In deployment terms, LTE is believed to be the fastest growing mobile technology ever. Having already witnessed shipments of over eight million units in 2011, the LTE devices ecosystem is set to grow at a CAGR of over 104% over the next five years. In 2016, there will be nearly 300 million LTE device shipments all over the globe with revenues of over $82 billion, according to Research and Markets.
Asia is likely to be one of the most dynamic growth markets for LTE. According to a recent study by Analysys Mason, around one-third of handsets in developed telecommunications markets in Asia-Pacific, and most smartphones in the region, will use LTE connections by the end of 2016. Moreover, 62% of the region's non-handset mobile broadband connections (USB modems and mid-screen devices) will be LTE by 2016. Furthermore, overall mobile penetration in the Asia-Pacific region will grow from 113% at the end of 2011 to 134% by the end of 2016.
Ultimately, the move to LTE is all about implementing best practice and the best available technologies for network optimization. So, it is natural for mobile operators to want to ensure that they continue to optimize their SIM cards as new networks are rolled out.
While the rapid increase in mobile broadband subscriber numbers represents a great opportunity for operators across the Asia-Pacific to drive incremental revenues, it also presents them with a host of challenges. As LTE networks and the number of mobile broadband devices and associated SIM cards moving through distribution channels grow, developing competitive services and points of differentiation will be increasingly important to operators in winning market share.
A significant proportion of new mobile broadband subscribers are prepaid. The anonymous nature of this payment method makes it difficult for operators to engage with these subscribers, particularly if they are using the pre-provisioning model common in most markets.
In contrast, dynamic SIM provisioning -- where network provisioning and the allocation of resources to SIM cards is delayed until the point of first use -- gives operators an immediate opportunity for engagement and interaction.