Company Trend Analysis - Telia Sense To Have Higher Upside In Denmark - SEPT 2017
BMI View: Telia Sense stands a better chance of success in Denmark than in Sweden. This is because the country combines high LTE coverage and penetration, and is outperforming its peers in terms of vehicle sales. However, the high price for the service, combined with the lack of innovative tariffs, will remain a hindrance for mass-market uptake.
Telia has announced the launch of Telia Sense, its connected car service, in Denmark. The carrier had first launched the service in Sweden in November 2016 (see ' Telia Sense Will Have Limited Impact ' , November 23 2016). The operator will offer the product for DKK995 (USD152), a DKK200 discount, with monthly plans for 20GB of data priced at DKK99. We believe the service will be more successful in Denmark than in Sweden, because it meets two of the three fundamentals we have earmarked for success, which will be further helped by Denmark outperforming in terms of car sales in 2017 (see ' Western Europe Finding A Stronger Footing For 2017 ' , June 28 2017). But pricing will continue to be the biggest obstacle to widespread uptake.
For operators to have a successful car strategy, three fundamentals must be met:
LTE Already Dominant LTE Penetration (%), 2014-2016 Source: Regulators
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