Network Bandwidth Demand Expected to Grow Fivefold
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Smartphone Usage
The penetration rate is projected to increase at a 5% compound annual growth rate (CAGR) during the next five years. Entertainment apps will account for 59% of smartphone bandwidth demand in 2018. -
Tablet and PC Usage
Tablet device penetration increases at a 20% CAGR through 2018. Though PCs are losing share to tablets, the large installed base of PCs will continue to contribute to mobile broadband bandwidth requirements. -
The Rise of the Internet of Things
Machine-to-machine (M2M) penetration is expected to grow at a 20% CAGR during the next five years. Network payloads per device, however, will be comparatively small. -
Mobile Device Use Patterns
Smartphone and tablet peak period usage will double within five years. Mobile media data rates will increase at 30% annually. -
Mobile Hotspot Usage
Mobile hotspot/dongle usage time is projected to increase by 50% in five years, which is caused by increased viewing of longer video formats. -
Peak Bandwidth Usage
Peak period bandwidth requirements per person are projected to increase from 10.1K bps per person in 2014 to 54.1K bps per person in 2018, a 52 percent CAGR. Smartphone traffic accounts for the majority of the bandwidth requirement. -
Future Bandwidth Requirements
Peak period bandwidth requirements are projected to increase at a 52% CAGR through 2018. -
Backhaul Requirements
A 1,200-square-kilometer metro area with a population of 2.5 million will require cell site backhaul bandwidth in the range of 0.4G bps to 2.5G bps in 2018. Additionally, 10G-bps Ethernet links in the access network and 10G-bps rings will be needed to meet the requirement. -
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With each new device that connects to the Internet, the corresponding demand for network bandwidth grows. The collective weight of all those client devices is about to increase demand for network bandwidth by a factor of five by 2018, according to a new report conducted by ACG Research and sponsored by Ciena Networks, a provider of network infrastructure. The report attributes the root cause of all this increased demand for network bandwidth will be video content, increasing device penetration and higher physical network usage in order to offload wireless networks. "Mobile broadband bandwidth demand, which is being driven by continuing increases in device penetration, hours of use, more applications and the increased bandwidth capacity of mobile devices, is creating a potential bottleneck at the fiber backhaul network," the report said. Connected cars and the Internet of things will put additional strain on networks. For managed service providers, the implications are clear. Not only will there be demand for more advanced networking gear, services that optimize the flow of data traffic across the network will be in high demand. The difficulty, of course, is going to be acquiring the expertise needed to rise to that challenge.
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