The transition to 4G communication standards has begun, but transition will be slow, reports In-Stat. One indication of the sluggish pace: Only 3.6% of mobile devices with baseband connectivity will be using 4G standards in 2014, according to an In-Stat forecast. This is the case even though existing 3G networks are being stressed by data traffic that is increasing at exponential levels.

"Much higher percentages of computing and mobile consumer electronics (CE) devices will feature integrated baseband modems over the next few years," says Jim McGregor, In-Stat analyst. "Unfortunately, few will have 4G capability. The transition to 4G wireless technologies is challenged by multiple wireless standards, limited spectrum availability, constricting business models, and other market and industry issues."

Recent In-Stat research found:

    * About 2 billion mobile devices out of a total of 2.8 billion will ship with baseband modem technology in 2014.
    * Despite the early lead of WiMAX, LTE is expected to account for 61.2% of 4G-enabled mobile devices in 2014.
    * Smartphones and computing devices are the only devices expected to transition to 4G technologies over the next five years. Handsets and mobile CE devices will remain on 2G/3G networks because of lower performance, cost, and power requirements.