Source: Frost & Sullivan
Despite the fact that data traffic is growing exponentially, mobile operators are witnessing a divergence of data revenues and traffic load curves due to flat rate price models. Thus, network efficiency must improve in order to ensure that the cost-per-bit to deliver a service is attained at a bare minimum in comparison to the existing cellular technologies. Many opine that the next generation long term evolution (LTE) technology can achieve these goals, with the technology currently being trialled by several operators worldwide.
New analysis from Frost & Sullivan, Multiple Options but No Clear Winner for Voice and SMS over LTE, notes that due to the economic crisis, many operators are currently unwilling to deploy LTE that is service-limited – in particular on services that are cash cows i.e. voice and short message services (SMS). Hence, the value of deploying LTE and then limiting the users to basic 2G/3G services is pointless.