Saturday 7 March 2009

LTE can get us out from the current recession

Hello everybody. Just in case you guys thinking where I am then I can tell you that I just returned back from my holiday last week.

Everybody is aware how the market situation is getting worse and there is no doubt it has started affecting the telecomm companies as well.

One of the major doubts I have been carrying from the past few weeks was, what will happen to LTE now after seeing the worsening state of the economy.

As I have mentioned in my previous blogs that the companies are toying with idea of considering HSPA+ as one of the option in case they can’t afford LTE in the current climate.

However I firmly believe that the success of LTE is very important not only for people like me but for the industry as well.

I think with WiMax loosing its grip it’s a very good opportunity for the telecomm giants to leapfrog the competition and work feverishly towards the launch of LTE.

The early signs are that LTE is getting a go ahead from most and the mobile industry is really pushing LTE

It is estimated that there will more than 50 million mobile users by the end of 2013. With the no of users growing at a rapid pace in India and china and other Asian countries these numbers sounds reasonable enough.

This growth rate would be remarkable given that the original standardization and specification process for Long Term Evolution (LTE) aka '4G' only envisages commercial deployment in the 2011-2012 timeframe. It would appear that the mobile industry is once again doing what it does best, overhyping new technology whilst it is still in development.

I suppose in the current climate the only excitement is that the announcements about LTE are arriving almost daily, each more positive than the next.

CDMA operator Verizon Wireless has already announced its intention to migrate its network to LTE, Motorola plans to focus on LTE, perhaps at the expense of WiMAX and so it goes on.

Recently T-Mobile step up the pressure on equipment vendors, when it stated it will not deploy HSPA+ to further boost its mobile broadband throughput but will instead skip this technical evolution and invest in LTE.

And now the news is that Nokia is affirming it’s commitment to LTE and says that it would have device for LTE networks by 2010.

Nokia affirmed its commitment to Long Term evolution (LTE) technology and said it would have devices for LTE networks in 2010, according to a company executive. By doing this Nokia in my view is dismissing WiMAX as a 4G standard. I believe one of the major reasons why Nokia might be thinking that way is because of WiMax’s lack of backwards compatibility and an unclear roadmap.

I hope all this news regarding LTE materializes and kicks off a nice decade ahead. However only time will tell whether the LTE hype is justified or if the mobile industry is about to get another dash of cold reality.

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