Press Release: 4G LTE Revenues Projected to Exceed $265 Billion Globally in 2016, finds Juniper Research
Early traction expected
in the enterprise segment
Hampshire,
UK - 14th December 2011: According to a new report from Juniper Research, worldwide service revenues generated by LTE mobile networks
are forecast to grow rapidly once networks are launched, exceeding $265 billion
by 2016. Whilst the total number of LTE consumer
subscribers will be higher than enterprise in 2016, it is a different picture
from a revenues viewpoint, with the consumer segment accounting for under half
of total revenues.
Tiered usage plans to
attract premium users
The introduction of premium service tariffs to provide high
end enterprise users with required guaranteed connections and/or service levels
was identified as key to derive incremental revenues for LTE.
The new 4G LTE Strategies Report found that early LTE adopters will
be "top end" users who are currently in the higher echelons of monthly spend.
This will be the case in developing countries as much as in developed countries.
Report author Nitin Bhas added: "We believe that high end enterprise users in developing
countries will be much closer in spend to similar users in North America or
Western Europe and certainly very distinct from the bulk of the population that
contribute towards the high level regional ARPU levels for all generations,
including 2G."
LTE business models -
opportunities aplenty
In its benchmark report, Juniper Research examines the LTE revenue
opportunity, evaluating four service pricing scenarios and three business models
based on service usage. High traffic subscribers using video, web and email
services will be the critical early adopter segment to benefit from LTE. All
scenarios demonstrated the potential to generate incremental revenues and ARPU.
Other findings
·
LTE
enterprise ARPU is forecast to experience lower rate of decline than consumer
ARPU.
·
Western
Europe, North America and Far East & China will account for approximately
84% of total revenue worldwide by 2016.
·
LTE
service revenue to represent in excess of 26% of total service revenues from
all mobile services across all generations by 2016.
Mobile Research
The LTE ~ Global Standard, Global Revenues whitepaper is available to download from the
Juniper website together with further details of the
full study.
Juniper Research provides research and analytical services to
the global hi-tech communications sector, providing consultancy, analyst
reports and industry commentary.
Jessica Hanslip
Juniper Research
+44(0)1256 830 001
jess.hanslip@juniperresearch.com
Author
Related Reports
- 4G LTE Strategies - Business Models, Scenarios & Revenues 2011-2016
- The 4G LTE Strategies Briefing 2011-2016
- The 4G LTE Strategies Interactive Forecast Suite - Business Models, Scenarios & Revenues 2011-2016
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