Friday, November 14, 2014

[Report] Video and Data Optimization Can Gain $28B for MNO in 5 Years

A new report by ABI Research, commissioned by Opera Software’s Skyfire unit, finds that "Mobile operators globally can benefit from a net gain of at least $28.7 billion over five years by deploying mobile video and data optimization technology in their networks.

Key findings, based on a conservative assumption that if just one in three operators deploys video and data optimization technology, the savings and revenue boost will therefore be as follows:
  • Churn-reduction savings: $12,947 million
  • Tariff-upgrade revenue boost: $6,481 million
  • Total-cost-of-ownership reduction savings: $9,347.6 million
  • Total over 5 years: $28,776 million
..The model uses actual country market data, from economic and demographic data to mobile operator subscription and radio access network (RAN) deployment data.

Sample use cases:
  • Philippines, churn reduction: Using the Philippines market, where there is some 4G subscriber adoption (2.5 million) but a much larger proportion on 3G (22 million), the average data throughput in the base station cell edge zones is estimated to be 365 Kbps without optimization. Boosting the quality of experience by enabling 30% to 60% greater data throughput can boost overall subscribers by around 2% per year and increase the subscriber retention rate equating to additional retained service revenues of US$204 million over a 5-year period.
  • Brazil, tariff upgrade: Using a conservative scenario of 2%, ABI Research calculates that an operator in the Brazilian market can generate an additional US$474 million in service revenue over a 5-year period from its 3G and 4G subscribers, attributed to faster user data rates and improved QoE".
See "Video and data optimization can deliver $28 billion net gain to mobile operators over five years, independent analysis for Opera reveals" - here.

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