Wednesday, 1 January 2014

LTE market in the US is expected to grow at a CAGR of 45.65% over 2012 to 2016

The primary trend witnessed in the Long Term Evolution (LTE) market in the US centers on the increased investments made by AT&T recently. The LTE market in the US was mainly dominated by Verizon that introduced LTE services in the US. Verizon and Sprint were among the first network operators to introduce LTE services in the US and Verizon invested heavily in 2010-2011, thereby securing a dominant position in the market.

However, AT&T has been investing heavily since 2011 in order to enhance its position in the market. The company also tried to acquire T-Mobile, another network operator in the US in 2011, but the attempt proved unsuccessful. However, the increased investments by AT&T in the US LTE market and the subsequent deployment of more LTE networks across the country have together led to immense growth in the market and increased competition among local network operators.

The main driving factor behind the growth of the LTE market in the US is the increased competition among the network operators. Verizon, the biggest network operator, has invested significantly in LTE networks. Sprint, another major network operator, was also one of the first operators to invest in LTE networks. With the increased adoption of LTE-enabled devices in the region, the demand for LTE based services is increasing significantly.

The main challenge faced by the US LTE market includes pricing issues faced by the network operators and vendors due to the intense competition. Equipment providers such as Ericsson, Alcatel-Lucent, and Nokia Siemens Networks are intensely competitive and they are focused on having an edge in the LTE market in the US, which incidentally is the biggest and the fastest growing market for LTE services. This has led to increased pricing issues, resulting in lowered profitability.

For further insights, LTE Market in US

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