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LTE pricing may drop as much as 60% by 2016

December 21st, 2011 at 7:30 AM

The monthly price we pay for 4G LTE data could drop drastically over the next five years. Currently, 4G LTE networks are blazing fast but there’s no doubt that the technology comes at a price. 4G LTE handsets sold directly by wireless carriers typically cost more than their 3G counterparts, and tiered 4G data prices are still a bit too costly for heavy data users looking to ditch their cable companies. Verizon Wireless, for example, currently charges $80 for 20GB of data per month while Time Warner Cable sells digital TV service and a 10Mbps unlimited monthly data connection for $89 per month (in New York City). But 4G LTE data prices could fall as much as 60% by 2016, or to about 20 Euro ($26) on average for monthly service according to Tariff Consultancy (TCL). Pricing is expected to decline as more wireless operators begin to offer 4G LTE services and the amount of subscribers on those networks increases. Verizon Wireless and AT&T have each deployed 4G LTE networks in the United States this past year, and Sprint will be the third major wireless carrier to deploy its LTE network next year. The TCL report also suggests that there will be more than 250 million 4G LTE subscribers by 2016.

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