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.
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.
In 2007, just before the dawn of the mobile internet revolution, Bytemobile and IBM formed a strategic partnership for the integration and deployment of Bytemobile’s Unison™ Mobile Internet Platform with IBM’s BladeCenter network servers.
Today, approximately 15 of Bytemobile’s largest tier-one operator customers – serving more than 350 million subscribers in North America, Europe and Asia – have deployed the Unison platform on the BladeCenter for the delivery of web and video optimization, traffic management, content adaptation, and analytics services.
The throughput capacity of these operators’ networks is estimated to range up to 2.6 petabytes (PB) of data traffic daily. The mobile internet revolution is not only in progress, but also accelerating in momentum.
Together, Bytemobile and IBM enable operators to cost-effectively manage and monetize consumer demand for mobile data services. The BladeCenter has become an industry-standard server in the networks of the world’s leading wireless telecommunications groups. Customer feedback on the performance of the Unison-BladeCenter platform has been consistently positive.
We look forward to continued joint success with IBM and to expanding our partnership in new and complementary directions.
It is clear that India’s mobile internet revolution has become a primary driver of economic development. Millions of urban and rural poor, from Kolkata rickshaw pullers to Rajasthan camel herders, now carry mobile phones. With the number of devices in the market exploding, the wireless Web is growing rapidly throughout India. A report from AdMob shows that mobile advertising grew by 1.5% last quarter in India - which does not yet have full 3G penetration.
Bytemobile is sponsoring an important thought leadership event for wireless network operators and ISPs next month at India – VAS Asia 2010.
Deepak Mahajan, Bytemobile country manager for India and SAARC, will present the challenges and opportunities of managing the data deluge. He will address the priorities of customer satisfaction and retention, and how to achieve them by enhancing the user experience and increasing network efficiency and intelligence. Mahajan will also focus on the delivery of greater personalization based on a deep understanding of the customer’s individual needs and interests – ultimately leading to profitable revenue growth for India’s wireless service providers.
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