Mobile network operators have a network congestion problem.
Sometimes it’s hard to visualize data (especially if you’re on a bad network!). At Dialogic, we thought it would be interesting to create an Infographic that illustrates just how serious the mobile congestion problem is...
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The Mobile Congestion Crisis is at Hand!
Smartphone and tablet usage is exploding! Smartphones represent 12% of total global handsets today, which account for 82% of total global handset traffic. And it’s just going to get worse:
- By 2014, smartphones will be 50% of all handsets shipped!
- By 2020, 4.2 Billion people will be using smartphones.
- Tablets generate 3.4x more traffic than smartphones and by 2016 there will be over 350 Million deployed tablets.
- About 60% watch video with their smartphones and tablets. This is expected to get to 70% by 2016.
- About 20%-25% access the web.
The result? Mind-boggling unprecedented mobile data traffic growth!
- Aggregate smartphone traffic in 2016 will be 50 times greater than it was in 2011.
- Mobile connected tablets will generate almost as much traffic in 2016 as the entire global mobile network in 2012.
- There will be 8.6x more mobile data traffic in 2016 compared to 2012 – an astounding 71% CAGR.
What happens then? Congestion.
Thankfully, there are solutions that range from:
- Data offload to Wifi networks
- Data Capping via billing plans
- Deploying New Capacity
- Upgrading networks to new technology like LTE or faster versions of 3G
- And finally, optimizing the streams that go through the networks
But many of these solutions are expensive…
- 4G infrastructure costs are expected to be $72.5B for the 5 year period ending in 2016, rising from $8B in 2012 to $18.5B in 2016.
- AT&T recently spent $700M just to upgrade networks in ONE City (San Diego)!
- Just the backhaul piece of the wireless network is a huge expected expense.
- According to Ovum, the Wireless Backhaul Expense in 2015 is expected to be $183B, or 20% of mobile operator operating expenses (OPEX).
Operators need to spend money to keep up with capacity but can’t. Revenues are not keeping pace with mobile data traffic increases.
What does this mean? That we’ll just all have to live with congestion? Be frustrated all the time?
No it doesn’t. Because adding relatively inexpensive optimization infrastructure products in backhaul, edge or core networks to optimize video and data can free up bandwidth by 30%, which increases capacity by 43%!
So this means that optimization products are key to resolving the mobile congestion crisis!
Interested in optimizing you video and data streams on your backhaul, edge or core networks while reducing OPEX/CAPEX costs?
Want to increase your network capacity?
To learn more, read our paper: “Maximizing Infrastructure Value and Subscriber Quality of Experience with Network Optimization.”