A recent report by Juniper Research shows that there is going to be a huge demand for 4G LTE mobile broadband service over the course of the next five years. As early as now, we are already seeing the major mobile networks upgrading their infrastructure to accommodate 4G LTE connectivity in various coverage areas.
The report says that over $1 trillion in revenue will be made representing 17% of all operator billed service revenue from all mobile services.
Over the past year we have seen mobile operators aggressively expanding their network to include 4G LTE. This makes sense since most of the new smartphones being sold in the market can support this network protocol.
It is important that operators get their pricing right so as to avoid a slowdown in the adoption of the service. Take for instance EE of the UK. The network was forced to slash down the price of their LTE service by as much as 14% just weeks after its launch. In comparison, Three UK is offering 4G access to all of its subscribers at no extra cost.
Why is 4G LTE going to boom? The main reason is speed. It is ten times faster than a 3G connection. The average real world download speed on an LTE connection is 19 Mbps while its upload is 9 Mbps. Theoretically this protocol can achieve a peak download rate of 299.6 Mbps and a peak upload rate of 75.4 Mbps. This speed allows you to browse the Internet faster on your mobile device or download your favorite apps quicker.
Mobile operators need to find ways to take advantage of this technology that is expected to be popular in the coming years. They will have to develop 4G strategies to be able to stay competitive in the market. Vendors will also need to address the challenges and issues posed by Wi-Fi/Small Cell.
This report done by Juniper Research has been updated to include data for this year. This research company has been in operation since 2001 and is one of the leading analyst firms in the wireless sector.