LTE revenues will exceed $100bn by 2014

4G LTE revenues could exceed $100bn globally in 2014, despite uncertainty about new data plans, according to analysts at Juniper research.

The revenues will grow quickly once networks are launched with revenues being driven by
laptops, smartphones and other devices. Several operators are ending flat rate tariffs, while at the same time the number and variety of connected data-hungry devices is multiplying. It cited tablets as a recent example.

It found that 90 percent of respondents questioned believed that today’s pricing models will have to change and won’t sit at flat rate tariffs. They put this down to different reasons including that flat rates were unsuitable in the long-term. Others said they believed that operators were likely to choose a multi prolonged monetisation strategy for LTE.

However, overall, Juniper points out that there is a lack of consensus about the structure of new pricing models.

The company puts three different scenarios in place. Firstly, it considers a single regional enterprise Average Revenue Per User (APRU). Secondly it looks at a scenario where  high end users would be the early adopters and thirdly it looks at predictions that the majority of users will sign up for low and mid range packages.

Report author Howard Wilcox said: “In the new report, our business modelling evaluated three scenarios. The most optimistic view revealed scope for higher revenues and ARPU if network operators adopt premium pricing strategies for enterprise users.”

Juniper therefore worked on the basis of scenario one. From this is predicted that North America, Western Europe and China would account for 90 percent of all revenues by 2014.

 

GRAPH