Mobile operators will find that the expected rapid increase in the number of tablets with mobile broadband subscriptions in the next 5 years will be creating a strong impact on the existing mobile data services and packages. In a recent analyst briefing with PCC Mobile Broadband, Susan Welsh de Grimaldo, Director, Wireless Operations Strategy from Strategy Analytics discussed some of the upcoming trends in this device segment, which include Operators' move to roll out more tariff-adjusted LTE plans for tablets and the rise in smaller form factor tablets to cater for mobile use.
Strategy Analytics, a research and strategy consulting firm specializing in various technology segments, recently released their Wireless Operator Strategies (WOS) service report, “Global Active Mobile Broadband Tablet Subscription Forecast: 2010-2018” report, forecasting tablets with mobile broadband subscriptions using 3G and 4G LTE to grow more than five times in the next five years to reach nearly 250 million in 2018 at a global level.
According to Susan, newer LTE plans will have to cater for rich media content that is becoming increasingly popular as subscribers watch their videos and movies online, via subscription to various online content providers. Mobile Operators are expected to continuously innovate their existing plans and pricing schemes as well as product bundles to cater for these growing demand, for example, by introducing day passes for videos, and shared plans that enable subscribers to access their selected content on multiple devices. Content and device bundling is also expected to feature heavily across tablet plans in future, as content providers partner with Operators to provide sponsored access to their content as part of the subscription plan. Another key factor that will also be contributing to the increase in the adoption of tablets is the rise in Voice Over LTE (VoLTE) whereby data subscribers can make calls and message using their data connection, enabling tablets to meet all three needs - communications, internet and entertainment.
Key predictions covered in Strategy Analytics report include the following:
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247 million tablet subscriptions by 2018, up from 45 million in 2013
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Attach rates only 45% of tablets with embedded mobile connectivity, had a data plan in 2013, which means only 10% of all tablets had a direct mobile broadband connection (excluding Wi-Fi connections via tethering).
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Biggest growth is in LTE: LTE will account for 92.4% of all tablet subscriptions by the end of 2018, overtaking 3G
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US wireless market growth: the US will add 50 million tablet subscriptions in the next five years; Verizon Wireless, Sprint and AT&T combined added nearly 1.5 million tablet subscriptions in Q1 2014.
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Revenue and data traffic impact: Tablets will contribute US$26 billion to operator service revenues and generate over five million Terabytes of mobile data traffic in 2018.
Global Tablet Mobile Broadband Subscriptions Forecast to Grow 5x from 2013-18
“In emerging markets, operators are seeing some success using their own-branded tablets to drive up the total addressable market for 3G / 4G tablets. We are also seeing more ‘comes with data’ models where device purchase includes a free monthly data allowance, such as HP’s DataPass”
- Phil Kendall, Executive Director, Wireless Operator Strategies
“In markets with high wireless penetration rates, operators are driving tablet connections through use of shared data plans and add-on plans to encourage their existing phone user base to add a tablet to their account. For example, in the US, both Verizon Wireless and Sprint reported tablet net additions of over 500,000 in the first quarter this year.”
- Susan Welsh de Grimaldo, Director, Wireless Operator Strategies