COMPETENCIES TO THRIVE IN THE
DIGITAL ECONOMY
12

13. “Millions of people worldwide already give money to the operators, some monthly via postpaid bills,
and some more often via prepaid top-ups. Operators know their credit history, and often have stored
credit information about their users.”
introduction of new services. Few other industries
have invested as much.
Operators know how to build, operate, and maintain
data centres – keeping the computers powered,
cooled and running efficiently, while ensuring
software is up-to-date and resolving any operational
issues. Any provider of cloud-based services such as
IaaS, PaaS or SaaS would need this knowledge,
putting telecoms operators in a strong position to
provide such services.
Telecoms operators know how to define, offer,
implement and support complex services via
self-service, stores, kiosks, web and customer
service representatives, providing a good operational
base for any ecommerce service.
Operators must use their established strengths
and add new competencies
To move into new digital economy markets, operators
must work out both how to use their existing
strengths and what new competencies are required.
Many of the new services make good use of the
operators’ current core competencies, although many
require new competencies to be added.
Operators must make big decisions about how and
where to move into new digital economy services
Moving into new digital economy services will require
operators to make many major decisions, including
the following.
• Which services should the operator provide?
To fuel growth, operators will probably have to
launch a number of new digital economy services,
not just one. Questions include which services, and
the length of time for which investment will be
required.
• How should the operator enter the digital
economy market? Operators have three major
options here.
- Become a digital economy service provider in that
service themselves, using thier own competencies.
- Partner with another company, perhaps via a
white-label arrangement. Several operator
forays into mobile commerce are using this model.
Established customer
relationships
• Brand recognition
• Established, ongoing contact
• Offers accepted and rejected
• Residence, family unit, locations
- Provide the B2B2C infrastructure for other
companies to enter the digital economy space in
their markets. This option is the most radical, but
represents, in our opinion, the largest
opportunity for CSPs. In this case, the operator
would provide not only the communications
channel part of the value chain, but also services
such as billing, advertising, customer support
and installation. Its B2B2C customers would not
have to invest in their own infrastructure to try to
compete (in their niche) with the leaders in the
digital economy field – the ‘Magic five’ of the
digital economy, Amazon, eBay, Facebook, Google
and Twitter – and all the others entering the space.
• Where should the operator try to become a digital
economy services provider? Operators must decide
between providing services worldwide or just in
their home markets, and, for B2B2C, whether to
provide services to businesses worldwide.
Some operators have already launched digital
subsidiaries, and we will track further investments
As the science fiction writer William Gibson has
remarked, “The future is already here, it’s just not
evenly distributed.” Operators such as Deutsche
Telekom, SingTel, SK Telecom and Telefónica have
created ‘digital subsidiaries’ to increase digital
service revenue. Services such as digital advertising,
local content, gaming, cloud computing services,
online back-up, home and office security, e-health,
electronic marketplace and mobile education are all
being investigated, or are already implemented. These
leading-edge CSPs are already each investing about
USD1 billion dollars per year. Analysys Mason will follow
these, and other, operators, as well as the vendors
and partners that help them. We will report on the
services and how the operators are achieving their results.
For more information, please contact
Mark H. Mortensen, Practice Head, at
mark.mortensen@analysysmason.com
Established billing
relationships
• Customers send money on a
returning basis
• Knowledge of credit history
• Applies to prepaid as well as
postpaid
Large amounts of
behavioural data
• Who they call and when
• When they access the intrnet
and what they visit
• When sleeping and awake
• Naughty or nice
Operational strengths
Distributed, mobile workforce
BSS/OSS systems
Data centres
Services
Figure 1: Core business competencies of telecoms operators
[Source: Analysys Mason, 2014]
13

14. The move to store increasingly large quantities of data is in part
welcome, but there is no guarantee that the data will be used to
provide additional value.
There are few CSPs today that are not able to find
more value in the data that they already have, and
adding more data will not necessarily help.
To gain deeper insights, CSPs need to adopt one of
two approaches:
• using innovative tools that employ machine
learning techniques to derive unseen correlations
and patterns in the data
• employing highly skilled teams for a given
use case.
Machine learning will be essential to the analysis
of large volumes of transient data
The sheer volume of data generated by telecoms
operators, because of their unique access to all
aspects of our digital lives, can be overwhelming for
users. This data comes from a diverse range of
sources, including:
• sentiment analysis on social media
• clickstream from our online activities
• sensor reading from machines
• billing data
• call patterns, detailing who we interact with, and
where and when we interact with them.
CSPs have a significant and growing need to
determine which factors are significant and,
therefore, which attributes they should collect,
model and use. Matters are made worse when
monitoring transient data because in particular
because although data storage costs are falling, they
are not free, so CSPs still have to decide which data
should be stored even before it can be analysed.
When CSPs have decided which data to store, they
are faced with the challenge of analysing it.
Traditional approaches required the use of skilled
staff that understand the data sets and, through trial
and error, are able to create algorithms and models
to predict or segment the data. When faced with
potentially hundreds of attributes, this can be better
achieved through the use of machine learning. These
automated techniques provide clear guidance on
which attributes are most significant and enable
CSPs to create models based directly on this
knowledge. Furthermore, applying machine learning
to streaming data enables decisions to be made on
transient data that need not be subsequently stored.
JUSTIN VAN DER LANDE
STEPHEN SALE
Principal Analyst
Principal Analyst
Analytics Software
Strategies, Revenue
Management and CSP
IT Strategies
research programmes
At the core of machine learning technology is a
library of algorithms that can be applied to data given
to them. Specialised algorithms can be applied to
different requirements, such as finding influencers
within social networks or identifying potential
candidates for churn. The technology gains selflearning experience by processing actual data sets,
and – in general – the larger the data sets, the more
accurate the results.
Machine learning has several potential business
uses in the telecoms sector, but can be most
effective in cases where in-line analysis of streaming
data and personalisation is required. Manual
techniques for developing and refining models
become uneconomic on a large scale, whereas the
application of self-learnt modelling can scale to
meet this challenge. This could enable CSPs to
produce more-targeted offers, or provide tailored
advertising to an individual, for example. The
automation of the modelling also makes it possible
to consider much more data – for example, metadata
within photos or a fuller range of network data.
BIG DATA WILL NOT AUTOMATICALLY
LEAD TO DEEP INSIGHTS
14

