LTE to drive wireless growth for a decade
As the market addresses these issues and CMOS processors and DSP-based devices integrate more and more functionality, equipment and deployment costs will drop.
As revenues are a key issue and voice is the dominant driver of wireless operator revenue, even today, VOIP will be a key requirement along with all the issues of Quality of Service. However, since LTE is an IP based protocol, VOIP is the only route available to operators, unless they keep a 3G, 2G or GSM network running in parallel. Cost once again rules out this scenario in the longer term.
In recently released report, Exact Ventures found that the IP multimedia subsystem (IMS) Core market in the first quarter nearly tripled year-over-year, in major part due to significant voice-over-LTE (VoLTE) deployments in North America.
“While the IMS Core market showed very strong growth during the quarter it is still a relatively small market, accounting for just 10 percent of the total — wireline plus wireless — voice core market,” said Greg Collins, Founder and Principal Analyst at research firm Exact Ventures. “The transition away from circuit switching to an all IP core network based on IMS is just beginning and is expected to last well over a decade,” commented Collins.
In a another report Dell’Oro Group indicates that the challenging macro economic environment is not hindering operators from building out their LTE networks. This is in contrast to the slowdown in sales momentum for the 2G/3G mobile Radio Access Network (RAN) equipment.
Dell’Oro Group reports that LTE RAN revenues are up more than 160 percent versus 1Q11with more than 60 commercial LTE networks at the end of 1Q12.
If we are to deliver the wireless society of the future then we will need to migrate to LTE and LTE Advanced. However, the process will take many years and this important growth industry as a long way to run.
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