Apr 9, 2011 10:20 GMT  ·  By

Since Internet traffic is growing and higher-speed infrastructures with more bandwidth are required, it is surmised that the next few years will see large funds being invested in deployment of LTE wireless.

While it may not be immediately noticeable to consumers, the fact is that the worldwide Internet infrastructures is nearing the point where it might start having trouble coping with the traffic.

The main reason behind this is the very rapidly increasing number of web-connected smartphones and, of course, tablets.

As such, there is a larger need than ever for the promotion of next-generation technologies, one of which is LTE (Long Term Evolution).

Apparently, carriers in the United States and Europe all want to move on to this 4G solution as soon as possible, over the next three years as it were.

To that end, solid funds will be invested in LTE infrastructure gear, and it will be much more than the $1.5 billion of 2010, according to iSuppli.

The sum will revolve around $27.9 billion globally, for a compound annual growth rate of 107.5%. Some OEMs (original equipment manufacturers) are already promoting solutions of this sort, although flexibility issues need to be taken into account, since operators' needs often change.

“While this spending represents tremendous growth in next-generation wireless technology, carriers still will be required to support multiple air interface technologies simultaneously, as the migration to 4G and LTE will not happen overnight,” noted Jagdish Rebello, senior director and principal analyst for communications and consumer electronics at IHS.

“In most cases, carriers will need to offer 2.5G, 3.5G and 4G technologies in order to support all customers and roaming customers. As a result, semiconductor suppliers must focus on developing effective infrastructure solutions that not only meet the current needs of carriers but also achieve alignment with the 3G/3.5G technology migration paths of the carriers to 4G.”