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Cisco Says Smartphones to Boost Mobile Web Use 26-Fold by 2015

Feb. 1 (Bloomberg) -- Cisco Systems Inc., the largest provider of computer networking gear, said that Internet traffic over mobile devices will increase 26-fold by 2015, driven by consumers watching video on smartphones and tablet computers.

Connection speeds will rise 10-fold by that time from last year to keep up with the demand, the San Jose, California-based company said in a study released today.

Consumers are increasingly surfing the Web and watching videos from Google Inc.’s Youtube and Netflix Inc. on their mobile devices, straining service providers’ abilities to transmit data quickly. The study aims to give Cisco customers, which include AT&T Inc. and Verizon Communications Inc., a view of consumer trends while promoting the need for Cisco products, which handle the flow of Internet traffic.

“Consumers are expecting more bandwidth because new applications are coming that take up more bandwidth,” said Suraj Shetty, vice president of service provider marketing at Cisco. “The question comes down to ‘how much money will people pay for that increasing expectation?,’ which will drive the whole value chain itself.”

Tablets are becoming an increasingly significant driver of mobile traffic growth, Shetty said. There will be 7.1 billion mobile Internet-connected devices by 2015, almost the same number as the world’s population forecast for that year by the United Nations, Cisco said. Tablets will account for about 3.5 percent of all mobile Web traffic, Cisco said.

By then, two-thirds of mobile data traffic globally will be for video, the study said.

--Editors: Sarah Rabil, Bob Brennan

To contact the reporter on this story: Joseph Galante in San Francisco at jgalante3@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

© Copyright 2015 Bloomberg News. All rights reserved.

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Feb. 1 (Bloomberg) -- Cisco Systems Inc., the largest provider of computer networking gear, said that Internet traffic over mobile devices will increase 26-fold by 2015, driven by consumers watching video on smartphones and tablet computers. Connection speeds will rise...
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