24% of WiMAX and 14% of LTE Subscriptions by 2014 Vertical services to offer opportunities to operators
Enterprises are finally ready to adopt vertical applications M2M, in-vehicle telematics, mobile workforce support) that require wireless data connectivity. 3G, WiMAX, and LTE operators may benefit greatly from addressing this rapidly growing market, according to a new report from Senza Fili Consulting.
By 2014, there will be over 154 million connections supporting vertical applications within 3G, WiMAX, and LTE networks, generating more than USD 43 billion in service revenues. Vertical applications give wireless broadband operators the opportunity to address what is today an underserved market that will not compete with their existing services to individual retail subscribers.
"Vertical services can be very profitable for operators. They bring in a steady revenue stream generated by a small number of contracts, each with a high number of connections. And churn is low -- contracts typically last 10 years," says Monica Paolini, the report's author. To profit, however, operators need to be well equipped to face the challenges of this highly fragmented market, in which customers expect deep application-specific expertise. Press release
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