According to Cisco Global Mobile Data Traffic Forecast Update, 2015 – 2020 White Paper, it is expected that global mobile data traffic will grow by eight -fold over the period 2015 – 2020. Mobile data traffic will grow as a compound annual growth rate of 53% to reach an average of 30.6 Exabyte per month.
The implication of this growth is that many network operators will have to invest significant amount of CAPEX in order to build capacity to carry this traffic. Same report pointed out that 75% of mobile data traffic will be video which further compound the pressures on current networks.
Also, data traffic is expected to record massive growth, the corresponding revenue is not expected to experience the same growth trajectory, as average price per GB is expected to decline. This makes the case for massive investment by each network provider to rollout independent network very weak; thus, the existing players will be unable to rollout services faster and deepen 4G penetration beyond main urban centers.
Silver Rock believes that the rollout of 4G services can be made faster and more cost effective if countries adopt a shared Wholesale Network approach that will focus on an aggressive nationwide deployment of broadband network access not only in the high traffic urban areas but also in the deep rural underserved areas.
The Entity will provide wholesale capacity to existing incumbent GSM & 3G operators, Broadband Wireless Access operators, Existing ISPs as well as new entrants such as MNOs and other service providers that will require broadband infrastructure. A successful roll-out of broadband services over 4G will help promote economic development opportunities throughout the country of interest especially in the underserved areas.