Mobile Data Traffic Expected To Rise 40-Fold Over Next Five Years

Erick Schonfeld

Erick Schonfeld is a technology journalist and the executive producer of DEMO. He is also a partner at bMuse, a product incubator in New York City. Schonfeld is the former Editor in Chief of TechCrunch. At TechCrunch, he oversaw the editorial content of the site, helped to program the Disrupt conferences and CrunchUps, produced TCTV shows, and wrote daily... → Learn More

Tuesday, March 30th, 2010

As smartphones like the iPhone and Android take over the mobile Web, the amount of data traffic going over cellular networks is expected to grow 40-fold over the next five years. UK firm Coda Research Consultancy forecasts that in the U.S. alone mobile handset data traffic will grow from 8 petabytes/month this year to 327 petabytes/month in 2015. That amounts to a 117 percent compound annual growth rate.

A lot of that data will come in the form of mobile Web browsing, with the biggest contributor expected to be mobile video. By 2015, mobile video will account for 68.5 percent of all mobile data usage in the U.S. (or 224 petabytes/month). Coda estimates that 95 million mobile handset subscribers in the U.S. will be watching video on their phones in five years out of a total of 158 million mobile internet users.

Mobile data revenues (not including SMS charges) are forecast to make up 87 percent of all data revenue for the carriers by 2015. But they will have a hard time keeping up with demand unless they adopt tiered pricing, predicts Coda co-founder Steve Smith. Consumers used to all-you-can-eat data access from their phones will find that unappealing. But carriers will have to figure out a way to pay for massive network upgrades. Coda estimates that if the carrier’s froze their networks today, they would reach 100 percent utilization at peak capacity by 2012, when 40 percent of phones will be smartphones.

The table below shows some more forecasts from Coda on the number of U.S. mobile Internet users and the percentage of mobile data traffic coming from smartphones versus feature phones:

  2010 2011 2012 2013 2014 2015
Mobile Internet users via handsets 84M 100M 113M 128M 145M 158M
Smartphone traffic as % of handset traffic 79% 90% 95% 97% 98% 98%
Feature phone traffic as % of handset traffic 21% 10% 5% 3% 2% 2%

Product: iPhone 3GS
Company Apple

The iPhone 3GS, announced at WWDC on June 8, 2009, is a faster iPhone featuring a 3.0 megapixel camera with autofocus, video recording capabilities with editing, and increased (3X) processing speed. The 3GS is available in 16GB and 32GB, for $199 and $299, respectively. Other new features include: Digital Compass Cut, Copy, and Paste MMS (release delayed in the US) WiFi tethering (release delayed in the US) Voice Control Landscape Keyboard Spotlight Search Voice Memos

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Product: Android
Website: code.google.com
Company Google

Android is a software platform for mobile devices based on the Linux operating system and developed by Google and the Open Handset Alliance. It allows developers to write managed code in Java that utilizes Google-developed software libraries, but does not support programs developed in native code. The unveiling of the Android platform on 5 November 2007 was announced with the founding of the Open Handset Alliance, a consortium of 34 hardware, software and telecom companies devoted to advancing open standards...

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