Mobile LTE infra revenue to touch $8bn in five years

CALIFORNIA, USA: The mobile infrastructure LTE equipment market is forecast to grow at a compound annual growth rate (CAGR) of 81 per cent over the next five years, and reach $8 billion by 2015, finds market research firm Dell’Oro Group in its latest report.

Dell’Oro forecasts that picocell revenue will reach nine per cent of total LTE eNode B revenues during the same period.

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“Based on recent conversations with leading wireless operators, we have slightly raised our picocell forecast,” said Stefan Pongratz, analyst, Dell’Oro Group. “In the past year, we have seen that operators have shifted from thinking and talking about small cells, to conducting actual trials on picocells. More operators are now focused on investigating and trialing best solutions and approaches to complement their macro networks so they could increase capacity and performance in high-utilization areas."

"While we believe the macro LTE network will carry the majority of the traffic through 2015, we believe vendors will start recognizing significant pico eNode B revenues in the outer years of the forecast period,” added Pongratz.

The report also shows that WCDMA revenues are expected to drive the industry in the forecast period and represent more than 70 per cent of all the revenues in 2015. The overall mobile infrastructure market is expected to grow at a four per cent CAGR between 2010 and 2015.