Driven by aggressive early commercial network deployments and device launches, the LTE market accounted for a market worth $ 19.1 Billion in 2011. LTE service revenues accounted for $ 15 Billion, and LTE device shipments accounted for over $ 2 Billion, while LTE infrastructure sales accounted for $ 2.1 Billion. Projected to grow at a CAGR of over 86 %, the industry will account for almost $ 410 Billion by the end of 2016.
As of Q4 2011, 38 Mobile Network Operators (MNOs) worldwide had launched fourth-generation (4G) Long Term Evolution (LTE) networks commercially. Despite a slow ramp and spending stall on overall cellular network infrastructure in 2011, the industry is witnessing sustainable spending acceleration for the LTE wireless infrastructure equipment. Key drivers are higher data speeds of up to 20 Mbps, simplified all-IP networks and the commercial availability of more than 200 4G LTE – enabled devices.
LTE device revenues have reached over $ 2.1 Billion in 2011. However, the present LTE device sales revenue only accounts for less than 1 % of the overall handset revenues. However, operators are increasing starting initiatives to aggressively push the sales of LTE devices. Growing at a CAGR of over 97 % the global LTE infrastructure revenues will account for more than 60 Billion USD by 2015.
Having already surpassed 7 Million subscriptions, LTE subscriptions are set to grow at a CAGR of 150 % over the next five year period. Growing at a CAGR of 80 % global LTE service revenues will reach 291 Billion, representing a lucrative market for worldwide MNOs. LTE service revenues presently account for 15 Billion USD.
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