End-to-end LTE Opens Doors to New Business Models

Next Generation Communications Blog

End-to-end LTE Opens Doors to New Business Models

By Mae Kowalke

Today’s mobile operators are simultaneously adopting new technologies and new business models based on the idea of ubiquitous access to wireless. Investing in technologies like end-to-end (E2E) long term evolution (LTE) opens up many opportunities to grow the customer base, increase revenues, and deliver types of services not possible previously.

In a recent Enriching Communications blog, Ken Wirth, President of Alcatel-Lucent’s End-to-End Network Solutions division, said E2E LTE offers two main business opportunity advantages for wireless broadband: bandwidth and latency.

Because they are all-IP, Wirth explained, E2E LTE networks “can deliver three to four times the bandwidth offered by 3G networks.”

There’s also the speed advantage.

“E2E LTE networks dramatically reduce latency; compared to 3G networks it’s almost non-existent,” Wirth said in the blog. “With big bandwidth and low latency, mobile operators can offer applications and services that just aren’t practical on a 3G network infrastructure. They also bring the mobile Internet experience up to par with the wireline Internet experience.”

These two key advantages are helping operators focus on three profitable areas in particular: mobile video, real-time emergency services, and commercial services. Such services are part of delivering what Alcatel-Lucent calls the borderless business – networks that provide high quality wireless access indoors and out.

The network evolution taking place right now, driven by technologies like LTE and femtocells, is leaning in the direction of ‘high leverage network’ architectures – in which every aspect of the technology, including embedded intelligence and information, is fully utilized.

To get there, operators need more than just cutting-edge technology. They must also develop proof-of-concept applications and services capable of leveraging E2E LTE, as well as form partnerships and pricing plans to support success.

All of this makes it possible to achieve true application enablement: combining the speed and innovation from the web with network operators’ trusted capabilities to provide a better wireless experience for enterprises and end users.

Ultimately, E2E LTE adoption is about the bottom line.

“Mobile operators around the world are recognizing there’s a significant 1st mover advantage for those who are quick to offer advanced services on E2E LTE networks,” Wirth noted in the blog. “They are better positioned to keep existing customers and attract new ones. And they can offer advanced services in new ways to increase average revenue per user (ARPU) and accelerate returns on E2E LTE network investments.”

For much more discussion on the advantages of E2E LTE and how mobile operators are using it to succeed in a very competitive and fast-changing marketplace, check out Wirth’s blog.

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