Feb. 13, 2013
/PRNewswire/ -- Operators are investing in radio network upgrades and migrating to LTE to meet surging user demand for mobile data.
But a report unveiled today predicts that operators will face a new mobile capacity crunch by 2017. The Strategy Analytics study reveals that operators may not be planning sufficient investment in backhaul to meet anticipated demand over the next 5 years. Specific information related to the report is available at Tellabs stand at Mobile World Congress 2013, Hall 6, Stand 6E10, and as follows:
Global mobile data traffic has increased 13 times in the last 5 years and
forecasts it to grow by 5 to 6 times more by 2017. The Tellabs-commissioned study predicts a
global backhaul funding gap with a 16 petabyte shortfall in backhaul capacity by 2017.
Investment and capacity shortfalls vary by region (calculated as necessary backhaul expenditure minus current planned operator investment):
Inadequate backhaul will cost confidence and customers
- Asia Pacific – US$5.3 billion; 9.4 Petabytes
- Middle East Africa – US$1 billion; 1.8 Petabytes
- Western Europe – US$1 billion; 1.8 Petabytes
- North America – US$650 million; 1.2 Petabytes
- Caribbean/ Latin America – US$600 million; 1.1 Petabytes
- Central & Eastern Europe – US$580 million; 1 Petabyte.
When mobile data usage first surged in the late 2000s, backhaul investment was an afterthought. But as smartphones took off, the unexpected traffic produced network congestion and outages that created major customer dissatisfaction. As much as 50% of the problems were attributable to inadequate backhaul.