Thursday, 12 November 2009

Vodafone CEO relaxed on capacity contraints

The mobile industry has been abuzz with talk of network expansion and upgrade as operators plan for the projected explosion in traffic that will come as smartphone take-up and data usage increase.

But Vodafone CEO Vittorio Colao is adamant that there is nothing to fear.

"Our total traffic... is up 300% versus two years ago," he told attendees at the mobile operator's third-quarter results presentation on Tuesday.

However, capital spending on the network is determined by peak saturation, that is, cell sites that operate at over 90% of their capacity during peak times, Colao explained.

He added that 5% of Vodafone's sites operate at above 90%, which is slighter lower than it was a few months ago, largely thanks to spectral efficiency and "better versions" of HSPA.

Voda plans to upgrade 20,000-25,000 more sites to become more efficient in the next six months, as well as investing in backhaul.

"The vision is supportable for the foreseeable future," Colao said.

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