Global Boom for LTE Network - Analyst Blog

By
A A A

Long-Term Evolution (LTE), the most sought after next-generation (4G) super-fast wireless communications technology, is rapidly gaining momentum globally. The 4G wireless network aims to cope with substantial demand for high-speed wireless data services and mobile video.

The Global Mobile Suppliers Association (GSA) recently reported that currently 268 LTE networks are commercially available in 100 countries. The GSA estimated that more than 350 LTE networks will be commercially functional by the end of 2014.

In Nov 2013, The GSM Association's research wing, GMSA Intelligence, forecasted that there will be more than 1 billion LTE connections globally by 2017. Also, around 465 live LTE networks are projected to be present across 128 countries by 2017.

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

LTE offers several advantages over legacy 3G network technologies. This includes improved spectral efficiency, lower costs, and solid integration with other open wireless standards. Theoretically, LTE is expected to achieve download transmission speeds up to 300Mbps and upload transmission speeds up to 100 Mbps.

LTE also supports flexible carrier bandwidth and both FDD (frequency division duplexing) and TDD (time division duplexing) on the same platform. Ability to phenomenally enhance speed and capacity are the positives which spur LTE adoption by wireless carriers.

In the U.S., top two wireless operators, Verizon Communications Inc. ( VZ ) and AT&T Inc. ( T ), are gradually expanding their respective LTE networks. Sprint Corp. ( S ), the nation's third largest telecom firm, has undertaken a massive LTE network deployment project. In China - a major emerging market - leading wireless operator China Mobile Ltd. ( CHL ) has decided to initiate a significant LTE-TDD network deployment plan in 2014.



CHINA MOBLE-ADR (CHL): Free Stock Analysis Report

SPRINT CORP (S): Free Stock Analysis Report

AT&T INC (T): Free Stock Analysis Report

VERIZON COMM (VZ): Free Stock Analysis Report

To read this article on Zacks.com click here.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CHL , S , T , VZ

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

63%
75%
64%
72%

Most Active by Volume

80,672,062
  • $15.11 ▼ 7.47%
66,542,096
  • $17.01 ▼ 0.12%
55,706,072
  • $23.65 ▲ 21.22%
52,954,494
  • $14.70 ▼ 10.69%
50,243,980
  • $14.70 ▼ 7.49%
47,401,468
  • $100.11 ▼ 0.64%
43,293,183
  • $4.95 ▼ 5.17%
36,328,194
  • $2.79 ▼ 1.41%
As of 9/29/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com