For wireless operators, vertical applications can be quite attractive: revenues per connection may be lower (but not necessarily so for applications that require broadband), but so are churn and customer acquisition costs, while contracts often extend to 10 years and devices do not require subsidies.

Enterprises, too, stand to benefit from vertical applications, by reducing their capital (if they operate their own telecom infrastructure) and operating costs, and increasing the efficiency of their operations—in some cases, radically transforming them.

Vertical applications promise to radically change the wireless industry. The focus will no longer be exclusively on connecting people. Wireless operators will be able to connect the entire environment—people, vehicles, and machines. Several factors are encouraging this transformation:

• Vertical markets are largely underserved—but demand is growing fast, and it is an opportunity specifically well suited to WiMAX and LTE operators
• Vertical applications will be crucial to the success of WiMAX and LTE operators: they can accelerate the progress to profitability with a very limited marginal cost of support
• Vertical players are showing a keen interest in mobile broadband functionality to improve their operations and reduce costs

But it is not easy to address vertical markets:

• Operators need to understand the specific requirements of vertical players
• Vertical markets are fragmented and require support for a wide range of applications
• New business models and marketing approaches are needed to address vertical players' requirements and expectations

This report from Senza Fili Consulting looks at the opportunity that vertical applications offer to wireless broadband (3G, WiMAX, LTE) operators worldwide. It combines an extensive forecast with an in-depth analysis of the industry drivers.

About the author
Monica Paolini is the founder and president of Senza Fili Consulting. She is an expert in wireless technologies and has helped clients worldwide to understand technology and customer requirements, evaluate business plan opportunities, market their services, and estimate the market size and revenue opportunity for specific services. She is frequently invited to give presentations at conferences and has written a variety of reports on wireless broadband technologies. She has a PhD in Cognitive Science from the University of California, San Diego (USA), an MBA from the University of Oxford (UK), and a BA/MA in Philosophy from the University of Bologna (Italy). She can be contacted at monica.paolini@senzafiliconsulting.com

About Senza Fili Consulting
Senza Fili Consulting provides advisory support on wireless data technologies and services. We assist vendors in gaining a better understanding of the service provider and end user markets. We work alongside service providers in developing a wireless data strategy and in assessing the demand for wireless services. Independent advice, a strong quantitative backing, and an international perspective are the hallmarks of our work.

At Senza Fili we have in-depth expertise in financial modeling, market research, business plan support, business development, RFP and vendor selection support, due diligence, white paper preparation, and training. Our clients are international and span the entire value chain: they include fixed and mobile operators, ISPs, greenfield operators, vendors, solution providers, system integrators, investors, and industry associations.