The Mobile Internet Report Key Themes*

…Massive Data Growth Driving Carrier / Equipment Transitions
Wireless Equipment Conclusions:
• Innovation will accelerate - New technologies such as packet core, deep packet
inspection, wireless WAN acceleration – which provide carriers with greater
control of traffic flowing on their networks – should see significant growth as
carriers seek ways to scale networks while reducing cost per Mbps.
• Backhaul networks will be overhauled - Wireless backhaul networks (microwave
transmission / DSL / T1 / Ethernet systems that connect mobile wireless base
stations to the core telephone network) will undergo major overhauls as Ethernet
to cell towers replaces current time-division multiplexing (TDM) and as fiber
replaces copper.
• Wi-Fi importance rises - Wi-Fi will increasingly be used to offload data from
cellular networks.
• High speed networks deployed faster - High Speed Packet Access+ (HSPA+) and
4G deployment (LTE in particular) could accelerate.
Source: Ehud Gelblum, Morgan Stanley Research.
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