Feeds

Wireless performance will collapse, prices rise: Deloitte

More devices shipping than spectrum to feed them

Remote control for virtualized desktops

Deloitte is predicting a looming spectrum crunch that will result in higher prices and poor performance, even on LTE networks.

In its annual 2013 Technology, Media and Telecommunications predictions, the company says carriers worldwide can’t keep pace with device adoption – especially because “the average smartphone drives 35 times more traffic than a typical cellphone. It is expected that by 2016 wireless traffic will have increased 50 fold from 2012.”

As a result, it says, the US can expect a 275 MHz “deficit” of spectrum, and at busy periods, “download speeds may be under 1Mbit/s for lengthy periods of time”. While less severe, Australia can expect similar impacts as new devices ship faster than the networks roll out.

“Major metropolitan areas in some geographies should expect to see continued deterioration in end user experience,” the report states. “The other alternative is that carriers may want to increase what they charge for data and speeds: if spectrum truly is a scarce resource, then using price to signal its value is likely to reduce demand to the point where service standards do not fall.”

Even the upcoming LTE-Advance standard, which has spectral efficiency double that of LTE, would only provide additional capacity to support one year’s growth in demand, Deloitte claims.

The prediction would be music to the ears of Australia’s Communications Minister, Senator Stephen Conroy, who has been criticized for setting too high a floor price for this country’s upcoming spectrum auctions.

The Deloitte TMT report can be found here. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.