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December 1, 2011

HSPA+, LTE investment key to operator profitability

The challenge is to minimise the decline in revenue per GB with lower cost HSPA+ and LTE

By CBR Staff Writer

The latest Wireless Operator Strategies report, entitled ‘Outlook & Forecast: How HSPA+ and LTE Investments will save Mobile Operator Profit’, by Strategy Analytics says that the key to success of mobile operators after 2014 lies in HSPA+ and LTE infrastructure.

It predicts that operators will achieve success only if they accelerate investment in next generation infrastructure in response to the dramatic growth in broadband data demand.

Strategy Analytics predicts the impact of these new technologies on gross margins of operators and sums up the impact of traffic growth that leads to significantly lower revenue per GB. This is compared to cost per GB to project gross margins through 2016. The challenge is to minimise the decline in revenue per GB with lower cost HSPA+ and LTE owing to higher speeds, spectral efficiency, Wi-Fi offload, policy control, media optimization, small cells, backhaul and all-IP architecture.

The detailed report provides five-year projections by region for daily traffic, new capacity requirements, subscribers by technology – Pre-2.5G, 2.5 & 3G, HSPA+, LTE, CAPEX and TCO per GB, revenues and gross margins.

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