from Part I - Motivation and Basics
Published online by Cambridge University Press: 05 August 2012
The Mobile Internet - A Success Story so far
When 3G was launched initially with WCDMA technology (Release 99), it was rather a disappointment with not many services being successful. Some years later, the mobile Internet took off when a number of factors came together:
HSPA as a technological evolution of 3G with low latency and higher data rate
Attractive flat-rate price plans by mobile operators
Availability of mobile broadband hardware in terms of dongles and built-in 3G modules in notebooks
Smart phones with attractive user interfaces, e.g., iPhone, Android
Complete country-coverage with HSPA and HSPA+ by mobile operators.
This take-up of the mobile Internet generated substantial additional revenues for mobile operators, at a time when voice and text message revenues started to decline in saturated markets such as Europe. For example, Vodafone had a data revenue growth of 19% in financial year 2009/2010, with more than €4 Billion generated by non-SMS data. Today, only 11% of phones are smartphones, but by 2013 it is expected that more than a third of all active phones within the Vodafone network will be smartphones.
This data revenue growth comes along with a cost for mobile operators - namely data traffic growth. Fig. 2.1 shows the actual and projected traffic growth for Vodafone's European networks in Petabytes/year [Vod10]. It can be seen that data traffic has substantially surpassed voice traffic.
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