03 Feb '11, 11am

Smartphones to run operators into the red in 3 years

Smartphones to run operators into the red in 3 years

PARIS: Rocketing smartphone use could drive mobile operators into losses in three years unless they rapidly adopt technology to capture more revenue from data services, according to a US network company. Rising investment costs to handle exploding data traffic combined with lower revenue per unit of data could begin to drive some operators into the red in as soon as two years, Tellabs said it calculated based on independent analyst data. "Carriers can spend themselves bankrupt well before users run out of hunger for capacity," said Tellabs chief executive Rob Pullen. "Our study shows that simply adding dumb capacity is unsustainable. To avoid the 'end of profit', carriers must bring intelligence to their networks -- it is critical to carrier survival," he was quoted as saying in a statement. A number of industry players expect mobile data traffic, driven mostly by smartpho...

Full article: http://www.channelnewsasia.com/stories/afp_asiapacific_bu...

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