LTE Growth Compared

Posted by Sam Churchill on

Jim Patterson, CEO of Patterson Advisory Group, breaks out the LTE numbers in the latest quarterly reports from Verizon and AT&T, in a story at RCR Wireless:

The migration to smartphones accelerated in Q4, and with it the rapid migration to Verizon Wireless’ more efficient/profitable LTE network. Nearly all of the of the 9.8 million Verizon Wireless smartphone buyers selected Apple (63%) or Android (35%) operating systems. Of the 9.8 million smartphones added in Q4, just under 6.4 million of them came with LTE radios, and 3.4 million did not.

AT&T Mobility beat Verizon Wireless on iPhone activations (8.6 million vs. 6.2 million), and they also win on total smartphone penetration of their postpaid base (70% vs. 58%) and total smartphone activations (10.2 million vs. 9.8 million), but Verizon Wireless crushes AT&T Mobility on service revenue growth (8.4% to 4.2%) and cash flow margin (41.4% to 24.6%).

Almost 60 percent of the iPhone users spent more than $100 per month on their wireless plan, with 10 percent spending $200 or more. Just 6 percent spent $50 or less; for Android users in that category, the percentage was double. And only 53 percent of Android users fell into the “over $100 per month” category, with 7 percent landing in the “over $200 per month” category.

LTE is not being implemented because it offers consumers faster speeds — carriers are putting in LTE networks because they deliver lower cost per bit. LTE delivers bits for about half the cost of HSPA.

Posted by Sam Churchill on Wednesday, January 30th, 2013 at 10:25 am .

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