4G LTE & LTE-A Boom Spells Good Times for Mobile Vendors

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Long-Term Evolution (LTE), the most sought after next-generation (4G) super-fast wireless communications technology, is rapidly gaining global momentum. 4G wireless networks primarily aim to cope with the substantial rise in demand for high-speed wireless data services and mobile video.

The Global Mobile Suppliers Association (GSA) recently reported that currently 360 LTE networks are commercially available across 124 countries. This figure is higher than the GSA’s initial projection of 350 LTE networks. In 2014 alone, telecom operators across the globe launched 96 LTE networks. Together, 611 telecom operators have clearly stated their intention of deploying LTE networks covering 174 countries.

Moreover, 80 operators in 42 countries are currently rolling out Voice-over-LTE (VoLTE) technology while 14 operators have already launched HD (High Definition) VoLTE services in 7 countries.

Wireless network standards are continuously evolving around the globe to offer faster speed. After significant deployment of 4G LTE networks, LTE-A (Long-Term Evolution Advanced) wireless networks are gradually finding solid foothold globally.

2014 was a landmark year for the growth of LTE-A networks as 49 operators in 31 countries already commercially lunched such networks while 30% of the total LTE operators have decided to upgrade to LTE-A.

LTE-A is a more powerful version of the legacy LTE network offering increased speed and network capacity. Carrier aggregation is the most important part of LTE-A technology as it allows wireless operators to create large spectrum assets by combining different frequency bands.

Notably, in Jun 2013, SK Telecom Co. Ltd. (SKM) of South Korea became the first wireless operator in the world to commercially launch LTE-A network using carrier aggregation.

LTE-A also incorporates several technological advancements like Coordinated Multi-Point (CoMP), Self-Optimizing Networks (SON), Small cell enhancements, Enhanced Inter-Cell Interference Coordination (eICIC) and Advanced Multi-Input Multi-Output (MIMO) antenna.

In 2014, research firm GSMA Intelligence reported that LTE users consume an average of 1.5GB data per month, two-fold of the amount consumed by non-LTE users. In developing countries, LTE users probably generate 20 times higher average revenue per user (ARPU) to carriers than non-LTE users, whereas in the developed countries ARPU is likely to be 10%-40% higher from LTE users in comparison to non-LTE users.

Significant technological development have opened up considerable market opportunities for global mobile infrastructure vendors like Ericsson LM (ERIC), Nokia Corp. (NOK), Alcatel-Lucent SA (ALU), Huawei Technologies Co. Ltd. and ZTE Corp.

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