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The Mobile Internet: Meeting Demand and Growing Profitably

Monday, August 30th, 2010

 
During the first decade of mobile data – 1998-2008 – wireless operators were focused on driving adoption. Data networks were built on voice networks with ample capacity that was largely unused. As a result, excess capacity meant that data service had little or no associated cost. It took years for used capacity to catch up with built capacity.

Today, operators are building network capacity to address exponential growth in data traffic. Despite this, network congestion is occurring in densely populated urban areas. Managing this congestion requires significant investment in new cell sites, spectrum, backhaul, and new technologies such as Long-Term Evolution (LTE) and femtocells. Consumer demand will continue to accelerate far beyond existing network capacity.

The technologies being deployed to increase network capacity will be unable to keep pace with traffic growth. For example, LTE and offload technologies such as Wi-Fi and femtocells are projected to reduce the cost per bit by approximately 50% by 2014*. However, between now and 2014, traffic is estimated to grow 2,000% to 4,000%. Demand will continue to accelerate beyond the impact of these technologies.

Traffic optimization increases effective network capacity by 30% to 40%. Since optimization is deployed in the existing network and applied to existing service, no customer adoption is required. Therefore, the benefits are immediate. Optimization produces a cumulative multiplier effect that increases the operator’s return on all other network investments.

Combined with optimization, policy enforcement enables operators to differentiate their services by subscriber usage profile in order to monetize demand. Services are differentiated based on their value and subscribers’ willingness to pay for that value.

The combination of traffic optimization and policy enforcement gives operators a strategic advantage. They can meet consumer demand for the mobile Internet and grow profitably at the same time. Bytemobile’s Unison™ Mobile Internet Platform provides optimization and policy control in a single gateway.

There is no one solution or panacea to the mobile internet traffic challenge. In fact, all solutions are required, and Bytemobile’s Unison platform multiplies their positive impact.

-Tod Bottari

*Chetan Sharma: LTE 30-40%, Offload 25-30%

 


ABI Research Report Cites Media Optimization for Greatest Traffic Reduction

Tuesday, August 17th, 2010

Yesterday, ABI Research announced a new and very timely report, titled “Mobile Network Offloading”.

Noteworthy excerpts from ABI’s news release (italics ours):

The serious, well-publicized traffic overloads (including content data and radio signaling) that are starting to choke many mobile networks will only worsen as smartphones and other mobile devices proliferate, and operators must extend capacity. Brute force network expansion, requiring a doubling of capacity, isn’t an option.

Instead, several approaches and technologies will play specific roles in relieving network congestion. These include Wi-Fi, femtocells, mobile CDNs (content delivery networks), media optimization, and more.

“Each of these offload and optimization technologies is aimed at solving a particular problem and they will all coexist.” – Aditya Kaul, Practice Director, ABI Research

One of the most effective tools is media optimization – effectively improved compression – which is already being used widely. Media optimization will grow the fastest and deliver the greatest traffic reduction of all these methods.

For more information on the ABI report, click here.

-Tod Bottari
 

The Mobile Data Tsunami Is Only Lapping the Shore

Wednesday, August 11th, 2010

On a global scale, the mass migration to 3G network technology is yet to come. The chart below – produced by In-Stat, the mobile internet/digital entertainment market intelligence firm – indicates that in 2010, only 17% of the world’s 4.3 billion mobile subscribers are on 3G networks or higher. This means that 83% are unable to play video and access other high-bandwidth applications that the proliferating iPhone/Android community uses every day.

In the second half of 2008, a number of 3G networks began showing signs of stress due to traffic congestion caused by multimedia-hungry subscribers with powerful mobile devices. After years of investment to drive data adoption and fill their 3G pipes, the operators of these networks were now facing frustrated consumers forced to contend for bandwidth and watch stalling videos.

Two years later, the stress has become seriously aggravated and elicited public comments like the following from the AT&T CTO, in response to widespread criticism of network service quality: “We will move heaven and earth [to meet our customers’ growing data needs]” (VentureBeat – July 12, 2010).

The In-Stat data, corroborated by other industry sources such as Gartner and Morgan Stanley Research, makes it clear that the challenge to operators is still in its infancy. Moreover, it will continue to accelerate for the next decade and beyond, as a) more consumers adopt mobile data, b) more consumers upgrade to iPhone-/Android-class smartphones, and c) more networks advance to 3G and beyond.

-Tod Bottari

 

Bytemobile Talks Auto-Update, Smartphone Application and Video Optimization

Thursday, July 22nd, 2010

Carl Ford, co-founder and vice president of  Community Development at 4G Wireless Evolution, interviewed Joel Brand, vice president of Product Management,  at the International CTIA Wireless 2010 conference back in April. In this video clip, Brand discusses the impact that mobile data has had on operators’ networks and highlights Bytemobile’s market-leading optimization solutions.

-Stacey Infantino

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