Manufacturers of mobile data networking equipment could be major beneficiaries of a likely boom in mobile internet data usage and spending.
According to Cisco (NASDAQ:CSCO) research’s Visual Networking Index data, bandwidth consumption in key countries could grow massively between now and 2015. Just taking the U.K as an example, the average MB per mobile connection per month could see a boost from 268 MB in 2010 to 4023 MB, an almost 21 fold increase. Some other countries’ estimates are: France (106 to 4160 MB), Japan (349 to 3631 MB) and Australia (228 to 4036 MB). The U.S.A is not expected to be so data-hungry, with usage expected to go up from 162 to only 2293 MB.
Could telcos service this demand without adequate capex leading up to 2015? Capex estimates for global telecom, according to Infonetics, are expected to rise 6% on average per year up to 2014. Given Cisco’s demand projections, this may not be enough, and there could be happy times ahead for mobile networking equipment manufacturers such as Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Allot Communications Ltd. (NASDAQ:ALLT) and Juniper Networks, Inc. (NYSE:JNPR).