Will LTE Lead The Machine-to-Machine Market After 2021?

According to a recent research report published by research and advisory firm, Ovum, the cellular mobile machine-to-machine (M2M) connections are expected to spread across the globe. By 2021, as many as 733 million of these connections are estimated globally, which is almost 8.1% of all forecast cellular connections, up 4.2% from the coverage in 2015. However, this expansion does not include the Narrow-band Internet of Things (NB-IoT) technology.

What is LTE?

Long-Term Evolution (LTE) is the next major phase of mobile telecommunications standards after the 4G/IMT standards based on the GSM/EDGE network technologies. The standard is generated by the 3GPP (3rd Generation Partnership Project) specifications.

LTE is popularly known as 4G LTE in spite of the fact that it does not technically match 4G services. It is the most sought-after, next-generation (4G) super-fast wireless communications technology, which is rapidly gaining popularity worldwide. 4G wireless networks primarily aim to fulfill the substantial rise in demand for high-speed wireless data services and mobile video.

What is M2M?

Machine-to-machine (M2M) is a way of communicating between networked devices using both wired and wireless networks, irrespective of human presence. The worldwide expansion of IP networks facilitate faster M2M communications with less power. Moreover, such networks leverage new business opportunities for consumers and suppliers. It also has multiple industrial uses with applications in varied sector like utilities, automotive, and healthcare. The global M2M connections market operates purely in relation to technology and connections.

Growth Prospects

Several analysts believe that the mobile M2M services would generate revenues worth $67 billion in 2021. This indicates a compound annual growth rate(CAGR) of 13.3%. While revenues of $22 billion are expected from Asia & Oceania, North America is estimated to generate $16 billion. Western Europe is anticipated to contribute $14 billion to total revenue. Service revenues are presumed to increase in the Middle East and African markets at a CAGR of 16.7%.

Upcoming Market Trend

Reports about M2M expansion has been collected from the present major U.S. wireless carriers and National Regulatory Authorities (NRAs). As per research firm Ovum, LTE will undoubtedly rule the market with 212 million connections in 2021 and even more in the future. The 2G and 3G technologies might soon reach a stagnation point, whereas LTE is expected to prove to be a long-term player.

2016’s LTE-Advancements

In Aug 2016, U.S. telecom behemoths – Verizon Communications Inc. (NYSE:VZ) and Sprint Corp. (NYSE:S) – launched their promotional schemes for LTE network advancements.

Verizon completed a major upgrade of its 4G LTE networks to LTE-Advanced technology covering 461 cities in the U.S. The two-channel carrier aggregation will run at download speeds of up to 225 Mbps (Mega Bits Per Second), while three-channel carrier aggregation will have speeds exceeding more than 300 Mbps.

On the other hand, Sprint promoted its three-channel carrier aggregation in the Kansas City’s LTE Plus Network through a live telecast at Kauffman Stadium in Kansas City and at Soldier Field in Chicago. The three-channel carrier aggregation was advertised using the latest network technology devices – Samsung (KS:005930) Galaxy Note7, Galaxy S7, S7 edge, HTC 10 and LG G5 coupled, each having Internet download speed of more than 230 Mbps.

In Mar 2016, wireless equipment company – Ericsson (NASDAQ:ERIC) – inked a three-year frame contract with True Move H, a subsidiary of True Corporation Plc under the True Mobile Group. The deal pertains to the deployment of LTE-Advanced, expansion of 4G/3G and also building of GSM networks in Thailand.

In Jan, 2016, AT&T Inc. (NYSE:T) expanded its 4G LTE wireless networks across 36 Mexican cities. It is likely to cover 40 million people by the end of this year and will be available to 75 million subscribers by the end of 2016. By the end of 2018, the company aims to reach out to 100 million Mexican customers.

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