Verizon Expects VoLTE Interoperability With AT&T in 2016

U.S. operator Verizon Wireless expects VoLTE interoperability with AT&T Mobility to become commercially available this year, according to Verizon’s vice president of network planning and technology, Adam Koeppe. Speaking at a FierceWireless panel called “The Path to 5G” at the Mobile World Congress in Barcelona, Koeppe said that trials of the service with AT&T were progressing well. The companies said in November 2014 that they expected to offer VoLTE calling between the two networks by the end of 2015. In December AT&T said that it had achieved the first VoLTE exchange between its customers and Verizon customers in select areas. Currently, customers of each operator who have VoLTE-enabled phones can only call other VoLTE phones on the same network.

VoLTE technology has the potential to revivify an aspect of mobile service that has been suffering lately—voice telephony. The rise of data, including OTT messaging, has caused voice to recede in terms of proportion of use. VoLTE, due to its higher quality, promises to deliver greater customer satisfaction and therefore to boost the use of voice calling. Increased traffic over operators’ LTE networks due to VoLTE stands to increase revenue and also maximize capacity on those networks. However, VoLTE will not be appealing to customers if it remains only within one network. The average customer has too many friends and contacts who use the services of different operators to make it worth their while to buy a new, VoLTE-enabled device for on-net use only. Furthermore, full off-net calling is needed to fully utilize network capacity. Therefore, interoperability is essential if VoLTE is to be viable and live up to its promise.

The recent trials show that AT&T and Verizon, the two biggest operators in the U.S., have established interoperability as a practical possibility; all that remains is for them to implement it across their national footprints. Finally, uptake of VoLTE-enabled smartphones will be driven only by wide availability of VoLTE across operator networks, so device manufacturers will be watching AT&T and Verizon’s progress with interest. Fully-realized VoLTE has been a long time coming in the U.S. Now it seems be arriving at last. We expect that T-Mobile and Sprint will be working hard to connect their own VoLTE services with those of the two market leaders. 

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile, fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.

To learn more about Tarifica, please visit www.tarifica.com 

Telenor Norway to End 3G Service Ahead of 2G Service

In a recent statement, Bjørn Amundsen, Telenor Norway’s director of coverage, said that within five years the operator’s 4G/LTE network will match its 2G network in terms of coverage. Telenor Norway has already deployed 4G/LTE service in 42 of 87 municipalities in the country’s key northern territories and is on target to cover all municipalities in northern Norway by the end of 2016. Currently, subscribers can only access data on Telenor’s 4G/LTE network, but the operator plans to launch VoLTE before the end of the year. Amundsen also said that the MNO will phase out its 2G network within a decade and will end 3G service sooner than that. It will maintain its 2G network longer than its 3G network due to device compatibility issues and the growing number of M2M services.

Telenor Norway’s prediction that it will end 3G service ahead of 2G service comes as no surprise, as we have seen other operators, such as those in the U.K., state the same thing. In New York, U.S. mobile operator Verizon Wireless has shut off 20 MHz of spectrum that was once allocated for 3G service and is running 4G in its place. The operator is doing the same on its network in Cleveland, OH. Lastly, as we have previously reported, in India, where adoption of 3G networks has been slow, some operators may go directly to 4G from 2G networks, bypassing 3G service altogether. Requiring operators to maintain three networks is very expensive, so it is critical that they choose how to repurpose spectrum based on return of their investment. For most operators, 2G networks are still an important source of revenue, particularly in rural areas, where the return on investment for 4G infrastructure upgrades will not be enough to make it very profitable. In addition, 2G service uses a low frequency, which results in reduced operating costs for MNOs. On the other hand, 3G competes more closely with 4G in that it is data-focused, and with 4G service, operators may be able to upsell users to larger data packages due to the faster speeds it offers. As Telenor Norway begins to refarm its spectrum, 3G service may well be the first to go, mainly to ensure that there will not be any loss of coverage in hard-to-serve areas and to ensure that users with older handsets still receive service. Once its 4G/LTE network can support VoLTE across the country and more users have 4G-enabled smartphones, we may still not see the total elimination of 2G service, because 2G is particularly useful for M2M connectivity, which is in growing demand.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. Contact Tarifica for a subscription to the Tarifica Alert. 
Tarifica is the leader in monitoring and analyzing telecom pricing, covering hundreds of operators in every region of the globe. Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. Click here to contact a Tarifica Analyst.

