4G is benefiting students and renters

Posted on October 27, 2013 07:47 am

Long Term Evolution is the fourth generation of mobile technology that offers the industry and consumers a first chance to see how the relatively new technology would mature in the mobile markets on the long run. Recently, a mobile industry analyst asked me how do prices compare to own fixed broadband offerings and if customers could find it attractive to replace their technologies with LTE. I was a bit hesitant to respond but frankly speaking continuing to account for fixed-line rental along with LTE broadband in a total bundle remains important to realizing the true cost of a home phone and broadband plan. According to data that I was analyzing before that question from the analyst, I found out that around 20 percent of households in western countries would be mobile-only for voice and broadband services in the long term. Mobile only refers to the households that will not take fixed services of any kind.

This means Long Term evolution will take couple of years before it is fully embraced. What we are seeing in the market is a sub-segment such as renters, students or single dwellers who are being strong mobile-only broadband service candidates. However, fixed broadband and fibre are not the most ideal choices for medium-to-heavy data users. For those who are keen on the industry, the forecast reflects the fact that fixed and mobile broadband services are complementary because mobile services must operate in finite spectrum with a finite network thus limiting usage for example video. Fibre services for medium-to-heavy data users are also going to deliver more bang for buck than mobile. For example in LTE, users can retain their existing fixed-line phone numbers with the provider’s VoIP services.

Contador Harrison