15. “The ability to take and integrate an off-the-shelf application that provides deep insights into specific use
cases can outweigh the flexibility found in more generic tools and systems.”
Experts can provide further insight based on deep
experience and industry knowledge
Machine learning is not a panacea for CSPs that are
trying to deploy analytics to improve their
organisation. It needs a supply of data in order to
self-learn, and data is not always available when
launching new services, targeting new markets or
assessing the potential impact of new technology.
Skilled staff with deep experience can provide a more
insightful approach to a given issue.
The most common issues have often been addressed
many times before, and products and knowledge
have been applied to provide a robust, low-risk and
quicker-to-deploy solution than building models
from scratch. The ability to take and integrate an
off-the-shelf application that provides deep insights
into specific use cases can outweigh the flexibility
found in more-generic tools and systems.
For more information, please contact
Justin van der Lande, Principal Analyst,
at justin.van.der.lande@analysysmason.com
15

16. LTE continues to make an impact on the mobile networking landscape,
and 2014 will mark the arrival of new features and capabilities that
show just how capable the technology is in meeting mobile broadband
requirements for a wide range of mobile operators.
LTE will make the spectrum-rich richer, and the
spectrum-poor just a little better off
In 2014, more operators will deploy LTE-A carrier
aggregation (CA), including operators doing initial
LTE deployments. CA benefits operators with
multiple spectrum positions, those with small
pieces, and particularly operators that are combining
acquired networks. The initial focus is on higherspeed services, but we expect more deployments of
5+5MHz carrier aggregation as emerging markets
deploy LTE in 2014.
Early testing of carrier aggregation is enabling
operators to bind separate spectrum channels
together to create larger channels and faster
wireless services, and reduce opex and capex costs
from running multiple networks. SK Telecom and LG
Uplus in South Korea are offering commercial LTE-A
carrier aggregation services supporting speeds of up
to 150Mbps, and EE in the UK has demonstrated
near-300Mbps LTE-A service in London. Larger
network operators such as AT&T, Sprint, Telefónica,
Verizon and Vodafone, as well as operators holding
multiple spectrum positions such as EE, T-Mobile,
Telstra, will be early implementers of carrier
aggregation.
Band fractionalisation will be less of an issue
thanks to broad device support
LTE band fractionalisation will come to an end in
2014. Despite early and well-publicised concerns
regarding the number of different bands supporting
LTE (25 for FD-LTE and 11 for TD-LTE), the market
has – as we had expected – focused on five bands for
FD-LTE (700MHz, 800MHz, AWS (1.7GHz and 2.1GHz),
1.8GHz and 2.6GHz) and four for TD-LTE (2.3GHz,
2.5GHz, 2.6GHz and 3.5/3.6GHz).
Devices are able to support approximately six bands
(the new iPhone 5S/5C support 17 via different
models), thus providing room to support both ‘local’
bands as well as the more commonly used ‘global’
bands. 2.6GHz and 1.8GHz are early candidates for
LTE roaming, but neither band is in use in North
America. The rapidly expanding international base of
support for the APT700 plan is making North
America an ‘LTE island’, but device support for one of
the ‘international bands’ alleviates this problem. One
area that remains potentially problematic for
operators is support for LTE-A, which we expect will
largely be a local phenomenon and not available for
roaming services.
VoLTE will emerge as a (limited) market service
CHRIS NICOLL
STEPHEN SALE
Practice Head, Networks
Principal Analyst
M2M and Network
Technologies
research streams
VoLTE is unlikely to make a significant impact in 2014
because few countries will have the breadth of
network needed for useful service (Japan and the
USA are the notable exceptions). However, we expect
that both countries will launch VoLTE services, with
circuit-switched fallback (CSFB), as a precursor to
more-advanced services including RCS and other
voice-over-data-enabled services. Other countries
with concentrated users such as EE in the UK,
Telstra in Australia may also launch VoLTE with HD
Voice as a competitive differentiator. Voice support
for most operators has to include a ‘fallback’
solution for non-native VoLTE calls, or calls in areas
where LTE coverage is lacking or limited. We also
expect carriers will move more slowly towards Single
Radio Voice Call Continuity (SRVCC) because the
complexity of that solution demands a simplification
by the equipment vendors for widespread
implementation.
South Korea is the world leader in VoLTE penetration,
largely because of the ability to offer 100% LTE
network coverage – all three national carriers have
embarked on aggressive (and highly competitive)
network build-outs. SK Telecom announced that it
had more than 4.5 million VoLTE users as of June
LTE PREDICTIONS FOR 2014:
OPERATORS WILL REAP THE BENEFITS
OF CARRIER AGGREGATION BUT VoLTE
WILL HAVE LIMITED IMPACT
16

