Leading operators in Asia-Pacific are now transitioning to Long Term Evolution (LTE) without continuing to offer burdensome unlimited tariffs.
This is based on evidence from research firm Ovum, which found that unlimited data tariffs for LTE are unsustainable because of the traffic growth and management issues they generate. Experience is showing that the move to LTE without flat rates can be achieved with positive results.
Ovum believes the best method for the transition is to abandon unlimited tariffs from the launch of LTE. Operators should not feel compelled to simply roll over their existing pricing models. This has been the approach taken by SK Telecom and LG U+ in South Korea and Singtel in Singapore.
Other operators that initially offered unlimited LTE tariffs have also begun to change their pricing models. In Asia-Pacific, Hong Kong mobile operator CSL recently adopted a new LTE tariff strategy centered on volume-based pricing, which has proven popular with customers.