Increase in Data-Hungry Devices Set to Be Most Disruptive Force in Wireless Industry - Slide 5

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Next Increase in Data-Hungry Devices Set to Be Most Disruptive Force in Wireless Industry-5 Next

The impact of new devices on revenues and subscriber experience is expected to be largely positive across the world, but interestingly North American respondents have highest expectations, perhaps driven by a higher penetration of these new data-centric devices. Yet tablets have potential for creating a new headache for operators. Compared to smartphones, tablets generate much more traffic – and this is slated to increase as tablets evolve, more applications become available, and they increasingly use cellular networks instead of Wi-Fi for access.

What the operators said:

  • “Devices will become big screens anchored in the cloud for content and applications. We will not need faster processors, but network reliability has to go up to support this model.” European survey participant
  • “We expect change to be driven by devices like tablets expanding functionality and gaining ground over other device categories.” European survey participant

A rise in the volume and variety of data-hungry mobile devices, including more affordable smartphones, tablets and e-readers, is set to be the most disruptive force in the wireless industry in the next three years. Operators are investing heavily in their networks to support new devices and services, yet they identified driving revenue from mobile broadband as their most significant challenge. These were the key findings of a global operator survey commissioned by Radisys® Corporation (NASDAQ: RSYS) and undertaken by wireless analysts Senza Fili Consulting, ahead of Mobile World Congress 2012.

In January and February 2012, senior decision makers from operators in North America, Europe and Asia Pacific were interviewed for the survey. The survey revealed which technologies or services operators expected would have the most significant effect on the industry, how those technologies would impact network performance, subscriber experience and revenue, and which they would support or fight.

Highlights from the global operator survey include:

  • 100 percent of European and Asia Pacific operators intend to deploy small cell networks within two years; 100% of North American operators will do so but in three years’ time
  • 86 percent of all operators surveyed support VoLTE
  • 82 percent of all operators surveyed support Wi-Fi® offload
  • 82 percent of all operators surveyed believe new mobile devices will have a positive impact on revenues and subscriber experience
  • 71 percent of all operators surveyed viewed new mobile devices as the most disruptive force in the next three years
  • In North America, the most disruptive force will be VoLTE. In Europe, it will be new mobile devices, and in Asia Pacific, it will be, jointly, Wi-Fi offload, small cells and TDD/FDD hybrid networks, with devices in second.
  • 58 percent of all operators surveyed believe LTE Advanced will have a highly positive impact on revenues and subscriber experience; 66 percent agree that it will not happen for three years

“Devices will continue to be the main driver to change in our industry,” comments Monica Paolini of Senza Fili Consulting. “They have fundamentally changed the way subscribers use mobile broadband why they use it, what they do with it, and how much traffic they generate. Yet, there is a pervasive feeling that we have just started to scratch the surface.”

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