Digital Lifescapes

The 5G Core (5GC) mobile network infrastructure is the first to operate solely in the software layer. A new study finds that cloud-native Evolved Packet Core (EPC) functions and 5GC are key drivers for new telecom value creation and growth. With the ongoing adoption of cloud-based packet core networks, it is the first time the telecom industry has relied on the core network to introduce something above and beyond enhanced mobile broadband (eMBB). According to the latest worldwide market study by ABI Research, cloud packet core revenue will grow from $11 billion in 2022 to reach $16 billion in 2027. Telecom Network Cloud Market Development In a modular and increasingly disaggregated ecosystem characterized by vertical and horizontal openness, technology choices for software, hardware, and services that underpin packet core buildouts are fundamental for CSPs to expand existing MBB business and explore new growth opportunities. ABI Research now forecasts that, for MBB, core network applic...

The next generation of wireless communications will apply 5G technologies, and demand for service offerings is evolving slowly. The very first discussions about 5G started in 2012, and in 2013 NTT DoCoMo considered the possibility of deploying 5G in time for the Tokyo Olympics in 2020. Soon after, South Korea set the target for 5G pre-standard national service -- in reality, a 4.5G offering -- for the PyeongChang Winter Olympics in 2018.  Since then, 5G R&D developments have occurred in China, Europe and Japan -- fueling the hype to a level never seen for 3G and 4G. Moreover, Verizon announced last year at the CTIA show that it has a progressive 5G plan -- with first commercial deployments anticipated in 2017. 5G Service Market Development According to the latest worldwide study by IHS Markit , 5G will come in two waves: first, sub-6GHz in 2017, followed by the real 5G at higher spectrum bands in 2020. Sub-6GHz spectrum is not new: it’s where existing wireless communica...

Mobile network operators are investing in infrastructure that enables the delivery of Internet of Things (IoT) service offerings. They're also establishing relationships with leading technology vendor partners -- to create a viable ecosystem that will attract software application developers. Cellular machine-to-machine (M2M) connections will reach 733 million globally by 2021, according to the latest worldwide study by Ovum. Moreover, they also have forecast that total cellular M2M service revenues will reach a global annual total of $67 billion in 2021. Ongoing M2M Market Development The greatest revenue contributions will come from three key regions across the globe -- Asia-Pacific ($22 billion), North America ($16 billion) and Western Europe ($14 billion). Many wireless service providers will maximize their revenue opportunity by extending beyond connectivity, therefore Ovum also includes the proportion of revenue from the M2M service layers. Their forecast has identifie...

According to the latest market study by Technology Business Research (TBR), most of the growth for telecom vendors is coming from China during the third quarter of 2015 (3Q15), where network operators are deploying 4G LTE, optical fiber, fixed-access and IP equipment. More growth is also coming from infrastructure deployment in India, where there is selective 4G LTE investment as well as 3G mobile network build-outs and managed services deals. This Capex spend is fueling growth for vendors entrenched firmly in those markets -- particularly Huawei and ZTE in China, and Ericsson in India. "LTE investment in China continued to drive Huawei's peer-leading telecom revenue as well as strong growth for ZTE,” said Michael Soper, telecom analyst at TBR . Outside of China, network operator spending is variable, reflecting the impact of post-peak LTE spend in North America, Japan and South Korea and economic issues in certain emerging markets, such as the Caribbean and Latin Americ...

Mobile internet traffic continues to grow at an unprecedented pace across the globe, driven primarily by video usage. The increase in mobile subscriptions, smartphone usage and software app availability have resulted in significantly more data traffic per mobile device user. Traffic offloading helps in moving mobile data from one network to another, by using complementary wireless network technologies -- such as Wi-Fi hotspots -- for the delivery of data via cellular networks. Offloading enables mobile network operators to reduce the congestion in their cellular networks, while for the end-user it provides cost savings on data services and higher bandwidth availability. Wi-Fi networks are forecast to carry almost 60 percent of smartphone and media tablet data traffic by 2019, reaching over 115,000PB (Petabytes) by 2019 -- that's compared to under 30,000PB in 2015, representing almost a four-fold increase. According to the latest worldwide market study by Juniper Research, m...

The ongoing adoption of more powerful mobile devices and machine-to-machine (M2M) connections are key contributors to significant mobile data traffic growth, according to the latest annual update of the Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast . In 2014, 88 percent of global mobile data traffic was considered Smart traffic, with advanced computing or multimedia capabilities and a minimum of 3G connectivity, but that figure is expected to rise to 97 percent by 2019. The worldwide shift to smartphones -- combined with the continued growth in media tablets, as well as expanding machine-to-machine (M2M) wireless applications -- are key factors supporting the increasing Smart traffic trend. From a global mobile network perspective, 3G is expected to surpass 2G as the top cellular technology, based on connection share, by 2017. By 2019, 3G networks will support 44 percent of global mobile devices and connections; 4G networks will support 26 percent of c...

