Tablets Disproportionately Drive Long Term Evolution Demand


Service provider pricing policies matter. Use of mobile networks for tablet access provide one example. At least in some markets, tablets are driving a disproportionate share of fourth generation Long Term Evolution services, for example.

Western Europe provides one example. In Western Europe, operators made early efforts to use mobile broadband as a substitute for fixed broadband by offering competitive tariffs for dongles, according to Ericsson.

Price promotion is one reason for that exception to the trend that it generally is smart phones that are driving LTE connections and data consumption.

According to GSMA research, smart phones account for 58 percent of 4G operator device portfolios, but only about 17 percent use 4G connections (3G still is the mainstay).

But 33 percent of the data devices offered by mobile service providers (dongles, tablets or hot spots) were 4G-enabled. In other words, users of data devices are twice as likely to buy 4G service, compared to smart phone users.

That appears to be a combination of supplier push and end user demand.  

At Verizon Wireless, for example, all data devices support 4G. In the fourth quarter of 2012, about 17 percent of all devices sold was a data device, according to GSMA Intelligence.

Given the confluence of demand and supply (consumers rapidly are adopting tablets and tablets benefit from data connections), mobile operators increasingly are emphasizing tablet connections and device sales.

On average, the 4G operators surveyed offered seven tablets in their data devices portfolio. Operators such as A1 Telekom (Austria), Polkomtel (Poland), MTS (Russia), STC (Saudi Arabia) and Telenor (Sweden) were found to be offering twice the number of tablets they were a year ago.

One reason is that selling tablets is a proven way to boost purchases of 4G LTE services.

LTE users consume 1.5 GB of data per month on average, almost twice the average amount consumed by non-LTE users, according to GSMA.

In developing economies, LTE users can generate average revenue per user seven to 20 times greater than non-LTE users.

In developed markets, operators have found that LTE can generate average revenue per user increases of 10 percent to 40 percent.

Edited by Cassandra Tucker

Contributing Editor

Related Articles

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More