17. “In 2014, more operators will deploy LTE-A carrier aggregation (CA), including operators doing
initial LTE deployments. CA benefits operators with multiple spectrum positions, those with small
pieces, and particularly operators that are combining acquired networks.”
2013 and it leads the South Korean market in terms
of VoLTE subscribers. For operators to rely on LTE
for their voice coverage, complete network build-outs
are required. Verizon Wireless’s network, the USA’s
largest LTE network, had about 303 million people
covered in September 2013, out of a total population
of 317 million.
South Korea is proving to be the LTE technology
‘test-bed’, with both LTE-A with carrier aggregation
and VoLTE in commercial use. Devices supported
include the Samsung Galaxy S3 and S4. However,
VoLTE still appears to be a future application in all
markets except South Korea, as early LTE MNOs use
both dual radio (supporting voice on a separate call)
and CSFB for early voice support.
Mobily announced in May 2013 that it had worked
with partner Huawei and completed tests of VoLTE
and enhanced Single Radio Voice Call Continuity
(eSRVCC). These are probably the first such tests in
the Middle East and North Africa.
For more information, please contact
Chris Nicoll, Practice Head,
at chris.nicoll@analysysmason.com
Country
Operator
Maximum downlink speeds (Mbps)
Australia
Telstra
A300 (expected)
Austria
A1 Telekom Austria
580 (trial)
China
China Mobile
233 (TD-LTE)
Japan
NTT DOCOMO
300 (expected)
Philippines
Smart Communications
210
Portugal
Optimus
300
Russia
Yota
300
South Africa
Telkom Mobile (8ta)
210 (TD-LTE)
South Korea
SK Telecom
150
LG Uplus
150
Turkcell
900 (laboratory), 150
Turkey
Figure 1: LTE-A test results by operator, September 2013
[Source: Analysys Mason, 2014]
Date
Event
February 2011
Verizon Wireless (USA) completed first VoLTE call
August 2012
SK Telecom (South Korea) deployed first HD VoLTE service and LG Uplus launched VoLTE service
August 2012
MetroPCS (USA) launched limited VoLTE service
October 2012
KT (South Korea) launched VoLTE
April 2013
EE (UK) announced network upgrades to provide support for new services including VoLTE
May 2013
Mobily (Saudi Arabia) completed VoLTE trials
July 2013
Bharti Airtel (India) requested permission to trial VoLTE
1Q 2014
Telefónica Germany (O2) will demonstrate VoLTE
4Q 2014
China Mobile will launch VoLTE
Figure 2: Activities relating to VoLTE, selected operators, 2011–2014
[Source: Analysys Mason, 2014]
17

18. The Internet of Things promises to usher in a new wave of
technological evolution. In a few years’ time, billions of things –
cars, utility meters, TVs and even furniture – will be linked via the
Internet and sending information about their status and condition.
Operators need to determine what role they will play
in this ecosystem.
commoditised and connectivity margins threaten to
stagnate or shrink.
The threat of decreasing connectivity revenue, which
mobile network operators (MNOs) have been
confronting on the consumer retail side of their
businesses in the past few years, is beginning to
emerge in the M2M sector as it matures and
competition intensifies. Operators are moving up the
M2M value chain and delivering end-to-end
solutions, rather than just simple connectivity, in an
effort to combat this trend.
Non-connectivity services are expected to
account for an increasing share of M2M revenue
in 3 years’ time
Connectivity margins could stagnate or shrink in
the increasingly competitive M2M market
Many verticals and industries are undergoing a
digital transformation, adopting M2M technology to
connect many different devices and machines. As a
result, M2M has gained significant traction as a new
business area for MNOs. Operators are well placed
to provide the near-ubiquitous connectivity needed to
maintain links between modules and sensors and to
help drive business transformation for their clients.
The M2M connectivity sector is maturing. Enterprises
have had only a few choices when procuring an M2M
solution, but more and more MNOs are launching
services for this market. Competition for connectivity
is also coming from dedicated M2M MVNOs, satellite
connectivity providers and other connectivity service
providers using dedicated, non-cellular spectrum.
The margins associated with connectivity will be
squeezed as competition increases. The proliferation
of new M2M applications that utilise 3G and 4G
networks and generate high data usage, such as
video surveillance or connected car services, could
offset declines in connectivity revenue. Nevertheless,
MNOs will face the challenge of remaining
competitive while M2M connectivity is becoming
MNOs need to develop their M2M business models to
expand their role beyond that of a connectivity
provider. Most operators have recognised this, and
are moving up the value chain by offering M2M
solutions that combine connectivity with partners’
hardware or software, according to the results of a
recent Analysys Mason survey.
MORGAN MULLOOLY
STEPHEN SALE
Analyst
Principal Analyst
IoT and M2M Solutions
research programme
Ten leading global operators indicated that they
expect non-connectivity services to account for more
than half of the average revenue per connection
(ARPC) from M2M services by 2016 (see Figure 1).
Connectivity is expected to remain the largest single
component of M2M revenue because it is the
cornerstone of MNOs’ M2M businesses, but its share
will decline from an average of 79% in 3Q 2013 to just
47% in 3Q 2016.
Operators’ transition from pure connectivity providers
to end-to-end (E2E) M2M solution providers is one of
the primary drivers behind this evolution in the M2M
service revenue. This is already underway: operators
are increasingly partnering with M2M service
providers in various verticals to provide E2E M2M
solutions, so that they can exploit all possible value
opportunities. Many operators have assembled E2E
product portfolios that will enable them to generate
more value-added-services revenue. They will
continue to develop new collaborations and launch
new strategic partnerships models – including those
with application developers and systems integrators,
which are often essential partners for delivering E2E
services.
M2M SERVICES OTHER THAN
CONNECTIVITY WILL ACCOUNT FOR
53% OF M2M REVENUE IN 2016
18

19. “The threat of decreasing connectivity revenue, which mobile network operators (MNOs) have been
confronting on the consumer retail side of their businesses in the past few years, is beginning to emerge
in the M2M sector as it matures and competition intensifies.”
1
Question: “Approximately what percentage of M2M average
revenue per connection (ARPC) is generated by the provision of
connectivity services, application services and other services
in 3Q 2013, and what will the proportions be in 3Q 2016?”;
n = 10. For more primary research on the M2M market, see
Analysys Mason’s M2M carrier scorecard 2013 (available at
www.analysysmason.com/M2M_scorecard_2013), which ranks
communications service providers’ performance and position
in the M2M market.
For more information, please contact
Morgan Mullooly, Analyst, at
morgan.mullooly@analysysmason.com
11
8
Percentage of ARPC
100%
udi Arabia
47%
75%
79%
Connectivity services
Application services
50%
32%
90%
Legacy IN
Other services
IMS
architecture
Telecoms
application
servers
(TAS and
NG-IN)
Policy
control
25%
13%
nity?
Increasing software
21%
8%
0%
3Q 2013
3Q 2016
Figure 1: M2M average revenue per connection by service type, 3Q 2013 and 3Q 2016
[Source: Analysys Mason, 2014]1
9
Profit
Sell more
products
and services
Keep customers longer
Net new
subscribers
2017
2018
Loss
Customer
acquisition
Time
Customer
lifecycle
19
co
(Ia
a

