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Vertical markets seen as key revenue stream for mobile broadband operators
Services to reach 24% of WiMAX subscriptions and 14% of LTE subscriptions by 2014, says a Senza Fili report.
Vertical applications for 3G and mobile broadband networks are ready to take
off, and they represent a huge growth opportunity for operators facing flat
ARPUs from individual retail subscribers, says a new report from Senza Fili
Consulting. Enterprises who have historically shunned mobile data
applications are warming up to specialized, vertical applications including
mobile-to-mobile (M2M), in-vehicle telematics and mobile workforce support.
Operators who provide 3G cellular, WiMAX and LTE networks could realize the
benefits of this interest.
The report estimates that there will be over 154 million connections supporting
vertical applications within 3G, WiMAX, and LTE networks by 2014. This
equates to more than US$43 billion in potential service revenues.
"Vertical services can be very profitable for operators," says Senza Fili's
Monica Paolini. "They bring in a steady revenue stream generated by a
small number of contracts, each with a high number of connections." Vertical
applications give wireless broadband operators the opportunity to address what
is today an underserved market that will not compete with their existing
services to individual retail subscribers. The Asia Pacific region is seen
as the area for greatest growth, followed by Western Europe and North America.
The most widely deployed applications are expected to be vehicle telematics and
support for the mobile workforce. They require the bandwidth and wide-area
coverage that 3G, WiMAX, and LTE support. Additional mobile broadband
market growth will come from emerging consumer applications available in
vehicles and in mobile and CE devices that extend mobile broadband beyond
individuals to connect the entire environment.
By Jeff Orr, ORR Technology, LLC
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