The main reason for ISPs and carriers to use bandwidth management was, and still is, to maximize the return on their infrastructure investments. While it is very clear that limiting the use of bandwidth hungry applications delays the need to invest in expanding the network infrastructure, there are additional business reasons to use bandwidth management, leading to the sophisticated solutions offered and used today.
- Accommodate more subscribers on a given infrastructure – especially in some environments where bandwidth resources are physically limited (like wireless/cellular networks)
- Increase subscribers' loyalty, by better meeting their QoE expectations. Bandwidth management may help with that by prioritizing applications that are sensitive to network delays – VoIP, video streaming (avoiding the “buffering” phenomena) or even web browsing
- Reduce help-desk costs, resulting from the increased subscribers' satisfaction
- Prioritize certain services and applications that generate additional revenues to the provider – such as a VoIP or Video conferencing service paid by the minute or content distribution agreements. In other words, the business idea here is to increase the ARPU (Average Revenue per User)
- De-prioritize other applications, competing with the provider's own services. In many cases, this relates to OTT (Over The Top) applications.
To generalize the above, we can see that bandwidth management control can operate in a number of planes (or dimensions):
Plane | Use | Business Case |
Application | Reduce the use of bandwidth hungry applications (reduce congestion) | Delay infrastructure investment |
Prioritize sensitive application (control QoE) | Increase subscriber loyalty | |
Service (i.e. the provider of the application) | Prioritize “preferred” services, such as the provider’s VoIP service | Increase ARPU |
De-prioritize competitive services | Increase ARPU | |
Subscriber | Offer personal service plans (tiered services), such as “platinum” or “gamer” service | Increase ARPU |
Bandwidth management solution will also allow combining the above planes.
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