Dish Said to Be in Financing Talks for T-Mobile US

U.S. satellite TV provider Dish Network is in talks with banks about funding a bid for T-Mobile US, according to a report in the Wall Street Journal. Dish is considering borrowing US $10–15 billion for the cash portion of a bid that would primarily be composed of its stock, according to people familiar with the matter. The two sides are discussing a deal that would leave Deutsche Telekom, which controls T-Mobile, with a large minority stake in a combined company. A deal between Dish and T-Mobile is not considered imminent, and it is possible that an agreement will not be reached, according to the sources. It is unclear how much Dish is considering paying for T-Mobile, which has a market value of US $31 billion and is the fourth-largest mobile carrier in the U.S. Dish, the country’s second-largest satellite TV provider, has a market value of US $34 billion.

Deutsche Telekom has been looking to divest itself wholly or partly from T-Mobile US for a while now, without success. In January, Deutsche Telekom CEO Timotheus Hoettges said that T-Mobile has no chance of catching up with market leaders Verizon Wireless and AT&T, and that its “Uncarrier” approach of relying on aggressive promotions is not sustainable in the long term. Deutsche Telekom, which owns two thirds of T-Mobile, has had to inject US $4–5 billion a year into T-Mobile to keep it going, and while the U.S. operator has been constantly increasing its number of subscribers, it has also consistently lost money. While Hoettges expressed a desire for T-Mobile to merge with third-place U.S. operator Sprint (majority-owned by Japan-based Softbank), it is clear to him and to most observers that U.S. regulators, who wish to keep the market at four major MNOs, would never approve such a deal. So reducing Deutsche Telekom’s ownership of T-Mobile by doing a deal with a non-MNO entity such as a satellite provider is a good alternative strategy, and Dish is a good prospective partner. Dish founder and CEO Charlie Ergen has been expressing interest in T-Mobile for almost a year, after having lost out to Softbank for control of Sprint. A merger could be a boon for Dish, which could enter the mobile market and offer multiple-play packages, and for Deutsche Telekom, which could reduce the financial burden induced by T-Mobile US. T-Mobile’s network would benefit from adding the mobile spectrum that Dish has been buying up. However, the two companies are reportedly only the in the discussion phase, and there are many reasons, from the financial to the personal, why it might not take place at all.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. Contact Tarifica for a subscription to the Tarifica Alert. 
Tarifica is the leader in monitoring and analyzing telecom pricing, covering hundreds of operators in every region of the globe. Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognizedauthorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. Click here to contact a Tarifica Analyst.

Mobile Promotions

During 2015 mobile data has continued to be the most relevant driver of revenue for mobile service providers. This trend is reflected in the various offerings that MNOs throughout the world have made available to their subscribers. Additionally, these creative packages, which are centered around data offerings, have been launched by operators as a way to gain new subscribers as well as to keep their current customers during times of dwindling ARPU. Promotion strategies widely implemented by MNOs during 2015 include bundling mobile data with unlimited voice and SMS, bundling offers to create quadruple plays, bundling data offers with devices and creating pricing plans that enable users to share data with other users or among several devices as well as plans that are based on content, apps or social media offerings.

We have also seen evolving trends in the way these mobile data packages are being created. The use of prepaid data plans has increased, even for low-end users in emerging markets. Operators are discontinuing unlimited offers for mobile data and creating tiered plans with different data allowances. In an attempt to get subscribers with existing unlimited data packages to switch to plans with set amounts, operators are offering faster speeds with the chosen data amounts. As users get a taste for data, their demands increase, and, if the transition is simple and convenient, mobile operators can usually upsell customers to plans with larger data allowances. Shared data bundles—for example, U.S.-based Verizon Wireless’ More Everything Plan—have resulted in subscribers wanting to connect more devices. Operators in both the U.S. and Europe have reported increased cross-selling of related products after implementing shared plans. We also believe that data plans that are created for social media apps or that are content based, such as offerings of Spotify or Netflix, will continue to proliferate, as these packages do not count against customers’ data allowances.

