The thorny problem of monetising LTE

Operators that can bring 4G tariffs to low-end smartphone users could get a higher potential average revenue per user (ARPU) uplift, according to an August 2014 report on ReportBuyer by Analysys Mason.

The challenge is that while the number of 4G (LTE) handset connections worldwide is expected to increase from 178 million in 2013 to 1.4 billion in 2018 – a growth of 670%, mobile handset data service revenue will only grow by 64% during the same period. 

Operators are trying to monetise LTE services through price premiums, reserving LTE for premium tariffs, bundling content and broadening connectivity to a wider range of devices through multi-device tariffs.

Companies mentioned in the report, Monetising LTE: capitalising on the growth of mobile handset data, include Hutchison Whampoa, KDDI, LG Uplus and NTT DOCOMO.