The market for global Long Term Evolution (LTE) mobile infrastructure equipment will peak this year, after which it will begin to decline as a result of operators completing major rollouts, according to a new report from IHS.
Revenue from mobile infrastructure equipment in the LTE space will reach $23.3 billion in 2015, IHS says. Stéphane Téral, research director for mobile infrastructure and carrier economics at IHS, says this year will be the peak of LTE rollouts.
“LTE is now set to perform at $6 billion a quarter for some time as operators complete their major remaining rollouts,” he says.
In an earlier report this year, Téral forecasted that LTE buildouts for LTE mobile infrastructure would start declining in 2016. The results of the first quarter of the year confirm these findings, Téral says.
LTE revenue totaled $6 billion worldwide in the first quarter of 2015, a 1% sequential decline. LTE rollouts were also not strong enough in the first quarter to offset the decline in spending for 2G/3G, resulting in an 8% sequential decline for the global 2G/3G/4G mobile infrastructure markets, IHS says.
Total revenue for the quarter was $11 billion. On a year-over-year basis, however, 2G/3G/4G mobile infrastructure revenue was up 4% in the first quarter driven by persistent spending in China for TDD LTE.
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