Based on the latest data from Ovum, a leading research and advisory firm, 4G LTE connections are growing rapidly in the developed markets around the globe. The US, in particular, demonstrated the highest adoption rate, with its two leading operators, Verizon Wireless and AT&T accounting for 35% of total global LTE connections. These figures come from Ovum's latest update to its World Cellular Data Metrics.
According to the update, in the first quarter of 2014 itself, LTE subscriptions crossed the 250 million mark. Ovum attributes the rapid growth in this segment to the increased ownership of 4G devices, and the coverage provided by mobile operators in certain countries. In the US, for example, mobile operators achieved between 71% to 93% coverage on their LTE service, enabling the majority of the population to have access to the high-speed mobile connection.
Ovum shared the progress in 4G LTE deployments and subscriptions in Europe and Asia Pacific, being the two other markets where LTE takeup has been the highest. It said that Europe has recorded 10 LTE launches this year, coming to a total of 96 LTE networks in service with UK leading other countries in the region with subscriptions of over 6 million. The Asia Pacific market which boasts mobile subscriptions of more than 1 billion showed LTE subscription growth of 102% year on year. LTE however, represents just over 9% of total mobile broadband subscriptions in this region, said Ovum. The leading countries in Asia Pacific in terms of LTE subscription numbers are Japan, Korea and Australia, which together make up 32% of the global LTE subscriptions in 1Q14.
"The increased availability and affordability of LTE-capable devices is a major growth driver. However, deployments and usage are still at an early stage globally, except for North America, where LTE represented over one-third of mobile broadband usage in 1Q14. In emerging markets, where prepaid is dominant and handset subsidies less frequent, LTE take-up is slow as coverage is limited and operators prioritize the high-end and business segments.
“Ovum forecasts the number of LTE subscriptions globally to exceed 2 billion by 2019, accounting for 25% of mobile broadband subscriptions. By that time one in three people will use an LTE device.”
- Thecla Mbongue, senior analyst, Ovum