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US Operators to Step Up Spending for 4G LTE Advancement

Long-Term Evolution (LTE), the most sought after next-generation (4G) super-fast wireless communications technology, is rapidly gaining momentum in the U.S. 4G wireless networks primarily aim to cope with the substantial rise in demand for high-speed wireless data services and mobile video. A handsome majority of the wireless subscribers in the U.S. are currently using LTE-enabled mobile devices.

According to a recent report by research firm iGR, U.S. wireless operators are expected to spend a substantial $212 billion over the next five years. Growing demand for mobile data and video are compelling large wireless carriers to upgrade their LTE networks and densifying the cellular architecture using metrocells, remote radio heads, and DAS (Distributed Antenna System).

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

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

Additionally, Voice-over-LTE (VoLTE) technology and HD (High Definition) VoLTE services are significant new features associated with 4G LTE networks. As per iGR, subsequent versions of LTE technology and its associated features will form the basis of 5G networks over the next few years.

Vital technological developments 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. Notably, Qualcomm Inc. QCOM is a major chipset developer for LTE technology.

Earlier this month, research firm IHS Infonetics reported that the LTE infrastructure market is expected to reach $23 -- $24 billion in 2015. While the U.S. is expected to maintain the momentum in 4G LTE network growth over the near term, the major impetus is likely to come from the emerging markets of Asia-Pacific.

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NOKIA CP-ADR A (NOK): Free Stock Analysis Report

ALCATEL ADS (ALU): Free Stock Analysis Report

ERICSSON LM ADR (ERIC): Free Stock Analysis Report

QUALCOMM INC (QCOM): Free Stock Analysis Report

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


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

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