View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
January 31, 2012

Global capital spending on LTE to reach $24.3bn in 2013: IHS

LTE infrastructure spending in 2015 will rise to $36.1bn, which will be four times more than 3.5G spending

By CBR Staff Writer

Global capital spending on the wireless technology 4G Long Term Evolution (LTE) is projected to reach $24.3bn in 2013, nearly triple the $8.7bn of 2012, as mobile carriers definitively migrate to the next-generation standard, according to a new report from IHS.

The IHS iSuppli Wireless Communications topical report said LTE infrastructure spending in 2015 will rise to $36.1bn, compared to just $9bn for 3.5G.

In 2013, 3.5G infrastructure technology will generate $19.8bn in revenue, and is expected to be overtaken by LTE due to the rapid growth.

IHS director and principal analyst for communications and consumer electronics research Jagdish Rebello said while 3.5G remains the dominant air interface technology in the mobile infrastructure market, the 4G LTE space has been gaining momentum.

"This trend started in the second half of 2009 when some wireless operators in Europe, North America, Japan and South Korea started to deploy LTE technology," Rebello added.

"The number of mobile network operators that are trialing, deploying or commercially operating 4G LTE networks now has grown to about 200 worldwide, up from 160 in 2010. And such widespread support will drive carrier spending on LTE to surpass 3.5G by next year."

LTE represents a strong revenue growth potential and an opportunity for infrastructure manufacturers and semiconductor suppliers, who can develop long-term relationships with carriers.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

"To this end, manufacturers are developing hardware solutions labeled as "Any G to LTE" that support easy software upgrades to LTE, while maintaining backward compatibility with the legacy 2.5G and 2.75G wireless technologies still in use in some parts of the world," the report said.

"The vendors that will win in the transition to 4G will be those that can demonstrate cost-effective, upgradable solutions capable of delivering performance as defined by the LTE specifications," Rebello said.

LTE represents an all-Internet Protocol networking technology, supporting peak data rates that are significantly faster than the maximum speeds of 3.5G/3.7G technologies.

The 4G networks of the future must evolve to more heterogeneous architectures such as metro cells, which will be used to augment coverage or fill holes in areas of high data traffic and used alongside Wi-Fi hotspots to provide coverage in public spaces, IHS said.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.