LTE Small Cells to Surpass Big 4G Base Stations

LTE small cell shipments will surpass LTE macro base station shipments in 2014, says ABI Research

March 30, 2012

1 Min Read

NEW YORK -- Changing cellular network paradigms are driving a shift in the architecture of base stations from traditional macrocells to distributed base stations and toward the growing use of small cell base stations.

The primary drivers for this transition are the increasing data traffic demand and the OPEX and CAPEX cost savings inherent in deploying small cell equipment.

Operators will initially deploy small cell equipment as in fills on the pico and microcell layers, but will quickly transition to deploying them as a fundamental part of a network rollout. In fact, the number of LTE small cells sold (127,000) will surpass the number of LTE macrocells, forecast at 113,000, as early as 2014. However, LTE base station revenues will continue to be dominated by macro base station revenue with small cell revenue of $1.09 billion representing only 5.2% of the total revenue of $20.86 billion in 2014 and growing to $4.44 billion or 23.9% of the total $18.60 billion LTE base station market by 2016.

ABI Research

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