Keeping Current with Technology Imperative to Quality, Profitability

Next Generation Communications Blog

Keeping Current with Technology Imperative to Quality, Profitability

By Ed Silverstein

Design and innovations are vital in response to the massive use of mobile broadband networks.

Consider the current trends. Mobile broadband network traffic is projected to double each year for the foreseeable future, according to a study from Tolaga Research.

The growth is being driven largely by the popularity of smartphones, new technology, standardization of software, and IP-based networks, according to information from Alcatel-Lucent.

All of that demand is leading to a lot of capacity being placed on mobile broadband networks.

In addition, there will be a great deal of competition among service providers. But the service providers who “economically deliver superior network capacity” will excel, the company said. Further, service providers who see higher returns on invested capital (ROIC) relative to weighted average cost of capital (WACC) will be more successful.

With the increased broadband demand, mobile service providers are expanding networks, getting new spectrum and introducing new technology such as 4G Long Term Evolution (LTE), the company said.

But this will only provide limited relief. Altcatel-Lucent said there needs to be fundamental changes in mobile broadband network design.

For example, there will be more small cell sites. In fact, according to Alcatel-Lucent, in places such as Sweden and Germany there will be a doubling of cell site requirements over the next five years.

With small cells, architecture will change. There will be smaller devices on street poles, walls, as well as in public buildings and in local areas where there is high usage.

There are lower costs as a result – costs go from hundreds of thousands of dollars to hundreds or thousands of dollars, allowing service providers to set up more sites.

In addition, Internet Protocol (IP), Ethernet, and other technology are “forming the backbone of communication networks,” the company said, because they provide more capacity.

In addition, radio network architecture will use cloud computing. The cloud can apply to mobile core network infrastructure and radio network architecture, especially as small sites become more prevalent.

And Alcatel-Lucent is leading the way to bring cloud services to the sector.

To make launches of new services much quicker and more innovative, Alcatel-Lucent has also come up with the ng Connect Program. It brings partners together such as: device, content and application developers from the telecommunications, media, entertainment, and consumer electronic industries, the company said.

Also, the Alcatel-Lucent 9360 Small Cells solution improves quality of experience for subscribers, wherever they are situated, the company said.

The solution also improves 3G cellular coverage and capacity.

In addition, Alcatel-Lucent has come up a new product called “lightRadio.” It increases network capacity, lowers costs, lowers energy use and improves connectivity. Telefonica is taking part in the development of lightRadio, and China Mobile is a co-developer.

All of this highlights the crucial need for companies to respond to new technology and services in order to remain profitable.

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