LTE revenues to exceed $265B by 2016

A new report from Juniper Research forecasts worldwide service revenues from LTE mobile networks to exceed $265 billion by 2016 thanks to enterprise users.

While the total number of LTE consumer subscribers will be higher than enterprise in 2016, it's a different picture from a revenues viewpoint, with the consumer segment accounting for less than half of total revenues.

Juniper found that early LTE adopters will be "top end" users who are currently in the higher echelons of monthly spend. This will be the case in developing countries as much as in developed countries. 

"We believe that high end enterprise users in developing countries will be much closer in spend to similar users in North America or Western Europe and certainly very distinct from the bulk of the population that contribute towards the high level regional ARPU levels for all generations, including 2G," concluded the report's author Nitin Bhas.

In particular, high traffic subscribers using video, web and email services will be the critical early adopter segment to benefit from LTE.

Other report findings:

  • LTE enterprise ARPU is forecast to experience lower rate of decline than consumer ARPU.
  • Western Europe, North America and Far East and China will account for approximately 84 percent of total revenue worldwide by 2016.
  • LTE service revenue to represent in excess of 26 percent of total service revenues from all mobile services across all generations by 2016.

For more:
- see this release

Related articles:
Mallinson: LTE is bringing a mobile broadband revolution
Dell'Oro: Ericsson, Alcatel-Lucent outpace competitors in global LTE market
iPhone sales, LTE plans dominate U.S. operators' Q3 results

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