Telecom cost management to see big changes as data use rockets upward

May 27, 2011

A compound annual growth rate of more than 50 percent in mobile data usage, according to statistics from ABI Research, means that wireless expense management is due to become a key issue for business IT departments.

The company's principal analyst, Jim Eller, said that telecom companies have struggled to keep up with demand.

"In most businesses, a big increase in demand for your products and services would be considered a good thing. Instead of trying to block or throttle data traffic, mobile operators need to figure out how they can profit from the huge opportunity that has fallen into their laps," he stated.

While ABI asserted that its new study offers ways for the telecom companies to maintain service levels without expensive infrastructure investments, most analysts agree it's time for the major providers to simply start building new pipes.

The surge in mobile data use, coupled with the ongoing increase in the number of smartphones being used for work, mean that upticks in pricing for wireless service are likely to hurt businesses.

Telecom Industry News , Telecom Expense Management