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Hype on 4G LTE is real, Revenue to exceed $200 Billion

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Global LTE revenue to exceed $200bn by 2015, says Juniper


Published December 21, 2010
by:CBR staff writer
UK lags behind US and Japan after new spectrum auction timetable announced

The global LTE service revenues will exceed $200bn by 2015, with first beneficiaries of LTE mobile broadband networks being business users based in developed countries, led by the US and Japan amongst other countries, according to Juniper Research.

The research revealed that the LTE business users will benefit from speed or quality of service guarantees, thereby alleviating service dropouts.

However, spectrum auction timetables in some European countries such as the UK where bidding does not start until 2012, will delay users experiencing these benefits.

The LTE premium services for high-end business users will be critical revenue drivers for mobile operators.

The new 4G LTE revenue opportunities report author Howard Wilcox said business modelling demonstrated that high traffic enterprise subscribers using Web, email and video services will be the critical early adopter segment to benefit from LTE.

The report also forecasts that consumer users will spend only about half the monthly rate of enterprise users; and operators can attract and retain high-end business users through premium services which could generate double the ARPU in a high usage scenario.

The research firm said that the North America, Far East & China and Western Europe will together account for nearly 90% of LTE service revenues by 2015; and revenues from consumer users will remain under half of total revenues until at least 2015.