While LTE and LTE-Advanced deployments are still underway, wireless carriers and vendors have already started embarking on R&D initiatives to develop the fifth generation mobile technology - 5G technology, with a vision to roll out commercial services by 2020. Driven by regional, national government, wireless carrier and vendor initiatives, the 5G R&D and trial investments will account for nearly $5 Billion capital outlay by 2020, growing at a CAGR of nearly 40% over the next 5 years, according to a research report by SNS Research. This research also expects nearly 70% of these investments to target large scale commercial trial networks in Japan, South Korea and other early pioneering countries.
According to SNS Research's LTE, LTE-Advanced & 5G Ecosystem report, commercial LTE networks is estimated to generate nearly $168 Billion in service revenue in 2015 alone. The figure is further expected to grow at a CAGR of more than 30% over the next 5 years, to reach nearly $700 Billion by 2020. By this time nearly 60% of all Billion LTE subscribers will be supported by LTE-Advanced capable networks.
Driven by these revenue prospects, operators are expected to continue to aggressively invest in LTE infrastructure, encompassing macrocell base stations (eNBs), small cells and EPC/mobile core equipment that will account for nearly $33 Billion by the end of 2020. Nokia and Ericsson will lead the LTE RAN infrastructure market with a combined market share of 43%, added SNS Research.
A quick infographics on Mobile Operators infrastructure and equipment spending
