The Mobile Internet Report Key Themes*

Mobile Internet Implications for Equipment Vendors
Key Dynamics
Carrier capex is not projected to increase materially, so networking / infrastructure
equipment vendors don’t broadly win in the mobile Internet
However, three areas of this industry do stand to benefit materially: carrier Ethernet +
mobile packet core / DPI vendors + managed services providers
What Types of Equipment / Services Will Carriers Need for Next-Gen Networks
Backhaul
• Carrier Ethernet – carriers will
increasingly depend on IPbased,
high-bandwidth Ethernet
technology to connect base
stations to the network
backbone, allowing them to
alleviate some of the network
bandwidth bottlenecks at the
backhaul level.
Fujitsu, Huawei, Juniper Networks,
Alcatel-Lucent, DragonWave
Mobile Packet Core / DPI
• Mobile packet core / deep packet
inspection technologies will grant
carriers a higher degree of control
over the traffic on their networks
• These technologies allow carriers to
prioritize high-value (VoIP / web
browsing) traffic in real-time +
redirect low-value traffic (P2P) to
off-peak periods of the day
Equipment Beneficiaries
Cisco, Huawei, Nokia
Siemens
Telecom Managed Services
• Wireless carriers have
recently begun outsourcing
the architecture / build out /
management their networks
to equipment + managed
service providers as a way to
reduce capex and make the
transition to next-generation
networks more efficient
Ericsson, Alcatel
Lucent, Nokia Siemens
Source: Ehud Gelblum, Morgan Stanley Research.
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