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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Data both blessing and curse for mobile telecoms Mon Sep 28, 2009 8:09pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Leila Abboud PARIS (Reuters) - "Dongle" may sound a bit goofy, but the innocent-seeming technology is emerging as one of the biggest challenges to the mobile telecoms industry in coming years. Alongside smartphones, these 3G cards or sticks that allow people to get online via the mobile network from anywhere have come to symbolize how a goldmine of surging data traffic risks becoming a nightmare for mobile operators. Dongles are often sold with a flat-rate data plan, or with a subscription allowing a certain number of megabits of data to be used. They are fuelling a boom in mobile data traffic that is so heavy it is putting unprecedented stress on networks. Yet even as traffic explodes, revenues from these new services aren't keeping up because of the intense pressure on prices -- so investment in improvements risks squeezing margins. "Mobile broadband is manna from heaven for consumers, but it is hell for operators," said John Strand, who has consulted for global mobile operators for more than 12 years. As more people access the internet over mobile phone networks using laptops with 3G cards, Apple's iPhone or Research in Motion's BlackBerry, data traffic is doubling every six months globally and growing even more rapidly in some countries. On the day pop star Michael Jackson died, data traffic on Australian telecom operator Telstra's network jumped 170 percent. "Everyone wanted to know what was going on at the same time," said Mike Wright, Telstra's director of wireless engineering. "It put an enormous stress on the system." A laptop equipped with a dongle consumes 450 times more bandwidth than a classic mobile phone, said Pierre-Alain Allemand, who oversees the mobile network at France's second largest operator SFR. Yet competition is so intense, few operators increase rates. The situation is putting mobile operators from India to Sweden in a bind: they have to invest heavily in their networks to prevent congestion and outages, yet doing so risks hurting their long-term profitability. Many have taken to rationing bandwidth by slowing down the traffic of the heaviest users. UNEXPECTED RUSH "You can easily lose money on mobile broadband if you do it in the wrong way," said Bjorn Amundsen, director of mobile network coverage for Norway's Telenor. "We have had to be careful not to invest too much -- because the only thing that would happen if we did would be to increase in data traffic without an increase in our profits," he said. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Weezer, Wolfmother, Killers club shows on Yahoo Also On Reuters U.S. dollar seen caught in G20 meeting's crosshairs Banged up, Allen Stanford back in jail after brawl Video Video: Next up, mind-controlled gadgets? More Technology News Dell launches high-end, thin business PC Warner, YouTube near deal for music videos Apple passes 2 billion app downloads Weezer, Wolfmother, Killers club shows on Yahoo Mobile usage a rare highlight in music biz More Technology News... Editor's Choice Slideshow A selection of our best photos from the past 24 hours. Slideshow Most Popular on Reuters Articles Video Phone off? Hugh Jackman stops Broadway show for ringing Philippines braces for new storm as toll hits 240 | Video UPDATE 1-Venture-owned e-commerce co Newegg files for IPO For China, Iran uranium plant no game changer Guitar maker draws buyers, cult-like following Banged up, Allen Stanford back in jail after brawl Poland okays forcible castration for pedophiles Man sues BofA for "1,784 billion, trillion dollars" | Video Anger in France and Poland after Polanski arrest EXCLUSIVE: Ex-AIG unit head Cassano back in U.S. Most Popular Articles RSS Feed Video Standoff in Honduras Next up, mind-controlled gadgets? 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Full Article Reuters.com: Help and Contact Us | Advertise With Us | Mobile | Newsletters | RSS | Labs | Journalism Handbook | Archive | Site Index | Video Index Thomson Reuters Corporate: Copyright | Disclaimer | Privacy | Professional Products | Professional Products Support | About Thomson Reuters | Careers International Editions: Africa | Arabic | Argentina | Brazil | Canada | China | France | Germany | India | Italy | Japan | Latin America | Mexico | Russia | Spain | United Kingdom | United States Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. 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