Samstag, 17. April 2010

RIMM Co-CEO: Mobile Video to Strain Networks

Research in Motion Ltd. (RIMM) said Friday that mobile video will pose a challenge to networks as video requires significant bandwidth, according to a report by Reuters.

Mike Lazaridis, Co-CEO of the company, which makes the BlackBerry mobile device, said bandwidth is already in short supply thanks to smartphones that require more bandwidth than regular mobile phones.

"If you think that today's 3G as a browsing experience is a challenge to these data networks, imagine what a video streaming or download experience is going to be as these screens start to look like HD televisions in terms of resolutions." Lazaridis said at a conference on Friday, according to Reuters.

The increased bandwidth usage as a result of smartphones, which display video and offer popular applications, has reportedly strained networks and led to service interruptions for calls.

Shares of RIMM fell $1.55, or 2.11% in Friday’s session, closing at $72.03. The stock was down another 7 cents in after-hours trading.

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