Global LTE revenues set to reach $1 trillion

A new Juniper Research report finds that the cumulative 4G LTE mobile broadband service revenues over the next five years will account for over $1 trillion.

That would represent approximately 17% of the cumulative operator billed service revenue from all mobile services.

4G LTE revenues are set to grow rapidly and will reach more than $340 billion globally in 2017, reflecting the continued success of LTE in serving higher value subscribers, Juniper said.

4G/WiFi Revenue 

The demand for high bandwidth services from end users and the availability of WiFi on most mobile devices has compelled operators to address consumer expectations around quality and user experience while creating new opportunities for the industry.

“Along with the 4G network roll-out, the 4G/WiFi combination will continue to provide a scalable and cost effective solution. It offers long term benefits, with the present offload platforms supporting future network infrastructures, and is now a priority for many operators,” said report author Nitin Bhas.

The new Mobile Broadband: 4G LTE & WiFi Strategies and Opportunities 2013-2017report also notes that operators need to integrate WiFi offload with other monetisation opportunities such as location based services (indoor and outdoor), to generate additional revenues.

Pricing is Critical

The new report finds that with 4G LTE having gained momentum over the past 12 months, it is now critical that operators get their pricing models right, thereby avoiding a slowdown in adoption and revenue generation.

The research firm pointed to EE, the UK’s first 4G mobile network, as an example as the firm felt obliged to cut its initial LTE pricing by approximately 14% within weeks of its network launch, while Three UK announced 4G access at no extra cost.

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Global LTE revenues set to reach $1 trillion