Thursday, February 14, 2013

Does 4G LTE Really Change the Mobile Business?

Whether fourth generation mobile networks using Long Term Evolution will transform the mobile business remains to be seen. Supporters of third generation technology believed 3G would transform the mobile business as well, but some would say that didn't happen to the extent some believed possible.

European mobile phone companies spent $129 billion around 2000 to buy licenses for "third-generation" networks that were supposed to give people the freedom to virtually live from their cellphones, reading e-mail, browsing the Internet, placing video calls, enjoying music and movies, buying products and services, making reservations, monitoring health - all from the beach, the bus, the dentist's waiting room, wherever they were.

But behavior did not change, at least not by 2006, leading some to talk about a 3G winner's curse


The more recent Indian 3G auction likewise was pricey for mobile service providers, and some question whether new applications beyond voice and texting will be adopted at high rates.

Some now say 4G LTE will transform the mobile business. Among the reasons are sheer speed. Some note that 
LTE is 10 times times faster than 3G. That leads some to argue that video and other apps requiring low latency or high bandwidth could be key for 4G networks in a way that was not true of 3G. 

Some also would argue that immersive mobile apps will create new advertising opportunities. 

We will see. 

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