Capacity becomes the key

Low volume data apps such as ‘Track and Trace’, Automatic Meter Reading (AMR) and Mobile electronic Point of Sale (MePOS), continue to grow strongly. There has though been a huge shift in mobile communications since Vodafone rolled out its HSDPA network in the June last year and started the path down HSUPA.

“According to a new research report from the analyst firm Berg Insight, the number of notebook PCs with HSPA/LTE mobile broadband connectivity in Europe will grow from 8.4 million in 2007 at a compound annual growth rate (CAGR) of 34.1 percent to 49 million in 2013.”

But this growth is not just limited to these Consumer or Business products. High speed/High volume data apps such as Closed Circuit Television (CCTV), Digital Signage, Bluetooth Marketing devices and Fixed Line Back Up/Replacement are exploding as the ‘over air’ price point reaches an attractive level.

“Every mobile broadband service provider has a dilemma”, said Tobias Ryberg, senior analyst, Berg Insight. “On the one hand they have a highly attractive proposition – a novel mobile service with high ARPU. On the other hand, the very popularity of the service stretches the mobile network infrastructure to its utmost limit – threatening to degrade the level of service for all subscribers.” The main response by operators has been to impose some restrictions on data traffic. Furthermore, the actual data speed is normally much lower than advertised due to lack of network capacity. Ryberg concludes that significant network investments are urgently needed if operators want to keep up with demand.

This last point is easily understood even as an end user. With HSPA, a DSL replacement unit such as the Sarian DR6000 series could easily burn 2Mbps. While the over air cost could be as low as £12.50 a month the capacity to deliver that data through a leased line, or Ethernet could be anything from £500 to £1000 a month.

As the market for Data SIMs matures and develops in the next couple of years there will be a clear split between those that throttle back their service to match their low pricing, and those who invest to deliver quality and capacity. Will the market, currently fixated with sourcing the cheapest, understand the differences between the two approaches?

For more information about Berg Insight please visit www.berginsight.com. For more information about how Mobius and Vodafone are working together to deliver a high quality/high capacity service for Data SIMs please contact us at enq@mobiusnetworks.co.uk or call us at +44 1530 511 180