Mobile Data Traffic Growth Pushes Packet Core Spend to Over $18B in Contrast to 1Q Telecom Market Contraction

Oyster Bay, New York - 16 Jul 2014

Worldwide traffic in 3G and 4G continues hitting new highs as operators strive to satisfy the insatiable craving for Mobile BroadBand. Satisfying this demand by expanding network capacity will push Mobile Packet Core spending over $18B through 2019.Though much of the Telecom market experienced a 1Q seasonal dip, packet core expansion continues with Just-In-Time deployment.

First mover developed markets continue to lead, and now the Rest of the World demands additional capacity as operators scale up with the demand. Operators must make their network deployment choices to meet this never-before experienced growth, and have a good grasp of what they are to face.

“Operators closely manage their CapEx and OpEx with a sharp eye on the Top Line,” says Joe Hoffman, practice director at ABI Research, “and while NFV gains momentum, current business needs require continued investment in the Packet Core.” Continued advances in semiconductor technology as manifested with Commercial IT scale will regularly deliver a 20% to 30% cost performance improvement. Continuing, Hoffman adds, “Moore’s Clock keeps on ticking, and SDN/NFV brings WebScale and Moore’s advantages to the telecom community.”

In its research, ABI Research finds that even with Mobile BroadBand traffic growth, packet core spending will taper just as WebScale utilization and efficiencies take hold. “As the Telecom Market transforms to WebScale, infrastructure vendors are nearly ready to ride this wave rather get swamped,” claims Hoffman.

“Mobile Gateways” Market Data provides detailed market forecasts reflecting WebScale Transformation of the Packet Core, and is part of ABI Research’s Software Defined Networking & NFV Market Research. This includes Research Reports, Market Data, Insights, and Competitive Assessments, and is part of ABI Research’s Next Generation Network Services Research Sector.

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