20. Technology advances and service innovation will drive changes
in how consumers use telecoms products and services.
The monetisation of these services requires
communications service providers (CSPs) to provide
more flexible offers and manage each interaction in
the customer lifecycle to optimise the customer
experience. CSPs in developed and emerging markets
must focus on extending the customer lifecycle and
creating a positive experience in order to differentiate
themselves from other CSPs that are focused on
price, device offerings and network coverage.
The importance of extending the customer lifecycle
Figure 1 represents the customer lifecycle and
illustrates why CSPs need to pay more attention to
their processes and measure the interactions at
each stage of the customer lifecycle to keep
customers longer and sell more products and
services with the overall goal of improving
profitability. Our research shows that in the first year
after acquiring a customer, a CSP spends between
12% and 20% of revenue in acquisition costs, which
include marketing, selling, on-boarding and
equipment subsidies. With such high costs in the
first year, how do CSPs measure and manage their
operational activities against the perceptions of how
well they are doing according to their customers?
CSPs can improve customer retention and drive
revenue growth if they focus on three critical areas of
their business.
• Simplifying the pricing, packaging and purchasing
process. Understand the usage and consumer
behaviour patterns to promote relevant offers that
customers value.
• Streamlining the on-boarding process in order to
avoid customer frustration and high support costs.
• Understanding what drives customer requests.
This reduces contact care cost and raises
Net Promoter Scores (NPS) for customers who
prefer self-care.
Value-based service differentiation in the customer
experience
After getting the basics right, CSPs should aim to
ensure a consistent customer experience across all
customer touch points. Figure 2 looks at each phase
in the customer lifecycle and contact points between
the customer and CSP employees. This contact could
be either online or a live interaction. We have
identified some areas based on our consulting and
research work with CSPs to highlight where most of
the value-based service differentiation can be
achieved to raise NPS and customer satisfaction.
PATRICK KELLY
STEPHEN SALE
Research Director
Principal Analyst
Software - Network Practice
Figure 2 illustrates some data collected from a CSP
that we consulted with on a project to improve
customer loyalty and operational processes. It
segments the customer base according to historical
spending and internal measurements collected by
the CSP on interactions with the customer. The data
reveals that 50% of this CSPs’ customer interactions
occur in the billing phase. The analysis concluded
that a large number of enquiries resulted from
customers failing to understand how services were
billed. This drives up support cost and creates
frustration with the customer. The obvious
conclusion is to redesign the bill and use other tools
such as customised video billing, which we have
covered in our research into customer experience
management. For further details, see our report
Customer experience management framework: how
to retain subscribers and improve customer loyalty,
available at www.analysysmason.com/CEM-Apr2013.
Requests for technical support also generate high
levels of customer contact activity. Figure 2 reveals
that almost one third of customer contact occurs in
this area. It is in this phase that the CSP may want to
focus on only the top 6% of its customer base to
provide exceptional support. This model is used in
CUSTOMER EXPERIENCE
MANAGEMENT – VALUE-BASED
DELIVERY AND SERVICE SUPPORT
20

21. 100%
47%
Percentage of ARPC
75%
Increasing software control in the n
79%
Connectivity services
Application services
50%
Legacy IN
IMS
architecture
“With such high costs in the first year, how do CSPs measure and manage their operational activities
Other services
32%
against the perceptions of how well they are doing according to their customers?”
Telecoms
application
servers
(TAS and
NG-IN)
Policy
control
Cloud
computing
(IaaS, PaaS
and SaaS)
25%
13%
21%
8%
0%
For more information, please contact Patrick Kelly,
other industries such as airlines, but outside the
3Q 2013
3Q 2016
Research Director, at patrick.kelly@analysysmason.com
business market segment, most CSPs have not
actively developed any meaningful strategies to date.
In many developed markets, high-value postpaid
subscribers do not receive any special perks until
they contemplate leaving at the end of their contract.
11
9
0%
Profit
Sell more
products
and services
47%
5%
79%
Increasing software control in the netwo
Connectivity services
Net new
subscribers
0%
Application services
Keep customers longer
Legacy IN
IMS
architecture
Other services
32%
Telecoms
application
servers
(TAS and
NG-IN)
Policy
control
Cloud
computing
(IaaS, PaaS
and SaaS)
5%
13%
0%
2018
21%
8%
3Q 2013
Time
Customer
acquisition
Loss
Customer
lifecycle
3Q 2016
Figure 1: The customer lifecycle and its impact on profitability
[Source: Analysys Mason, 2014]
Awareness
Customer value segments
nd marketing
Most
valuable
Pre-sales
and sales
Use
Request
for
support
NA
2500
NA
20 300
Proactive
Equipment
customer
repair or
management installation
Receipt or
payment
of bill
Collections
35 300
11 500
~6%
~30%
~56%
Least
valuable
~8%
Service-related customer
interactions (thousands)
Deliver premium
service
Launch retention or
revenue growth
programmes
Retain and drive growth in
the highest LTV customers
(for example, the top 2%)
through special, flawless
service
Launch focused retention
or revenue growth
programmes to increase
tenure and usage of
established customers
600
Manage unprofitable
customers up or out
Actively manage low- and
negative-value customers
by rationalising rate plans,
stimulating usage and
decreasing concessions,
credits and cost to serve
950
Reinvent bill
Reinvent bill to be a
value-added service that is:
− customisable
− informative (for example,
by including contract
information)
Redesign bill to increase
clarity
Figure 2: Value-based service differentiation in the customer experience
[Source: Analysys Mason, 2014]
21
SON
NFV
SDN

