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Mar. 9, 2007

Beginning this year and for the next seven years, wireless network operators will invest close to $18 billion into LTE (Long Term Evolution) infrastructure.

The IP networks will have simpler, more modern architectures and will significantly help to reduce costs for telecom hardware vendors.

A recent study done by ABI Research reveals that LTE is already facing tough competition from other broadband wireless technologies.

ABI also notes that LTE has its work cut out for itself in demonstrating its true advantages to network operators.

ABI Research analyst Ian Cox says "Wi-MAX has a two-year advance over LTE, but suffers a lot from not being backward-compatible with current 3G technologies.”

Cox added “LTE will not only be backward-compatible with UMTS but is likely to be used to significantly upgrade CDMA networks as well."

However, the industry is also working on HSPA+, which could offer the same performance in a 5 MHz bandwidth.

"Without additional spectrum, operators face a difficult choice," said Cox.

Overall, LTE will make use of SIP-enabled networks to deliver broadband services such as VoIP, as well as high data throughput rates and will offer low latency for end users.

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Source: Wireless Week