Telecoms to generate $600 bn from LTE services in 2016

Video on smartphone on 4G network
Telecom network operators are expected to generate more than $600 billion from LTE 4G services in 2016, according to a recent telecom market research.

Service revenue from LTE is expected to grow at a CAGR of more than 5 percent over the next four years, said SNS Research in its latest LTE market report.

Some of the leading 4G operators are China Mobile, Bharti Airtel, Reliance Jio, Verizon, AT&T, NTT Docomo, SK Telecom, Vodafone, among others.

LTE infrastructure spending

Telecom network operators’ LTE and 5G infrastructure spending is expected to account for $32 billion by the end of 2020, said SNS Research.

Top LTE infrastructure vendors including Ericsson, Nokia, Huawei, Samsung, among others, are gaining from the massive roll out of 4G networks.

At present, there are more than 500 commercial network launches of LTE. Several mobile operators have already deployed LTE-Advanced technology.

LTE subscriber base

Telecom industry association GSA last week said that LTE is growing faster than any other mobile communications system technology. 19.5 percent of the global mobile base were connected to LTE systems by June 30, 2016.

The GSA report said LTE subscriptions reached 1.453 billion in Q2 2016 with 160.3 million net connections coming in Q2 2016. The rate of 4G connections is about 4 times faster than 3G / HSPA systems. 3G / HSPA subscriptions grew by 40.5 million, while GSM subscriptions fell 101.6 million in the second quarter of 2016.

LTE service revenues

LTE service revenues will account for over $600 billion in 2016. Service revenue from LTE is expected to grow at a CAGR of more than 5 percent over the next four years, according to SNS Research.

By 2020, LTE and 5G infrastructure investments are expected to account for a market worth $32 billion. This includes spending on distributed macrocells, small cells, C-RAN architecture equipment and mobile core solutions.

During 2016 – 2020, there will be large scale LTE-Advanced rollouts, said SNS Research in a report. This period will witness ongoing investments in macrocell LTE infrastructure and LTE-Advanced upgrades with nationwide rollouts of the technology throughout the globe. Mobile operators are making significant investments in small cells and other HetNet technologies to supplement capacity and coverage.

Baburajan K
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