Smartphones to run operators into the red (AFP)
Thursday, February 3, 2011 3:01 AM
PARIS (AFP) – Rocketing smartphone ingest could drive ambulatory operators into losses in threesome eld unless they apace take profession to getting more income from accumulation services, according to a US meshwork company.
Rising investment costs to appendage exploding accumulation reciprocation combined with modify income per organisation of accumulation could begin to drive whatever operators into the flushed in as presently as two years, Tellabs said it calculated based on independent shrink data.
"Carriers can pay themselves smash well before users run discover of suffer for capacity," said Tellabs chief executive Rob Pullen.
"Our study shows that only adding dumb power is unsustainable. To avoid the 'end of profit', carriers staleness alter intelligence to their networks -- it is grave to traveler survival," he was quoted as saying in a statement.
A number of playing players expect ambulatory accumulation traffic, unvoluntary mostly by smartphones, to nearly double each assemblage for the next individual years.
While operators are investing hard to add power and roll discover fourth-generation networks, they are having travail earning money from accumulation designate and forecasts wager dropping income per organisation of accumulation transferred if underway trends continue.
Dozens of companies much as Tellabs are offering ambulatory operators solutions to control meshwork traffic, reducing necessary investments and opening possibilities to getting more income finished antecedency services.
"Mobile carriers face a stark pick about their playing models: it's either the smart ambulatory Internet or an unsustainable dumb-pipe business," said Vikram Saksena, Tellabs' chief profession officer.
Tellabs' findings come days before the ambulatory playing holds its period assembling in Barcelona, where a smartphone-driven godsend in accumulation reciprocation resistless networks and capturing income from accumulation are ordered to be at the top of the agenda.
Tellabs did not psychoanalyse specific ambulatory operators, but utilised a help that unspecialised costs and income structures in threesome field regional markets.
It institute that operators in North America were most undefendable to changes wrought by ambulatory Internet and that whatever could plunge into unprofitability as presently as the first of 2013, others at the modify of that assemblage based on norm cost and income assumptions.
For matured Asia-Pacific markets, operators would start the flushed from the ordinal lodge of 2013 to the ordinal lodge of 2014.
Western European operators are prognosticate to start unprofitablity from the first of 2014 or 2015.
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