Ericsson CEO says mobile data bottlenecks emerging

Network usage for mobile data traffic will eventually overtake voice and text traffic, with bottlenecks already beginning to emerge in mature markets, Ericsson CEO Carl-Henric Svanberg, quoted by a Total Telecom report, said.

'The first part of the network to fill up is typically the transmission side,' said Svanberg, adding that 'however, this also depends on operators.'

The Total Telecom report also quoted Svanberg as saying that growth in mobile broadband traffic is now being driven primarily by consumer demand, rather than the deployment of mobile broadband networks per se.

Yet, despite Svanberg's optimism, he warned that operators still need to be clearer about how they charge consumers for data, particularly when it comes to international roaming, the report said.

He also reiterated his view that the European mobile market is in need of consolidation through mergers or network-sharing agreements, adding, 'It doesn't change the underlying need for (network) equipment.'

Ericsson has seen no lack of demand for its products, with the equipment vendor now commanding well over 40% of the mobile network market, according to Svanberg, who said he had seen a recent analyst report that put its market as high as 45%, the report said.

Svanberg also reiterated he expects the global GSM/W-CDMA market to show mid-single digit growth in 2007, and that the addressable market for professional services, of which Ericsson currently has a 10% share, will show encouraging growth, according to the report.