Wireless Backhaul will Help PMC-Sierra

November 10th, 2011
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Any shift in end user demand can, and typically does, shift revenue opportunities for existing providers in any market. So it is that analysts at Jefferies say PMC-Sierra will benefit from growing mobile backhaul and cloud computing lines of business, as the wireline business weakens.

“Our proprietary analysis increases our conviction that secular growth in cloud/storage, together with mobile backhaul (Wintegra) is likely to overcome potential weakness in wireline infrastructure to deliver eight percent revenue growth in 2012, double the four percent growth expected for the group,” says Sundeep Bajikar, an analyst at Jefferies.

Indeed, the Jefferies analysis shows that growing mobile backhaul activity extends deep into the value chain, to the level of semiconductors.

PMC-Sierra: mobile Backhaul will offset wireline weakness


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U.S. Capacity Crisis Looms

November 4th, 2011
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To keep up with demand, U.S. wireless networks have traditionally doubled their capacity every 30 months, but this trend may not keep up with future demand, argues Michael Kleeman of the Global Information Industry Center at the University of California San Diego.

“We have reached a point of disconnect between the capacity of wireless networks and the emerging needs of today’s customers,” says Kleeman. Spectrum deficit

The volume of data traffic on U.S. networks is expected to increase by 1,800 percent over the next four years, the study estimates. By the end of 2011, video content will jump to 60 percent of network data volume.

According to another estimate, mobile video will more than double every year between 2010 and 2015 and account for two-thirds of the world’s mobile data traffic by 2015, the study suggests.

According to estimates, mobile data traffic in the U.S. was approximately 6 petabytes per month in 2008, 40 petabytes per month in 2010, and it is expected to reach 451 petabytes per month by 2013.

To understand the impact that even minor shifts in consumer behavior, and especially shifts in our consumption of video, could have for the U.S. wireless network, consider the contrast between U.S. video consumption and the capacity of our nation’s mobile networks.

U.S. viewers average nearly five hours of TV viewing per day (107,705 minutes per year) and as a nation we consume 1,266 exabytes of TV per year (1,266,000 petabytes).
Compare this to the output of U.S. mobile data networks, which transmitted approximately .48 exabytes (480 petabytes) in 2010 over the course of the entire year.

That means the U.S. wireless data network’s entire 2010 throughput was only sufficient to handle less than a day’s worth of the nation’s video consumption.

No matter what people hope will happen on 4G networks, the immediate implication will be much-greater consumption of video.


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Verizon Wireless API Will “Turbo” Sessions

November 3rd, 2011
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Verizon will publish an application programming interface that could allow mobile consumers to “turbocharge” the network bandwidth their smartphone apps use, presumably for a small additional fee.

“I think one of the things that you could do is guaranteed quality of service,” said Hugh Fletcher, associate director for technology in Verizon’s Product Development and Technology team.

“One of the things that we are right now is very democratic in terms of allocating spectrum and bandwidth to users. And just because you request a high quality of service doesn’t mean you’re gonna get it. [The network] will try to give it to you, but if there’s a lot of congestion, a lot of people using it, it won’t kick people off,” said Fletcher. Verizon API To Give Apps ‘Turbo’

The network optimization API will likely expose attributes like jitter, latency, bandwidth, and priority to app developers, Fletcher said.

Despite expected complaints from some network neutrality advocates, there is a reason such an API might provide clear value to end users. Some of you might be using 3G or 4G networks, using different air interfaces, to use interactive cloud applications. If you do that often enough, on many networks, you will have discovered the experience problem caused by latency.

Where older GPRS or EDGE data networks featured round-trip latencies in the 600 millisecond to 700 msec. range, LTE networks feature round-trip latencies in the 50 msec. range.

One of the important elements of a cloud-delivered application experience is latency performance, even though we most often think of “bandwidth” as being the key “experience” parameter.

Some might say the key benefits will be for gaming apps, but many of us can assure you that other interactive apps, even those not intrinsically dependent on “real time” protocols, can suffer from mobile latency. Latency issues


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