Increase in LTE network deployment: Market overview, benefits and challenges

As telecommunications infrastructures evolve and support for a range of different devices advances, the market is seeing the expansive results. Currently, telecom providers are looking to improve their service delivery and this is often achieved through the deployment or enhancement of an LTE network. Recent LTE market growth illustrates this point, showing rising implementation of LTE technology within the telecom sector.
Benefits and challenges for LTE deployment
While improved service quality and the ability to meet growing consumer demands are a few key benefits LTE network deployment offers operators, there are several other advantages encouraging this trend of growing implementation. A recent Strategy Analytics report showed that telcos that implement LTE technology within their infrastructures also see increasing market values.
However, Nex-G Exuberant Solutions noted that there are certain challenges that vendors must address when deploying LTE networks, including the current fragmentation of available LTE spectrum. Additionally, service providers must take into account strategies for blending their existing network with the new LTE support, which can be a complex process.
“Some carriers like to will (sic) build a completely new 4G network along the existing networks,” Nex-G stated. “Other telcos will create a new converged network, where they try to make the different generations of technologies work together.”
Whatever approach is taken, the key takeaway here is that LTE network deployment will only increase in the near future. As users demand more from their service providers, and telcos work to enhance service quality, LTE will provide the solution to address these needs.
LTE market overview
According to this year’s Evolution to LTE report from the Global Mobile Suppliers Association, as of January, there were 263 LTE networks deployed across 97 countries. In total, 112 of these LTE implementations occurred in 2013 and an additional 3 networks were launched at the beginning of 2014. Research also shows that as of March this year, the use of LTE-enabled devices experienced 90 percent annual growth.
Furthermore, the report showed that LTE adoption is increasing among mobile vendors, with 508 operators confirming that they are now investing capital in LTE technology. These telcos are currently based in 144 countries, illustrating worldwide boosts in LTE support.
GSA also predicted that by the end of this year, there will be at least 350 LTE networks providing commercial services.
“Key trends this year include more deployments of carrier aggregation and other LTE-Advanced features, growth in voice services enabled by VoLTE, and a significant expansion of international LTE roaming services,” said GSA president Alan Hadden. “2014 is also expected to be important for LTE Broadcast.”
These findings are echoed by other industry experts, including TMCnet contributor Joe Rizzo, who noted that LTE deployment is on the rise across Europe and China. One driving factor creating these market conditions is the fact that wireless network data being delivered is of a higher quality, addressing customer demands for improved services.
Furthermore, European independent media company Visiongain also found that LTE network deployment is occurring at a rapid pace and will reach $12.8 billion in revenues by the end of the year. According to the Visiongain, LTE’s expansion has largely been a response to the considerable increase in user data traffic.
“Visiongain projects that 2014 will be a pivotal year and one of significant growth for LTE base stations as mobile operators will need to increase network capacity to handle the explosive growth in data traffic,” the company stated.
Recent LTE initiatives: T-Mobile, Ericsson
However, there is possibly no better testament to this research than examples of LTE growth currently taking place in the telecom market. For instance, Ericsson recently announced efforts to boost its LTE service footprint and recently announced that it took part in the first live LTE broadcast trial in the Netherlands. The company will work with Netherlands network operator KPN, as well as Qualcomm Technologies Inc., Samsung and IBM. The trial occurred on May 3 during the Ajax-NEC soccer game at the Amsterdam Arena stadium. KPN director access Joost Steltenpool noted that there is currently high demand for video content during these kinds of events.
“Therefore, our aim was to find a solution for delivering high-quality video content to large groups of people,” Steltenpool said of the test. “The key for such a solution is greater network efficiency and guaranteed service quality.”
In addition, GigaOM’s Kevin Fitchard reported that T-Mobile is in the processes of improving its LTE offerings through the use of 4-by-2 multiple input-multiple output technology, or 4×2 MIMO. In a traditional LTE network, operators utilize two antennas on each tower that connect to two antennas in individual user devices. However, T-Mobile is upping the ante by doubling this to four antennas on the tower.