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US 4G LTE Competition Intensifies on Path to 190M Connections in 2014
Verizon / T-Mobile Spectrum Trading Strengthens LTE Opportunity
Boston, MA and CES, Las Vegas - January 7, 2014 – T-Mobile’s acquisition and swap of spectrum with Verizon Wireless will further the carriers’ respective aims of greater LTE coverage and capacity in 2014, intensifying network-based competition and stimulating market growth, according to Strategy Analytics. Recent forecasts from Strategies Analytics’ Wireless Operator Strategies (WOS) service, "Worldwide Cellular User Forecasts, 2013-2018", predict LTE will account for 50 percent of wireless connections in the US by end 2014 and 79 percent by end 2018.
The US will lead the world in 4G LTE in 2014, accounting for more than one in three of the forecast 528 million LTE connections by year-end. Together with Japan and South Korea, the competitive intensity in these developed 4G markets will help them dominate the LTE landscape this year, though all eyes will be on China as it takes its first steps with TD-LTE services.
“The spectrum trade is a great deal for both T-Mobile and Verizon Wireless,” comments Phil Kendall, Director Wireless Operator Strategies. “The 700MHz spectrum, covering 50 percent of the US population, will be crucial for T-Mobile as it looks to catch up with its larger rivals on 4G LTE coverage. And Verizon Wireless’s priorities are all about capacity: with two-thirds of traffic on its LTE network, additional AWS and PCS spectrum will form an important part of its network build-out plans.”
Susan Welsh de Grimaldo, Director Wireless Operators & Networks, adds: “2014 will be a great year for 4G LTE in the US. T-Mobile and Sprint will work hard to level the network playing field by building out high-capacity coverage, while AT&T and Verizon Wireless will look to broaden the appeal or functionality of LTE with services such as VoLTE and sponsored mobile data, as well as a broader range of connected devices such as cars and wearables. This will help the US to buck the trend of revenue stagnation or decline seen in many developed markets today.”
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