Skip to main content

Legacy Telecom Market will Transition to Web-Scale

​Worldwide traffic on 3G and 4G mobile communication networks continues to reach new highs as operators strive to satisfy the insatiable craving for broadband access to the Mobile Internet.

Around the globe, satisfying this demand -- by expanding network capacity -- will push mobile packet core spending to over $18 billion through 2019.

Though much of the telecom market experienced a 1Q 2014 seasonal dip, mobile packet core expansion continues with just-in-time infrastructure deployment.

First mover developed markets continue to lead, and now the Rest of the World demands additional capacity as network operators scale-up with the demand.

Mobile network operators must make their network investment choices to meet this never-before experienced growth -- and have a good grasp of the growing demand in the foreseeable future.

"Operators closely manage their CapEx and OpEx with a sharp eye on the top line," says Joe Hoffman, practice director at ABI Research.

But while network functions virtualization (NFV) gains momentum, current business needs require continued investment in the mobile packet core, likely utilizing the legacy technologies.

According to ABI's assessment, continued advances in semiconductor technology -- as they're manifested with commercial IT scale -- will regularly deliver a 20 to 30 percent cost performance improvement.

Software defined networking (SDN) combined with optimization from NFV capabilities brings new WebScale benefits and other much needed advantages to the telecom service provider community.

Furthermore, the rapid transition to open source software -- plus guidance via the OSS vendor consulting and technical services -- will enable this next transition to occur much sooner than originally anticipated.

In its research, ABI found that even with the increased mobile internet traffic growth, traditional packet core spending will taper just as WebScale utilization takes hold and starts to deliver results.

Following the proof of concept tests and beta deployments, the widespread adoption of open source hardware and software will quickly gain momentum -- that's the current forecast.

Popular posts from this blog

Think Global, Pay Local: The eCommerce Paradox

The world of eCommerce payments has evolved. As we look toward the latter half of this decade, we're witnessing a transformation in how digital commerce operates, with a clear shift toward localized payment solutions within a global marketplace. The numbers tell a compelling story. According to Juniper Research's latest analysis, global eCommerce transactions are set to reach $11.4 trillion by 2029, marking a 63 percent increase from $7 trillion in 2024. This growth isn't just about volume – it's about fundamental changes in how people pay for goods and services online. Perhaps most striking is the projected dominance of Alternative Payment Methods (APMs), which are expected to account for 69 percent of global transactions by 2029, with 360 billion transactions processed through these channels. eCommerce Payments Market Development What makes this shift particularly interesting is how it reflects the democratization of digital commerce. Traditional card-based systems ar...