Innovations in wireless technology have made mobile Internet capabilities common and popular features on numerous portable consumer devices, including laptops, smartphones, tablets, netbooks, and e-book readers. Data usage has increased dramatically as a result of more devices and consumer use of bandwidth-intensive services and applications. Allot Communications, a provider of network optimization solutions to global mobile operators, reported global mobile data bandwidth usage soared another 77% in the first half of 2011.

Part of the increase in data usage is attributed to the types of applications mobile Internet users employ. Mobile applications such as uploading pictures to social networking sites, streaming radio applications like Pandora, and streaming video content like TV shows and movies all have heavy data requirements. U.S. broadband households are starting to integrate these activities into the monthly routines. The percentages who view regularly video on their mobile phones and tablets increased both in number and frequency.

The phenomenal growth in data traffic is in sharp contrast to mobile data revenues for mobile operators. The combined data revenues for mobile data from the top-three mobile operators in the U.S. registered 9% growth from 4Q 2010 to 2Q 2011.

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