The Rayno Report recently completed “The Data Deluge: A Mobile Revolution,” which details enormous changes that will becoming to telecom networks over the next few years.
The explosion of smartphones over the next 2-3 years is likely to put enormous burdens on telecommunicaitons networks, and it’s going to force telecom companies to do a lot of upgrading of their equipment and technology, especially the area of the network known as the “mobile backhaul” portion which links cell sites to the core of the network.
This and forthcoming sponsored research papers will be available, free of charge to registered users, in our reseach store, which is here. Our first report is sponsored by Adtran. I am happy to announce that Adtran will be sponsoring this site for the next few months (hopefully longer), and that they have sponsored some research which the Rayno Report has conducted on their behalf.
The reason that the shift from mobile voice to mobile data will have such a huge impact on the industry is that it was orginally architected to handle voice calls, and the move to 4G represents a historic shift. This will create many problems and challenges for the telecom industry. As you can see below they make a lot more money from voice.
Here’s just an example of the growth we expect to see in new data-rich mobile applications: the number of mobile phones has grown 460 percent in just seven years. As these types of growth rates extend into the 4G “smartphone market” — which will accelerate in the next two years — you will see data on the telecom networks increase by an order of magnitude.
* A 4G network will accomodate data speeds up to 150 Mbit/s. Considering that most 3G networks provide data rates under 10 Mbit/s, this will be a huge jump in data. This will result in an explosion of new data-rich applications and user demand, which will flood the networks with more data.
* New smartphones applications are already blossoming, with billions being downloaded every month. This is shifting the user demand from voice to data. Telecommunications networks will need to accomodate this new demand for data.
* Smartphones currently have under 20% market-share of the mobile phone market. That will probably expand to more than 50% in the next three years, creating even more demand for data networks.
To read more, check out our free sponsored research paper.