The rollout of LTE networks is expected to accelerate rapidly over the next five years, driven initially by enterprise demand, according to new research from analyst firm Juniper Research. Despite strong growth, LTE will account for only about 6% of global mobile subscribers by 2016.
Juniper projects that LTE subscriber numbers will reach 428 million within five years, with a sharp increase beginning as early as next year. Many operators are already preparing to meet their deployment targets and expand coverage.
Enterprises are poised to be the first major adopters of the faster mobile technology, dominating uptake in the early years of deployment. From 2013 onward, however, consumer adoption will rise rapidly, and consumers are expected to become the largest user group by 2015.
“With LTE initially positioned as a premium service, enterprise subscribers will be drawn to the higher data speeds and service-level guarantees that operators can offer,” said report author Nitin Bhas. “A key factor that will drive consumer adoption later in the forecast period is the integration of LTE into mainstream consumer devices.”
The report anticipates that LTE-capable smartphones and tablets will lead the connected-device market, making up roughly 50% of total LTE subscribers by 2016. High-end data users in enterprises are likely to be the earliest smartphone adopters, migrating to LTE for improved performance.
Juniper also highlights that enterprises are spearheading early LTE tablet adoption, but consumer volumes are expected to surpass enterprise tablet adoption starting in 2013 as device availability and affordability improve.
Regionally, North America and Western Europe are expected to be the most advanced markets for LTE mobile broadband users. In contrast, slower growth is projected for Latin America, Central and Eastern Europe, and the Indian subcontinent.
Overall, the migration to LTE will be shaped by a combination of enterprise demand, device penetration, and regional market readiness, with consumers playing an increasingly important role as LTE becomes embedded in everyday smartphones and tablets.