4G Mobile Broadband: Commercial strategies for faster Return on Investment in Asia-Pacific
4G services are exhibiting strong growth in Asia-Pacific, although there are marked differences between the region's developed and developing markets. Operators are eager to exploit the plentiful growth opportunities on offer and this case study looks at exactly what those opportunities are, and examines the commercialization strategies players are adopting.
Gain understanding of successful 4G commercial strategies utilised by telcos in key APAC markets.
Align product portfolios by selecting suitable commercial strategies needed to ensure faster up-take of 4G services.
Quicken the decision-making process by understanding the strategies which underpin commercial 4G strategies in terms of client segmentation, products, pricing, promotion and distribution.
Gain understanding of the competitive landscape, to strengthen market positioning and competitiveness.
Reasons To Buy
Why is 4G growing in Asia?
How do 4G commercialization strategies vary from company to company, and from country to country?
What strategies are companies adopting?
Operators in emerging countries can benefit by offering cost-effective services to the large young population and residential segment. Operators in developed markets should targeting tech-savvy customers with larger data volume bundles, discounted OTT and VAS services and enterprise services (e.g., IoT/M2M and access to data networks).
Operators in developed markets offer larger data allowances, and in many cases, unlimited data with free calls and text messages. In emerging markets, operators focus on accelerating adoption by bundling devices with LTE plans as affordability remains a key hurdle in these markets.
Distribution strategies are aimed at leveraging existing direct and indirect sales channels to drive 4G uptake. Operators use both their physical retail stores and online websites to drive adoption of 4G service. Physical stores are important to drive take up particularly in rural areas due to tech support available for the population.
- G growing in APAC thanks to smartphones, but spectrum shortage remains hindrance
- G mobile subscriptions penetration to reach .%
- Smartphone sales to account for over % of total handset sales by in APAC
- Shortage of spectrum hinders growth of G technology, some countries considering refarming spectrum for more efficient use
- Regional mobile operators increasingly rolling out G networks across APAC
- G commercialization strategies vary
- Client segmentation: Operators should develop products and services to target three key segments
- Product strategies: Operators offer devices at discounted prices with data plans to boost adoption
- Operators price their G services based on market conditions, competition, and customers’ willingness to pay
- Promotion strategies: Operators provide G information on their websites to increase service awareness and adoption
- Distribution strategies: Operators use online channels to market their services, but retail stores remain more useful in rural areas where subscribers need technical guidance
- Commercialization strategies in action
- Telstra Australia
- Client Segmentation: Targets all key segments in Australia with range of products and services
- Telstra capitalizes on its robust network by charging relatively high prices for its G services
- Telstra distributes G services through an online store and a network of retail outlets across Australia
- KT a leading playing in South Korea thanks to innovative services, data-centric plans, and effective promotion
- KT targets customers with new innovative products and services
- KT offers data-centric plans, LTE broadcast services and launch new technology combining WiFi and LTE
- KT focuses on the high speed of its G services, while providing membership plans for existing customers
- Reliance Jio gaining a strong foothold in India
- Jio signs many infrastructure sharing agreements for faster roll-out of its services
- Jio to enter the G market with a range of services including own smartphone brands and various applications
- Jio joins hands with several vendors for G devices and distribution, also plans to use own retail stores for distribution
- NTT DoCoMo targets early adopters via promotions in one of the world's most developed telecoms markets
- NTT aims at aggressively promoting G services to take advantage of early adopters
- NTT launches promotions and provides free OTT services to attract subscribers
- Good commercialization strategies can help companies capitalize on a growing market, particularly in emerging economies
- Further Reading
- Ask the analyst
- About MarketLine
- List of Figures
- Figure 1: Mobile subscriptions by technology, Asia-Pacific
- Figure 2: 4G subscription penetration 2015 and 2020
- Figure 3: Total mobile handset sales in Asia-Pacific, 2014-2020
- Figure 4: Mobile handset sales distribution in Asia-Pacific, 2014-2020
- Figure 5: 4G spectrum features
- Figure 6: 4G spectrum allocation in APAC countries
- Figure 8: Asia-Pacific demographics, 2014
- Figure 9: Client segmentation examples with accompanying services
- Figure 10: DiGi Malaysia promotion for 4G-enabled device
- Figure 11: Pricing strategies
- Figure 12: Price comparisons for 4G and fixed broadband services in Asia-Pacific
- Figure 13: Key questions to answer in 4G promotions
- Figure 14: Popular distribution channels according to market maturity
- Figure 15: Telstra's 4G plans, 2016
- Figure 16: Telstra's retail store network, 2016
- Figure 17: KT's LTE data-centric plans, 2016
- Figure 18: Growth in KT's LTE subscriber base
- Figure 19: Group voice and video call feature on Jio chat
- Figure 20: NTT data volume before being switched to 128kbps connection