While the global hype around long-term evolution (LTE) continues unabated, the market remains driven by service provider competition rather than mass market demand. Commercial LTE deployments are characterized by operators seeking to exploit a perceived first-to- market advantage, along with competitors mobilizing to keep pace with market leaders.
Multiple service providers have deployed LTE networks in 10 of the 20 nations where services are available. Of note, there is scant data available on the actual uptake of LTE services, which is a telling reminder of a very nascent end-user market and unproven ‘4G’ packaging and marketing plans.
In response to the exponential and unrelenting growth of high bandwidth demanding mobile data traffic, LTE is emerging as the technology of choice for Tier 1, often pan-regional, operators in major markets around the world. With numerous trial activities, a raft of pre-commercial LTE networks recently announced, and open and pending new spectrum auctions, we look set to see LTE deployments more than doubling by the end of 2011, up from the 18 launches recorded at the end of 2010, and 35 launches as of September 2011.
The LTE market environment is diverse in terms of differing operator technology roadmaps, use of spectrum resources and the range of business models. LTE currently has the potential for deployment across 10 spectrum bands in a single band deployment approach or with combined band usage.
Satellite spectrum is also in the equation, with wholesale operators including LightSquared in the U.S. and NBNCo in Australia proposing to use satellite frequencies in provisioning their LTE services. Regional variations are also notable, dictated by factors including technologies already deployed, levels of competition and market structures within individual nations, end-user market maturity and preferences, and regulatory conditions – not least how they apply to the availability of spectrum and its allocation.
The global status of LTE at the end of September 2011 shows a market with growing momentum, including commercial, technical and radio frequency developments that shaping LTE’s growth. In terms of commercial LTE deployments, there are differences in operator business models, including network and spectrum sharing models which are expected to increase as LTE takes hold and more spectrum resources are released for mobile broadband.
Issues and challenges that are both fostering and hindering LTE’s progress include spectrum availability, challenges for the emerging LTE device ecosystem and LTE end user service packaging and pricing strategies.
Source : tmforum.org