Peak period mobile bandwidth consumption per user is expected to
increase fivefold over the next three years according to a recent “Mobile
Broadband Bandwidth Demand” study, conducted by ACG
Research and sponsored by Ciena®
(NYSE: CIEN). Service provider backhaul networks are plagued with
growing bottlenecks due to increasing device penetration and an
abundance of new entertainment services and applications, like video
streaming, social networking and multi-player gaming. The study looks at
peak period mobile bandwidth requirements (bits per second), rather than
total data usage (bytes per month), in order to provide the bandwidth
projections that are needed to help service providers plan network
capacity.
By forecasting users’ expected bandwidth demand in comparison to service
providers’ current backhaul capacity, the study predicts that the
typical macro cell capacity requirements will rise from 260 Mbps today
to 1.5 Gbps within five years. This equates to 1,000 users streaming a
movie or live sport event at 1.5 Mbps on their smartphones
simultaneously. To handle this level of growth, networks need to have
sufficient backhaul capacity, such as what is possible with Ciena’s
purpose-built platforms, to accommodate the plethora of new devices,
data and applications, as well as varying – and often unpredictable -
traffic patterns. An optimized, agile mobile backhaul solution
supporting 10 Gbps to the macro cell tower will be essential to
alleviate this projected bandwidth and ensure the expected quality of
experience.
Key findings:
-
Average bandwidth consumption per mobile user is expected to increase
52 percent CAGR through 2018. Smartphone penetration will rise from 55
percent to 67 percent, and the resulting usage of over-the-top (OTT)
entertainment applications on smartphones will account for 59 percent
of this; largely due to video - with high-bandwidth requirements, long
session times and continuous streaming.
-
Mobile peak usage times, those typically occurring between 9-10 pm,
will increase by 71 percent, from seven minutes today to 12 minutes in
2018. Consumption will also be boosted by new initiatives as OTT
providers sponsor data packages (such as those for streaming music).
In addition, new 3G and 4G enabled tablets will contribute to the
surge in traffic growth, increasing by 20 percent.
-
The study indicates that supporting backhaul capacity requirements
will exceed 1 Gbps by 2018, and this will be further intensified by
the latest wireless standards such as LTE-Advanced and the
introduction of more small cells, which are expected to deliver faster
wireless services with broader coverage to users. Service providers
need to take steps to deploy a mobile backhaul solution that supports
10 Gbps to meet this projected bandwidth and ensure quality of
experience.
Executive Comments:
-
“Today’s users no longer rank mobile services by price alone. Now more
than ever, the quality of experience for the latest OTT applications
is paramount and a key driver of customer loyalty. In three short
years, these networks must offer broader coverage and handle more
people using more applications on more devices at the same time. As a
result, the backhaul infrastructure must transform to enable a more
dynamic experience.”
- Michael
Kennedy, principal analyst, ACG Research
About the study:
-
Ciena commissioned ACG to conduct the “Mobile Broadband Bandwidth
Demand” study to model engineered macro cell site backhaul
capacity and help predict increased bandwidth requirements and
expected growth for specific metro area demands. It predicts mobile
users’ bandwidth (bits per second) during the peak period rather than
total mobile data usage (bytes per month) as peak bandwidth
requirements are needed to plan network capacity.
-
The study uses North American figures to analyze mobile demand trends
and shows comparable growth profiles across North America, Europe, and
Latin America. Europe is following North America, with a couple of
year’s difference, and Latin America is on track but with a larger
interval. Asia Pacific has higher current bandwidth requirements than
the other regions but lower growth; which suggests a more mature
market.
Supporting Resources:
Upcoming Events:
-
Ciena experts will be available at Mobile
World Congress 2015, March 2-5, 2015 to further discuss the study.
To meet with Ciena at the show please click here.
About Ciena
Ciena (NYSE: CIEN) is the network specialist. We collaborate with
customers worldwide to unlock the strategic potential of their networks
and fundamentally change the way they perform and compete. Ciena
leverages its deep expertise in packet and optical networking and
distributed software automation to deliver solutions in alignment with
its OPn architecture for next-generation networks. We enable
a high-scale, programmable infrastructure that can be controlled and
adapted by network-level applications, and provide open interfaces to
coordinate computing, storage and network resources in a unified,
virtualized environment. For updates on Ciena news, follow us on Twitter
@Ciena or on LinkedIn http://www.linkedin.com/company/ciena.
Investors are encouraged to review the Investors section of our website
at www.ciena.com/investors,
where we routinely post press releases, SEC filings, recent news,
financial results, and other announcements. From time to time we
exclusively post material information to this website along with other
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Note to Ciena Investors
Forward-looking statements. This press release contains certain
forward-looking statements based on current expectations, forecasts and
assumptions that involve risks and uncertainties. These statements are
based on information available to the Company as of the date hereof; and
Ciena's actual results could differ materially from those stated or
implied, due to risks and uncertainties associated with its business,
which include the risk factors disclosed in its Report on Form 10-Q,
which Ciena filed with the Securities and Exchange Commission on
December 19, 2014. Forward-looking statements include statements
regarding Ciena's expectations, beliefs, intentions or strategies
regarding the future and can be identified by forward-looking words such
as "anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "should," "will," and "would" or similar words. Ciena assumes no
obligation to update the information included in this press release,
whether as a result of new information, future events or otherwise.
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