Revenues generated by LTE mobile networks will grow quickly once networks are launched, reaching £62 billion by 2014, according to a new report from Juniper Research.
Laptops, smartphones and other devices will drive the growth it claims.
Juniper found that 90% of respondents questioned believe that today’s pricing models will have to change – but there is a lack of consensus about the structure of new pricing models.
Several operators have already announced an end to flat rate tariffs, as the number and variety of connected data-hungry devices is multiplying, putting strain on services.
4G LTE Business Models report author Howard Wilcox said: ‘Our business modeling evaluated three scenarios. The most optimistic view revealed scope for higher revenues and ARPU if network operators adopt premium pricing strategies for enterprise users.’
However, the report warns that despite high profile LTE announcements by network operators, Western Europe will not see substantial numbers of users benefiting from these high speed services for up to three years.
Further findings from the 4G LTE report include:
• The industry is thinking ‘out of the box’ to create innovative pricing approaches, such as partnership models and usage based tariffs
• High traffic enterprise subscribers using web, email and video services will be the early adopters of LTE and are the key segment to be targeted
• Revenues from consumer users will remain under half of total revenues until at least 2015.