3G, 4G and Beyond: Bringing Networks, Devices and the Web Together, 2nd Edition

Chapter 3

Network Capacity and Usage Scenarios

The way in which mobile networks will be used in the future depends on many factors. This chapter discusses the current state of GSM, UMTS, and LTE networks and how a rise in capacity could affect usage in the future. Since capacity is limited this chapter also takes a look at how to steer the use of mobile network resources from a financial point of view and if it is still possible to link profitability with how much a user spends per month for using a network.

3.1 Usage in Developed Markets and Emerging Economies

In developed markets, the use of the Internet to communicate is moving away from use in specific places where Digital Subscriber Line (DSL), cable, or other broadband connections are available. Wi-Fi has become very popular in recent years due to its ability to un-tether users and allow them to move with their devices through their offices and homes. Small portable devices such as smartphones and tablets with built in wireless connectivity are also becoming widespread. Wi-Fi has thus created a virtual Internet bubble around people. During his time at Nokia, Anssi Vanjoki referred to this phenomenon as “[the] broadband Internet is no longer a socket in the wall.” Due to the rise of smartphones and ubiquitous 3.5G coverage in cities, people can now leave the private Internet bubbles in their homes and offices without loosing connectivity as UMTS and LTE networks can take over and have thus become the natural extension of the ...