Enterprises driving increase in 4G LTE service revenues
Over the past 12 months, enterprises have been driving the increase in 4G LTE service revenues, which are expected to reach $75 billion this year, according to the latest numbers from Juniper Research.
The research firm expects consumers to join the 4G LTE party in volume this year, which should spur a rise in 4G LTE revenues to $340 billion by 2017.
This represents 31 percent of total service revenues from all mobile services and reflects the success of LTE in serving higher value subscribers, the research firm observed.
The consumer segment will only account for under half of total revenues. Juniper recommends that mobile operators develop clear pricing strategies to attract consumers.
"Overall they will have to present customers with innovative services that will meet users' requirements and, crucially, that users will attach value to. Operators will have to review their tariff structures to balance the need to monetize the greatly increased data throughput, yet still offer attractive packages," said report author Nitin Bhas.
With the timing of availability and the cost of the spectrum playing pivotal roles in deciding the speed of LTE rollouts, 4G LTE can represent a substantial investment that will take several years to recoup. This investment is critical, bearing in mind that at the outset only a comparatively small number of subscribers will be LTE-capable, Bhas said.
China Mobile, China's largest mobile operator, announced earlier this month that it was expanding commercial trials of its 4G LTE network to include Hangzhou and Wenzhou in Zhejiang province as it prepares for a full-scale 4G rollout across the country, according to a report by the China Daily newspaper.
The timing of the full-scale rollout will depend on the Chinese government issuing 4G licenses, which are expected to be issued in the second half of this year, according to Ji Chendong, a telecom analyst at KPMG.