LTE reaches over a billion people in 155 countries

As of the final quarter of 2015, total LTE users had reached some 1.05bn, with China, the USA & Japan accounting for almost two-thirds of total LTE subscribers worldwide. At the end of December 2015, the GSMA industry association stated that there were now 428 LTE networks active in 155 countries (an increase from 393 LTE networks in 138 countries in June 2015).

The latest edition of the Global LTE Pricing Tariff Tracker provides comprehensive LTE pricing and product information from 156 providers in 82 countries. The final quarter of 2015 edition highlights the following key trends as LTE services continue to evolve rapidly:

• The introduction of LTE-A services: MNOs offering higher theoretical upload and download speeds from LTE-A services - with launches by DiGi (Malaysia) and ooredoo (Qatar) by the end of 2015;
• Ooredoo (Qatar) claims a new download speed of up to 375Mb/s: Bell (Canada), Zain (Saudi Arabia) and TDC (Denmark) have also increased their LTE network speeds during 2015;
• LTE coverage expansion: MNOs expanding their LTE in-country network coverage – for example with DiGi (Malaysia) now expanded to 65% of the population and Nationwide coverage in 100 major towns and cities; and
• MNOs are also launching Voice over LTE (VoLTE) services: Many MNOs continue to introduce VoLTE services at the same price as normal calling - for example, in November 2015, Orange Romania introduced its VoLTE service, claiming a five-fold improvement in call set up times and improved call clarity.

MNOs are expanding their LTE customer base by addressing lower priced segments, with lower Post Pay price points and with Pre Pay. With new LTE launches, the trend is for the MNO to introduce LTE without a price premium. For example, in September 2015 Irish MNO Meteor (a subsidiary of Eircom) launched its LTE service without a price premium. Orange (Spain) in October also introduced LTE as standard for its Pre Pay customers, following similar moves by Spanish rivals Vodafone & Yoigo.

Selected MNOs are introducing low cost LTE plans. Some examples highlighted:

• Free Mobile (France): Free Mobile offers a €2 per month tariff which includes 50MB of mobile data, unlimited SMS/MMS and 120 minutes of calls (domestic and to 110 countries) and free WiFi;
• Zain (Bahrain): Zain Bahrain has introduced a pre pay add on for $4 per week with free on-net calling, selected IDD calls, 50 minutes and 3GB of mobile data; and
• DiGi (Malaysia): DiGi Malaysia provides a smartphone tariff starting from $6 per month with a 1GB data allowance, free social media, unlimited calling and texting to 3 on-net numbers and free apps.

LTE was initially launched as a premium business data service, but has now become a standard data offering. First launched in 2009 by TeliaSonera in Sweden & Norway as a USB modem-based service, LTE is now being provided as a standard data service for a mass market of consumer smartphone users.

Some MNOs are now introducing higher LTE data allowances. Experts have identified 32 LTE plans that have a data allowance of 100GB and over, typically provided for PC/laptop/tablet devices as a premium product. Research highlights the trend with the examples below:

• Telia Denmark: Telia Denmark provides a 100GB smartphone plan for $59 per month;
• TDC Denmark: TDC Denmark provides TDC Mobile Broadband with up to a 300GB LTE data allowance for $52 per month;
• Zain Kuwait: Zain Kuwait provides a 500, 750GB and 1024GB data allowance, currently running a promotion with double the data; and
• Viva Kuwait: Viva Kuwait provides unlimited data as part of its Postpaid bundles from $100 per month.

A large number of LTE price promotions are being introduced. Research highlights the trend with some examples:

• TIM Italy: TIM Italy is offering a half price promotion for its 4G internet with 4GB of data - halving the monthly fee to €5;
• Zain Kuwait: Zain Kuwait has introduced free internet at weekends for its Pre Pay users for an unspecified period as well as double the data; and
• Vodafone Netherlands: Vodafone Netherlands has introduced a series of price reductions for its Red plans with the most expensive plan being offered at €47 per month instead of the standard rate of €75 per month.

The latest edition of the Global LTE Pricing Tariff Tracker highlights the key trends in pricing and product development, as LTE services have grown rapidly to become a mass-market service achieving 1bn users. But in order to address the remaining mobile market with LTE services, MNOs will need to continue to focus on improving penetration rates for the Pre Pay user segments, particularly in South America, Asia, India & Africa.