Technology | Media | Telecommunications

Tuesday, May 14, 2013

4G LTE Revenue will Reach $340 Billion in 2017

According to the latest market study by Juniper Research, the cumulative 4G LTE mobile broadband service revenues over the next five years will account for over $1 trillion.

That growth represents 17 percent of the cumulative global operator billed service revenue from all mobile services.

4G LTE revenues are set to grow rapidly and will reach more than $340 billion globally in 2017, reflecting the continued success of LTE in serving higher value mobile network subscribers.

The demand for high bandwidth wireless broadband services from end users and the availability of Wi-Fi on most mobile devices has compelled operators to address consumer expectations around quality and user experience while creating new opportunities for the industry.

"Along with the 4G network roll-out, the 4G/Wi-Fi combination will continue to provide a scalable and cost effective solution. It offers long term benefits, with the present offload platforms supporting future network infrastructures, and is now a priority for many operators," said Nitin Bhas, senior analyst at Juniper Research.

Their market study also uncovered that mobile network operators need to integrate Wi-Fi offload with other monetisation opportunities -- such as location based services (indoor and outdoor) -- to generate additional revenues.

The study found that with 4G LTE having gained momentum over the past 12 months, it is now critical that mobile network operators get their pricing models right, thereby avoiding a slowdown in adoption and revenue generation.

For example, in the UK, EE felt obliged to cut its initial LTE pricing by approximately 14 percent within weeks of its network launch, while Three UK announced 4G access at no extra cost.

Meanwhile, in the U.S. market, Verizon Wireless announced strong adoption of its "Share Everything" 4G data plans.

Other key findings from the market study include:
  • Mobile network operators who do not have deployment plans, will need to develop and implement their 4G strategies in order to remain competitive in the market.
  • Vendors need to continue to collaborate and address some of the remaining Wi-Fi or Small Cell challenges and issues.