New iGR Study Forecasts U.S. LTE Infrastructure CapEx to Reach Nearly $40 Billion Over the Next 5 Years

Majority of Spending Will Be in the LTE RAN but Significant Investment Required in the EPC and Other Network Components


AUSTIN, TX--(Marketwire - Oct 16, 2012) - Most of the largest U.S. operators are already well advanced in their LTE network rollouts. Others may lag behind, but LTE deployments overall are still progressing quickly -- perhaps more quickly than could have been foreseen 12 to 18 months ago. Additionally the U.S. market already has more than a half dozen LTE-capable smartphones and tablets with many more to follow by year-end 2012 -- and still more in calendar 2013.

iGR, a market research consultancy focused on the wireless and mobile industry, fully expects LTE uptake to grow quickly. Once the LTE subscriber base starts to grow, more devices become available and usage of the network increases, then the operator increases the network capacity.

Between 2012 and 2016, iGR forecasts total U.S. LTE infrastructure capital expenditures to be $39.82 billion, based on the anticipated growth of LTE subscribers and data traffic on the networks. iGR's LTE cost model is based on the amount of data the network is able to support and deliver. The cost model is based on the cost required to add 1 GB of data capacity to the network.

"Operators are continually balancing their network CapEx between coverage and capacity," said Iain Gillott, president and founder of iGR. "The engineers strive to provide sufficient coverage to be competitive and sufficient capacity to meet the needs of the (hopefully) growing subscriber base, while minimizing unnecessary CapEx. This report clearly shows there remains a significant opportunity in the U.S. LTE infrastructure market."

iGR's new market research report, U.S. LTE Network Infrastructure CapEx Spending Forecast, 2011-2016, forecasts the total LTE infrastructure CapEx investment per operator in the U.S. and the spending split by network component.

The following key questions are addressed in the new research study:

  • How much mobile data will the LTE networks carry in the U.S.?
  • How will the amount of data traffic carried on LTE networks grow in the U.S. in the next five years?
  • What is the forecast for the number of LTE subscribers in the U.S. in the next five years?
  • How much mobile data is each LTE subscriber expected to consume and how does this change?
  • Which operators are investing the most CapEx in LTE networks?
  • When do the CapEx cost curves begin -- and begin to trend downward -- per operator?
  • How much are U.S. operators investing in LTE both individually and in the aggregate?
  • How big is the LTE infrastructure opportunity in the U.S. in the next five years?
  • What is the share of LTE infrastructure spending on the network components in the next five years?

The information in this report will be valuable for:

  • Mobile network operators
  • LTE network infrastructure vendors
  • Small cell OEMs
  • Financial and investment analysts.

The new report can be purchased and downloaded directly from iGR's website at www.iGR-inc.comAlternatively, contact Iain Gillott at (512) 263-5682 or at Iain@iGR-inc.com for additional details.

About iGR
iGR is a market strategy consultancy focused on the wireless and mobile communications industry. Founded by Iain Gillott, one of the wireless industry's leading analysts, in late 2000 as iGillottResearch, iGR is now entering its twelfth year of operation. iGR continuously researches emerging and existent technologies, technology industries, and consumer markets. We use our detailed research to offer a range of services to help companies improve their position in the marketplace, clearly define their future direction, and ultimately improve their bottom line.

iGR researches a range of wireless and mobile products and technologies, including: smartphones; tablets; mobile applications; bandwidth demand and use; small cell architectures; DAS; LTE; WiMAX; VoLTE; IMS; NFC; GSM/GPRS/UMTS/HSPA; CDMA 1x/EV-DO; iDEN; SIP; macro-, pico- and femtocells; mobile backhaul; WiFi and WiFi offload; and SIM and UICC.

A more complete profile of the company can be found at www.igr-inc.com.

Contact Information:

Contact iGR
Iain Gillott
(512) 263-5682