Juniper Analyst Forecasts More than $260 Billion in Potential LTE Revenues by 2016

[Satellite TODAY Insider 12-15-11] The LTE sector’s worldwide service revenues are forecast to generate considerable growth once mobile networks are launched, according to a report published Dec. 14 by Juniper Research. The firm expects the market’s total revenues to exceed $265 billion by 2016.

   Juniper Research analysts said that the total number of LTE consumer subscribers in the market will be higher than the enterprise sector total in 2016. But the firm sees a different comparison from the revenue perspective, as consumer segments account for under half of total revenues in the LTE market. The Juniper Research report examined LTE revenue potential by evaluating four service-pricing scenarios and three business models based on service usage. High traffic subscribers using video, web and email services will be the critical early adopter segment to benefit from LTE, according to Juniper Analyst Nitin Bhas, who authored the report.

   “Tiered usage plans attract premium users,” Bhas wrote in the report. “The introduction of premium service tariffs to provide high end enterprise users with required guaranteed connections and/or service levels was identified as key to derive incremental revenues for LTE.”

   4G LTE wholesaler LightSquared has been the satellite-supported center of attention in the industry, as the company attempts to launch its network and challenge the major cellular companies that have already laid the foundations of their plans. LightSquared announced Dec. 14 that it reached an agreement with advanced communications and IT technology solutions company Gateway Communications Services (Gateway CSI) to provide LTE services to its Mid-Atlantic business and government agency customers.

   Gateway CSI, which currently designs customized telecommunications solutions, said the deal would allow the company to deliver affordable, branded wireless services to its existing customers, target new customer segments and expand into new regions through their network of partners.

   Bhas found that early LTE adopters represent “top end” users who are currently in the higher echelons of monthly spending in both developing and developed countries. “We believe that high end enterprise users in developing countries will be much closer in spend to similar users in North America or Western Europe and certainly very distinct from the bulk of the population that contribute towards the high level regional ARPU levels for all generations, including 2G.”