Answering the call of millions around the world

An explosion in data traffic is stretching mobile phone networks to the limit. City reporter John Collingridge discovers why this could be good news for mobile technology firm Filtronic.

WITH every new iPhone, netbook and smart phone sold, the UK's stretched mobile phone networks creak a little louder.

Each device means another data-hungry user tapping into the UK's congested mobile infrastructure, streaming video or downloading applications.

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The problem manifested itself last year when O2 customers in London struggled to make and receive mobile phone calls or access data in a series of network crashes.

O2 blamed the pressure from smart phone users, such as the iPhone, which have some of the largest appetites for downloading applications, surfing the internet and using emails.

But O2 is not alone in experiencing the problems. At last week's Mobile World Congress, in Barcelona, data overload was the key talking point.

BlackBerry-maker Research in Motion warned smartphone manufacturers must develop less bandwidth-hungry products or risk choking already congested airwaves.

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"If we don't start conserving that bandwidth, in the next few years we are going to run into a capacity crunch," said co-chief executive Mike Lazaridis.

"You are already experiencing the capacity crunch in the United States."

The problem is set to get far worse. Technology group Cisco predicts there will be 39-fold increase in mobile data traffic by 2014.

"Mobile data traffic is growing faster than expected five years ago," said Doug Webster, senior director at Cisco.

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"The rapid consumer adoption of smart phones, netbooks, e-readers and Web-ready video cameras as well as machine-to-machine applications like eHealth monitoring and asset-tracking systems, is continuing to place unprecedented demands on mobile networks.

"In spite of the economic downturn, the demand for mobile services has remained high, posing both challenges and opportunities for service providers worldwide."

Bradford-based mobile technology firm Filtronic says it is poised to pounce on these opportunities.

The company, which was spun out of the University of Leeds in 1977, designs and makes point-to-point backhaul technology to link mobile phone base stations, including filter products at its Shipley manufacturing site.

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Filtronic has struggled over the past year as mobile operators hold back on capital spending and network upgrades. The spending squeeze almost halved its revenues in the six months to the end of November.

But chief executive Hemant Mardia said mobile operators will have to resume spending soon.

He said the current backhaul infrastructure, built mainly to handle voice and bit of video, cannot cope for much longer without being upgraded.

"The genie is out of the lamp now," he said. "You cannot roll it back.

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"There's going to be a differentiation in network quality so network operators will have to invest. There's going to be a strong competitive push to ensure that the networks do not start falling behind.

"The outstanding questions for me are around timing."

He said backhaul networks will need to be upgraded by "multiples of 10" just to meet current demand.

This means replacing old equipment with technology which can handle far greater data capacity – plus have room for further upgrades.

"There are a few progressive things they can do but it's only a matter of time, and the next two to three years for most developed countries will be crunch time," said Dr Mardia.

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Filtronic has continued to invest in research and development through the downturn, and is already working on technology to meet the growing demand of the next generation of mobile technology. It is developing a Gigabit radio, which it intends to be ready for the roll-out of the high speed 4G standard.

The radio will be designed to transmit five to 10 times more data than existing technology, giving users wireless broadband of a similar speed to home broadband, and allowing access to services such as watching films on mobile phones.

"Most of the big operators are trialling 4G and that's due to roll out over the next two to three years," said Dr Mardia. "Once that rolls, there's absolutely no option but to upgrade.

"We are in the right sector and it's very exciting timing, so we are well positioned."

Keeping up with the data traffic

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Wireless data traffic is soaring at an exponential rate, according to industry statistics.

Technology giant Cisco says that global mobile data traffic has increased by 160 per cent over the past year, to 90 petabytes per month, or the equivalent of 23m DVDs.

Cisco predicts annual global mobile data traffic will reach 3.6 exabytes per month, or an annual run rate of 40 exabytes by 2014. That equates to a 39-fold increase between 2009 and 2014.

By 2014, there could be more than five billion personal devices connecting to mobile networks.

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Mobile video is projected to represent 66 per cent of all mobile data traffic by 2014, increasing 66-fold from 2009.

Smart phones and laptop air cards are expected to drive more than 90 per cent of global mobile traffic by 2014.

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