ACG: 4G LTE investment to experience robust growth, while 3G investment will slow
Investment in mobile IP infrastructure is expected to increase at a 16.6 percent compound annual growth rate over the next five years, according to analysis by ACG Research.
The research firm forecasts that the 4G LTE evolved packet core segment will increase at a robust 53.7 percent CAGR through 2017, while the 3G mobile packet core segment will limp along at 0.6 percent CAGR through 2017.
"3G investments are slowing, as operators focus on optimization and plan new investments in LTE, mobile IP backhaul, and small cells. In contrast, LTE investment has seen it largest growth in 2012 with some vendors experiencing more than double growth" in the second half of 2012, according Shawn Anderson, principal analyst at ACG Research.
Verizon (NYSE: VZ), Apple (NASDAQ: AAPL), and Samsung dominate the LTE market, primarily focusing LTE offerings in the United States, Canada, Japan, and South Korea. LTE investment in North America represents nearly half of all global investment, with Verizon taking one-third of that total, according to Anderson.
European LTE investments are expected to be delayed by two years, as European Union member countries slowly allocate 4G spectrum and mobile operators balance profits and capital expenditures, Anderson added.
- check out Anderson's blog