Mobile broadband to fuel $18B in spending on mobile packet core through 2017

Operators will spend a total of $18 billion on mobile packet core through 2017 to satisfy the exploding demand for mobile broadband, predicts ABI Research.

The mobile packet core serves as the interface between the radio access network and the data network. "The mobile packet core is central to shaping the end user's quality of experience, which means it is central to the success or failure of mobile operators in building a sustainable business model for data services," explains Patrick Donegan, senior analyst with Heavy Reading. "The design of the network directly affects cost, capacity and latency," he adds.

Joe Hoffman, practice director at ABI Research, says that the mobile packet core is the network intelligence needed to manage capital expenditure, operating expenditure and revenue top line. "Continual advances in semiconductor technology manifest in Commercial IT scale economies make Packet Core virtualization part of a compelling business transformation. Network Functions Virtualization built on WebScale IT is poised to radically upend the existing order of vendors," he adds.

However, even with mobile broadband growth, packet core spending will taper as efficiencies, scale economies and software-oriented business transformations take hold. "As the telecom market transforms to WebScale, infrastructure vendors should face this reality head-on and fasten their seatbelts as it's going to be a bumpy flight," advises Hoffman.

For more:
- see ABI's release
- check out Donegan's blog

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