Pyramid Points - Creating 300,000 LTE Muscovites Overnight
  Pyramid Points
Implications of the Google-Lenovo Deal
February 12, 2014
Cisco and NEC optimize telco cloud delivery for small and midsize businesses
January 16, 2014
4G unveiled in China, but China Mobile still has work to do
December 11, 2013
Orange Dominicana by the numbers
October 25, 2013
Colombian Reversal Clause Unlikely to Slow 4G Buildout
September 19, 2013
Microsoft - Nokia & iPhone 5c: What Do They Mean for Smartphone Trends in Emerging Markets?
September 17, 2013
Is the Arab World Ready for OTT Video?
September 13, 2013
Turk Telekom bid for Digiturk is a strategic gamble
August 2, 2013
Before and After the App Store: The Changing Fortunes of Mobile Operators
July 24, 2013
In 4G Auction in Colombia, New Entrants Responded to Government Efforts to Foster Competition
July 15, 2013
Telefonica sale in Central America does not point to regional repositioning
June 5, 2013
Emerging markets to drive cellular M2M
May 22, 2013
Orange plans MVNOs to address new markets
May 9, 2013
What Apple needs to do to make China its No. 1 market
April 24, 2013
Chinese Regulator Opens Up to MVNOs
March 15, 2013
CDNs Offer New OTT Revenue Hope
February 20, 2013
Airtel Rethinks Its African Approach
February 12, 2013
France Telecom Intensifies Activities in Africa
February 5, 2013
Telefonica Climbs the Mobile Value Chain
February 4, 2013
Argentina and Chile Become Smart(phone) Markets
January 15, 2013

          Print        Email         Bookmark and Share

ARCHIVE  2012
Creating 300,000 LTE Muscovites Overnight

February 21, 2012

Today, WiMAX operator Scartel (trading under the Yota brand) released the date of the planned launch of LTE services in Moscow, the region of the operator’s largest subscriber base. The operator announced that it will cease its WiMAX operation in the Russian capital on April 14 and migrate all WiMAX subscribers to LTE services the next day.

In order to keep its customer base, the operator decided to supply its active WiMAX customers with LTE devices. All subscribers that use WiMAX modems or notebooks with built-in modems, regardless of the price range, may apply for a free LTE “Yota modem” that does not require the installation on any OS.  For those subscribers that now use a router or a HTC 4G handset, the operator will supply them with a router and a modem. 

Exhibit: Yota’s LTE dongle and router hardware

Source: Yota

The operator declared that around 1.6m Yota WiMAX devices were sold over the life of its WiMAX service, and it estimates that will need to supply LTE devices to around 300,000 subscribers in Moscow. This means that in the next few months, we expect the operator will invest around $20m to $25m in consumer devices (assuming the cost of the “Yota modem” device to the operator is 70% to 80% of its retail price of Rb2900 [$101]). Including the expected cost to provide LTE devices, the operator announced that it has so far spent $60m on LTE deployment in Moscow.

Yota already lost anywhere between 5% and 15% of its subscriber base when it increased its prices last year, introducing higher pricing levels for higher speeds. Now the operator plans to maintain its current service price levels at a range from Rb400 ($14) to Rb1400 ($49) a month when it migrates its subscribers from WiMAX to LTE. While we do not expect any immediate price-driven increase in operator revenue, we do believe that the strategy will allow Yota to distinguish itself from its competitors in the rich Muscovite market and potentially recover its losses from last year’s pricing adjustments.

It would be hard to believe that Yota would be able to engineer a spectacular transformation beyond the benefits of subscriber base stabilization and slightly-above-market average subscriber and revenue growth. The operator’s current coverage is limited to about 30% of Moscow, and its plans to increase its base stations by 50% in 2012 would still leave it behind the big three’s (Vimplecom, MegaFon and MTS) coverage. Yota will also be heavily challenged by MegaFon’s and MTS’s service over their newly acquired 900MHz spectrum. This spectrum positions these operators well in highly dense areas with heavy walled buildings.

--- Badii Kechiche, Manager, EMEA

— Olena Kaplan, Analyst



Related resources:

MVNO Strategies Beyond the Traditional Ethnic and Discount Models
Telecom Insider published February 2012
This report analyzes successful MVNOs in developed markets and will attempt to draw lessons for emerging markets. We will look at different breeds of MVNO, starting with so-called ethnic MVNOs, and we will take a look at the market potential of such services. Then we will analyze fixed operators’ strategies to become fully fledged multiplay operators through MVNO strategies, and finally we will describe the emerging and exciting trend of data-only MVNOs.


LTE Devices and Applications: Next-generation mobile networks driven by video services

Thematic Report published January 2012
Long Term Evolution (LTE) is a next-generation cellular network technology, sometimes referred to as 4G. As described in this report, LTE is the technology of choice for most mobile operators, and with strong momentum, we expect it to be the long-term, next-generation network technology of choice. LTE has already overtaken WiMAX subscriptions in 2011, and the range of LTE devices has increased elevenfold in the past year. The largest LTE device segment will be PCs through 2014, as operators initially focus on mobile broadband access for PCs. But after 2014, the PC segment will be replaced by smartphones, with operators announcing more and more LTE models.





 


 Latest Research
Thematic Reports
  Smartphone Strategies: How Devices Can Revitalize the Role of Operators in the Mobile Ecosystem
  From Digital Content to M-Wallets: M-Payment Strategies for Operators
  Cellular M2M Connections: An Analysis of Growth Drivers, Market Segments and Operator Approaches
  South Africa Telecom Market Forecast
  How Latin American Telcos Are Tackling the SME Cloud Opportunity
  More Reports
 
 Telecom Insiders
  Capex Optimization Strategies: Operator Best Practices for LTE and FTTH Deployments
  Mobile Financial Services in Africa: Deployment and Configuration Strategies for Operators
  FTTx in Latin America: Competition and Regulation Boost Growth
  Big Data: Telecom Innovation through Analytics
  Latin America LTE Spectrum Trends, Network and Business Considerations, and Demand Forecast
  More Insiders
 
 Country Intelligence Reports
  Israel: Government Reforms Fuel Fixed and Mobile Market Competition
  Togo Mobile Telecommunications: MNOs to Improve Networks, MVNO Market Entries to Boost Competition
  Poland: LTE and Fiber Rollouts to Turn Telecom Market Around, M&A to Continue
  Benin Mobile Telecommunications: Data Services Demand to Boom as Government Supports Infrastructure
  Central African Republic Mobile Telecom Market: Political Instability Threatens Revenue and VAS Growth
  More CIRs
 
 Market Forecasts
  Fixed Communications Forecast
  Fixed Operator Marketshare
  Mobile Operator KPI
  Mobile Data
  Smartphone
  Media
  More Forecasts
  Terms and Conditions      |      Privacy Policy      |      Copyright © 2014 Pyramid Research. All rights reserved.