22. Licence expirations offer national regulatory authorities the
opportunity to realise multiple primary policy objectives relating to
spectrum management while addressing secondary issues such as
spectrum refarming.
In many countries, 15- to 20-year GSM licences
issued in the late 1990s are coming up for renewal.
In addition, the first UMTS licences have already
started to expire. Licence expirations offer national
regulatory authorities (NRAs) the opportunity to
realise multiple primary policy objectives relating to
spectrum management while addressing secondary
issues such as spectrum refarming or ensuring
contiguity of spectrum holdings.
• Auction-based approaches, whereby either the
current licence-holder or another operator can
obtain the licence. As well as full auctions of all
expiring spectrum licences (with or without the
prior harmonisation of the expiry dates of
licences), hybrid approaches whereby part of the
available spectrum has licences renewed with part
of it auctioned, or where a licence-holder retains a
first right of purchase can be used.
However, licence renewals are a time of high tension
between NRAs, incumbents and potential market
entrants, all of which are likely to have divergent
opinions on the most appropriate approach to
re-licensing the spectrum. Regulators risk harming
competition, interrupting services, discouraging
investment, being seen as biased or enabling (the
continuation of) an inefficient spectrum distribution.
Operators, on the other hand, risk paying excessive
licence fees, receiving too little high-value spectrum
relative to competitors and being unable to provide a
consistent service. This article examines the various
approaches to spectrum re-licensing and the criteria
NRAs should consider when evaluating different
approaches.
Policy objectives
Regulatory options
• market competitiveness and efficiency
Benchmarking the action taken upon expiry of mobile
spectrum licences across 43 countries since 2006, we
have found that regulators use three main categories
of approach, with similar frequency (see Figure 1).
• investment-friendliness and service continuity
• Automatic renewal, whereby the current licence-
holder retains the spectrum licence. This can
come about through the issuance of indefinite
licences, or where there is an implicit high
expectation of renewal.
Each of the re-licensing approaches identified has a
different effect on the policy objectives that are likely
to be of interest to regulators.
• Administrative re-assignment to another operator.
MARK COLVILLE
Senior Manager
Given the high stakes of licence re-assignment,
it is imperative that regulators decide on a
re-assignment approach only after carefully
evaluating their policy objectives, assessing the
extent to which these objectives are currently being
met and considering how different potential
approaches will affect these objectives in the future.
To this end we have identified the following four
criteria that NRAs might want to consider when
evaluating licence renewal approaches, noting that
some regulators may also be concerned with the
amount of revenue to be raised and the complexity of
the process:
• spectrum manageability
• the transparency and fairness of award.
• Automatic renewal regimes are investment-
friendly, but result in low levels of manageability.
In addition, as with administrative re-assignment,
complicated issues such as how much to charge
THE FOUR CRITICAL POLICY CRITERIA
FOR MOBILE SPECTRUM RENEWAL
22

23. “In 2014, more operators will deploy LTE-A carrier aggregation (CA), including operators doing
initial LTE deployments. CA benefits operators with multiple spectrum positions, those with small
pieces, and particularly operators that are combining acquired networks.”
for the spectrum may arise, as Ofcom is currently
consulting on with regard to 900MHz and 1800MHz
licences in the UK.
• Administrative re-assignment procedures allow for
maximum manageability and can be pro-
competitive, but are prone to regulatory failure. In
particular, this manageability may be achieved at
the cost of decreased investment incentives and
minimal transparency.
• Auction-based approaches ensure high levels of
competition and are generally transparent and fair.
However, the uncertainty they introduce for
operators may dampen investment incentives,
while manageability and potentially service
continuity are also reduced.
8
Conclusions: NRAs should choose an approach to
expiring licences based on their market situation
and policy objectives
100%
Percentage of ARPC
In our view there is no single ‘right answer’ for an
NRA and the approach to be followed should be
very carefully considered in light of the individual 47%
75%
market situation and the particular policy objectives
being followed.
79%
Administrative re-assignment approaches may be
50%
advisable at times when the NRA needs to maintain
close control of national spectrum distribution 32%
because of technological changes or changing
market 25%
dynamics. On the other hand, automatic
renewal lacks the flexibility to react to significant
13%
21%
market changes but may be more appropriate if the
8%
initial distribution of spectrum was competitive,
0%
transparent and fair (for example, via auction). 3Q 2016
3Q 2013
Auctions are best if the NRA wishes to re-assign
licences from a ‘clean slate’, with a long timeframe
and does not expect any major changes in the future
11
value of the auctioned spectrum that would require
regulatory intervention. Hybrid auction-based
approaches with harmonisation of expiry, first right
of refusal to incumbents or incorporating only part of
the spectrum may offer increased levels of
manageability, serviceservices
Connectivity continuity and investment
incentives while continuing to aid competition and IMS
Legacy IN
Application services
offering varying degrees of transparency. These architecture
Other become
approaches mayservices increasingly attractive for
regulators, in our opinion.
Increasing software control in the n
Telecoms
application
servers
(TAS and
NG-IN)
Policy
control
Cloud
computing
(IaaS, PaaS
and SaaS)
For more information see Mark Colville’s report
Regulator and operator strategies for expiring
spectrum licences: renew, re-assign or re-auction?
Available at www.analysysmason.com/
ExpiringSpectrumLicences2013.
For more information, please contact Mark Colville,
Senior Manager, at mark.colville@analysysmason.com
9
18
16
Instances of use
14
12
10
8
6
4
2
0
2018
Auction-based
approaches
Automatic renewal
Administrative
re-assignment
No decision yet
Figure 1: Instances of approaches used for spectrum licence renewal, 43 countries, 2006–2013
[Source: Analysys Mason, 2014]
23

