LTE to contribute 1/3 of operator revenue by 2017 – Mobile World Live

LTE to contribute 1/3 of operator revenue by 2017

13 FEB 2013

LTE service revenue will represent 31 per cent of operator-billed revenue in 2017, a contribution worth more than $340 billion, according to Juniper Research. LTE revenue this year is set to be $75 million.

The high proportion of revenue attributed to LTE is a reflection of the success operators will have in securing higher-value subscribers, according to the analyst firm.

The increased momentum in LTE will initially be led by the enterprise sector with consumers beginning to sign up in bigger volumes this year. Consumer subscriber numbers will exceed enterprise customers in 2015 but account for less than half of total revenue.

The majority of LTE revenue (70 per cent) will come from in North America, the Far East and China.

The increased penetration of LTE-capable devices will prompt operators to develop clear pricing strategies to help customers with the transition to the next-generation service.

“Operators will have to review their tariff structures to balance the need to monetise the greatly increased data throughput, yet still offer attractive packages,” said report author Nitin Bhas.

Despite being the only UK operator currently offering LTE, EE cut its pricing just weeks after launching its network, while Three recently said it will provide 4G access at no extra cost.

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Tim Ferguson

Tim joined Mobile World Live in August 2011 and works across all channels, with a particular focus on apps. He came to the GSMA with five years of tech journalism experience, having started his career as a reporter... More

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