Mobile Network Operators Challenged by Explosion in LTE Devices

The LTE tsunami is here and this week’s 2012 International CES was literally inundated as LTE enabled smartphones and tablets jostle with each other for attention. Operators have begun launching LTE networks and the availability of LTE devices has soared, increasing more than tenfold since the end of 2010.

According to Strategy Analytics, this exponential increase is bound to trigger a tidal wave of mobile video traffic, which will be a cause of major concern to mobile operators.

The report indicates that mobile network operators, hoping to manage and monetize video services from Over-The-Top content owners, will be caught unaware as the explosion of data traffic is bound to suffocate the networks. Adding capacity to existing networks will only partially solve the problem as LTE-enabled devices will further drive video usage.

Susan Welsh de Grimaldo, director, Mobile Broadband Opportunities, explained that the problem would be further compounded as major operators veered toward converged services to offer a seamless user experience for consumers of connected devices. She stressed the need for a well-planned strategy that would help operators to cope with LTE bandwidth overloads during peak times.

On a brighter note, Sue Rudd, director service provider of Analysis, noted that this was a splendid opportunity for vendors to make their mark by enhancing user quality of experience. Pre- integrated solutions that will help to optimize and save capacity will result in partnerships with network infrastructure vendors.

In another research study from Strategy Analytics, it was found that Global online video spending soared to $3.5 billion in 2011.While transactional revenue growth is slowing in maturing territories, subscription revenues driven by specialists -- such as Netflix and Hulu -- grew as service providers target new markets. Netflix entry into the U.K. in 2012 will sharpen an already competitive market as OTT services ramp up availability across a range of connected devices. Movie studios and other content owners are also likely to benefit as competition to secure the best movie and TV content intensifies.

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