Mobile Future Forward
is a gathering of some of the most influential minds
in the mobile industry who are helping shape the industry. The
experts and visionaries from around the globe will discuss the
mobile industry 2-5 years forward, envision what the user
experiences and use case scenarios look like, discuss and debate the
challenges and opportunities in the journey to that vision.
Mobile Breakfast Series - (Mobile) Startup Nation.
through the eyes of 8 startup CEOs, 4 Experts
Motricity, OpenMarket, Openwave, WDSGlobal
and Profits in the Yottabyte Era (2nd Edition)
The year 2010 will be remembered for many milestones. One of them
clearly will be the significant migration from voice to data
services and revenues. In Q1 2010, the number three operator in
Japan - Softbank Mobile reported 55% of its service revenues coming
from data thus becoming the first major operator to have more
revenues from data services than from voice. Over the course of the
rest of the year, other operators like NTT DoCoMo will take this
data leap as well.
US, the nation with the most mobile data service revenues went past
$14 Billion in quarterly mobile data revenues and is expected to go
past the $50 Billion mark for the year in 2010. The subscription
penetration in the US is well over 94% and the mobile data usage is
on the rise.
While the rate of new subscription addition has slowed down, the
pace of innovation is going very strong. Just like Japan, other
major economies will slowly transition from a voice-centric universe
to the one where voice is just another application on the all-IP
network. Operators will make significant transition from voice to
data, from making calls to getting lost in applications and from
voice communications to multimedia communications. Helped by the
ever expanding wireless broadband networks, and release of hit
devices every week, and the consumer’s insatiable appetite for
information and content has brought us to the surge of a data
tsunami that will shake the industry to its core.
With everything moving to digital, information repositories across
the web are almost doubling every day moving rapidly to the
yottabyte (YB) era. The information, the desire and the capability
to consume oodles of data is increasing exponentially. As a result
the traffic – both wireline and wireless is also increasing at a
predictably fast rate.
In 2009, the global yearly mobile data traffic reached a new
milestone – 1 Exabyte (EB) or 1 Million Terabytes (TB).In the US, the data traffic is growing so fast that we are
likely to exceed the 1 EB barrier in 2010. By 2016-17, the global
yearly mobile data traffic is likely to exceed 1 Zettabyte (ZB) or
1000 Exabytes. How does the industry go about managing such growth
in a profitable manner when the cost of supporting such traffic will
increase exponentially? Will the move to LTE offer some respite?
This paper is the second edition of the “Managing Growth and
Profits in the Yottabyte Era” research paper. It discusses the
research and analysis done by Chetan Sharma Consulting on the
growth of mobile data traffic in over 45 countries (with a detailed
look at the US market) and how the ecosystem can apply some
strategies to manage growth and profits.
We have built detailed models to estimate the rise of mobile data
network traffic and to understand as to how the margin per bit can
be maintained. Over the course of the last year, we have worked with
several global players in the ecosystem to deploy effective
strategies and solutions. This paper also draws from this experience
on the ground.
Disclaimer: Some of the companies mentioned in this paper are