Move over cable, DSL and fiber – the fight for broadband supremacy has another technology contender: Advanced Long-Term Evolution (LTE). LTE Advanced, the latest generation of high-speed mobile standard, is robust enough to deliver blazingly fast Internet and video and improving the consumer’s mobile experience.
A recent forecast from ABI Research found not only has LTE turbocharged the mobile Internet experience for users, it has triggered the rapid adoption of LTE-capable smartphones and invigorated the broadband wireless space. For mobile operators who are looking for new revenue streams, LTE gives them the ability not only to take advantage of emerging market opportunities like connected home, but they also can leverage existing investments in LTE networks to gain an advantage.
By 2020, advanced mobile technology will be commonplace around the globe, according to the new Ericsson Mobility Report. A full 70 percent of the world’s population will be using smartphones in five years and 90 percent will be covered by mobile broadband networks. Between now and 2020, the Ericsson report projects mobile video traffic will grow by 5 percent per year and will constitute around 60 percent of all mobile data traffic by the end of that period.
[subscribe_reminder]Growth is largely driven by shifting user preferences towards video streaming services, and the increasing prevalence of video in online content including news, advertisements and social media. Despite the relative maturity of the U.S. telecom market, 1.26 billion households do not have DSL, cable, or fiber-optic broadband, according to ABI Research. Not surprisingly, fixed and mobile telcos are looking to LTE to make the connection.
“By the end of 2014, ABI Research anticipates there will be 14.5 million residential and commercial premises with fixed LTE broadband access. By 2019, that figure should grow to 123 million,” said Jake Saunders, VP and 4G practice director at ABI Research.
The impact of LTE Advanced also is showing up in the mobile infrastructure market. Despite a slowdown in mobile infrastructure in the first quarter of this year, LTE was a strong driver of mobile broadband sales, according to ACG Research. Fast-rising data traffic could eventually require further upgrades of U.S. wireless networks to LTE-Advanced – particularly since ACG Research believes more than two-thirds of all global mobile data traffic will be video by 2017.