4G CSR to surpass $70bn in 2014

In the next four years, revenue from 4G mobile consumer services will grow aggressively. It is expected to exceed $70 billion worldwide in 2014.

A major 22% of device subscription will come from suites of operator-branded premium services, according to a study conducted by ABI Research.

As ABI Research practice director Philip Solis says, “Operators of 4G networks will refuse to be marginalized as 'dumb data pipe' service providers. Instead, they will offer suites of 'smart services' — some internally developed, others via partnerships with third party suppliers — that will be provided over 'smart networks' enabled with all-IP technologies, IMS infrastructure and cloud-based storage.”

The 4G services will also enable a proliferation of mobile devices such as smart phones, net books and PNDs and it may also prompt the operators to offer prompt services. The study also segments that Internet access will be the main service that will drive the 4G services. Multimedia services, such as VoD and P2P video sharing; media broadcast services, such as pay-per-view TV and digital radio; and gaming services, such as multi-player and augmented reality games will be further driving the growth.

These “Web 3.0” services will be integrated with popular Web 2.0 features, such as personalization, community, interactivity, presence, and localization, and will be delivered simultaneously, seamlessly and transparently to 'three screens' — PCs, TVs and mobile devices - over the Internet, over cable networks, and over wireless networks.

Solis also adds “Operators will take advantage of this market opportunity by breaking down their walls and building open ecosystems. They will partner with third-party service providers from whom they can license and re-brand services; they'll work with network and handset OEMs to influence infrastructure and device specs; and they'll join ecosystem development organizations, such as Alcatel-Lucent's ng Connect program.”

The spectrum scarcity which has started a war among the telecos, 4G will be a boon for them considering the fact that 4G has high spectral efficiency. There has been ruminations also that whether Indian telecos should skip 3G and advance to 4G rather than waiting for such a long time. High end services like Mobile TV, video services are yet to get their number of share from the Indian subscribers.

In the aftermath of 3G auctions a higher capacity demand to be built on 3G telephony spectrum might prove to be an impediment and possibly put on hold the 4G launch.

archanasi@cybermedia.co.in