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IP Transit Could Help Position Companies as Wireless Bandwidth Reaches Capacity

Businesses will need to keep up with customer’s growing Internet service demands and a scalable IP transit solution may be the optimal solution. Either way, this growing demand will be a heavy burden as wireless networks hover near capacity around the world.


According to this Computer World report, Americans are currently at about 80 percent capacity and the base stations for constraints on capacity are at 36 percent. IP transit easily leverages the worldwide global crossing network to access the more than 100,000 route miles of fiber-based IP network.

As more smart cars and smart homes hit the market, coupled with machine to machine communications, the problem is bound to get more complicated. Wireless bandwidth cannot be mass produced. When it’s gone it’s gone and many businesses, like mobile carriers, are scavenging to come up with a solution.

Businesses that rely on providing services to mobile devices covered nearly 75 percent of North America in 2010. In addition, nearly 91 percent of workers on-the-go use a smartphone on the job to stay connected and access the corporate network.

Supply and demand may be dealt a raw deal as many carriers are already establishing caps on their data usage. As a result, data plans for wireless devices are expected to rise. AT&T (News - Alert) already announced it would be implementing a change in its pricing for smartphones and tablets.

This news doesn’t surprise John Stankey, AT&T business solutions chief, who tried to warn of an unchanged spectrum situation. This all happened shortly after the company unveiled its 4G service at the end of 2011. Other experts, like Stankey, know there will be consequences.

If spectrum bandwidth isn’t delivered and implemented for mobile devices over a five year period, inflation will be an understatement. Service prices for mobile devices will rise and customers can expect poor performance and a lack of innovation.

Regardless of strategy, there will be some difficult choices in the road ahead as it related to wireless bandwidth. Limiting data usage when on the job may be one of the first cutbacks for employees.

The most realistic approach to solving the problem, wireless spectrum, is already a major talking point. Carriers will either deal with what they have or prepare for a costly investment to build onto existing cellular towers and base stations.

The option of installing costly base stations might not be a viable options for companies looking to cut costs and increase efficiency. Spectrum (News - Alert), and IP transit, gives these companies an inexpensive way to create more capacity, something that has been in their control for several years.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO East 2012, happening now, in Miami, FL. ITEXPO (News - Alert) 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. For more information on registering for ITEXPO registration, click here.

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Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.

Edited by Jennifer Russell

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