Prepaid Wireless in the USA
This report evaluates the prepaid wireless market in the United States including major provider analysis and service assessment, technologies involved in prepaid service delivery, and assessment of the future of prepaid communications, content, and commerce.
The report also analyzes major MVNO companies and offerings. The report also provides a view into the future of prepaid wireless and market forecasts through 2030 including subscribers and Revenue by Voice vs. Data vs. VAS and by Connectivity Type.
We anticipate the continued evolution of prepaid wireless in general as part of a dominant trend towards prepaying mobile services becoming increasingly more comparable with post-paid wireless. This is evidenced by Verizon's recent acquisition of TracFone, which we believe it will maintain as an entry-level prepaid offering while the company differentiates its core prepaid wireless service.
The future of prepaid wireless communications will depend on more than just carrier-centric applications, communications, content, and commerce. For example, we see prepaid as an important aspect of many next-generation services that are provided by a variety of third-party service companies that do not wish to offer a postpaid option as it would typically rely upon wireless carrier billing via prepay.
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Role and Importance of HetNets in LTE and 5G
- Based on a combination of macro cells and various small cell technologies, HetNets have gained relevance and importance, more than ever before, from the MNO’s perspective for offering the mobile broadband capacities in their networks. Given this ground reality, MNOs today need have a clear vision and direction on their strategies for establishing these HetNet solutions in their networks. They need to have well defined business and technical strategy to create fully operational HetNet ecosystems within their network and then leveraging them to provide the desired capacity as well as seek potential avenues for revenue generation from the same.
- These strategies also need to focus on establishing a road map for eventually allowing the deployed HetNets to have the ability to evolve into the future 5G technologies based capabilities when they become available. It is very clear that failing to plan and execute a HetNet deployment and operational strategy will be the cause of their peril.
- In a HetNet environment, it is important the macro cell provides a larger umbrella coverage area while small cells are placed in strategically closer locations to the UE to provide the required coverage or capacity. By moving these short-range radio access points or base stations closer to the user equipment, end users benefit from more reliable data connections and higher data throughput. The term small cell itself covers a broad set of technologies present in the market. These are the pico cells, femto cells, micro cells, carrier Wi-Fi, etc.
- There is another unique advantage associated with small cells. Since they are deployed with lower power radio waves, they have a short coverage area. This in essence limits the amount of interference that can be caused in the macro cells. Several small cell areas can be created without much concern for having any interference issues. This, of course, depends on the frequency plan implemented in the specific HetNet location.A generalized HetNet architecture consists of a combination of disparate network and radio access technology nodes.
- The figure above shows a simplified rendering of a typical HetNet ecosystem consisting of a combination of radio access technologies and cell types connecting to the EPC.
- Device Driven: In this mode of implementation, the device intelligence and priority drives selection and reselection of networks. This potentially leads to loss of operator ability to ensure a consistent network controlled experience to the subscribers. This behavior is usually transparent to the end user.
- End User Driven: In this mode, the end user makes the choice of attaching or moving to a specific network from the available list of networks in the vicinity. Usually this kind of scenario happens when the different networks in the HetNet are disparate. One of the draw backs is that the user may suffer interruption in real time services if the IP address changes between the core networks serving the different Radio Access networks of a HetNet.
- Core Network Driven: In this mode, the core network manages the entire HetNet coordination exercise. It monitors and triggers the device to move between the contributing networks of the HetNet. The different radio access networks are managed and served by a common core that anchors the IP address. This allows continuity in real time services and seamless offload between different radio access technologies within the HetNet.