LTE infra market to be $12 billion by 2015: Study

By : |July 8, 2011 0

NEW YORK, USA: LTE infrastructure market will be around $12 billion by 2015. This includes the sales of eNodeBs, evolved packet core and other major components. For 3G and HSPA+ operators, LTE will be a key CapEx driver over the next five years, finds a new market research report, ‘LTE Ecosystem Report 2011-2016’.

LTE technology has entered into the growth stage of its lifecycle in 2011. With players in the LTE ecosystem embarking on a strategy of innovation and product leadership, the market looks poised for new developments that will revolutionise the mobile broadband, adds the report.

Also Read: Is India ready for TD-LTE?

It also finds that LTE is having a transformative effect on wireless value chain in general and operators in particular. The research suggests that LTE ecosystem players should start formulating emergent strategies to capitalise on its revenue generating potential in 2011.

The research also adds that with infrastructure vendors’ revenue from LTE to reach $12 billion in 2016, new entrants and existing LTE players are poised to gain significant competitive advantage in 2011.

Moreover, in March 2011, the GSA reported there were 100 LTE-ready devices. Vendor partnerships will govern innovations in the LTE market. A variety of LTE devices will be available in 2011. LTE Smartphones will become a mainstream solution by 2014.

These developments suggest that the ecosystem is growing at phenomenal rate. Operators can leaverage the LTE characteristics to create new business models and revive their lifecycle stage, adds the report.

Research Highlights:
Multimode devices will play a pivotal role in the commercialisation of LTE. The early LTE commercial launches with multimode devices will being in the latter part of 2011.

Network sharing is a key requirement for reducing the CapEx/OpEx related with LTE.

TD-LTE and LTE-FDD will coexist with global share of 33 per cent and 67 per cent respectively.

Operators will need to make significant investments in their backhaul infrastructure as they deploy LTE.

If operators decide to offer voice on LTE, IMS must be deployed. IMS is an expensive proposition and an operator cannot upgrade the core and radio access simultaneously due to the scale of investments needed. Roughly operators will need around two times as much investment in IMS core as in building LTE radio access network.

Operators would deploy small cell solutions using compact and single RAN solution that addressed multi bands and technologies.

LTE will also be used in a variety of vertical markets such as smart grids, public safety and transportation.

Visiongain believes that multi-mode and multi-band standards will be ubiquitous and interchangeable in every base station from 2016 onwards.

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