A new report from SNS Research expects 5G to drive spending long term, but LTE-based networks will generate significant cash in the near term
The topic of most wireless telecom conversations may be related to what’s coming down the road in terms of “5G” technology, but LTE in its various permutations is still expected to generate significant revenue over the next five years.
A new report from SNS Research, dubbed “LTE, LTE-Advanced and 5G ecosystem: 2016-2030,” predicts mobile operators will generate $600 billion in service revenue from commercial LTE networks, with that figure set to grow at a more than 5% compound annual growth rate over the next four years.
The report notes more than 150 LTE operators have deployed carrier aggregation technology, which is one of the tenants of LTE-A technology, with more than 50% of all LTE subscribers expected to be supported with LTE-A networks by 2020.
SNS added that mobile operators also are looking at various network technologies, including unlicensed technologies, voice-over-LTE services and enhanced mobile broadband technologies “as they seek to maximize the value of their LTE investments while addressing mobile data traffic growth.”
Looking ahead to 5G, SNS states that while a standard does not yet exist, “vendors are aggressively investing in 5G development efforts with a principal focus on new air interface transmission schemes, higher frequency bands and advanced antenna technologies such as massive [multiple-input/multiple-output] and beamforming.”
Combined, LTE and 5G infrastructure investments are set to hit $32 billion by 2020, including spending on distributed macro cells, small cells, various advanced radio access network architectures and mobile core solutions.
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