The mobile internet is pervasive worldwide, as an essential part of more and more people's daily routines. While many of the emerging markets continue to deploy third-generation (3G) and a few deploy fourth-generation (4G) wireless technology, developed markets are already preparing for the future. According to the latest global market study by ABI Research, it will likely take more than 5 years for fifth-generation (5G) mobile networks to reach the 100 million subscriber mark -- that's two years longer than the 4G network experience. 4G subscriber growth was much faster than with previous wireless technology generations, fueled by the capabilities of increasingly powerful smartphones and the availability of other 4G-enabled devices. In contrast, 5G subscriber growth will likely be more muted at first, due to the increased complexity and the additional work required to plan and install 5G cells and associated networks, but infrastructure deployments should increase by 202...

Improving the quality of indoor voice communication for smartphone users is a high-priority for mobile service providers. According to the latest market study by ABI Research, the femtocell market will see a steady growth as revenues reach $4.2 billion in 2019, owing to a rise in enterprise unit shipments. The vendors focusing on the enterprise market are Alcatel-Lucent, Airvana, and Cisco. Interestingly, while enterprise shipments are on the rise, residential shipments are slowing down. ABI Research predicts slow steady growth at best for residential products for the foreseeable future. With femtocell deployments mainly focusing on coverage, 3G units dominated shipments. However, with global roll-outs of LTE there is a growing demand for multi-mode products, especially in advanced markets such as the United States which is characterized by a CAGR of 130 percent in the next 5 years. Wi-Fi integration continues to advance with major vendors supplying integrated solutions -- eith...

​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...

The Internet of Things (IoT) market momentum has grown steadily and the upside promise is slowly becoming a reality. According to a market study by International Data Corporation (IDC), a transformation is underway that will see the worldwide market for IoT solutions grow from $1.9 trillion in 2013 to $7.1 trillion in 2020. IDC defines the Internet of Things as a network of networks of uniquely identifiable endpoints (or things) that communicate without human interaction using Internet Protocol (IP) connectivity – be it locally or globally. Globally, informed people are developing a high affinity for full-time online connectivity, which makes consumer IoT a compelling value proposition. Meanwhile, enterprise leaders are intrigued by the efficiencies, business process implications, and revenue opportunities that IoT solutions can generate over time. "Businesses are taking the necessary steps to gain a deeper understanding of IoT and the overall value," said Vernon Turner...

According to the latest market study by Canalys, 279.4 million smartphones were shipped worldwide in Q1 2014, representing growth of 29 percent over Q1 2013, but a decline of 5 percent on the seasonally strong Q4 2013. Once again, the Google Android ecosystem was the dominant force in the global marketplace. 81 percent of smartphones were Android devices, with iOS and Windows Phone accounting for 16 percent and 3 percent respectively. Samsung remained the leading vendor with a 31 percent share, ahead of Apple at 16 percent. Half of the top 10 vendors were Chinese companies: Huawei (third), Lenovo (fourth), Xiaomi (sixth), Yulong (eighth) and ZTE (ninth). China, the world’s largest smartphone market, accounted for 35 percent of shipments, substantially ahead of the U.S., which managed just 12 percent. 97.5 million smartphones shipped in China alone in Q1, though this was down 3 percent sequentially. "The Chinese market is undergoing major change and maturing quickly, with s...

The upcoming 2014 World Cup football tournament in Brazil will raise the region's profile this summer, as soccer fans across the globe tune-in to watch their national teams. Besides, Latin America will also be on the minds of global economists this year, as the region's infrastructure gets a much-needed investment boost. ABI Research expects growth of 10 percent in mobile telecom service provider capital expenditure (CapEx) within Latin America, rising to $6.1 billion. Upgrades and expansion of 3G WCDMA and 4G LTE coverage will result in radio access network-related spending capturing 40 percent of CapEx. Investment in small cell base stations is gaining momentum -- with a forecast of 40 percent year-on-year growth in 2014 to $484 million. "Mobile telecom capital expenditure in Latin America is expected to grow rapidly in 2014 as investment in 4G LTE starts to accelerate. Significant amounts of capital expenditure are still required to build out 4G LTE coverage,...

The bring your own device (BYOD) to work phenomenon continues to impact IT budgets as demand for better in-office wireless coverage increases with each new wave of mobile business productivity applications. As an example, Voice over IP (VoIP) and emerging video-based collaboration apps typically create the need for improved Wi-Fi or broadband 3G/4G cell coverage. Enterprise femtocell deployments will capture 97 percent of the $4.3 billion market revenue in 2019, outpacing consumer-residential femtocells, according to the latest global market study ABI Research. While femtocells are successful in the consumer market, both mobile network operators and wireless LAN vendors are eager to participate in these lucrative new mobile workplace deployments. "The femtocell business model becomes clear for small and medium enterprises. The cost of a Distributed Antenna System cannot be justified for these firms, but yet there is an increasing demand for mobile voice services," sai...

Voice services, despite increased competition and the threat of new technologies, remains the most important revenue generator for all but a handful of mobile network operators worldwide. However, voice revenues face immense pressure and will continue to be eroded, prompting providers to create new offerings. Mobile network operators will generate revenues of close to $20 billion by 2018 through strategies involving internet based voice or carrier OTT services, according to the latest market study by Juniper Research.  These Internet voice revenues will be derived from new service propositions and bundles delivered through partnerships with stand-alone OTT (Over The Top) service providers. Why Mobile VoIP will be a Mainstream App The Juniper study found that while OTT service providers have been successful in creating impressive user bases of mVoIP customers, many future revenue generating strategies are likely to involve traditional mobile service providers that have a bil...

