LTE mobile broadband price set to decline by 60% over the next 5 years

 

 

LTE mobile broadband price will fall
substantially over the 5-year period to the end of 2016.

 

LTE is currently being promoted as a
premium Mobile Broadband product based on a high theoretical download access
speed.

 

LTE Mobile Broadband pricing will decline
as more operators adopt the technology worldwide. As of the end of 2011 around
60 percent of commercial LTE services have been launched so far in Europe.

 

Into 2012 more LTE networks will be
launched in other regions including the Asia Pacific and South America with LTE
pricing set to become more competitive as LTE becomes a mass market service and
enters other consumer segments using increased download access speeds as a key
differentiator.

 

By the end of 2016 there will be over 250
million users of LTE mobile broadband services, but average pricing per
subscriber will decrease to around 20 Euro per month – a decrease equivalent to
more than 60 percent in LTE pricing over the 5 year period.

 

LTE Mobile Broadband Pricing 2012 report by
Tariff Consultancy Ltd (TCL) evaluates pricing from around 30 LTE Mobile
Broadband providers which are mainly located in Europe, North America and the
Asia-Pacific regions of the world.

 

The LTE Mobile Broadband 2012 report is
available with Research and Markets.

 

TCL has produced a forecast for LTE Mobile
Broadband subscriber numbers and revenues for the 5 year period to the end of
2016. As a result TCL anticipates that LTE Mobile Broadband pricing will
decline over time as more operators adopt the technology by around 60 percent
from the end of 2011 to the end of 2016.

 

Recently GSMA announced that the global adoption of LTE services risks being hampered by
device interoperability issues unless harmonized spectrum band plans can be
achieved.

 

There will be 38 different spectrum
frequency combinations used in LTE deployments by 2015, a fragmented scenario
fuelled by ongoing spectrum auctions, licence renewals and re-farming
initiatives across frequency bands.

 

 

The lack of spectrum harmonization creates
challenges for emerging LTE ecosystem, preventing vendors from delivering
compatible LTE products such as devices and chipsets, or requiring them to
increase prices.

 

By Telecomlead.com Team
editor@telecomlead.com

 

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