ABI Research: Increase in mobile data traffic is driving development of NFV

The surging demand for mobile data bandwidth is driving telecom operators to implement affordable and scalable technologies to meet this growing trend.

According to a recent report from ABI Research, Mobile Packet Core VNFs and PNFs Market Data, network function virtualization (NFV) is the leading technology solution to address this issue.

“NFV spending for the virtual mobile packet core, which includes the Virtual Evolved Packet Core (vEPC) and virtual IP Multimedia Subsystem (vIMS), will exceed that of physical network functions by 2019, topping $8 billion by 2021,” according to the report.

network function virtualization

As operators reduce infrastructure spending on LTE (Long Term Evolution) networks, spending on the packet data code will increase to meet demand. However, the adoption of NFV virtualization will ultimately lead to lower operational costs as it is more widely adopted.

In mid-2016, ABI Research predicted that mobile networks are heading toward an IT and telecom convergence, with NFV-based mobile packet data core taking in more than half of the $42 billion spending through the end of 2021.

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