Mobile communication networks have been instrumental in enabling basic economic development at the community and individual level within the African continent. At the end of 2Q-2013, the total mobile phone subscriptions in Africa reached 863 million -- that's a growth of 9.3 percent year-on-year (YoY), which is more than other regions around the world. Africa’s growth trajectory will continue up to 2018, with a CAGR of 6.6 percent, to reach 1.25 billion subscriptions. "What’s more, due to the lower comparative 3G penetration of 13.8 percent in Africa at the end of 2013, we forecast that Africa 3G subscriptions will grow rapidly from 114 million in 2013 to 210 million by 2015," said Marina Lu, research associate at ABI Research . While the vast majority of African countries are still in the process of extending and enhancing their 3G networks, some major African markets -- such as South Africa, Ghana, and Nigeria -- have launched 4G networks, notching up 0.2 million ...

Machine to machine (M2M) applications growth continues on an upward trajectory. Cellular M2M connections are set to reach over 450 million by 2018, according to the latest market study by ABI Research. Europe dragged down worldwide connection growth in 2011 and 2012 to the high teens, but with improving world economics connection growth will accelerate to a CAGR of 26 percent through 2018. However, recent connection growth has come in the face of declining connection ARPUs. "The market for M2M connections can be classified as very competitive to hyper-competitive depending on the country," said Dan Shey, practice director at ABI Research . As a result, connection ARPUs have declined dramatically over the last two years as operators fight for M2M business. Contributing to the pain of declining ARPUs has been slower than expected migration to 3G and 4G technologies which offer better margins per megabit of traffic. Over 70 percent of cellular M2M connections were on...

As you may recall, according the the latest Cisco VNI forecast, global mobile data traffic will grow 13-fold from 2012 to 2017, with a compound annual growth rate of 66 percent. Moreover, mobile traffic per user will reach 2,037 megabytes per month in 2017 -- that's up from 201 megabytes per month in 2012, with a CAGR of 56 percent. Mobile network service providers around the globe have been investing in infrastructure, in anticipation of the growing demand for mobile internet access via the increased adoption of smartphones. ABI Research found that while the overall 2012 wireless network equipment market was quite challenging for infrastructure vendors, the incessant demand for 3G and 4G mobile broadband will continue to drive significant new investment in mobile packet core equipment. As a result, the mobile packet data core network infrastructure market will reach $1.8 billion in 2013. "Continued growth in 3G and 4G traffic will propel the mobile packet core infra...

Infonetics Research released findings from its latest mobile communications sector market study, which provides market size, analysis, and forecasts for mobile machine-to-machine (M2M) modules by technology, vertical industry, and geographic region. Mobile network operators are deploying more M2M solutions and enterprises and consumers are increasingly adopting them across the globe -- creating a robust outlook for the overall M2M services market, as well as the mobile M2M module market. “To put things in perspective, the mobile M2M module is just one of many technology solutions available for M2M services, one that represents less than 15 percent of active M2M connections today," said Godfrey Chua, directing analyst for M2M at Infonetics Research . Mobile M2M modules compete against a myriad other technology solutions that enable M2M services -- including DSL and T1 lines as well as wireless technologies like WiFi, Zigbee and Bluetooth. Many mobile network services are...

The U.S. and Canada added 58 million HSPA and LTE mobile broadband connections annually at the first quarter, which translates to mobile broadband now comprising 49 percent of all mobile connections in the region, according to the latest market study by Informa Telecoms & Media. Worldwide, 4G LTE achieved an annual growth rate higher than 400 percent at the end of March 2013, ending the quarter with more than 90 million connections -- and that number grew by May 2013 to more than 100 million connections. Today, there are 178 commercial LTE networks in 72 countries compared to about 74 commercial networks in 40 countries one year ago -- that's more than 100 newly launched LTE networks in 12 months. "The Americas is at an exciting technology transition point right now," said Kristin Paulin, senior research analyst at Informa Telecoms & Media . LTE has been extremely successful in the U.S. and Canada where subscriptions surpassed 49 million and the North Amer...

According to the latest market study by International Data Corporation (IDC), smartphone shipments are expected to grow by 32.7 percent year over year in 2013, reaching 958.8 million units -- that's up from 722.5 million units in 2012. 2013 will mark the first year that smartphone shipments surpass those of feature phones, with smartphones expected to account for 52.2 percent of all mobile phone shipments worldwide. IDC believes that this trend will continue as demand for mobile internet access spreads across both developed and emerging markets. In fact, emerging markets will account for 64.8 percent of all smartphones shipped during 2013 -- that's up from 43.1 percent in 2010. Strong demand from end users, greater emphasis by mobile service providers, and a deep selection of devices available from vendors at multiple price points are all contributing to smartphone adoption. In addition, user behavior has switched from simple voice telephony to digital content creation ...