Will 4G deliver? A question of revenue.

22 02 2009

Where will all the extra revenue come from to support the new 4G investment? This is the same question that was asked for 3G and few killer apps arrived to deliver the golden goose to repay the operators huge financial risk they took to achieve implementation.

Wireless Intelligence report that countries such as Iran (68%)Vietnam (51%) and India (48%) are showing some of the highest subscriber growth in 4Q 08. You can bet that the majority of accounts will be pre-paid as this is where arguably operators are winning new business. With growth principally coming from price sensitive, low spend accounts such as the pre-paid sector, no killer apps surfacing, where and how will the operators secure the revenue to cover their new 4G investment?

In the wake of this financial downturn it is unlikely people will give up their mobile phones as spend for many only accounts for about 3 percent of income. What innovation will the market launch to persuade people to open their purse strings? Any suggestions?

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