4G LTE service revenue to exceed USD340bn by 2017
MOBILE| Feb. 15, 2013, 8:21 a.m.
A new report from Juniper Research finds that 4G LTE revenues are set to grow rapidly, reaching more than USD340 billion by 2017 globally, compared to just over USD75 billion this year. This figure will represent approximately 31% of total service revenues from all mobile services of all generations (2G/3G/4G) at that time, and reflects the continued success of LTE in serving higher value subscribers.
The new report finds that with LTE gaining momentum over the past 12 months, initially dominated by the enterprise segment, consumer subscribers will begin to sign up for services in volume this year (2013) and will overtake the enterprise subscriber numbers in 2015.
The new Juniper report, 4G LTE: Subscribers, Devices, Infrastructure & Service Revenue 2013-2017, found that with the increased penetration of LTE capable smartphones and other connected devices, Mobile Network Operators (MNOs) will need to develop clear pricing strategies to transition customers.
“Overall they will have to present customers with innovative services that will meet users’ requirements and, crucially, that users will attach value to. Operators will have to review their tariff structures to balance the need to monetise the greatly increased data throughput, yet still offer attractive packages”, added report author Nitin Bhas.
For example, with spectrum auctions underway in the UK, EE felt obliged to cut down its initial LTE pricing by approximately 14% within weeks of their network launch while Three UK has already announced 4G access at no extra cost.
With the twin spectrum issues – timing of availability and the cost of the spectrum – playing pivotal roles in deciding the speed of LTE rollouts (as has happened in the USA and the UK), 4G LTE can represent a substantial investment that will take several years to recoup. This is however critical, bearing in mind that at the outset only a comparatively small number of subscribers will be LTE-capable.
The report says the vast majority of LTE revenues (almost 70%) will be generated by North American and Far Eastern and China markets.
While LTE consumer subscribers will exceed enterprise in 2015, the consumer segment will only account for under half of total revenues.
MORE MOBILE NEWS
President Jonathan commends operators on National Mobile Health Insurance collaborationNigerian President Goodluck Jonathan has commended telecoms operators for their collaborative efforts in putting Nigerians on the National Mobile Health Insurance programme platform. Read More
Vodafone Ghana Fixed Broadband customers get bundle extensionVodafone Ghana says it will soon be offering a one-week validity extension to all fixed broadband users in the country. Read More
Airtel, UNAIDS partnerThe Chief Executive Officer, Airtel Nigeria, Segun Ogunsanya, has explained that the partnership of the telco with the Joint United Nations Programme on HIV/AIDS (UNAIDS) will allow ample opportunity to further promote its Touching Lives initiative aimed at positively impacting on Nigerians, especially in the area of quality healthcare ... Read More
GSMA: mobile phone gender gap emergesA new GSMA report says over 1.7 billion women in low- and middle-income countries do not own mobile phones. Read More
French phone maker Archos debuts in NigeriaFrench mobile devices major, Archos Societe Anonymes, at the weekend in Lagos, launched its range products and connected objects, promising to redefine the service offering in the country. Read More
Glo’s smart plan gives enhanced voice, value to customersGlobacom subscribers on the postpaid platform will enjoy up to 5,000 free Short Messaging Service (SMS), up to 50GB data and up to 50 hours of free voice calls in a new and unprecedented Smart Postpaid Plan launched by the company in Lagos. Read More
Airtel Kenya launches UnlimiNET bundles for unlimited connectionsAirtel Kenya has announced the introduction of a flexible and affordable bundled tariff dubbed UnlimiNET. Read More
African Android growth makes strong headway for mobile internet accessAfrica is poised to become a hotbed for mobile growth and commerce in the coming years, according to Opera Mediaworks’ State of Mobile Advertising report released today. Read More
Orange rolls out Wi-Fi in Bungoma CountyIntegrated telecommunications solutions provider Orange has rolled out Wi-Fi in Bungoma County. The Wi-Fi solution, which is in its first phase, covers the county headquarters in Bungoma and the town. Read More
Tigo Senegal invests over US$220 000 to deploy 3G+ networkMobile operator Tigo Senegal says it has invested more than 110 million FCFA (about US$220 000) to deploy and expand the 3G+ network in various areas of this West African country. Read More
FEATURED STORY2bn priced out of internet access
A new report from the Alliance for Affordable Internet shows that the price of broadband remains prohibitive for billions in developing and emerging countries, with women and rural dwellers hardest hit.
BEST READ NEWS
IN DEPTHVillagers get solar training at Barefoot College
The Botswana Human Resource Development Council (HRDC) has seconded seven semi-illiterate mostly Ngwatle villagers for a six month solar electrification training course at the famed Barefoot College in India.
COMPANY NEWSMTN Group Sustainability Report released
MTN Group’s efforts to advance social development in its markets through the integration of sustainable business practices into day-to-day activities, is yielding positive outcomes, the company’s Sustainability ...