Mobile network operators face a seven-fold increase in data delivery costs over the next five years, according to a new study. 

A report from industry analysis firm Juniper Research says that data delivery costs will rise to $370bn annually by 2016, from a 2010 level of $53bn. 

The report, called Mobile Operator Business Models, argues that future operating costs could be reduced by the deployment of data-offload solutions, such as WiFi and femtocells, as well as network optimisation techniques to facilitate flow control. 

The study also says that there is potential for savings at basestation level, identifying both active and passive network sharing as a means of reducing site lease costs and reducing energy loss. It urges operators in developing markets to invest in renewable alternatives to diesel power to further save costs. 

Report author Dr Windsor Holden says: “The case for reducing network ineffiency is both environmental and economic. By implementing solutions designed to reduce energy wastage, not only will MNOs markedly cut their operating costs but they will following sustainable business practices which reduce greenhouse gas emissions.”