Exponential Growth Not Likely to Guarantee Profit for Service Providers
Posted on 14 Aug 2009 at 08:03 am | Tagged as: Caveat Emptor, Computing World, Telco
Coda Research Consultancy, a technology research firm, has made some very heartening predictions for mobile broadband in the near future. Their report says that data usage is likely to sharply increase and see a significant rise by 2017. The prediction put the number of users by 2017 at 418 million. Data usage is going to be around 1.8 exabytes per month, a figure that is 40 times the current monthly usage.
The spectacular future growth, however, has its own limitations. Steve Smith, founder of Coda Research, has said that along with explosive growth in number of users, the revenue per user is to going to come down and hence, service providers and component vendors will have to show immense proficiency to be able to extract profitability from their businesses.
The report also talks about broadband growth associated with different regions. Europe is likely to be the slowest growing market even with a rate of 135% growth, whereas Asia-Pacific will grow at the highest rate. The number of likely users is pegged at 94 million for Europe, 58 million for the States and about 48 million for the Middle East and
Another technology called LTE, which is supposed to be the natural progression from mobile broadband (more on mobile broadband news), is also set to see a sharp rise once it is put through general production, which is scheduled to be in 2012. Some of the countries might even think of foregoing 3G technology in favour of LTE.
