[qi:gigaom_icon_4G] People will consume an exabyte — that’s 1 million terabytes — of information on mobile networks this year, predicts independent wireless analyst Chetan Sharma in his latest report, entitled “Managing Growth and Profit in the Yottabyte Era.” (A yottabyte is 1,000 billion terabytes.) Sharma notes that Verizon reported more than 3,500 terabytes of traffic per month in 2008, a figure it says could explode to 4 million TB by 2014.
T-Mobile USA, meanwhile, has indicated that average mobile data consumption among its customers has shot up to 3.7 megabytes per user, per month, from just a few kilobytes a couple years back. That incredible growth in traffic will have to be managed by carriers if they want to maintain their profits.
But while Sharma notes that the growth in mobile broadband speeds will lead to more data consumption, what he doesn’t get into — but the chart below hints at — is that faster mobile broadband speeds will be the platform supporting the next generation of technology companies.
Ubiquitous, faster wired networks are what made Google a true advertising and search powerhouse. After all, when it took forever for a page to load on a 56K modem, you didn’t go to a search page to look for movie listings or settle bar bets online. Plus, fewer broadband subscribers meant a smaller audience to monetize through search advertising.
Social networking has been another beneficiary of faster speeds and greater adoption. With 1 Mbps connections (or better yet, 5 Mbps) checking in on Facebook or even Twitter is a quick and easy process. Faster speeds have resulted in more video online as well, leading to the creation of companies such as YouTube, Hulu and even Skype. We’re going to see a similar trend emerge in the mobile world, with companies that use the faster network plus mobility as the platform on which to build their businesses. And since mobile broadband has the potential to reach more people, there’s potential for innovation to come from all over the world.