2013/07/04 LG U+ Poster Child for 4G LTE's Financial Boost
Report Finds Above-Average Performance at Leading 4G LTE OperatorsBoston, MA - July 2, 2013 - South Korea's LG U+ has been one of the world's mobile operators to benefit most from the launch of 4G LTE services, according to a new report from Strategy Analytics' Wireless Operator Strategies service. The report, "LG U+ Highlights 4G LTE Boost to Operator Results," highlights the improving operational strength of early 4G operators in Japan, South Korea, the USA and UK, though cautions that operators still need to work hard to balance increased subsidy/upgrade costs with incremental 4G revenues.
The report draws on data from Strategy Analytics quarterly Wireless Operator Performance Benchmarking database, which tracks the operational and financial performance of operators that account for 78 percent of the world's mobile subscriptions. The data shows a good recovery in Average Revenue per User (ARPU) in Japan and South Korea, and 4G LTE operators in the USA and UK outperforming their 3G rivals.
"LG U+ has seen a striking improvement in performance since it began its transition to 4G LTE, both in terms of ARPU growth and market share gains," commented Phil Kendall, Director of Strategy Analytics' Wireless Operator Strategies service. "It is perhaps an exceptional case, having underperformed in 3G and now achieving 15 percent year-on-year growth in ARPUs, but its rivals are also seeing 4G LTE make a very positive contribution to their top line over recent quarters. It is a picture replicated in other leading 4G LTE markets."
Susan Welsh de Grimaldo, Director of Strategy Analytics' Wireless Networks & Platforms service, added "Smartphones have been a key product to support revenue growth at operators, though the challenge has always been to avoid spending all those gains on buying customers through higher subsidies. The same applies to 4G LTE, though we are seeing that the technology provides operators with a strong case to make with their customers that it is worth paying for the higher network quality."
Source: Strategy Analytics
