LTE services are expected to generate $265 billion in revenue by 2016, with a majority of that coming from enterprise customers despite that segment representing less than half of connections, according to a report from Juniper Research. The report added that LTE would account for just 26% of total mobile services revenues.
The increasing reliance by enterprise customers on constant connectivity, along with the premium attached to that need for a guaranteed connection, are seen as drivers for incremental revenues from LTE services.
“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,” said Nitin Bhas, author of the report.
Beyond the enterprise segment, Juniper said that Western Europe, North America, the Far East and China are expected to account for 84% of LTE revenues by 2016. North America was cited in a separate report by Informa Telecoms & Media as the early leader in LTE network rollouts and adoption.
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