Mobile LTE subscribers expected to double by 2014

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Mobile LTE subscribers expected to double by 2014
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Mobile LTE subscribers expected to double by 2014

High-speed 4G LTE networks are the future of mobile data in the United States and around the world. A number of major wireless providers have already deployed LTE networks and others are expected to follow soon. The Yankee Group found that by the end of 2012 there will be 152 commercial LTE networks across 65 countries, an increase from 47 networks in 2011. The research firm predicts that in 2013 there will be roughly 114 million mobile subscribers utilizing the high-speed technology, a number that is expected to more than double to 258 million by the end of 2014. The global voice and messaging revenue mobile operators are expected to make is also predicted to fall from $769 billion in 2011 to $697 billion in 2016. As a result, Yankee expects service providers to bundle additional content apps and services with LTE subscriptions, as well as increasing their cloud-based storage offerings.

“As consumers and enterprises increasingly expect always-on connectivity anywhere they go, operators around the world face unprecedented challenges,” Yankee analyst Declan Lonergan said in a statement. “Not only are they tasked with investing in new infrastructure and rolling out next-generation LTE networks at an ever-faster pace (in a decidedly harsh economic climate), but they must also find innovative ways to monetize those new networks, all while fighting increasingly intense competition from OTT vendors intent on stealing away their bread-and-butter voice and messaging revenue.”

Yankee Group’s press release follows below.

Evolving Mobile Broadband Industry Requires New Business Models

Yankee Group values the mobile broadband market at U.S.$1 trillion, but cashing in is easier said than done.

BOSTON–(BUSINESS WIRE)–Opportunities abound within the mobile broadband marketplace, which Yankee Group values at U.S.$1 trillion. But that doesn’t mean the road to success is without challenges. In its new Market Vision report, “What’s Next for Mobile Broadband,” Yankee Group breaks down the current state of the market, as well as where it’s going during the next two to three years and how players can take advantage.

Highlights include:

  • Worldwide 4G/LTE deployments are proliferating. By the end of 2013, Yankee Group forecasts 114 million active LTE connections globally, increasing to 258 million by the end of 2014.
  • The OTT threat is eating into operator revenues. In 2011, mobile operators worldwide generated U.S.$769 billion in voice and consumer messaging service revenue. By 2016, this will fall to U.S.$697 billion.
  • Operators will look beyond connectivity for sustainable differentiation. We expect to see more bundling of OTT communications apps with LTE subscriptions as well as operators increasing their portfolio of cloud-based solutions, including offering bundled content storage and backup with premium LTE services.
  • Vendors will step up in the customer experience realm. New players including Aito Technologies and Neuralitic will play key roles, as will traditional stalwarts such as Nokia Siemens Networks (NSN), Alcatel-Lucent and Huawei.

“As consumers and enterprises increasingly expect always-on connectivity anywhere they go, operators around the world face unprecedented challenges,” said lead author and Yankee Group Vice President Declan Lonergan. “Not only are they tasked with investing in new infrastructure and rolling out next-generation LTE networks at an ever-faster pace (in a decidedly harsh economic climate), but they must also find innovative ways to monetize those new networks, all while fighting increasingly intense competition from OTT vendors intent on stealing away their bread-and-butter voice and messaging revenue.”


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