The Mobile Internet Report Key Themes*

Congestion Problems (Voice + Data) Lie at Cell Site Level in
Densely Populated Areas
• In our view, the best way to analyze network demand vs. supply is at the
cell site level during peak load times rather than throughout the whole day.
• Certain markets like New York and San Francisco have high population
density and high smartphone penetration, and, thus, are the most
susceptible to network capacity constraints.
• Therefore, wireless carriers will likely target capacity constrained cell sites
in these markets first, focusing on technology upgrades (HSPA 3.6 to
HSPA 7.2) and backhaul upgrades (T1s to fiber-based Ethernet or
microwave).
• By analyzing breaking points at the cell site level using theoretical
scenarios based on heavy data sub penetration, heavy data subscriber
monthly usage and network technology deployed, we illustrate how
carriers should be able to cope with surging demand during peak network
load at the cell site level.
Source: Simon Flannery, Morgan Stanley Research.
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