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Topic # 114710 28-Feb-2013 11:15 Send private message

Can't believe I found this on stuff but wonders will never cease .... put this in here as it will apply to all networks  ,

I actually found this interesting and another take on data and cost, Its also what I belive as well and this also can apply to Fibre and UFB investments.


http://www.stuff.co.nz/technology/digital-living/8362839/Koreans-warn-of-curse-of-4G-networks





Yes I am a employee of WxC (My Profile) ... but I do have my own opinions as well Wink

             

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  Reply # 772026 1-Mar-2013 02:49 Send private message

SK Telecom have 50% market share of a large population (Korea) and their last financial report shows healthy profits with LTE already having higher ARPU than 3G customers... they have almost 2x more LTE subscribers thatn NZ has people total.

Direct quotes from their from their FY2012 earnings report which is available on their website below:

SKT was able to restore its ARPU to pre-2011 tariff cut levels, largely due to the growth of the higher ARPU LTE subscriber base. The Company‟s high LTE ARPU has led to 3 consecutive quarters of ARPU growth, with 4Q12 Total and Billing ARPUs showing QoQ increases of 2.3% and 1.9%, respectively.

The LTE ARPU is showing stability at a relatively high level. The 4Q12 LTE ARPU was 21% higher than the smartphone ARPU and 48% higher than the Billing ARPU.

I appreciate that the situation is different for small providers in NZ however I'm going to remain skeptical when massive telco's like SK Telecom cry poverty because they are basically complaining that it's harder create artificial scarcity and extract super normal profits in a competitive market... well boo hoo.

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  Reply # 772027 1-Mar-2013 03:11 Send private message

The problem is that the article is saying nothing about how their pricing is actually structured; if you're offering flat rate all you can eat packages then of course revenue will be 'meh' and data usage will increase. The question is whether the telecoms can walk the tight rope between changing a reasonable price so consumers pay but equally price that allows them to make back what they've invested into the infrastructure.




MacBook Pro 13.3" Mid-2012; iMac 3.4Ghz 27-inch (BTO) Late-2012; iPhone 5S 'Space Grey' (64GB), Huawei HD659b


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  Reply # 772041 1-Mar-2013 07:19 Send private message

Ragnor: SK Telecom have 50% market share of a large population (Korea) and their last financial report shows healthy profits with LTE already having higher ARPU than 3G customers... they have almost 2x more LTE subscribers thatn NZ has people total.

Direct quotes from their from their FY2012 earnings report which is available on their website below:

SKT was able to restore its ARPU to pre-2011 tariff cut levels, largely due to the growth of the higher ARPU LTE subscriber base. The Company‟s high LTE ARPU has led to 3 consecutive quarters of ARPU growth, with 4Q12 Total and Billing ARPUs showing QoQ increases of 2.3% and 1.9%, respectively.

The LTE ARPU is showing stability at a relatively high level. The 4Q12 LTE ARPU was 21% higher than the smartphone ARPU and 48% higher than the Billing ARPU.

I appreciate that the situation is different for small providers in NZ however I'm going to remain skeptical when massive telco's like SK Telecom cry poverty because they are basically complaining that it's harder create artificial scarcity and extract super normal profits in a competitive market... well boo hoo.


1) arpus alone are meaningless. You need to show how costs have changed at the same time. If your arpus are going up by 3% but cost are going by more then you have a problem.

2) Spectrum capacity is not artificial scarcity.

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  Reply # 772042 1-Mar-2013 07:39 Send private message



1) arpus alone are meaningless. You need to show how costs have changed at the same time. If your arpus are going up by 3% but cost are going by more then you have a problem.

2) Spectrum capacity is not artificial scarcity.


Totally agree - ARPU is just some average over a set of (limited) data, a much better measure is SARC - Subscriber Acquisition & Retention Costs, which takes into account the COST of getting customers and of keeping them.


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