Asia-Pacific to Boost Global LTE Network - Analyst Blog
Long-Term Evolution (LTE), the most sought after next-generation (4G) super-fast wireless communications technology, is rapidly gaining global momentum. The 4G wireless network aims to cope with substantial demand for high-speed wireless data services and mobile video. Research firm ABI Research recently reported that a significant boost is expected to come from the Asia-Pacific region.
In 2014, the Asia-Pacific region is likely to excel all other regions in the world with respect to LTE basestations installation. LTE basestations, which are popularly known as radio access networks (RAN), are expected to grow eight fold in the region this year. Also, wireless operators are projected to spend around $35 billion for RAN in 2014, globally, with Asia-Pacific accounting for the major share.
Large wireless network infrastructure gear makers such as, L.M. Ericsson AB (NASDAQ: ERIC), Nokia Solutions and Networks, a subsidiary of Nokia Corp. (NYSE: NOK), Alcatel Lucent S.A. (NYSE: ALU) and Huawei Technologies are likely to benefit the most from the booming RAN market.
Within the Asia-Pacific region, China is the primary driver of LTE growth. China Mobile Ltd. (NYSE: CHL), the largest mobile operator in the world in terms of subscriber count, installed over 200,000 RANs in 2013. Management has decided to install more than 500,000 RANs in 2014.
At the end of Feb 2014, China Mobile had around 775.6 million wireless subscribers. During the first two months of 2014, it added 1.43 million LTE subscribers. Additionally, China Unicom and China Telecom have also started LTE services. ABI Research also stated that by 2019, China will dominate the LTE basestation market in the Asia-Pacific region, and have the largest LTE RANs installed in the world.
Recently, The Global Mobile Suppliers Association (GSA) reported that currently there are approximately 200.1 million LTE subscribers globally. Out of this, North America region has highest numbers of subscribers, around 101 million (50.5%), Asia-Pacific region boasts 77.8 million (38.8%) and Europe has around 16.4 million (8.2%).
ALCATEL ADS (NYSE: ALU): Free Stock Analysis Report
CHINA MOBLE-ADR (NYSE: CHL): Free Stock Analysis Report
ERICSSON LM ADR (NASDAQ: ERIC): Free Stock Analysis Report
NOKIA CP-ADR A (NYSE: NOK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.