24. The benefits of cloud computing (virtualisation of standard IT
computing and storage) are well understood, and it is implemented
in data centres worldwide.
Major communications service providers (CSPs) are
now convinced that virtualisation has matured
sufficiently to virtualise network functions. CSPs and
vendors agree that the primary target benefits of
network function virtualisation (NFV) and softwaredefined networking (SDN) are cost reduction and
operational flexibility. However, the role of softwarebased solutions to control, manage and operate
CSPs’ networks has steadily been increasing from
legacy intelligent network (IN) architecture in
circuit-switched networks, to cloud computing,
self-organising networks (SON), NFV and SDN.
The success of cloud computing and SDN in data
centres is attributed to the simple all-IP core
networks, compared with the multi-technology and
complexities of CSPs’ costly transport and access
networks. This article examines the opportunities for
virtualisation in CSPs’ core networks and use cases
being explored by a number of CSPs.
Virtualisation opportunities are readily available in
CSPs’ core networks
CSPs worldwide spent about 77% of their capex
(USD267 billion) in 2012 on their networks –
hardware, software, roll-out, professional services
and associated network infrastructure. CSPs have
expansive and regulated responsibilities for their
costly access networks, which virtualisation does not
yet address. Field force operations and workflow
constraints on transport and access infrastructure
limit the extent to which CSPs can automate without
human intervention, which limits virtualisation use
cases outside the core network layer. This makes the
business case for virtualisation less compelling
beyond the core network for CSPs.
The lines between cloud computing, NFV and SDN
are blurred, and not just between IT and telecoms.
These lines will continue to be blurred as
virtualisation overcomes traditional hardware
barriers over time. Cloud computing and NFV have
some similarities, but are essentially different.
• Cloud computing is the virtualisation of commodity
IT hardware (namely x86 servers) and applications/
software, which can run at least 99% availability level.
• NFV is the virtualisation of telecoms-specific
network functions into applications that will run at
least 99.999% availability on suitable carrier-grade
hardware and software.
GLEN RAGOONANAN
STEPHEN SALE
Principal Analyst
Principal Analyst
Infrastructure Solutions,
Service Delivery Platforms
and Software-Controlled
Networks research
programmes
Cloud computing is acceptable for non-real-time
telecoms software (OSS, BSS) on x86 servers, while
NFV is being developed to address real-time
telecoms network functions. SDN will bring about
changes in network architecture that will support the
flexible use of network resources. It is a critical
technical element of fully realising the benefits of
cloud computing and NFV. Figure 1 illustrates the
overlap between CSPs’ IT and telecoms assets and
functions, and the expansive scope of NFV to
encompass the core network.
CSPs have largely virtualised their enterprise IT and
data centres to attain the cost savings from hardware
consolidation and standardisation. Non-real-time
telecoms software systems such as customer care,
caching, OSS and postpaid billing systems can easily
reside in a private cloud computing architecture.
Vendors are developing NFV solutions for online
charging systems, service delivery platforms (SDPs)
and, more importantly, the control layer.
Virtualisation of the control layer/plane lends itself to
implementing virtualisation in the core network and
the intelligent management of traffic flows between
core network function using SDN.
NETWORK VIRTUALISATION
OPPORTUNITIES FOR CSPs BEGIN
IN THE CORE OF NEXT-GENERATION
NETWORKS
24

25. “The success of cloud computing and SDN in data centres is attributed to the simple all-IP core networks,
compared with the multi-technology and complexities of CSPs’ costly transport and access networks.”
evolved packet core (EPC) components (MME, HSS,
PGW, SON, ANDSF).
• Services chaining of OSS, BSS and SDP
components for service delivery: Policy-enabled
services consumed by smartphones have led to
increased Diameter signalling traffic between
CSPs’ mobile core, PCRF and OCS, which is confined
to the core and could be better managed by SDN.
• ‘Big data’ virtualisation to optimise the computing
and storage footprint for online and offline
analytics of CSPs’ numerous data sources
including data warehouses, network elements,
OSS, BSS, SDP and third-party sources.
11
The success of cloud computing and SDN/OpenFlow
in data centres is attributed to the simple all-IP core
networks compared with the multi-technology and
complexities of CSPs’ costly transport and access
networks needed for CSP SDN solutions. CSP SDN is
still largely in R&D and remains an open opportunity
for both telecoms and non-telecoms vendors.
BT, Deutsche Telekom, NTT Communications,
Portugal Telecom, Telefónica, Vodafone and Verizon
are exploring NFV to rationalise core network
functions and the control plane, and SDN to optimise
traffic flows in the core network and ultimately in the
100%
transport and access layer. The following are
examples of network virtualisation use cases that
CSPs are exploring in their core47%
networks.
75%
50%
25%
0%
Analysys Mason’s Software-Controlled Networking
(SCN) research programme (www.analysysmason.
com/softwarecontrollednet) looks at the evolution of
the SCN landscape, the role that cloud computing,
NFV and SDN will play in CSPs’ future networks and
• Virtualisation and service chaining the complex Gi the OSS requirements to realise the benefits of
79%
Connectivityvirtualised next-generation networks (vNGNs). The real
services
network to reduce the cost of network components
Application services
and to optimise traffic flows at mobile CSPs’ Gi
challenge is how to manage these vNGNs of the future.
interface – the point in mobile networks where services
Other
32%
mobile Internet traffic aggregates and continues to For further details, see our report SDN and NFV at a
crossroads: vendors innovating and positioning for
grow exponentially.
the future of CSPs’ network virtualisation (www.
• Traffic engineering (TE) to improve performance,
13%
analysysmason.com/SDN-NFV-2013), which explores
Increasing software control in network
21%
traffic management and quality of service, firstly at
the SCN landscape and provide CSPs and vendors
8%
major congestion points such as the CSP’s Gi
with technical insight into the key components in an
Telecoms
3Q 2013
3Q 2016
interface, ISP aggregation networks, mobile core
Cloud
SON
application
architectural view for building virtualised networks
IMS
Policy
computing
and content delivery head-end networks. SDN can
Legacy IN
NFV
servers
architecture
(IaaS, PaaS
solutions, which need to co-exist with CSPs’ control
SDN
(TAS and
support TE between core fixed and mobile network
and SaaS)
NG-IN)
established networks.
functions such as policy control (PCRF, PCEF/DPI),
caching, load balancing, DNS/DHCP, traffic
For more information, please contact
management, BRAS, AAA, IMS components (CSCF, Glen Ragoonanan, Principal Analyst, at
MGCF, MRFC, MGW, TAS, NG-IN) and mobile
glen.ragoonanan@analysysmason.com
Cloud computing
NFV
Revenue management
Charging, fraud, interconnect
Customer
care
Service layer
Service delivery platforms
Network layer
Enterprise IT
Virtualised applications
(SaaS)
Cloud management
(virtual domain, IT
hardware and network)
Control layer
IMS, Diameter, SIP
OSS
IT hardware
Core/aggregation
Multi-service
IP-based network
Distribution
Transport
Enterprise IP network
Access layer
Multi-technology fixed and
mobile access networks
SDN/OpenFlow
CSP SDN
Percentage of ARPC
CSPs are trialling a variety of network
virtualisation use cases in their core networks
SDN
Next-generation telecoms
Enterprise
Figure 1: ICT convergence in CSPs’ networks from cloud computing, NFV and SDN technologies
[Source: Analysys Mason, 2014]
25

