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LTE Reaches 32% Market Share, But Here Comes the Next Network

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Long Term Evolution 4G now has about 32 percent share of the mobile market, according to 5G Americas. In part, that explains the intense work going on to create 5G. New mobile generations appear about every decade or so, and follow a rather standard product life cycle, from birth to decline.
For better or worse, and despite some skepticism about whether “we need 5G,” 5G will come. Though 4G still is in its growth phase globally, it already is mature in developed markets, and the successor already is coming.
The simple reasons is that, eventually, any specific mobile platform runs out of things to sell to human users. So new platforms, with new features, are needed to drive a new wave of growth.
source: 5G Americas
The adoption rate seems to be exceeding many earlier projections. The main point, however, is that mobile networks continue to follow a clear product life cycle.
source: Telegeography
source: Geile/Lyon

56.6 Million Potential OTT Video Subscription Customers

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Some over-the-top subscription video suppliers (Netflix) are thrilled around the declining demand for linear video services, as it is the business problem that creates their revenue streams.

Legacy suppliers are worried because they face a decline of their large existing businesses, as well as the danger that if they create OTT streaming alternatives of their own, they will simply accelerate abandonment of linear services.
This is a familiar problem. Telcos faced the problem when pondering the way to respond to the rise of OTT voice and messaging services. Sure, they could create and heavily market their own OTT services, but only at the risk of cannibalizing their existing high-margin, high average revenue per user legacy services.
Still, as the abandonment of linear services grows, so does the opportunity to create new OTT services--mobile, especially--that cater to the swelling numbers of consumers who have no appetite for $100 a month linear services.
In 2017, in the U.S. market, t…

AT&T to Launch Mobile OTT Service in 2018

AT&T plans to launch its own mobile-centric, over-the-top streaming solution that is access provider agnostic, with a planned commercial launch in 2018.
AT&T is going to build on its DirecTV Now service and then have it available as “the primary service” in a home.
Operationally, customer acquisition costs could be lower than linear services. Provisioning costs will absolutely be lower. There will be no need for truck rolls, drop cable installation, decoders and outlet installation. There will be virtually nil trouble tickets created because customers have decoder problems.
Also, in the same way that DirecTV allowed AT&T to sell linear video virtually nationwide, for the first time, so mobile streaming service will be available nationwide, without the specific need to add new facilities, as the service will use a “bring your own broadband” approach.
At least initially, the mobile OTT offer will aim to please potential customers who do not wish to buy a traditional linear v…

New Telecom Infra Project Team Effort on Fixed Wireless, Backhaul, Smart City Use Cases

Facebook’s work on “Terragraph,” a fixed wireless  network using millimeter wave spectrum, multiple input, multiple output radios (MIMO), mesh networking and open source licensing now forms the foundation for a new development group called the Millimeter Wave (mmWave) Networks Project Group, co-chaired by Deutsche Telekom and Facebook.
Lead applications include:
Fixed wireless access Mobile backhaul Smart city applications
The mmWave group will use data and lessons learned from Facebook’s Terragraph solution, a proof-of-concept system that overcame the signal range and absorption limitations that previously confined the 60GHz frequency to indoor use, Telecom Infra Project says.
The proposed architecture has many similarities to a “fiber to light pole” design, where highly-distributed radio sites (small cells) are the “access” network launch points. Verizon’s deep fiber design calls for extending the fiber trunking network to nearly every light pole, potentially.
The mmWave network architec…

Disney Plans to Cannibalize Itself

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As the video entertainment market shifts to over-the-top distribution methods, content providers will face a problem telcos are well aware of, namely revenue issues caused by product substitution.

Much of the cost to Disney of launching its new streaming services will come from increased operating costs, as it will have to market itself, instead of relying on its distribution partners to do that. UBS has estimated that cost at about $806 million annually.

That is not even the biggest cost, though. As many legacy product providers often find, new products often simply cannibalize existing products.
When an internet service provider using digital subscriber line shifts to newer platforms such as fiber to the home, it loses a DSL account for every existing customer it converts to a fiber access. So net gains are the issue, as a telco trades lost DSL accounts for new fiber accounts.
That problem is obscured a bit by the fact that few telcos in the U.S. market have completely replaced thei…

U.S. TV Antenna Households Increase to Nearly 16 Million Homes

One sign that consumers are unbundling their video entertainment purchases is the increase in purchasing and use of over-the-air antennas, presumably then combined with subscriptions to one or more streaming services.
A study sponsored by Ion Media and conducted by Nielsen shows the number of broadcast-only homes has increased 41 percent over the last five years, to 15.8 million households.
That shift, in turn, is part of a larger rearrangement of buying preferences in the video entertainment business, which has consumers shifting buying to over-the-top streaming services, reducing or halting the buying of linear services and use of streaming services.
The report finds that broadcast-only homes have a higher percentage of young viewers (median age 34.5) than total TV households (39.6).
Some 39 percent of broadcast-only homes have children in the household, compared to 34 percent of total TV households.
The new reliance on over-the-air antennas is part of a range of other trends includi…

Vodafone Has 50 Million IoT Accounts

Vodafone says it is the first global IoT provider to amass 50 million internet of things connections, adding about one million new connections a month, with particularly strong performance in the automotive, healthcare and utilities sectors, Vodafone says.
In 2016, global IoT revenues earned by mobile operators was in the range of Eur 11 billion, according to Berg Insight. Average revenue per connection was Eur 1.40 on average, ranging from Eur 0.30 in some developing countries to Eur 3.00 in developed countries.
Some 56 percent of organizations have integrated IoT data into their existing core business systems such as ERP, cloud hosting platforms, analytics tools, and mobile applications.
About 55 percent of IoT adopters in the Americas surveyed by Circle Research have seen revenue growth by greater than 20 percent following IoT implementation.
Globally, IoT now accounts for 24 percent of the average IT budget,  equivalent to IT spending around cloud computing or data analytics, Vodafo…