4G in US exceeds 40% in Q4 2014

London, 5 December 2014- 4G’s share of US wireless connections has seen steep growth since initial availability in late-2011.

 

 

4G in US now accounts for over 40% of total wireless subscriptions and we see this trend continuing.  Quantum-Web predicts that 4G will represent 91% of all US wireless connections by 2020.

There are three core drivers behind 4G’s rapid adoption in US: operators’ heavy investments in 4G network rollout; increasingly powerful consumer devices (smartphones, tablets, wearables); and, expanding ranks of consumers who don’t and won’t use fixedline.   The more consumers’ personal, business and social lives become anchored on their mobile devices, the more this dependency will drive demand for mobile services….and so the cycle will continue, with machines and ‘things’ increasingly coming into play.

Although we cannot comment on the precise impact of 4G, overall service provider KPI trends in US appear encouraging, particularly for T-Mobile and AT&T.  From Q3 2013 to Q3 2014, their total subscriber bases rose 13.3% and 8.4% respectively.  Churn was down over the same period for both operators.  And T-Mobile saw ARPU rise for both postpaid (+4.2%) and prepaid (5.3%).  Of course, there must be no room for complacency.  While consumers love access on-the-go, they love free access even more.   US operators must be wary of free wifi access, especially in areas of population concentration.  There is much to be learnt from Europe.

 

Figure 1: US Wireless Technology Trend (2010-2020)

US Wireless Forecasts-PR1214

 

The biannual forecast service, covers over 150 countries and 700 operators globally for the next 6 years. Our forecasts cover both the individual 700 operators and the country aggregated levels. The operators forecasts include the estimation of main KPIs of all 700 operators individually. This service includes forecasts for the following metrics at operator level:

  • Fixed residential and business broadband connections
  • Access technology
  • Revenue per connection
  • Traffic by service/application