The LTE Business Case: Finance

The LTE Business Case: Finance published by Ovum, Ltd. in July, 2009. This report consists of 16 pages and the price starts from US $ 1195.

Introduction

Abstract

This report examines the finance sector' s perspective on LTE and how deployments are to be financed. Our research reveals a great deal of scepticism towards LTE among the financial sector, not helped by current macroeconomic conditions.

Table of Contents

• Executive summary
• In a nutshell
• Key messages
• Ovum view
• About the LTE business case
• What will it cost? Capex impact is the major worry
• The 3G experience reflects poorly on LTE
• Spectrum will need to be cheap
• Key drivers don' t wash with investors
• Opex efficiencies hard to see and only then in the longer term
• After 3G, investors don' t trust top-line projections
• The economic climate isn' t helping
• Economic uncertainty creates greater LTE uncertainty
• Finance community scepticism will dictate how LTE is financed and deployed
• Vendor financing and cash are key as financial markets won' t fund LTE
• Cash favours the largest players, but dictates deployment plans
• Could access to finance have regulatory ramifications?
• Operators must allay concerns and invest for tomorrow
• Will the finance sector ever be favourable to LTE?
• Preparing for the future
• Competitive landscape
• Legacy network status
• Service strategy
• Proof of demand
• Capital outlay required
• Cost savings
• Funding capability

List of Figures

• Figure 1: Percentage increase of annual capex in order to deploy LTE
• Figure 2: NTT DoCoMo capital expenditure and capital intensity: FY2001 - 09
• Figure 3: Opex movements for LTE operators
• Figure 4: Impact of macroeconomic conditions on unannounced LTE commercial launches

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