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USA - Telecoms, IP Networks, Digital Media and Forecasts

United States telecoms market: Increased demand for faster internet access

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2014-02-10 19:24:02 - USA - Telecoms, IP Networks, Digital Media and Forecasts - a new market research report on

The United States telecom market has been characterised by increasing demand for faster internet access, for bandwidth-hungry functions such as IPTV and for VoIP as a competitive alternative to wireline. More recently, the growing availability of WiFi, the deployment of LTE and WiMAX networks, together with the rapid uptake of smartphones and devices is propelling the growth of mobile wireless broadband.

Despite favourable stimuli, the US continues to linger relatively low within OECD countries for broadband penetration. Part of the difficulty lies in the absence of effective competition, and in the lobbying prowess of AT&T and Verizon which on a state level have both pressed for legislation to restrict publicly funded broadband networks. Both operators have purposefully promoted their fibre networks



while ending upgrades to large swathes of their legacy copper infrastructure. This will leave millions of Americans with no fixed voice service, obliging them to pay over-the-odds for voice and broadband based on LTE.

Mobile market

The US has one of the largest LTE markets in the world. One of the keys to LTE deployment is access to spectrum to keep pace with mobile data traffic which is expected to increase 10-fold by 2016. Operators have endeavoured to secure spectrum through A&M activity and purchases. Much of the growth in LTE adoption has been facilitated by the availability of compatible devices, as well as astute marketing strategies among operators and effective network deployments.

One of the considerations for LTE expansion rests with infrastructure. The use of metrocells and femtocells will be crucial to this process. Verizon´s LTE coverage is expected to match its 3G footprint by the end of 2013, while AT&T now offers LTE coverage to more than 200 million people.

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