Senza Fili Newsletter

August 2008 issue

Bringing wireless broadband to vertical markets
A high-margin revenue stream for operators and compelling services for enterprises and public entities
A new report from Senza Fili Consulting

Vertical applications are one of the best growth opportunities available to wireless operators in developed markets where retail subscribership is reaching saturation and ARPUs are stagnant. Vertical applications for the enterprise open an entirely new market that wireless operators have this far neglected. Even in emerging markets, enterprises are underserved and the prospective market promises to be profitable for operators.

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 addressing vertical markets can be challenging:

• 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.

Extensive forecast of vertical market applications for 3G, WiMAX, and LTE (2008-2014)

• Regions: Asia Pacific, North America, Western Europe, Eastern Europe, Latin America, Middle East/North Africa, Sub-Saharan Africa
• Countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Korea, Mexico, Spain, Russia, UK, USA
• Technologies: 3G, WiMAX, LTE
• Devices: M2M, In-Vehicle, Mobile
• Applications: Telemetry, Vehicle Telematics, Financial Transactions, Building Monitoring, Surveillance, Content Delivery, Mobile Workforce
• Segments: Utilities, Transportation, Healthcare, Enterprise, Education, Security and Safety, Government

Detailed data available for each country and region

• Connections, market share, and service revenues by application (Telemetry, Vehicle Telematics, Financial Transactions, Building Monitoring, Surveillance, Content Delivery, Mobile Workforce)

• Connections, market share, and service revenues by device type (M2M, In-Vehicle, Mobile)

• New devices sold and sales revenues by device type

• Connections, market share, and service revenues by segment (Utilities, Transportation, Healthcare, Enterprise, Education, Security, Government)

• Vertical connections and service revenues as a percentage of retail connections by technology

• Connections and service revenues split by technology and application in 2014

• Connections and service revenues split by technology and device type in 2014

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