26. LTE is out of the experimental stage and is being deployed worldwide.
Operators in all markets are in the process of implementing LTE, but
the emergence of the APAC and LATAM regions is set to challenge
European and North American operators’ early lead.
These trends are analysed in Analysys Mason’s
report on the outlook for LTE worldwide, available at
www.analysysmason.com/LTE-WWF-2013.
LTE network planning, trials and deployments are
progressing in emerging and developed regions
The first LTE deployments occurred in Finland and
Sweden, and the world’s largest LTE network is in
the USA, but emerging APAC and LATAM have the
highest number of planned LTE networks, according
to Analysys Mason’s Wireless networks tracker
(available at www.analysysmason.com/WNT) –
see Figure 1.
Adoption of the Asia–Pacific Telecommunity Band
Plan (APT700) in Brazil, Chile, Columbia and Mexico
provides operators and users in the LATAM region
with access to the worldwide LTE700 ecosystem,
which offers a broad choice of equipment and
terminals. The large number of frequencies that LTE
supports has generated concern among industry
players, but in practice operators often need to
support fewer than seven in order to provide a wide
range of services for their users.
Emerging market countries are also taking
advantage of LTE technology. India, Malaysia and
Vietnam are the leaders in the emerging APAC region
for the number of LTE networks planned. Operators
in India, Malaysia and Nepal are also planning to
launch TD-LTE networks. We expect several
operators in EMAP to deploy FD-/TD-LTE networks in
order to take advantage of their paired and unpaired
spectrum. Ten dual-technology LTE networks are
already in commercial operation.
Trials show a growing base of LTE in Europe as well
as emerging APAC
Our research indicates that 59 LTE network trials
were in progress as of 31 July 2013. This figure
includes cases where an operator has multiple trials
underway, but might not eventually deploy
operational networks. However, we can reasonably
expect (with more than 80% probability) that most of
these trials will result in commercial deployment
within the next 2 years.
The largest number of LTE network trials is in
Central and Eastern Europe (at 26), emerging APAC
(24) and Western Europe (20). Trials in the first two
regions are being driven by adoption of the
technology among regional operators, such as Bharti
Airtel and Reliance Infotel. Infrastructure vendors
such as Ericsson, Huawei, Nokia Solutions and
Networks (NSN), Samsung and ZTE are
demonstrating the required network upgrade and
transition options, including LTE overlay and
single-RAN solutions. For more detail on a return on
investment comparison between LTE overlay and
single RAN, please contact us and we can provide a
tailored analysis for your network.
CHRIS NICOLL
STEPHEN SALE
Practice Head, Networks
Principal Analyst
M2M and Network
Technologies
research streams
Strong support for LTE in APAC and LATAM will start
to offset the early influence that European and North
American operators (some of which have a 2- or
3-year head start on deploying the technology) have
had on the device and network vendors. We expect a
more-balanced global LTE market to emerge by
2018, in which markets such as Brazil, India and
Russia will each account for 5% of LTE connections
worldwide.
LTE TO BE DEPLOYED WORLDWIDE
BY 2018: ASIA–PACIFIC AND LATIN
AMERICA DOMINATE NETWORK
LAUNCH PLANS
26

27. “Emerging market countries are also taking advantage of LTE technology. India, Malaysia and
Vietnam are the leaders in the emerging APAC region for the number of LTE networks planned.
Operators in India, Malaysia and Nepal are also planning to launch TD-LTE networks.”
For more information, please contact Chris Nicoll,
Practice Head, at chris.nicoll@analysysmason.com
70
20
40
35
30
20
24
32
Planned
20
41
10
18
28
14
24
21
Developed
Asia–Pacific
Central and
Eastern Europe
Latin America
North America
Emerging
Asia–Pacific
14
8
0
Western Europe
Operational
12
7
14
Middle East
and North Africa
50
Sub-Saharan
Africa
Number of networks
60
Figure 1: Operational and planned LTE networks by region, July 2013
[Source: Analysys Mason, 2014]
27

28. LTE is the latest telecoms industry buzzword – mobile network
operators (MNOs) have launched more than 200 live LTE networks in
100 countries.
The experience of MNOs in countries such as South
Korea show that LTE can add value to a business
and have a positive impact on ARPU and share prices
– when more than 28% of an MNO’s subscriber base
has an LTE connection, operator share prices
consistently outperform the index. This article
examines how MNOs are experimenting with
services, segments and pricing in order to monetise
LTE offerings, and draws on our experience of
working with operators worldwide.
MNOs must differentiate LTE services from those
of 3G
LTE operators can begin to monetise LTE services by
offering four categories of service to established and
new segments of subscribers (see Figure 1).
Enhanced data for consumers is a key selling point
for LTE
Operators can use the rich data experience of LTE to
sell more data and develop new revenue streams.
Video streaming providers such as Netflix alter the
quality of video according to available bandwidth – so
a 6-minute clip on LTE would consume 80MB
compared with 27MB on 3G, thus driving usage.
Operators are also bundling content with LTE or
top-tier plans, enabling new revenue streams – for
example, EE in the UK uses its film service (EE Film)
to monetise data and receives sales commissions
from video-on-demand provider FilmFlex.
VoLTE (+ RCS) allows operators to offer integrated
voice, video and instant messaging (IM) services
with the added benefit of mobility
VoLTE (+ RCS) will probably develop as a hybrid
service for operators. They will be able to sell more
IM and video data, a market that over-the-top (OTT)
players currently dominate. Additionally, 4G networks
can address the mobile opportunity for HD voice and
integrated services, and even drive usage away from
Wi-Fi, thus generating new revenue.1 South Korea
Telecom’s VoLTE service is taken by about 50% of the
operator’s LTE subscribers.
Enterprise solutions can benefit from enhanced
data services
Enhanced enterprise LTE solutions such as
videoconferencing on-the-go and remote access to
business applications can drive data consumption.
Verizon Wireless is one of many LTE operators that
offers 4G mobility applications and solutions for
SMEs and enterprise customers. A survey shows that
67% of US businesses using LTE believe that it has
resulted in increased productivity.2
ROHAN DHAMIJA
Head, India and South Asia
LTE can also provide connectivity as a substitute to
fixed networks
It is possible to use LTE with a 4G router to offer
connectivity to the home and SME broadband
segment, which could be a new revenue stream for
operators. For example, UK Broadband’s ‘now
broadband’ service is offering connectivity using LTE
+ 4G routers. This use of TD-LTE as a substitute for
fixed networks could be an interesting solution in
emerging markets.
Wholesale solutions may emerge as an attractive
opportunity for operators
Because LTE network latency is lower than 3G,
operators can develop new revenue streams by
selling bandwidth for wholesale services (such as
utility and M2M services). Verizon is at the forefront
of this with projects in sectors such as education.
MONETISING LTE SERVICES:
DEVELOPING NEW REVENUE STREAMS
THROUGH DIFFERENTIATION AND
INNOVATIVE PRICING
28

