U.S. on track to pass an exabyte of mobile data traffic in 2010

November 8 2010 – 12:07 pm ET | Sylvie Barak | RCR Wireless News

--Chetan Sharma 

Photo credit:Chetan Sharma

Despite the tiered pricing, the throttling and the choking, U.S. mobile data is still unstoppably on the rise, with analysts now predicting total U.S. mobile data traffic will exceed 1 exabyte for the first time by the end of 2010.

Wireless-data analyst Chetan Sharma reckons the mobile data market already hockey-sticked by around 25% in the third quarter of this year compared with the same quarter of last year and was up 7% from the second quarter.

That brings the mobile data industry up to a whopping $54 billion for the year ($14 billion in Q3 alone), a fact that can be attributed to the rapid and increasing demand for new and shiny smart phones.

“By the end of 2010, we expect the average U.S. consumption to be approximately 325 MB/mo, up 112% from 2009,” wrote Sharma, who also elaborated on the exact definition of an xxabyte – a unit of information equal to 1,000 petabytes or 1 billion gigabytes.

While that might sound ginormous, bear in mind that current global Internet traffic is thought to exceed 21 exabytes.

When the first iPhone came to market in 2007, wireless data was worth about $25 billion to carriers, which means revenues have more than doubled in just three years. Data average revenue per user has also doubled, now standing at around $16.70 a month, up from about $8 three years back. Indeed, mobile data now accounts for around 33% of total ARPU for carriers in the United States and Sharma says it’s realistic to expect data and voice revenues to be roughly equal by 2013.

Connected devices like tablets are also having a significant impact on data traffic, with Sharma reporting “the connected devices category will generate more revenue for the operators than the entire prepaid segment in the U.S.” That’s no small potatoes.

Reportedly, Verizon Wireless and AT&T Mobility managed to account for no less than 85% of all U.S. data revenue increases in the third quarter. AT&T and Verizon now also account for 70% of the market data services revenues and 62% of the subscription base, according to Sharma.

4G Americas: SMS not suited for 911 texts

October 12 2010 – 11:33 am ET | Tracy Ford | RCR Wireless News

--  

4G Americas released a white paper that points out the limitations of using SMS as a way to contact first responders during an emergency. The trade group said some communities and groups, including people with disabilities, are interested in using text messages as a way to call 911.

However, text messaging was designed as a way to use wireless networks when they weren’t tied up by voice communications, and as such, they are only best-effort communications.

“While we understand the desire to use SMS to contact 911, SMS has significant limitations and shortcomings that do not make SMS suitable for emergency communications, especially under life-threatening conditions,” stated Chris Pearson, president of 4G Americas. “Today, voice 911 communication is the best and most reliable method of reporting an emergency and summoning help quickly. The industry is working on developing a reliable, non-voice solution to contact emergency services that is not based on SMS.”

Despite the popularity of SMS, 4G Americas said that among the major limitations of the technology, public safety answering points (PSAPs) would not know where the text was initiated and as such wouldn’t know the location of the sender, and the fact that there is no way to prioritize SMS messages, so a 911 text would not be given priority over any other text.

The Federal Communications Commission is beginning to address next-generation wireless 911 accuracy requirements. The FCC approved a timeline and benchmarks to make sure that wireless operators give more accurate information at the county or PSAP (public safety administration point) level. The report applies to both handset- and network-based E-911 environments. Further, the FCC started a Notice of Inquiry on how Voice over Internet Protocol services can also provide accurate location information to public-safety personnel. The FCC is also asking how to address E-911 calls placed from callers who are indoors. Genachowski said that landline-based 911 calls are accurate 98% of the time, compared to wireless calls, which are accurate only about 50% of the time.

