LTE network infrastructure revenue crosses $2 bn

NEW YORK, USA: Despite a slow ramp and spending stall on overall cellular network infrastructure in 2011, the industry is witnessing sustainable spending acceleration for the LTE wireless infrastructure equipment, finds Mind Commerce Publishing.

Key drivers are higher data speeds of up to 20 Mbps, simplified all-IP networks and the commercial availability of more than 200 4G LTE - enabled devices.

Also Read: LTE won't stop Carrier Wi-Fi momentum

As of Q4 2011, thirty eight mobile network operators worldwide had launched fourth-generation (4G) Long Term Evolution (LTE) networks commercially,

As the market is taking off driven by early LTE efforts, LTE revenues have reached over $ 2.1 billion, up from $ 0.6 billion in 2010. Developed markets, such as North America, Japan and several Tier 1 operators in Western Europe, Middle East and Asia Pacific are the major drivers behind LTE growth.

Global 2G/3G/4G cellular network infrastructure revenues are set to reach over $ 51 billion by 2015 up from $46 billion in 2010 at a CAGR of five per cent, with LTE accounting for more than 20 per cent of the revenue share.

More than 80 per cent of the revenue will potentially accrue to major vendors such as Ericsson, Alcatel-Lucent, Nokia Siemens Networks and Huawei. The 4G LTE market in particular will reach over $13 billion by 2015, growing at CAGR of over 45 per cent. Ericsson and Alcatel Lucent are likely to lead the market with present market shares of over 35 per cent and 27 per cent respectively, of the $ 2.1 billion Industry respectively.

From a regional perspective, the market share will drastically shift from a North American lead market to the Asia Pacific region, which will account for over 68 per cent of the revenue by 2015.