Wireless Broadband replacing Wired Networks

The United States now has 82.4M broadband connections.  Gigacom indicates that cable companies added roughly 800,000 new subscribers and that the top two phone companies,  AT&T and Verizon,  saw a decline of 696,000 DSL accounts but added a total of 919,000 fiber subscribers.

A key theme throughout the evolution of mobile/wireless evolution has been replacement of POTS (Plain Old Telephone Service) with various wireless options (mostly cellular but also fixed wireless of various types).  This trend has accelerated in recent years as prices decrease, awareness increases, trust in Internet Protocol (IP), wireless, and VoIP increases.  A theme within a theme has been the replacement of narrow-band and circuit switched with broadband wireless.

Broadband used to just refer to data content only.  Broadband is a term used in telecommunications to refer to a type of transmission method.  Broadband is the opposite of baseband.  Baseband transmission is the transmission of a single signal over a transmission media.  Broadband is the transmission of more than one signal over a transmission media.  Technically a telephone conversation over a T-1 is a broadband transmission.  Telephone voice conversations are multiplexed into 24 voice channels over a T span.  A T-1 is capable of supporting transmission speeds of up to 1.544 Mbps.

In contrast, narrowband is not just less bandwidth available.  Narrowband describes a channel in which the bandwidth of the message does not significantly exceed the channel’s coherence bandwidth. It is a common misconception that narrowband refers to a channel which occupies only a “small” amount of space on the radio spectrum.  In other words, IP allows for a big “pipe” of data (signaling and bearer feeds) in which all data/signaling can flow unimpeded.  In laymen’s terms this means that there is a much greater opportunity for the following:

  • Downward price pressure causing margins for bearer services to drop
  • Increased opportunities to add applications and services on top of broadband

From its recent report, LTE Strategy 2013 – 2018, Mind Commerce predicts landline losses driven by broadband wireless displacement.

Landline Losses

Landline Losses

The report provides additional forecasts including:

  • Landline/Fixed Losses forecast
  • Migration from Landline to VoIP forecast
  • Global Wireless Infrastructure Spending (by technology, region, type)
  • Global LTE Device forecast and Data Usage (by category, device type, and region)
  • Global LTE Subscriptions and Revenue (by consumer, enterprise, and industry segment) 

For more information, see:

http://www.mindcommerce.com/Publications/LTE_Strategy_2013-2018.php

About Mind Commerce

Analysis of telecom and ICT infrastructure, technologies, and applications.
This entry was posted in 4G, Broadband Wireless, Fixed Network Operators, LTE, Wireless Carriers. Bookmark the permalink.

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