Wednesday, 22 October 2014

Lets Hear The Buzz of Telecom - 4G Rollout Is a Tough One for Telecom Operators in India!

Telcos are taking a very cautious approach as fully monetizing network investments involves launching compelling new applications and services while India lacks the ecosystem that include insufficiency of 4G-capable devices.

Network deployment for 4G LTE is a complex and expensive task for telecom operators, especially in emerging economies such as India which have low average-revenue-per user (ARPU).

Deploying LTE networks in India and globally is a hugely complex and expensive task for mobile network operators. Enhanced capabilities and benefits like bandwidth-on-demand require complex go-to-market and customer management strategies.

Emerging competitive threats from Over-the-Top (OTT) applications and services threaten to further reduce already low ARPUs and continue to mount a sustained challenge to the long-term revenue generation potential of 4G services.

Speed advantages are not very useful as a differentiating factor. "Network speeds cannot be guaranteed, and are usually temporary, highly regionalized, and easy for the competition to replicate and outside the operator's control".

The prioritization of 4G-technology rollout would be towards the main metropolitan areas as it would be initially seen as a premium service.

Operators would be mindful of the significant role that pre-existing 2G and 3G technologies, particularly in areas where the limited return on investment opportunities make 4G rollout a less attractive proposition for the network operators.

"The availability of high-speed mobile data communication through 4G-LTE networks and capabilities will continue to be an essential enabler of India's ongoing economic development and growth.

Many of the well-established 4G device providers are targeting lower-cost products specifically towards the Indian market as they seek to consolidate and expand their position within the rapidly developing space.

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