The financial pressures on mobile operators will become so great by the end of the decade that they will need to tear apart their network economics, along with their network architectures, according to Maravedis-Rethink.
The basic problem is the growing cost of network elements and systems at a time when average revenue per user or account is falling. That is one reason many believe increasing use of cloud-based, virtualized and software defined networks are getting so much attention.
“Operators will slash costs by leaving only ultra-low cost equipment at the cell site, eventually driving the equipment cost down below $100 by 2020,” Maravedis-Rethink analysts argue.
New mobile network architectures will rely much more extensively on huge numbers of smaller cells, where today the network is characterized by a smaller number of macro cells, says Caroline Gabriel, Maravedis-Rethink research director...Read More
Edited by Alisen Downey
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