Razorsight Blog: Will Bandwidth and Internet Access Speed Doom Wireless and Mobile ISPs in the Home?

anikf2_02PR-01578E_300x375Accessing the internet through mobile devices may play a critical role in shaping the future of communications and internet use, but in the fixed internet service provider markets, mobile and wireless providers face structural hurdles to grabbing a competitive edge, Gary Kim writes in a blog post for Razorsight Corp., the maker of cloud computing-based analytics solutions for telecommunications firms.

Kim says that bandwidth, speed and their effects on the data usage of consumers will tip the scales in favor of ‘wave-guide’ providers, such as cable TV and fiber-to-home providers, particularly for higher-speed services. “At some point,” Kim writes, “demands for higher speed service will reshape the ISP market, as wave guide networks will simply set a standard wireless networks cannot match.”

The average median percentile fiber-to-home or cable modem user already consumes twice as much data per month as the same DSL user, and up to 40 times as much as half of satellite internet subscribers or smart phone users.

Historically, internet access speed and demand increases ten-fold every five years, in both city and rural markets. “Since wireless networks will need much more spectrum to keep up, and since they are unlikely to obtain 10 times more spectrum every five years, the gap between wireless networks and fixed networks will keep widening,” Kim writes.

“There is a clear correlation between Internet access speed and the amount of data people consume. Simply, consumption grows linearly with speed,” RazorSight-logo-Kim says.

“In short, structural changes, not simply quantitative changes in typical access speeds, are going to reshape the fortunes of various market contestants.”

Are you sold? Do you see wireless ISP’s “hitting the wall” on bandwidth? Check out Razorsight’s blog for more information and analysis on this issue and an in-depth look at bandwidth’s evolving role in telecommunications.

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