3. Converged LTE networks (FDD & TDD) are emerging strongly
The world’s first converged LTE (TDD & FDD) network was launched by China Mobile Hong Kong in 2012. Since then it has found traction among telcos, although at a very slow rate. Despite the slow uptake, such networks are increasingly becoming a priority for telecom operators globally - including Asia-Pacific.
Converged networks utilize radio frequency resources better, bring economies of scale into the business, and accelerate the upgrade of communication network systems capacity. The mutual integration (TD-LTE & FD-LTE) and common development is the trend that will drive the future global communications industry.
4. WiMax operators turn to LTE for growth opportunities and are required to differentiate their services
A number of telcos in the region have yet to launch LTE services - primarily the ones who have WiMax networks and are looking for growth in their business. Since they are late entrants to the market they have significant challenges to deal with, including the need for a differentiated offering to attract customers.
A large number of markets in the region already have more than 100% mobile penetration, which means in order to get new customers, telcos primarily rely on customer churn.
5. Telcos are coming together to drive efficiencies
Telecom operators in the region are forming partnerships to develop LTE ecosystems, bring in cost efficiencies, and engage in other collaborative efforts. These operators are forming joint strategies to procure LTE-enabled devices like MiFi, smartphones, data cards, etc. They’re also working together to share testing and validation practices and conduct proof-of-concepts and trials.
Two of the large telecom operators in the region have partnered together to share relevant network and product knowledge, technical learning, and best practices to enable delivery of affordable world-class services.
Strong traction for LTE networks by telcos will lay a strong foundation for next generation communication services like video messaging and video calling. It will also help them compete against OTT services. For voice, telcos must develop new opportunities to keep voice services relevant in the market.
Naveen Mishra is Industry Principal, ICT-Telecoms, at Frost & Sullivan Asia Pacific
This article first appeared on Telecom Asia LTE Insights April 2015 edition