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Press Release: 4G LTE Revenues Projected to Exceed $100bn Globally in 2014, Despite Uncertainty about New Data Plans, says Juniper Research

According to a new report from Juniper Research, worldwide service revenues generated by LTE mobile networks are forecast to grow quickly once networks are launched, reaching $100 billion by 2014. These revenues will be driven by laptops, smartphones and other devices.

Paradoxically several operators are ending flat rate tariffs, whilst at the same time the number and variety of connected data-hungry devices is multiplying. Tablets are a recent example. Whilst Juniper found that 90% of respondents questioned believe that today’s pricing models will have to change, there is a lack of consensus about the structure of new pricing models.

4G LTE Business Models report author Howard Wilcox noted: “In the new report, our business modeling evaluated three scenarios. The most optimistic view revealed scope for higher revenues and ARPU if network operators adopt premium pricing strategies for enterprise users.”

However, the report warns that whilst there continue to be high profile LTE announcements by network operators, some regions will not see substantial numbers of users benefiting from these high speed services for up to three years. Western Europe is an example.

Further findings from the 4G LTE report include:
• The industry is thinking “out of the box” to originate innovative approaches to pricing such as partnership models and usage based tariffs       
• High traffic enterprise subscribers using web, email and video services will be the early adopters of LTE and are the key segment to be targeted       
• Revenues from consumer users will remain under half of total revenues until at least 2015.       

Juniper Research examines the LTE opportunity in this newly published report, evaluating three business model scenarios based on a variety of premium and tiered pricing and user take-up assumptions. The report includes an extensive five year forecasting suite covering enterprise and consumer subscribers and the conclusions of Juniper’s comprehensive research survey on hot LTE topics.

The 4G LTE Whitepaper and 4G LTE video and further details of the study, ‘4G LTE Revenue Opportunities: Business Models, Scenarios and Operator Strategies 2010-2015’ can be downloaded from www.juniperresearch.com.  Alternatively please contact John Levett at john.levett@juniperresearch.com, telephone +44(0)1256 830002.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

Author

Howard Wilcox

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