LTE Strategies Demand For High Speed Data Usage In Asia

Surges are in high-speed data usage in Asia. The matter has been calling for more effective strategies in LTE. LTE’s biggest challenges and key strategies for allocation, deployment and monetisation will be outlined at the CommunicAsia2014 Summit. CommunicAsia2014 recently checked in with Mr. Juan Jose Rio, Partner at Delta Partners and conference speaker at the CommunicAsia2014 Summit, for his thoughts on the challenges that lie ahead in the LTE roadmap in Asia. Mr. Rio provided an insight into some of the key strategies governments and regulatory bodies need to tackle in the development and allocation of spectrum, and shared practical tactics for industry players who are looking to capitalise on commercial opportunities.

A recent study has revealed that the number of next-generation LTE users will surpass 120 million by 2015, driven by key Asian markets such as China, Japan, Indonesia and South Korea. Other parts of the Asia Pacific, such as Indonesia and Singapore, in different stages of LTE network deployments, are expected to attain significant headway over the next few years. India and Thailand still in the process of rolling out 3G, with LTE network deployments considerably some length from realisation.

Governments will need to strike a balance between appearing forward thinking through issuing LTE licences and not issuing LTE spectrum prematurely when operators are not ready. This will be a challenge in itself as these are the same countries who need LTE as a fixed network substitute, but at the same time are likely to still require 700MHz spectrum for analogue TV, 1800MHz spectrum for 2G voice and 2.6GHz spectrum for satellite usage, all key LTE spectrum bands. In these developing countries, LTE deployment will likely be more gradual while allowing for the influx of affordable devices. LTE will be deployed on a selective basis (i.e. urban areas) but new 2G/3G deployments are also done with a certain level of future-proofing (e.g. SingleRAN) so LTE can be rolled out easily when required.

Telcos in developing countries may find a much tougher economic case for LTE. With much lower ARPUs versus those in developed countries, they will find it challenging to charge proportionately more for higher speed offerings. Similarly, low ARPU customers will need to get access to a range of affordable LTE devices, much in the same way we now have access to affordable 3G devices at US$30-US$40 per piece.

Developing countries may also often struggle with a lack of critical infrastructure (e.g. fibre networks with sufficient capillarity) and spectrum (e.g. 5-6 player market or delayed spectrum re-farming) driving up the costs of network rollout. For countries which have recently just rolled out 3G, the risk of not being able to fully monetise these assets through their useful life results in a more marginal incremental business case.

Mr. Rio will be speaking at ‘The Future of LTE and Spectrum Allocations in Asia.

LTE Investment Analysis and Considerations’ session, which takes place on Day 2 of the Summit, 18 June 2014.