Proliferation of 4G/LTE networks has also had a large impact on the increase in mobile data use. We have seen the creation of entry-level 4G/LTE data plans, as well as operators—for example, TIM Italy—offering 4G access as an add-on feature to their data offerings.

We believe we will see operators pushing their innovative data offers even further in the second half of 2015. MNOs will find themselves up against disruptive strategies, particularly those from MVNOs such as Republic Wireless and FreedomPop that are offering lower data prices as well as unlimited data plans since, they are offloading users onto Wi-Fi and relying on it to reduce their costs. We believe MNOs will be creating offers that are designed to counter challenges from Wi-Fi networks created by linking together the growing number of available hotspots.

 is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. Click here to contact a Tarifica Analyst

Verizon Wireless Brings Back Its More Everything Promotion

Verizon Wireless, one of the leading U.S. mobile network providers, has brought back the promotional pricing for its More Everything shared data plans. The operator has introduced a 10 GB plan for US $80.00 per month (down from US $100.00 per month) and brought back a 15 GB plan for US $100.00 per month. This pricing does not include monthly access charges for connecting smartphones, tablets and other devices.

According to recent reports Verizon Wireless added 565,000 postpaid subscribers in the first quarter of 2015 (a 4.8 percent increase from the same time last year) but lost 188,000 prepaid users (in the first quarter of 2014 it gained 10,000 prepaid clients). Additionally, the company added 621,000 LTE smartphones to its customer’s base; however it lost 374,000 3G-compatible smartphone users, bringing overall smartphone growth down to 247,000 clients. Even though Verizon executives have said in the past that they accept the fact that some of their subscribers are leaving Verizon and that the company will not get involved in a price war to keep them, it seems like by bringing back a previously launched promotion that offers lower pricing, the operator is in fact trying to respond to other offers available on the market. Frequent promotional campaigns that indicate special pricing strategies attract new subscribers, so they are a good way of increasing the customer base, stabilizing an operator’s position on the market and bringing in additional revenue.

T-Mobile, one of Verizon’s competitors, introduces new promotional offers relatively often, not only to attract new customers but also to shake up the U.S. mobile market. Based on recent reports, T-Mobile’s aggressive campaigns had a positive impact on its customer growth in the first quarter of 2015. The operator added 1.8 million new customers and ended the quarter with 56.8 million customers. Even though other factors such as strong network, customer satisfaction and competitive pricing have an impact on operator’s position on the market, promotional offers serve as an additional opportunity for to market services and test their popularity against other offers currently available.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. Click here to contact a Tarifica Analyst

T-Mobile and Verizon Wireless Lead US Carriers in Consumer Value

Tarifica has announced the latest Tarifica Score™ measure of consumer value for postpaid mobile plans in the United States. Tarifica applies its “Top Value Plan” designation to the highest scoring plan in each of 20 market segments which consist of four types of plans: individual/family and with/without phone.

T-Mobile had three of the four highest scoring plans in the market. “The only strike against T-Mobile is its relatively weak coverage but this was more than offset by its many strengths such as aggressive pricing, discounted line fees for multiple users, relatively fast download speeds, generous data allotments and bonus inclusions such as data stash, unlimited streaming music and free roaming,” said Tarifica analyst Jamie Davella. T-Mobile would have likely won more than five price segments but it did not have plans in many of the higher priced categories.

Although Verizon Wireless’ top plans did not rank as highly as T-Mobile’s, the carrier’s offers were impressive, receiving nine Top Value Plan designations, including 70% of the designations for individual plans. “Verizon offers high customer value plans across the vast majority of price points. Verizon’s success was driven by the strength of its network. The carrier’s reliable coverage and fast average download speeds were enough to more than outweigh its relatively high prices,” continued Davella.

AT&T ranked third with four Top Value Plan designations. The carrier struggled to compete against the aggressive pricing of Sprint and T-Mobile in the lower cost segments and was slightly behind Verizon on coverage and download speed which hurt its higher end plans. Sprint finished last, winning only two Top Value Plan designations as it had the lowest ratings for both download speed and network coverage. These limitations were too much to overcome for even some of its most aggressively priced plans.

