February 17th, 2009
04:38 PM GMT
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BARCELONA, Spain - Cell phone manufacturers and network operators may be able to ride out the recession as consumers view their handsets as an essential rather than a luxury, but there's a potential dark cloud on the horizon for the mobile technology industry - the capacity crunch.

As our appetite for mobile internet and data services continues to grow, thanks to devices like the iPhone, mobile service providers are soon going to fiind that their networks won't cope with demand.

Too much traffic will clog the wireless highway and the networks know that they have to invest heavily in their infrastructures to head off the problem.

In the current economic downturn they'll find it hard to raise the required funds by borrowing and are reluctant to pass on the cost to consumers who are unwilling to pay more.

The most likely solutions, mobile advertising and peak time network congestion charging are also unpallatable. So there's no easy answer to this thorny issue, which is one of the main talking points here at this year's Mobile World Congress in Barcelona. Watch more about the capacity crunch

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Filed under: Technology


soundoff (14 Responses)
  1. Andrew

    The current crisis knows no bounds in it's ongoing effects. Everything we do is interwined in commerce. It's what we take for granted that could be a problem. For example food. Before the economy goes pear-shaped, we should heed warnings to stock-pile at least 3 months supply. This applies to critical medicines that people need. (jwsgoldsilver.com)

    February 19, 2009 at 5:33 am |
  2. Greg Atkinson

    Actually the solution is quite simple....fibre. Not everything needs to go "wireless" and long before there are hardware capacity issues we will simply run out of usable RF bandwidth. (and no amount of money will fix that)

    Greg Atkinson
    http://www.shareswatch.com.au/blog/

    February 19, 2009 at 6:24 am |
  3. Sam in Spain

    The Spanish Government has introduced a new Law which Vodophone have advised us. We must before November 9th go to a Vodophone office and provide them with our name, address, NIE number for registration of our phone. Talk about BIG BROTHER!!!!!!

    As I think that Mobiles are pretty useless things, I may enter the contest which Nokia run where they give the winner a prize to the person who can throw their Mobile phone the furthest. GOOD IDEA

    February 20, 2009 at 7:20 pm |
  4. Muthyavan

    Cell phones have become as an essential part in the history of human life in all parts of the world replacing all other human devices, with registered users of cell phones reaching over two billions in the world with one in every three human carrying one. With an ever growing subscribers, it has enough money and the mobile telephone technology industry is not at all affected by the world economic dawn turn, it has enough wealth and growing market to work out of the peak time network congestion and all other problems it is faced with. Research and new inventions are daily adding new new features to the cell phone industry making it as a humans master gadget capable of doing every thing a person needs to do from a quite place away from all other modern technical gadgets.

    February 21, 2009 at 5:47 pm |
  5. paul

    I don't think if all these mobile and phone producing company are happily making profit with this current economic and financial crises. the demand for these cell phone will reduce from their customers because, there is no money in the circulation in the world. Stocks are falling radically and the people faces are filled with sadness.
    Changes has to be done fastely.

    February 22, 2009 at 12:22 am |
  6. Gail Ellis Duncan

    Uhhh, do ya think the world in general is having a capacity crunch? Like the capacity of waste and dumping? Capacity crunch on the entire environment? Hello

    February 24, 2009 at 9:20 am |
  7. kcin

    I think it would be pointless to have that cause when your done with lift off you can have your electronics on anyway.

    February 26, 2009 at 12:49 am |
  8. lezurk

    It would be nice cause if you need to call someone when your in the middle of lift off it could turn out really bad

    February 26, 2009 at 12:51 am |
  9. Bill Bartmann

    Great site...keep up the good work.

    September 1, 2009 at 7:51 pm |
  10. cell phone jammers

    Normally I would not post a comment, but you've put together a nice post here and I wanted to say thank you.

    December 19, 2009 at 8:00 pm |
  11. Cameron Rogers

    mobile advertising would be the next wave of the future-*"

    September 12, 2010 at 4:02 pm |
  12. Vegetable Storage :

    mobile advertising will be the next popular way of promoting products and services"~*

    October 24, 2010 at 8:39 am |
  13. Bottled Water

    there is always a growth on mobile advertising, it would be the trend of the future -`-

    December 20, 2010 at 5:24 pm |
  14. sending a press release

    I have to say that for the past few of hours i have been hooked by the amazing articles on this blog. Keep up the great work.

    March 26, 2012 at 1:20 am |

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