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Monday, February 15, 2010

Mobile data traffic growing 2.4X faster than fixed-line broadband; one billion DVDs of data by 2014



The world’s largest and leading router and switches manufacturing Company – CISCO has made a startling revelation based on its results from the Global Mobile Data Forecast for 2009-2014. These results were obtained on its internet usage monitoring tool, known as ‘Visual Networking Index’ (It is used to forecast and analyze the growth and use of IP networks worldwide).

The revelations indicate that mobile data traffic throughout the world will reach 3.6 exabytes per month or an annual run rate of 40 exabytes by 2014. In other words, the amount of data traffic traversing the mobile network by 2014 will be equal to about one billion DVDs. By contrast, it is equivalent to 133 times the data that has ever been transmitted across a mobile network since networks were first launched in the 1980s. The rate at which mobile data traffic is growing today is about 2.4 times faster than fixed broadband data traffic around the world.  

The Driving Force 
One could wonder what’s the driving force behind all this growth in mobile data traffic? One of the major reasons could be the increase in number of technologically advanced mobile devices such as the Apple iPhone. In the next few years there could be dozens of such gadgets powered by Google's Android operating system. By 2014, Cisco's researchers estimate there will be more than five billion personal devices connecting to mobile networks.

As per Mr. Doug Webster, senior director, of service provider marketing for Cisco, "The rapid consumer adoption of smart phones, netbooks, e-readers and web-ready video cameras as well as machine-to-machine applications like eHealth monitoring and asset tracking systems, are continuing to place unprecedented demands on mobile networks".

Another important factor driving the mobile traffic growth seems to be the mobile video. Researchers estimate that mobile video traffic will represent 66 percent of all mobile data traffic by 2014, increasing 66-fold from 2009 to 2014. This is the highest growth rate of any mobile data application tracked in the Cisco VNI Global Mobile Data Forecast, as per CISCO revelations.

The downside is that, it’s causing serious problems to wireless operators in keeping up the demand for greater bandwidth and avoiding network bottlenecks. For example, AT&T, the exclusive U.S. carrier for the Apple iPhone, says that it has seen its network traffic grow by 200 percent in 2009. The company has been criticized by consumers for dropping calls and poor service in densely populated urban areas like San Francisco and New York City. It appears that AT&T invested an additional $2 billion in 2010 to upgrade its network and accommodate the increasing network traffic.

The result of this massive mobile data explosion has forced most of the internet service carriers to upgrade their networks to 4G wireless technology (4G refers to the fourth generation of cellular wireless standards). Verizon Wireless is rolling out commercial 4G service using a technology called LTE(Long-term Evolution) later this year. And Clearwire is expanding its 4G WiMax network in 2010 and in 2011. But Mr. Webster said that these newer, higher capacity networks could lead to even higher data consumption over the next few years. That means, it would further increase the mobile network traffic over the years!

Although 4G upgrade plans of massive proportions are on, the wireless operators are not sure how the consumers would pay these expenses. It is not clear whether the consumers will benefit from all these new business models and hyped up super-bandwidth services. However, one thing is certain that mobile broadband is here to stay and the ever increasing mobile consumer base will remain hooked to it for a long time to come.
 

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