The Tarifica Score is an advanced algorithm used to evaluate mobile plans based on the value they offer consumers. It incorporates every aspect of each mobile plan (including usage allotments, geographic coverage, data speeds and additional features) and weighs them against each plan’s total costs to determine its relative consumer value.

“In today’s mobile marketplace, consumers are flooded with hundreds of plan variations and constantly shifting promotions and deals—the majority of which come with different costs and services, and access networks of differing strengths. Operators can use Tarifica Scores to help consumers cut through the clutter and identify those plans in every market segment that offer the best value for the money,” stated Tarifica Program Manager, Will Watts.

Tarifica Scores were calculated for all the published plans offered by Verizon Wireless, AT&T, Sprint and T-Mobile. ‘With phone’ plans were scored with the iPhone 6. Scoring is based on the total cost of service and device, incorporating all upfront and recurring charges. Shared plan scores were based on four users per plan.

For more information, please visit www.tarifica.com

       

       

       

Report: Verizon in Talks to sell Wireline Assets

U.S. telecom giant Verizon is close to selling a package of assets including mobile towers and parts of its wireline business. The deals could be worth more than US $15 billion, people familiar with the matter told the Wall Street Journal. The deals will involve different buyers and could be announced as soon as this week. CEO Lowell McAdam said in January that the company was open to selling assets that would reduce its wireline footprint.

Here we have what appears to be another vote in favor of mobile service in a developed market. This divestment would allow Verizon to focus on its core wireless business, which accounts for 70 percent of its revenue. The deal would also give the company cash to help pay off the debt it incurred in buying out Vodafone’s stake in Verizon Wireless (the deal closed in February 2014) and to defray the US $10.4 billion cost of the wireless licenses it received in the U.S. federal spectrum auction that ended last week.

The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week or to contact the Tarifica Research department:  http://www.tarifica.com/contactus.aspx

T-Mobile US Agrees to More Transparency on Data Speeds

T-Mobile US has agreed with the Federal Communications Commission (FCC) to provide customers with more accurate information about their mobile internet speeds. T-Mobile will send text messages to customers providing them with easier access to speed information, will place direct links to accurate speed tests on customer handsets and will revamp its website disclosures to provide clearer information about the speeds that users actually experience. In particular, the operator will send users who have hit their monthly data caps a text message linking to a speed test that shows their actual, throttled speed. In the existing system, if those users run speed tests, they receive information about T-Mobile’s full network speed. The operator has agreed to complete the rectification process within 60 days.

The U.S. regulatory climate with regard to throttling is turning increasingly inclement. Last month the Federal Trade Commission filed a complaint in federal court against AT&T in connection with throttling and the disclosures relating to throttling. Since this summer, the FCC has also been scrutinizing the practice. Chairman Tom Wheeler sent letters on the subject to the four major operators, Verizon Wireless, AT&T, Sprint and T-Mobile US. Last month, Verizon Wireless announced that it had canceled its plan to institute speed reductions for 4G customers on unlimited plans. Now T-Mobile has agreed, if not to scale back throttling then at least to make more accurate information about it available to its customers. If the FTC, for one, gets its way, throttling will eventually be abolished. But as long as the practice continues, it appears that at least customers will be more fully informed about it, and therefore be better able to make informed decisions as to whether they want to subscribe to services that feature it.

Beyond the specific issue of data-cap throttling, we believe that making speed test results easily available to customers is a good practice for mobile operators, insofar as high speed is increasingly in demand and customers are becoming more savvy on the subject. Of course, that puts some pressure on the operators—if they are going to make test results available, the results will need to measure up to expectations.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues or to speak with the research team: http://www.tarifica.com/contactus.aspx

T-Mobile and Verizon Wireless Lead US Carriers in Consumer Value

Tarifica has announced the latest Tarifica Scores for all postpaid mobile plans in the United States.

The Tarifica Score™ is an advanced algorithm used to evaluate mobile plans based on the value they offer consumers. It incorporates every aspect of a mobile plan (including usage allotments, geographic coverage, data speeds and additional features) and weighs them against all the plan’s associated costs to determine the ultimate consumer value.

