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Strategy Analytics views the Verizon Wireless award of LTE contracts to Alcatel-Lucent and Ericsson as critical for the two vendors, positioning them for substantial 4G market share. The Strategy Analytics Wireless Network Strategies service report, "The LTE Battle is On: Alcatel-Lucent and Ericsson Contract Wins Arm them for Market Leadership," projects that early leaders will take substantial market share, as operators seek to work with proven solutions when capex budgets are tight.
The company’s senior analyst, Susan Welsh de Grimaldo, noted, “Given its leadership role in awarding spectrum suitable for 4G, the US is positioning to take an early lead in LTE deployment. Verizon Wireless’ award of key contracts to Alcatel-Lucent and Ericsson will provide these vendors with invaluable real-world lessons learned ahead of vendor selection in many other countries.”
Speaking from the Mobile World Congress in Barcelona, Phil Kendall, service director, Strategy Analytics, observed, “Despite the weak global economy and lack of spectrum awards to support LTE build-outs in many European and Asian markets, the battle is now on for LTE contracts. TeliaSonera made the first public LTE awards to Ericsson and Huawei in January, and now Verizon’s selection puts additional pressure on Motorola, Nokia Siemens Networks, and Nortel, as vendors jockey for position in anticipation of substantial LTE awards between now and the 2012 timeframe.”
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