LTE Momentum Increases, to Eclipse WiMAX Equipment Spending by 2011, According to IDC

FRAMINGHAM, Mass.--(BUSINESS WIRE [1])-- The cellular infrastructure world is buzzing as LTE (Long Term Evolution) gains momentum to bring wireless customers one step closer to a viable 4G mobile network. According to new research from International Data Corporation (IDC [2]), more than a dozen new networks are poised to go live this year, and spending on LTE will exceed WiMAX equipment spending by the end of 2011. Worldwide LTE infrastructure revenues will fall just below $8 billion by 2014.

The commitment level to LTE is high with more than 100 operators publicly supporting it, including nine of the ten largest mobile operators worldwide. "The world is coalescing around the LTE standard as a result of its promise to increase speed and capacity to address the exploding growth in mobile data traffic," said Godfrey Chua [3], research manager, Wireless and Mobile Infrastructure [4]. "LTE is an important part of the portfolio of technology solutions that will enable mobile operators to cost-effectively deliver more innovative and robust data applications and services over the mobile network."

Despite its bright outlook, LTE is not without its challenges. There remain varying levels of commitment among operators and each announcement must be vetted individually. Spectrum regimes also remain unclear in many markets around the world. However, LTE's ability to reduce data delivery costs is fundamentally driving the technology forward. With data traffic significantly outpacing revenues, the need for technology and operational solutions that dramatically lower costs is critical to the future competitiveness of a mobile operator.

Additional findings from IDC's special study include the following:

• LTE provides capacity support/offload for 3G networks, making it a complementary technology in the near term.
• The LTE equipment race is experiencing a "land grab" between incumbent 3G market leader Ericsson and the fast rising Huawei, while Nokia Siemens and Alcatel Lucent work hard to remain relevant.
• In 2010, all LTE vendors, including the likes of Motorola, NEC, and Fujitsu, are increasing their go-to-market efforts, further amplifying competitive pressures.
• Iconic smartphone devices, coupled with growing mobile broadband laptop use, will continue to drive the explosion in mobile data traffic.

The IDC special study, Worldwide Cellular Infrastructure 2010-2014 Forecast: LTE Arrives [5], (IDC #222584), presents the five-year forecast for cellular infrastructure spending by mobile network operators worldwide. In addition to updating the traditional 2G and 3G segments, the forecast document introduces LTE into the spending categories. This is part of IDC's continuing research with respect to mobile and wireless network infrastructure. Findings are based on information gathered from both primary and secondary sources. The study incorporates the impact of the global economic recovery and LTE on investments in cellular infrastructure.

To purchase this IDC special study, please contact IDC Sales at 508-988-7988 or sales@idc.com [6].

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 46 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com [7].

All product and company names may be trademarks or registered trademarks of their respective holders.

CONTACT:

International Data Corporation
Godfrey Chua, 508-935-4299
gchua@idc.com [8]
or
Patrick Gorman, 508-935-4369
pgorman@idc.com [9]

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