“In today’s mobile marketplace, consumers are flooded with hundreds of plan variations and constantly shifting promotions and deals – the majority of which come with different costs and services, and access networks of differing strengths. When making a decision that will likely impact them for up to two years, consumers can use Tarifica Scores to cut through the clutter and identify those plans in every market segment that offer the best value for the money,” stated Tarifica Program Manager, Will Watts.

Plans were grouped into four broad categories: 1) Individual Plans with Phone, 2) Individual Plans without Phone, 3) Shared Plans with Phone, and 4) Shared Plans without Phone. Each of these categories was further segmented based on monthly cost. Tarifica Scores were calculated for all the published plans offered by Verizon Wireless, AT&T, Sprint, T-Mobile and US Cellular.

Broad trends:

T-Mobile’s plans tended to perform quite well, particularly in the “Without Phone” categories. Their combination of solid average download speeds, generous data allotments, added bonus features like unlimited streaming music and free roaming, and moderate costs were able to offset the carrier’s weaker network coverage. Verizon Wireless also performed well, showing strength in the “With Phone” categories, and in the higher priced segments where the carrier’s network speed and wide geographic coverage were able to counterbalance its higher costs and lower data allowances.

While generally competitive, AT&T’s plans were often too expensive to be competitive with T-Mobile in the mid-tier price range and, although the carrier is close to Verizon Wireless in terms of speed and coverage, the latter’s slight advantage in both caused AT&T’s plans to come up short in the higher cost segments. Finally, while Sprint’s plans benefited from their lower costs and frequent inclusion of unlimited data, its average speed was simply too slow, and its coverage too limited, to be competitive with any of its tier one rivals, resulting in the fewest segment wins and the lowest average scores.

“In short, consumers who already own a smartphone will get the best value from T-Mobile’s plans whether they are signing up for themselves or for their whole family. On the other hand, those interested in purchasing a mobile plan with a high-end phone are likely to find Verizon Wireless offersthe best value, provided its more expensive options are in their price range,” stated Tarifica Program Director Ken Dolsky.

Scores by category (best plan in each category awarded a score of 100):

Individual Plans without Phone – This was the most closely grouped category, likely reflecting the fierce competition in the US market, with the top scores from all tier one carriers above 80, something not heretofore seen in other countries. T-Mobile’s Simple Choice plan with unlimited data won the category, followed closely by Sprint’s $60 unlimited plan. Interestingly, each of the tier one carriers captured at least one market segment in this category.

Individual Plans with Phone – Verizon Wireless’s 10 GB version of the More Everything Plan won the category by a relatively sizable margin, while T-Mobile’s Simple Choice plan with unlimited data came in second with a still respectable score of 87. All plans were scored with the iPhone 5S with the exception of the lowest market segment (under $50 per month) where plans were scored using feature phones. Scoring is based on the total cost of service and device, incorporating all upfront and recurring charges.

Shared Plans without Phones – Continuing its dominance in the without phone category, T-Mobile’s Simple Choice plan with unlimited data was the winner. Moreover, unlike the case with individual plans, the competition was not particularly close, with the highest scoring plans from the other tier one carriers tightly grouped together in the low 70s. Driving the wide gap was T-Mobile’s strategy to offer more aggressive escalating volume discounts as lines are added than any of its peers. Shared plans were scored based on four users per plan.

Shared Plans With Device – Mirroring its solid performance among individual plans with phones, Verizon Wireless dominated this category, as well, with the 30 GB version of the More Everything Plan taking top honors. Further, the carrier came out on top in every price segment, with the exception of the lowest tier, which was won by AT&T. Shared plans with device were scored based on the costs/allotments for four users each with an iPhone 5S, with the exception of the least expensive plans which were scored with feature phones.

About Tarifica

Tarifica, a unit of T3i Group, has been the leading provider of telecom pricing information for close to four decades. It maintains the most robust, in-depth and up-to-date pricing database in the industry, which includes mobile and fixed line rates from over 400 operators in 85 countries, as well as historical data going back to 1997. Tarifica also produces reports, surveys, publications and custom analyses. Its clients include carriers, regulators, enterprises and consultants in every region of the globe. For more information, please visit www.tarifica.com.