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Solving the Network Strategy Puzzle for Mobile Broadband Operators

2009

All across Europe, mobile telecommunication operators face rapidly growing demand for mobile broadband services as customers supplement their fixed-line broadband behavior with mobile usage. In 2008 mobile broadband penetration as a percentage of total population was approaching 10% in some European markets.

While this figure is still relatively low compared to fixed broadband penetration levels in the range of 60-80%, forecasts project mobile penetration to increase significantly over the next 2-3 years, reaching levels of 25% by 2011. This growth in mobile broadband usage is primarily driven by data dongles and the spreading acceptance of newly developed handsets, opening up long-awaited business opportunities for mobile service providers. However, while this may generate additional revenue for mobile operators, the surge in traffic and users puts intensive pressure on the capacity of their networks. Managing the surging traffic becomes a major challenge. At the same time bandwidth needs of users are rising steadily.

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