Asia to account for 47% of LTE connections by 2017: GSMA

As India and China roll out fourth generation or LTE mobile networks, Asia is expected to account for 47% of all 4G connections by 2017, a study by global telecom body GSM Association (GSMA) said today.

"Asia is expected to account for almost half (47%) of all LTE (long term evolution) connections by 2017, as LTE networks are rolled out in major markets such as China and India," GSMA said.

It added the number of 4G-LTE connections across the world is forecast to pass one billion by 2017.

"By 2017, it is expected that LTE will account for about one in eight of the more than eight billion total mobile connections forecast by that point, up from 176 million LTE connections at the end of 2013," it said.

Bharti Airtel is the only company offering 4G services in select circles in India, although it is expected that Reliance Jio Infocomm will also launch 4G in near future.

The study said that about 20% of the global population is currently within LTE network coverage range.

"As operators continue to expand LTE coverage over the next few years, it is forecast that LTE networks will be available to half of the world's population by 2017," it said.

In the United States, LTE networks already cover more than 90% of the population, compared to 47% population coverage in Europe and 10% in Asia, the study said.

"Our new report highlights a number of factors that are driving LTE growth: the timely allocation of suitable spectrum to mobile operators, availability of affordable LTE devices and the implementation of innovative tariffs that encourage adoption of high-speed data services," GSMA Chief Strategy Officer Hyunmi Yang said.

Yang added mobile operators in both developed and developing markets are seeing LTE services contributing to a significant increase in average revenue per user (ARPU).

"In developing economies, operators have noted that LTE users can generate ARPU seven to 20 times greater than non-LTE users," the study said.

GSMA said the average retail price (before discounts and subsidies) of LTE smartphones in developed markets such as the US has remained unchanged at around $450 for the last few years.

"Handset subsidies have contributed considerably to the increase in LTE penetration over the last two years, but operators have also become more innovative in their pricing," it added.