Mobile Value-Added Services (VAS) In 4G: Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2018

In the pre-LTE marketplace, the biggest mobile value-added services (VAS) are mobile apps and mobile advertising. This does not change simply with the introduction of LTE, as there will only be roughly 184 million LTE subscribers globally against 7.2 billion subs overall by year end 2013. A transformation will occur over a period of years in which certain key mobile VAS applications will establish a sustainable market position for the network operators. In fact, this must occur for carriers to establish new revenue streams for business growth beyond core voice and data services as well as anticipated margin squeeze.

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The first part of this report assesses the current state of LTE. The report then analyzes value-added services (VAS) in the post LTE era. The research takes an umbrella approach as it evaluates data, mobile advertising, and mobile apps first, and then considers market verticals. Mind Commerce explains how revenues are realized in each market. Mind Commerce examines Rich Communications Suite (RCS) and Voice over LTE (VoLTE). The report describes how the market will develop, in general, and also evaluate what countries are likely to adopt VoLTE by taking a detailed look at infrastructure, spectrum, and the competitive landscape in each country.

The report includes forecasts for 2013 – 2018 for every major VAS application category including:

• Mobile Data
• Voice over LTE (VoLTE)
• Rich Communication Suite (RCS)
• Mobile Advertising
• API-based Apps
• Social Networking
• Coupons and Loyalty
• Geo-location
• Mobile Gaming
• Mobile Virtual Goods
• Video, TV, and Second Screen
• Mobile Health
• Mobile Entertainment
• Machine-to-Machine (M2M)
• Connected Vehicles
• Public Safety
• Messaging (non RCS)
• Small Cell Targeted Advertising

The report includes conclusions and recommendations for network operators, content providers, application developers, and infrastructure providers. The Report also includes vendor analysis from selected companies including Empirix, OpenCloud, Openmind Networks, Samsung, and Tropo.

Target Audience: 

• OSS/BSS Solution Providers
• Mobile Network Operators
• Mobile Software Developers
• Mobile Payment Service Providers
• Handset and Tablet Manufacturers
• Content and Applications Mediators
• Social Commerce Vendors and providers
• Mobile Marketing and Advertising Providers
• Telecommunications Infrastructure Providers 

Report Benefits: 

• Global and regional forecast for key apps: VoLTE and RCS
• Forecasts for 2013 – 2018 for every major LTE VAS application
• Identify challenges and opportunities for LTE services providers
• Understand the business drivers and key success factors for VoLTE and RCS
• Identify opportunities for infrastructure providers and application developers
• Understand LTE technology and supporting next generation network infrastructure
• Identify emerging opportunities including Connected Vehicles and Small Cell Advertising

Table of Contents: 

1.0 EXECUTIVE SUMMARY 

2.0 INTRODUCTION

3.0 LONG TERM EVOLUTION (LTE) 

3.1 LTE 2013 STATUS UPDATE 11

3.2 LTE SUBSCRIPTIONS 13

3.3 LTE RELEASE 11 AND THE ROADMAP BEYOND 14

3.4 LTE DIRECT 16

3.5 LTE DIRECT APPLICATIONS 18

4.0 LTE VALUE-ADDED SERVICES (VAS) 21

4.1 ASSUMPTIONS ABOUT MOBILE SUBSCRIPTIONS AND MOBILE DATA 21

4.2 MOBILE DATA 23

4.3 MOBILE ADVERTISING 23

4.4 API-BASED APPS DOWNLOADS 28

4.5 SOCIAL NETWORKING/MATCHING 29

4.6 COUPONS, LOYALTY AND VENUE-BASED SERVICES 32

4.7 GEO-LOCATION BASED SERVICES 34

4.8 MOBILE GAMING 37

4.9 MOBILE VIRTUAL GOODS 39

4.10 VIDEO, TV, PAY-TV AND SECOND-SCREEN 39

4.11 MOBILE HEALTH 41

4.12 MUSIC SERVICES (INCLUDING RINGBACK AND RINGTONES) 42

4.13 MACHINE-TO-MACHINE (M2M) 43

4.14 CONNECTED VEHICLES 44

4.15 PUBLIC SAFETY LTE 45

4.16 MESSAGING, TEXTING, AND SMS (NOT RELATED TO RCS) 47

4.17 SMALL CELL TARGETED ADVERTISING 47

4.18 MISCELLANEOUS SUBSCRIPTION SERVICES 49

4.19 LTE VAS ROLL-UP 49

5.0 THE MOST ACTIVELY ANTICIPATED VAS: VOLTE 51

5.1 HOW VOLTE WORKS 51

5.2 WHY VOLTE IS IN THE BEST INTERESTS OF MOBILE OPERATORS 52

5.2.1 MANAGEMENT OF MACRO SPECTRUM 52

5.2.2 GREATER EFFICIENCY OF MICRO SPECTRUM 53

5.2.3 IMPROVED QOS 53

5.2.4 LESS HARDWARE AND COTS EQUIPMENT 53

5.2.5 ROAMING WILL BE DRAMATICALLY EASIER 53

5.2.6 LESS EXPENSIVE PER BIT BACKHAUL 54

5.2.7 COMPARABLE DEVICE PERFORM BETTER ON LTE THAN ON 3G NETWORKS 54

5.3 FACTORS THAT COULD SLOW THE GROWTH OF VOLTE 54

5.3.1 SPECTRUM ISSUES INCLUDING THE LACK OF GLOBALLY HARMONIZED SPECTRUM 

5.3.2 LACK OF SPECTRUM COHERENCY IN THE UNITED STATES 55

5.3.3 DEVICE MANUFACTURERS ARE RETICENT TO SUPPORT VOLTE 56

5.3.4 TECHNICAL CHALLENGES IN THE NETWORK 57

5.3.5 RELAXED RULES ON NETWORK SHARING IN THE EUROPEAN COMMISSION 58

5.3.6 THE GLOBAL RECESSION CONTINUES 58

5.4 THE STATUS OF CURRENT VOLTE MOBILE OPERATORS 58

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