3G struggles as LTE approaches

Despite the buzz about LTE, only 11% of total cellular subscriptions worldwide are even using 3G technology, according to a new report from market research and consultancy In-Stat. However, by 2013, the percentage will rise to 28% but in the meantime the next technology, LTE, is moving beyond talk and into real contract awards.
HSPA is the main beneficiary of the drive to 3G as it leads both new deployments and contract awards so far in 2009. Ericsson and Huawei led the infrastructure providers in new contract awards for HSPA. The new, high profile contract awards in 3G included China Unicom, Telecom Italia and Telefonica.

“The roll-out of 3G worldwide is important, but the story of the day is LTE becoming a reality,” says Allen Nogee, In-Stat analyst. “LTE contracts have been awarded in Japan, Singapore, United States, Norway, and Sweden. Infrastructure leaders are far from decided; however, Alcatel-Lucent, Ericsson, and Huawei are the early beneficiaries of the early LTE contract awards.”

Recent research by In-Stat found the following:
- During 1Q09, there were 9 WiMAX 802.16e networks deployed worldwide,
mainly in Asia Pacific and Eastern Europe.
- 2G is far from dead. There were new contract awards for 2G
infrastructure in 1Q2009.