4G: $1 trillion in Operator Service Revenues

A new report from Juniper Research finds that the cumulative 4G LTE mobile broadband service revenues over the next five years will account for over $1 trillion, representing approximately 17% of the cumulative operator billed service revenue from all mobile services.

4G LTE revenues are set to grow rapidly and will reach more than $340 billion globally in 2017, reflecting the continued success of LTE in serving higher value subscribers.

The 4G/Wi-Fi Revenue Opportunities

The demand for high bandwidth services from end users and the availability of Wi-Fi on most mobile devices has compelled operators to address consumer expectations around quality and user experience while creating new opportunities for the industry. “Along with the 4G network roll-out, the 4G/Wi-Fi combination will continue to provide a scalable and cost effective solution. It offers long term benefits, with the present offload platforms supporting future network infrastructures, and is now a priority for many operators”, added report author Nitin Bhas.

The new Mobile Broadband: 4G LTE & Wi-Fi Strategies and Opportunities 2013-2017report also notes that operators need to integrate Wi-Fi offload with other monetisation opportunities such as location based services (indoor and outdoor), to generate additional revenues.

Pricing is Critical

The new report finds that with 4G LTE having gained momentum over the past 12 months, it is now critical that operators get their pricing models right, thereby avoiding a slowdown in adoption and revenue generation.

For example, in the UK, EE felt obliged to cut its initial LTE pricing by approximately 14% within weeks of its network launch, while Three UK announced 4G access at no extra cost. Meanwhile, in the US, Verizon announced strong adoption of its ‘Share Everything’ 4G data plans.

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David Dungay

Editor - Comms Business Magazine
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