In 2009, LTE technology, technology of communication, was launched ushering the world into the 4th generation of mobile telecommunications technology (4G). The technology improves efficiency and quality of services mainly by reducing cost of data transmission and enhancing speed of connection. This study aims at the effect of 4G technology on market competition and eventually welfare of the economy. With fixed effect model employed to 55 cross country data, there is strong statistical evidence that the introduction of the 4G technology impacts the competition landscape in mobile telephony remarkably as it allows competition from mobile applications known as over-the-top (OTT) services. Telcos are transformed to be gateways to other services splitting market into 2 layers. Because the messaging services offered by these applications are usually free of charge, consumers gradually migrate from traditional voice services to data services. Plunge in voice call price and increased share of data services indicates higher consumer surplus, thus welfare as more quantities are available at lower price with more efficient allocations of resources.