29. “MNOs can also experiment with bundling. Data sharing across devices is being offered, with the aim of
monetising devices (such as tablets) otherwise lost to Wi-Fi.”
Pricing is determined by LTE positioning relative
to 3G
If positioned as a value-added service with clear
benefits (such as guaranteed speeds or premium
content), then a pricing premium can be introduced.
However, if positioned as a mass-market service (also
used to decongest 3G networks) a premium is not
advisable. Pricing premiums can also be applied in
low-competition scenarios – although they will have
to be removed eventually (for example, in the UK).
MNOs can also experiment with bundling. Data
sharing across devices is being offered, with the aim
Revenue
of monetising devices (such as tablets) otherwise sources
lost to Wi-Fi. Tethering strategies are evolving, as
operators try to monetise tethering by allowing it at
Retail top-tier user
as part of premium orand other plans. Fixed–mobile
segment activities
converged offerings are available and aimed at
increasing revenue and reducing churn.
MVNOs
Resellers
Fixed and broadband
Internet perators
o
Wholesale
1
A purchase4G users in the UK found that since using 4G,
survey of
Smaller or partner MNOs
43% of users use fewer or no public Wi-Fi hotspots.
2
M2M aggregators
A survey of 256 US businesses that use LTE, Arthur D. Little.
Industry suppliers
External
Internal wholesale
Overall, LTE strategies are continuing to evolve and it
wholesale
is too early to identify winners. Successful
Network deployment to focus on offering
monetisation strategies will need and
operations
differentiated services with flexible and usagefriendly pricing models.
Spectrum licences and
Analysys Mason is working with operators on 3G and
overall corporate direction
LTE network and commercial launch strategies in
developed and emerging markets.
1
3
Such as video streaming or
download, TV, online gaming,
music and entertainment
Data
Corporate divisions of other companies
2
4
Enhanced
data at home
Enhanced mobility
applications
Such as VoD, online
gaming, music and
entertainment
Such as videoconferencing,
telepresence, large file
transfers, real-time remote
access to business apps, rich
media collaboration
Enhanced data on the go
Voice
For more information, please contact
Rohan Dhamija, Head, India and South Asia,
at rohan.dhamija@analysysmason.com.
VoLTE and add-on features
Add-on features for consumer segments include RCS messaging
Add-on features for SMEs include video conferencing
Urban: Wireless
Urban: Fixed
(Home)
Urban: SME
700MHz
1800MHz
b
M2M and
wholesale
connectivity
Such as remote
fleet tracking,
m-health, smart
home
Opportunity to provide
connectivity for home
broadband (urban and non urban) and SMEs
Urban: Enterprise
Utility
solutions
Such as
healthcare,
education,
agriculture
c
Pure
wholesale
Such as
service
provision to
VoIP
providers
Rural: Government
Corporate and government segment
Consumer segment
Key:
a
2300/2600MHz
Suitability of the frequency band for the service:
Poor
Very good
New services and segments that can be addressed with LTE
Figure 1: LTE services by user and product segments
[Source: Analysys Mason, 2014]
29

30. THINKING AND DOING
THINKING INVESTMENT
THINKING REGULATION
THINKING MARKETS
WHAT WE OFFER
30
THINKING TECHNOLOGY
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Moscow +3.00
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London 0.00
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Knowing what’s going on is one thing. Understanding how to take advantage of events is
quite another. Our ability to understand the complex workings of telecoms, media and
technology (TMT) industries and draw practical conclusions, based on the specialist
knowledge of our people, is what sets Analysys Mason apart. We deliver our key services
via two channels: consulting and research.

31. CONSULTING
RESEARCH
For more than 25 years, our consultants have been
bringing the benefits of applied intelligence to enable
clients to make the most of their opportunities.
Analysys Mason’s research service covers consumer and
enterprise services, as well as the software, infrastructure
and technology underlying those services.
Our clients in the TMT sector operate in dynamic markets where
change is constant. We help shape their understanding of the future
so they can thrive in these demanding conditions. To do that, we
have developed rigorous methodologies that deliver real results for
clients around the world.
The division consists of a specialised team of analysts, who provide
dedicated coverage of TMT issues and trends. Our experts
understand not only the complexities of the TMT sectors, but the
unique challenges of companies, regulators and other stakeholders
operating in such a dynamic industry.
Our focus is exclusively on TMT. We support multi-billion dollar
investments, advise clients on regulatory matters, provide spectrum
valuation and auction support, and advise on operational
performance, business planning and strategy. Such projects result
in a depth of knowledge and a range of expertise that sets us apart.
Our research programmes cover the following six key areas:
We look beyond the obvious to understand a situation from a client’s
perspective. Most importantly, we never forget that the point of
consultancy is to provide appropriate and practical solutions. We
help clients solve their most pressing problems, enabling them to
go farther, faster and achieve their commercial objectives.
• telecoms software markets
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Our programmes offer a mixture of qualitative and quantitative
market intelligence. The result is an essential resource for strategic
planning, investment, marketing and benchmarking.
CUSTOM RESEARCH
We also deliver tailored research that addresses specific
business needs for a wide range of organisations.
We deliver tailored research that addresses specific business needs
for a wide range of operators, vendors, industry bodies and
regulators within the TMT sector. Our comprehensive knowledge of
the TMT industries draws on a large base of market data that we
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32. analysysmason.com
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