LTE to Overcome WiMAX in Equipment Spending by 2011

As the telecoms industry is moving closer to the deployment of Long Term Evolution networks, the 4G standard is gaining momentum on the market. According to a new report from IDC (International Data Corporation), over a dozen networks based on it are set to go live during the ongoing year, and the spending on LTE should exceed that in WiMAX by the end of the next year. Moreover, the report shows that worldwide LTE infrastructure revenues are expected to reach almost $8 billion by 2014.

There are more than 100 wireless carriers around the word supporting the LTE technology, among which IDC counts nine of the ten largest mobile operators, something that should help the technology a lot. “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,” Godfrey Chua, research manager, Wireless and Mobile Infrastructure, said. “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.”

However, IDC notes that LTE will still face challenges, even if it is expected to perform remarkably well. Each carrier will show its own level of commitment to the standard, and there are a series of issues with spectrum regimes in certain countries. Even so, LTE will offer reduced data delivery costs, which should push its development forward, especially since data traffic rises above revenues, the research firm notes.

According to the IDC special study, LTE can easily prove a complementary technology in the short term, as it offers capacity support/offload for existing 3G networks, especially at times when the growth of smartphones and the increase in mobile broadband laptop usage are expected to drive data traffic upwards. Other findings of the study include:
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.

Additional details on IDC's special study, Worldwide Cellular Infrastructure 2010-2014 Forecast: LTE Arrives, can be found on the research firm's website.