Vodafone CEO Sounds Alarm Over Smartphone-Induced Wireless Data Crisis

Vittorio Colao, the chief executive of Vodafone, has expressed concerns that the rapidly surging influx of smartphones could soon lead to the outstripping of network operators’ capacity to ensure smooth flow of data across their networks.

While the revolution in the guise of smartphones has presented lucrative environments for the chipmakers, service providers, and handset manufacturers, network operators are entrusted with the responsibility to address the soaring demand of data for these data-hungry phones.

Holding up the remarks from AT&T Mobility chief Ralph de la Vega, Colao said that there is an urgent need to strike new models to allow network carriers to pour in and push up the capability of network infrastructure, while still making money.

In other words, Colao was apparently pressing the need to charge the consumers more for using large amounts of data.

Additionally, he also raised concerns over Google’s dominance in the search and mobile advertising business, and called for competition authorities to have a look at it. Research In Motion’s (RIM) co-CEO Mike Lazaridis has further echoed the concerns on looming capacity crisis.

Along the same line, he said: “If we don't start conserving bandwidth, in the next few years we are going to run into a capacity crunch. You are already experiencing the capacity crunch in the United States.”

Our Comments

Interesting that both a smartphone manufacturer and a mobile phone network have both expressed concerns over the explosion in mobile data consumption thanks to the rise of smartphones and other mobile devices. Somehow, someone will have to pay for the network upgrade costs and it might be us.

Related Links

Vodaphone, RIM CEOs sound alarm over wireless data crisis

(Ars Technica)

Smartphones a growing problem for networks

(Reuters)

Networks Issues as Result of Smartphone Influx

(TMCNet)