CTIA E&A: Enterprise mobility is all about productivity and business objectives

October 7 2010 – 2:18 pm ET | Matt Kapko | RCR Wireless News

-Rusty Yeager, VP and deputy CIO at HealthSouth; Jackie Woods, systems manager at UPS; John Dick, SVP and CIO at Western Union; and Bob Evans, SVP and Global CIO director at InformationWeek kicked off Thursday morning with a roundtable keynote.-Dan Meyer
Rusty Yeager, VP and deputy CIO at HealthSouth; Jackie Woods, systems manager at UPS; John Dick, SVP and CIO at Western Union; and Bob Evans, SVP and Global CIO director at InformationWeek kicked off Thursday morning with a roundtable keynote.

Photo credit:Dan Meyer

SAN FRANCISCO — Holding the torch for CIOs and mobility managers in enterprise, executives that head up those respective departments at United Parcel Service Inc., HealthSouth Corp. and The Western Union Co. kicked off this morning’s keynote in a roundtable format.

“Mobile and wireless is changing the whole role of the CIO,” Bob Evans, SVP and Global CIO director at InformationWeek, said as he introduced each of the panelists. “It’s an extraordinary change taking place in the market today.”

While there are unique challenges that exist for enterprise, wireless technology, networks and devices are enabling more firms to overcome those problems and even cut some costs in the process.

Still, when the trio was asked to identify their biggest wireless pain, coverage was the unanimous response. Wireless carriers still don’t have an absolute vote of complete confidence on that front.

Western Union

Coverage not withstanding, mobility is making an incredible impact on the role of CIO. John Dick, SVP and CIO at Western Union, said his job is “much more market facing” and objectives dictate that he be more like “a business strategist.”

While Research In Motion Ltd’s BlackBerry devices are still the predominant choice in enterprise, CIOs are facing greater demand from employees who want to deploy devices running on Apple Inc.’s iOS and Google Inc.’s Android platforms.

“We’re still a BlackBerry shop,” Dick said, but adding that Western Union plans to deploy other devices next year.

“Usually our most ardent new technology innovators tend to be executives who want new standards and technology for their employees,” he added. “I do see that pressure there.”

UPS

Jackie Woods, systems manager at UPS, said that use cases and business objectives are the most important factors of mobility in enterprise.

Device choice is a “constant struggle for us… we have several dozen that we support today,” she said. “We definitely try to have our devices last five to seven years.”

Liability is another concern, she added, “so we want to make sure we support a minimum number of devices so we can get through that repair cycle faster.”

As for tablets, she reiterated that use cases is most important. “If you need to pull up a Word document, you might need a keyboard for that,” she said.

“Cool is one thing … and it’s great to be forward looking, but you have to look at what you’re trying to accomplish and focus on the task at hand,” she said.

“Make sure you’ve got a solid business case to support your infrastructure,” she continued. “The last thing you want to do is deploy a wireless infrastructure that bears no fruit at the end… We can’t let the wireless infrastructure or technology get in the way of (our employees) doing their jobs.”

HealthSouth

Rusty Yeager, VP and deputy CIO at HealthSouth, said his company first got into mobility back in 1998 when it built an app that ran on 5,000 tablet PCs, which helped to free up clinician’s time in the field.

“We’re also looking at a clinical system that will run on a wireless network” that will work internally and externally via tablets, smartphones and computers on wheels, which he called “COWs.”

The health care provider is using its new facility in North Virginia as a lab to test functionalities that it hopes to eventually deploy throughout the workforce.

“One of the challenges we have is coverage… we’re in some rural areas,” he said.

Another challenge, which is common throughout enterprise today, is a shift that taking place from company-owned devices to individually owned devices.

“We were BlackBerry predominantly for many, many years,” he said, but now they’re just starting to look at iOS and Android devices.

“I liken it to the middle ‘90s when we were first working with IT,” he said. “Right now we’re kind of caught up int he conundrum of non-standardization.”

Finally, he said tablets are also going to have a “huge impact for us,” with one caveat: security and manageability has to be right.

Follow

Get every new post delivered to your Inbox.