With revenue from voice services flat or declining in mature markets worldwide, the growth of wireless data applications is conversely enabling mobile operators to increase revenue via the delivery of mobile data services.
The impact of the iPhone on AT&T’s business is a single, but powerful testament to this fact. However, while mobile data and content traffic volumes will continue to grow exponentially, revenue will not.
This has led mobile operators and wholesale network infrastructure providers to look toward driving down “per-bit” costs for transporting data traffic. This basic business need has led to the choice of Carrier Ethernet technology as the transmission medium for handling the exploding volume of backhaul traffic—instead of traditional TDM, which simply does not scale in terms of cost benefits. Nearly every operator aspiring to launch long term evolution (LTE) services is thus first “preparing the ground” by deploying an Ethernet-based backhaul network.