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LTE will not revolutionize the industry: CTIA exec

SAN DIEGO ? With four carriers planning to have LTE services deployed by the end of 2011, the U.S. is the most unique and active market in the world, per an executive at the CTIA Enterprise & Applications 2011 conference.

During the ?LTE Devices in the World?s Most Competitive Market? session, an executive discussed the current overview of the U.S. LTE device landscape. Additionally, the session also addressed the opportunities and challenges LTE carriers face in driving customer adoption.

?Devices on the network are changing data consumptions,? said Sara Kaufman, an analyst at Ovum. ?Smartphones are really using many times more bandwidth than feature phones.

?Today, we?re seeing specific plans for specific devices,? she said.

Uniquely mobile
According to Ms. Kaufman, the U.S. is a unique LTE market.

There are three different 4G technologies in use.

?All major operators offer 4G today,? Ms. Kaufman said. ?Some on multiple technologies.

?The U.S. is the first market in the world to offer LTE handsets,? she said. ?There are a huge number of providers launching LTE networks and services.?

According to the executive LTE is definitely taking off.

?Especially in the U.S.,? Ms. Kaufman said. ?In the U.S., it?s really exceptional.?

However, LTE is not the only 4G game in tow.

Forty-two percent of the world?s LTE connections in 2011 are from the U.S.

Additionally, LTE connections will reach 12.8 million or 32 percent of total connections by 2016.

?Globally, survey respondents believe that LTE will provide cost efficiencies, support new services and generate new revenues,? Ms. Kaufman said.

?Of all the different types of companies we surveyed, operators were most optimistic that they could generate revenue,? she said.

Critical thinking
Devices are critical to LTE success, per Ms. Kaufman.

The U.S. was the first to market LTE handsets, but many other 4G smartphones are available now.

?One of the things that is going to be very key for operators is the spectrum that they?re using,? Ms. Kaufman said.

According to Ms. Kaufman, carriers need to focus on metrics that users can understand.  

Additionally, LTE will not revolutionize the industry, per the executive.

?4G and LTE are increasingly becoming ubiquitous,? Ms. Kaufman said. ?Key LTE service objectives should be improving existing services and lowering costs.

?There is no convincing evidence of LTE services generating new revenues,? she said. ?Instead, LTE will simply make existing services better.

Additionally, carriers still have much to figure out, including the spectrum, frequencies, device features and capability, service pricing and data tariffs.

?LTE is still in its infancy, but growing fast,? Ms. Kaufman said.   

Final Take
Sara Kaufman, an analyst at Ovum