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@CTIA: Ericsson: global mobile data use has surpassed voice traffic: Event took place in December, according to Ericsson measurements

LAS VEGAS–Global mobile data traffic surpassed voice traffic in December, according to Ericsson’s internal measurements on its live networks, said CEO Hans Vestberg during an afternoon press briefing at CTIA Wireless 2010.
Ericsson said its findings found that global data traffic grew 280% during each of the last two years. Voice traffic accounted for about 140,000 Terabytes per month, while data traffic surpassed that, Vestberg said. Going forward, Ericsson expects data traffic to double each year for the next five years. The surge in traffic is forcing Ericsson to become a “change agent,” as people begin to use wireless networks in different ways. On the evening of the Chinese New Year, more than 23 billion SMS messages were sent, Vestberg said. Thus, while the wireless industry tends to overestimate growth in the short term, it likely underestimates growth forecasts for the next five to 10 years, he noted. Vestberg compared wireless technology advances to electricity, which at its invention was used for one purpose: to power a light bulb. Today, it is used for nearly everything inside a home.
The world’s largest infrastructure provider noted that while the world looks to LTE deployments, there is still much buildout left to do on 3G networks, noting that 2009 was the first year the company sold more 3G equipment than 2G equipment.
Continuing the electricity analogy later in the presentation, Vestberg compared flat-rate pricing rather than usage-based pricing for wireless to flat-rate pricing and usage based pricing for electricity. Flat-rate plans are no problem with the street is lined with single-family homes, but when the steel mill moves in at the end of the street, the pricing model needs to change.
While operators didn’t make the same margins on data services than they did on voice, data is the growth area, the company said.
AT&T announcement
AT&T and Ericsson said they were launching an AT&T Connection Kit for Device Developers, combining AT&T’s network with developers targeting the emerging markets and machine-to-machine communications segments. The connection kit includes AT&T SIM cards, data capacity for testing, access to the AT&T control center, powered by M2M company Jasper Wireless, and best practice guidelines. Ericsson’s mobile broadband modules are included in the package.

ABOUT AUTHOR

Tracy Ford
Tracy Ford
Former Associate Publisher and Executive Editor, RCR Wireless NewsCurrently HetNet Forum Director703-535-7459 tracy.ford@pcia.com Ford has spent more than two decades covering the rapidly changing wireless industry, tracking its changes as it grew from a voice-centric marketplace to the dynamic data-intensive industry it is today. She started her technology journalism career at RCR Wireless News, and has held a number of titles there, including associate publisher and executive editor. She is a winner of the American Society of Business Publication Editors Silver Award, for both trade show and government coverage. A graduate of the Minnesota State University-Moorhead, Ford holds a B.S. degree in Mass Communications with an emphasis on public relations.