IP transit channel feature

IP Transit Solutions for High Wireless Demand

By Rachel Ramsey
TMCnet Contributor

Wireless bandwidth networks are edging near capacity all over the world. As the demand continues to grow, what is going to happen with IP transit?

The demand for IP transit over wireless bandwidth is increasing as advancements in connected cars, smart grids, machine-to-machine (M2M) communication and domestic installations continue.

"Not only has the demand for capacity on our wireless networks been accelerating significantly, but it's been accelerating in a non-scalable way," says Charles Golvin, an analyst for Forrester Research (News - Alert).

According to a report by CTIA in October 2011, the number of wireless devices in the U.S. exceeded the number of people for the first time.

Mobile Future (News - Alert) estimated in a March 2011 report that by 2014, voice traffic will comprise only 2 percent of the total wireless traffic in the U.S. Smartphones consume 24 times more data than old-school cell phones and tablets consume 120 times more data than smartphones.

Some corporations have already taken steps to make the transition to IPv6, but according to Infoblox (News - Alert) in Oct., less than 1 percent of all subdomains under the .com, .net, and .org top-level domains had IPv6-enabled Web servers on them. IPv4 addresses are likely to not run out in 2012, and instead the new year should be used as a time of transition for all enterprises.

An IDC report found that 75 percent of the North American workforce was mobile in 2010 and an iPass report found that 91 percent of mobile workers use their smartphones for work. At CUNA Mutual Group, about 25 percent of the insurance company's 4,000 employees use smartphones to access email remotely.

Possible solutions to the bandwidth crunch include unlicensed spectrum. Groups like the Wireless Broadband Alliance promote offloading as much wireless networking as possible to Wi-Fi networks. Other solutions include full duplex capabilities, so wireless devices can send and receive data at the same time, and white spaces: the FCC is promoting repurposing vacant airwaves between TV channels used to prevent interference.

Most carriers have already imposed data caps, and industry watchers say the laws of supply and demand indicate that wireless-plan prices can only go up.

Carriers like AT&T and Verizon want to entice customers with new services and download speeds. But to do that, they need spectrum. AT&T wanted to acquire T-Mobile not for its customers, but for its spectrum.

“If we can’t get spectrum bandwidth for more mobile devices in the next five years, prices will rise, performance will suffer, and innovation will be impaired,” said Richard Bennett, senior research fellow for the Information Technology and Innovation Foundation (ITIF).

"Companies will have to make some hard choices, including limiting the amount of data employees can use based on job function,” said Scott Bergmann, the CTIA's assistant vice president for regulatory affairs.

Carriers must either deal with what they have, which could be up to $40 billion to double capacity, or find bandwidth elsewhere. That "elsewhere" is primarily in the broadcast bandwidth, but broadcasters, unsurprisingly, aren't interested in giving up spectrum that they've controlled for decades.

Broadcasters don't want to give up spectrum because they want to be involved when mobile video service becomes common.

"Installing base stations is expensive," explains Phil Solis, research director for mobile networks at ABI Research. "Carriers [instead] fight for spectrum, because that's a cheaper way to add capacity. But by getting spectrum, you reduce the chance of new competitors."

ITIF president Rob Atkinson and other experts believe the solution lies in spectrum incentive auctions -- in which broadcasters that wished to sell bandwidth would be compensated by telcos purchasing the spectrum.

In related news, Quality Technology Services (News - Alert), the third largest data provider in the U.S., recently added Giglinx as a new carrier option in Santa Clara, CA. Ginglix is a provider of wholesale connectivity and collocation services and has already worked with QTS (News - Alert).

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO East 2012, taking place Jan. 31-Feb. 3 2012, in Miami, FL. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.

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IP transit resources

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