Tablets Disproportionately Drive Long Term Evolution Demand

By

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
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Your Post-Quantum Readiness Starts at Y2Q Summit

By: TMCnet News    5/27/2026

Y2Q Summit is an executive conference focused on helping enterprises prepare for the coming era of quantum computing disruption, cybersecurity transfo…

Read More

Why Award Marketing Should Be Part of Every B2B Tech Company's Growth Strategy

By: Erik Linask    5/20/2026

Award marketing matters for B2B tech companies because industry recognition can strengthen trust, support sales and partner relationships, improve con…

Read More

Why Email Is Still the Most Underrated Layer of Modern Software Infrastructure

By: Contributing Writer    5/15/2026

Take, for example, the following scenario. A user requests a password reset, waits a few seconds, refreshes their inbox and nothing arrives. They try …

Read More

Jitterbit's Visionary Status Signals a Shift in the iPaaS Market

By: Contributing Writer    4/7/2026

As enterprise ecosystems grow more complex, integration has become less of a backend IT function and more of a strategic driver of business performanc…

Read More

Cyber Extortion over hoax Breach: Lessons from a Fabricated story about IDMERIT

By: Contributing Writer    3/3/2026

Cybercriminals are increasingly staging fake data breaches to launch extortion attempts against KYC-AML companies. Recently, hackers devised a new met…

Read More