LTE Evolved Packet Core Spending to Cross Half a Billion Dollars in 2012

New York, New York - November 08, 2011

​Mobile operator spending for wireless core gateways will exceed $1 billion this year. The growing deployment of LTE networks is the main driver for increased spending on gateways, which in turn are driving Evolved Packet Core (EPC) spend. Wireless core gateway spend is expected to be $1.1 billion in 2012, of which LTE EPC spend will be $588 million.

“There are approximately 35 LTE networks in commercial service today and that number will grow to more than 100 next year,” says Aditya Kaul, practice director, mobile networks. “This growth in LTE networks has almost doubled total mobile gateway network spend between 2006 and 2011.”

The LTE EPC spend consists of P-Gateway, S-Gateway, MME, and eHRPD equipment, which account for LTE EPC deployments in both WCDMA and CDMA networks. The vendors benefiting from the increase in EPC spend include the five major wireless network equipment vendors (Alcatel-Lucent, Ericsson, Huawei, Nokia Siemens Networks, and ZTE) as well as router vendors including Cisco Systems, Juniper Networks, and Tellabs.

According to Jim Eller, principal analyst, wireless infrastructure, “Although some operators are able to upgrade their 3G core networks to EPC networks to support LTE, the majority are installing new EPC networks. Operators’ existing core networks are stretched to capacity by dramatic increases in mobile broadband data traffic and most view LTE deployment as an opportunity to install the latest core network technologies for improved network operations.”

ABI Research’s latest study, ”Mobile Gateway and Server Market Data,” tracks core network deployments for 3G and 4G technologies, including WCDMA, CDMA2000, LTE, TD-LTE, and WiMAX. In addition to wireless gateways (such as SGSNs, GGSNs, PDSNs, S-GWs, and P-GWs), the market data also covers subscriber database equipment, session border controllers (SBCs), and IMS deployments of Softswitches and media gateways (MGWs). The market data forecasts new deployments annually through 2016, as well as operator spend estimates for core network equipment.  

This quarterly market data report is included in ABI Research’s Mobile Core Networks research service.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 30+ research and advisory services. Est. 1990. For more information visit, or call +1.516.624.2500.

About ABI Research

ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.

ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit

Contact ABI Research

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670

Related Service