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New services will drive adoption of LTE

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Deepa
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BANGALORE, INDIA: Data speed and new IP-based services will be the primary drivers for operators launching LTE services, as per SAP's 'GSMA Mobile World Congress' survey.

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While improved data speed for customers scored 36 per cent, offering new IP-based services secured 30 per cent of votes from the survey respondents.

Fifty-eight per cent of respondents believe that new offerings, including rich communication services (RCS) and 4G/LTE and increased data usage by smartphone users, will drive operator revenue.

Key sources of revenue for operators differed across regions, with around one-third of respondents based in Europe and North America reporting that offering new services, such as video broadcast and movies on demand, to customers through a 4G network would be the key to generating revenue in 2013.

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Meanwhile, given the more recent Asia-Pacific smartphone boom, findings showed that 40 per cent of Asia-based respondents placed much greater significance on increased data usage by smartphone users.

"Leaders across the mobile industry believe that new IP-based services, such as our recently announced SAP Rich Communication Services 365 mobile service, will be key to driving LTE adoption," said Diarmuid Mallon, lead, Global Mobile Marketing Programs, SAP. "The survey results provide a roadmap for operators looking to expand their customer service portfolio through high speed 4G LTE networks."

The lack of compatible devices continued to be an issue for mobile operators rolling out LTE offerings. Twenty-six per cent of respondents in this year's survey cited device incompatibility as a major obstacle, echoing the 29 per cent who considered incompatibility a barrier in the 2012 Mobile World Congress survey.

Moreover, 20 per cent of respondents indicated that a lack of support for roaming would remain an issue. Despite these challenges, the industry has made headway, with only 19 per cent of global respondents citing lack of consumer awareness as the biggest barrier to LTE uptake.

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