|[November 29, 2011]
Fiber to the Tower Will Help Carriers Handle Stressed Mobile Networks in 2012, According to M/C Partners' Top 10 Communications Trends To Watch List
BOSTON --(Business Wire)--
Carriers will be putting a huge emphasis on fiber-based services to deal
with mobile networks that are being pushed to their limits, according to
M/C Partners, which today is releasing its annual list of the top 10
communications, technology and media industry trends to watch in 2012. A
dramatic increase in cloud services and video consumption are creating
serious challenges for carriers, who will be scrambling to address the
issue. Many will use fiber to upgrade cell tower backhaul networks to
raise network capacity, according to the private equity firm's list.
M/C Partners compiled the list as part of its ongoing research to
understand industry trends and identify investment opportunities in the
communications, media, and information technology sectors.
According to M/C Partners, the leading trend in the new year will be
carriers' use of fiber to upgrade cell tower backhaul networks to
gigabit connections, a staggering increase from the 1-2 megabits
carriers provisioned to cell towers only a few years ago.
"As mobile users expect their phones to operate more like PCs and
increase their consumption of social and traditional media, mobile
networks are being pushed to their absolute limits," said James Wade,
Managing General Partner, M/C Partners. "Adoption of cloud services and
mobile consumption of video are only in their early stages, but growing
very quickly. Networks are struggling to handle it right now. What will
happen when demand grows ten-fold, as it likely will? Ubiquitous fiber
will be the solution."
Trends on the M/C Partners' list include:
1. Fiber to the tower will become the number one priority for network
operators strggling to deal with mobile users' insatiable thirst for
2. Enterprise adoption of cloud-based services will drive demand for
network-based managed services that will provide critical monitoring and
management of application and service performance across LANs, MANs,
WANs and the public Internet.
3. New technological innovations on the handset and in the network will
improve important services like caching, compression and signaling to
enhance mobile user experience, battery life and network access.
4. Consumerization of the enterprise will expand as end users move from
simply driving iPhone (News - Alert) and iPad adoption in the enterprise to pushing IT
departments to provide more user-friendly and consumer-style
applications for information sharing and management.
5. Micro-transaction business models will expand from social games into
MMOGs, console games and other areas such as video, social networks and
communications services providing consumer-directed price discrimination
across a range of services.
6. HTML 5's simplification of mobile application development will
improve app economics, competition and usage by providing a seamless
cross-platform experience and backward compatibility to the PC
environment without sacrificing performance.
7. Consumers will realize the value of managed technology services from
OEMs, broadband service providers and independent tech support companies
to maximize the utility of their networked devices, as the need for
better performance and up-time becomes increasingly valuable to
8. The content rental model will push beyond music and video into print
publications with tablets providing an improved consumption medium that
content owners will seek to fill with magazines and books.
9. Marketing options for small local businesses will expand beyond daily
deals into more powerful tools that provide better yield management and
integration with traditional local media and direct marketing for
improved customer acquisition and lifetime value of customers.
10. Cable operators will answer over-the-top threats with apps and more
subscription package variety to gain the upper hand in alternative video
viewing options for consumers while still preserving the critical
distribution and billing relationship.
About M/C Partners
M/C Partners is a private equity firm focused exclusively on the
communications, media, and information technology sectors. The firm has
invested over $1.5 billion into nearly 100 companies in those sectors.
Companies M/C has backed include Cavalier Telephone (News - Alert), Corelink,
Fusepoint, GTS Central Europe, ICG Communications, Legendary Pictures,
Lightower, MetroPCS, NuVox, Open Mobile, Public Mobile, Seven Networks
and Zayo Group (News - Alert). The firm has strong institutional backing from the
nation's leading pension funds and endowments as well as a long track
record of success. M/C Partners has offices in Boston, San Francisco and
London. For more information, visit www.mcpartners.com.
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