Skip to main content

Mobile Net Investment Seeking New Revenue

UMTS Long Term Evolution (LTE) will dominate the world's mobile infrastructure investment markets after 2011, according to a recent study from ABI Research.

While LTE will encounter competition from other mobile broadband technologies, its supporters point to its flat architecture, low latency, and IP Next-Generation Network (NGN) capability to provide a range of SIP (Session Initiation Protocol) services.

LTE brings to the market 25 years of operating experience using TDM and CDMA technology. Vendors and mobile phone operators aim to use that experience, combined with OFDM and other techniques, to provide the best of both worlds.

This also takes the industry from the current two-network approach of circuit-switching for voice and packet-switching for data to a single IP network for both services. But, will that be enough incentive to justify the required investment?

"LTE faces competition from other broadband wireless technologies and it will need to demonstrate clear technical and economic advantages to convince network operators," says ABI Research analyst Ian Cox. "The mobile variant of WiMAX will start to appear in 2007 as the WiMAX Forum Certification program ramps up. The industry is also working on HSPA+, which could offer the same performance in a 5 MHz bandwidth. Without additional spectrum, wireless operators could face a difficult choice."

Cox adds, "LTE is the NGN for the mobile industry and is being standardized by 3GPP with the full support of operators via the NGMN Group."

Long Term Evolution of 3G technologies is about to benefit from Release-8 of the 3GPP standard, planned for 3Q 2007. Again, ABI believes that the potential rewards of LTE are simplicity of operation, a flat architecture offering low latency, and spectrum flexibility.

Backwards-compatibility and roaming with 2G and 3G networks are added bonuses, along with lower power consumption and improved performance. LTE could potentially unite the W-CDMA and CDMA communities because of its spectral flexibility.

"For service users," says Cox, "LTE will enable broadband services, including VoIP, to be offered over SIP-enabled networks. Each service will be IP-based, offering high data rates and low latency, with online gaming becoming a reality along with mobile network data speeds comparable to those of fixed networks. For vendors, LTE will allow the development of a new market to replace declining 3G revenues."

That said, I find it a little odd to already be addressing declining 3G vendor revenue, while most mobile service providers are still struggling to develop an upward revenue momentum for their existing 3G investment. I'd anticipate that mobile operator CFOs will now be more closely scrutinizing any additional network investment -- given the current 3G adoption anticlimax.

Popular posts from this blog

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Global Pandemic Accelerates the Evolution of Transportation

Given the current trends across the globe, organizations that depend upon the continued growth of personal vehicle ownership will need to consider a plan-B scenario. While some companies will be able to adapt, others may find that their traditional business model has been totally disrupted. According to the latest worldwide market study by Juniper Research, Mobility-as-a-Service (MaaS) will displace over 2.2 billion private car journeys by 2025 -- that's rising from 471 million in 2021. Juniper believes that for MaaS to enjoy widespread adoption, subscription or on-the-go packages need to offer a strong combination of transport modes along with feasible infrastructure changes, high potential for data collection and low barriers to MaaS deployments. Mobility-as-a-Service Market Development The concept of MaaS involves the provision of multi-modal end-to-end travel services through a single platform by which users can determine the best route and price according to real-time traffic