SoftBank: Japan LTE Speed Survey; How does Double LTE Improve Data Connection Rate?

Some interesting slide from Softbank (MNO, Japan) 2013 Q1 Earning presentation (here):

[Pyramid]: 802M LTE Subscribers by 2017; US, Japan and South Korea Lead

 
A new research by Pyramid Research forecasts much higher growth for LTE adoption than previously forecasted.

The report concludes that "LTE subscriptions globally increased more than fourteen fold, to 11.4m, and Pyramid Research expects that figure to reach 54 million by year-end 2012, representing less than 1% of total subscriptions. By 2017, Pyramid expects the number of LTE subscriptions to reach 802.2 million, a 72% CAGR over 2012 levels, growing to almost 10 percent of global mobile subscriptions"

Previous reports were more modest - see "[Juniper Research]: 430M LTE Subscribers by 2016" - here.

"Although LTE subscription penetration in the Asia-Pacific region will remain lower than the global average, two countries in the region — Japan and South Korea — are leaders in LTE adoption, surpassed only by the US in current and expected new subscriptions in the next three years. By 2017 China and Indonesia will be important growth markets. Latin America will also continue to show lower LTE penetration than the global average. We expect almost 7% of mobile subscriptions in Brazil to be LTE by 2017, making the regional giant an important driver of global growth in LTE, despite lower than average adoption". 

See "LTE Opportunities Revealed in New Research Series" - here.

Sandvine - 39% of Q1 Revenues Generated by Mitsubishi (reseller to NTT)

   

In its MD&A report for Q1 Sandvine states Mitsubishi as the only major customer for the quarter. The Japanese reseller generated 38.8% of revenues, or $7.45M, during the quarter - compared to 29%, or $7.2M, during Q4 2010 (see "Sandvine Q4 Results - Mitsubishi [Japan] Generated 29% of Revenues" - here). See the chart below for additional details.

NTT's ISP arm, OCN, is a major customer of Sandvine in Japan (See "NTT Communications Corp. Selects Sandvine" - here).

Sandvine Q4 Results - Mitsubishi [Japan] Generated 29% of Revenues

  

Sandvine announced today Q4 (Nov. 30) and FY2010 results - ".. quarterly revenue of $25.0 million and GAAP net income of $0.9 million (non-GAAP1: $1.7 million) for its fourth quarter of 2010. Fiscal 2010 revenue was $93.8 million, 36% higher than the $68.8 million reported for fiscal 2009. GAAP net income for fiscal 2010 was $5.6 million (non-GAAP1: $10.1 million), compared to a loss of $19.5 million (non-GAAP1: $10.5 million loss) in fiscal 2009".

See "Sandvine Reports Q4 and Fiscal Year 2010 Results" - here.

Mitsubishi, Sandvine reseller in Japan did nicely on Q4 - 28.8% of all revenues, in multiple projects. See the table from the company's MD&A report (here):

Japan - ISPs May Use DPI for Behavioral Advertising

 

Japan's asahi.com reports (english - here) that a working group from the Japanese Ministry of Internal Affairs and Communications, published a report concluding that DPI may be used by ISPs for behavioral advertising.

See coverage by Asiajin, here.

Behavioral advertising, offered in the past by US based Nebuad and Adzilla, and UK based Phorm, was not accepted well in their home countries, mainly because it was deployed without disclosing it to subscribers.

The business case was to share advertising revenues between the ISP and the these companies. The ISP provides the facilities and subscribers base and Nebuad/Phorm the networking equipment that track the subscriber's activity (usually "anonymously" - without keeping record of the subscribers activity) and relations with advertisers.

However, the business case could be only justified with large volumes - so if the subscribers are required to opt-in (register) for the service - there just not going to be enough traffic, clicks and therefore revenues. Opt-out could be a better way, possibly leaving enough subscribers exposed to the process.

According to Asiajin, the Japanese report - "concludes that such technology cannot be used without constituting a breach of private communications if it does not first receive approval from the user (p. 58). However, elsewhere in the report it is stated that an opt-out mechanism must be in place (p. 59), suggesting that the system need not be opt-in." (the report is here, in Japanese).

Related posts:

• DPI Deployments - Part2: Why Hiding?  - here
• DPI Deployments - Part4: UK - Everybody is Doing it ! - here