Mobile data traffic growth 10 times faster than fixed over next five years – Nokia Siemens

Nokia Siemens Networks on Monday said that mobile data traffic growth will outstrip fixed-line growth by a factor of 10 in the next five years.

"Last year data traffic in fixed networks was up 50%… mobile data traffic grew by four times," said Mika Vehvilainen, chief technology officer at Nokia Siemens Networks.

"Mobile [data] network traffic will be up 300-fold in the next five years, in fixed it will go up 30 to 40 times," he said during a keynote presentation at Broadband World Forum Europe in Paris.

"By 2015 we will effectively be operating mobile data networks," he continued.

Vehvilainen warned that as the uptake of mobile data services increases, network providers will need to build a closer relationship with end users to enable their operator customers to improve the user experience and therefore reduce churn.

"The borderline between operators and us is changing," and now the onus is on network vendors to be more consumer-focused.

"Improving the end-user experience is becoming an important question in mature markets… there is a strong correlation between EBIT and churn, while [customer] acquisition costs are going up," he said.

What's more, he said the challenge facing network providers to focus more on end-users is compounded by the increasing complexity in the access network, driven by the rising number of services and applications used by consumers.

"The capability to access and leverage [customer] information is not that great today," said Vehvilainen, due to the fact that a multiplicity of user data is siloed into separate services.

He said there is a need to bring customer information together "into one location, and then leverage it to third parties."

"We need to become more customer-focused, drive the end-user experience and drive down churn," he said.

This article originally appeared on Total Telecom

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