Showing posts with label ROI. Show all posts
Showing posts with label ROI. Show all posts

Thursday, April 26, 2012

CommProve: The Business Model Behind Cell Awareness

  
CommProve published some numbers, "that have been pulled together based on CommProve real-life deployments", arguing that "..real-time cell-awareness is the key to mobile network operators simultaneously increasing ARPU whilst preventing OTT revenue erosion. Combined with policy management, real-time cell awareness provides mobile operators with the opportunity to customize subscriber quality of experience with – for example – speed boosts and priority network use on a per subscriber or application basis".
See "CommProve Adds Cell, Location and Mobility Intelligence to Policy Management" - here.

"Real-time cell awareness enables real-time customization of the subscriber experience. For the first time effective policy control can be implemented and managed minute-by-minute at the subscriber level .. By including real-time cell awareness operators can: Make CapEx savings and Avoid revenue leakage from subscribers not being able to access resources"


Example Use Case:(Euro)
Monthly revenue from 1 BTS with congestion€55,500
Monthly revenue from 1 BTS without congestion€57,200
Number of BTSs full coverage120,000
Estimated number of congested BTSs8,400
Estimated number of congested hours (in a month)75
Revenue loss saving per month€1,487,500

See "Real-time cell awareness key to sweating mobile network assets" - here.

Wednesday, March 9, 2011

[Lightreading] Yoigo [Spain] Increased Revenues with DPI

   
Yoigo [2.3M subscribers] mobile operator is using Procera for traditional DPI needs (QoS, traffic shaping etc - see "Mobile Broadband Operator Yoigo Chooses Procera Networks" - here).  

Now, according to the Lightreading story by Michelle Donegan  the investment seems to be generating revenues:

".. When customers approach their monthly limit for mobile data, they are first alerted and then directed to a Web page, where they can opt to buy a data top-up or do nothing, which results in the customer's service speed being reduced to 128 Kbit/s once (if) the limit is reached. .. The operator has experienced a 72 percent acceptance rate of the mobile data up-sell option since the launch in December, according to Yoigo CEO Johan Andsjo (picture) .. with the additional customer revenues, the cost of implementing this project was paid back within three weeks".

See "Spanish Mobile Challenger Wields DPI"  - here

See also "TeliaSonera's New Business Model: Value-based Pricing" (Majority owner of Yoigo) - here.  

Friday, October 1, 2010

Vantrix Launches Video Optimization ROI Tool

  
Vantrix, a provider of video optimization and delivery solutions for streaming, browsing and messaging launched an interactive ROI calculator "to help mobile carriers plan for the explosive growth of video in their data network".

See "Vantrix Launches Bandwidth Savings Calculator for Video Optimization" - here.

Patrick Lopez, Chief Marketing Officer of Vantrix said: “Vantrix Bandwidth Savings Calculator is a tool that illustrates how Vantrix Bandwidth Optimizer reduces the costs of delivery of video as the demand grows over time.

The tool's preview version is available here. Below are snapshots of the input panel and results, based on the site's default values.

Related posts:
  • Does Video Optimization Solve Mobile Data Congestion? - here
  • Rysavy Research on Mobile Internet : “There simply is not enough network capacity to address the emerging demand” - here
  • Vantrix competition - Acision (here); Bytemobile (here); Flash Networks (here)


Tuesday, February 2, 2010

The DPI Story – Part II – DPI for Traffic/Bandwidth Management

In my previous post I listed some of the solutions associated with DPI. Nevertheless, the most common use of DPI today is for traffic (or bandwidth) management, in public networks – usually serving residential subscribers.

The roots for these solutions take us back to the ‘90s, when enterprise class products for traffic management appeared. Used to be called QoS (Quality of Service), and later Wan Optimization solutions, these products allowed IT mangers to control how their Wan connections will behave.

Typically, Wan links (either private, VPN or Internet) were slow – just few Mbps – and overloaded during business hours. IT mangers wanted a simple way to tell the network which applications are critical, prioritize or guarantee their performance while slowing down other applications. The payback (ROI) was very quick – as bandwidth was expensive and the demand for bandwidth was always on the rise.

Around the turn of the century, broadband services became widely available to consumers at home and replaced the slow dialup connections. At the same time, new services started to emerge – and one of the most appealing service was music sharing/downloading (Napster was the first). Regardless of the question of the legality of copyrighted content sharing – these music downloads (and uploads) generated unprecedented load on ISPs uplinks and last-mile connections. It was quickly became clear that without control, any upgrade to the network will be 100% loaded, as more subscribers will just download and share more content.

Since enterprise Wan Optimization solutions were available, they found their way to the ISP market. They were required to do what they had done for enterprise networks – prioritize critical traffic (for example Web browsing) to provide the subscribers a good QoE (Quality of Experience) and slow-down other types of traffic (music download, later known as P2P applications), to avoid network upgrades (links and infrastructure). And so they did, and the ROI was great.

The early adaptors were usually smaller ISPs, serving a relatively small number of subscribers or operators in regions were bandwidth was extremely expensive or not available. P2P applications were still simple to detect, and the main need was for a simple-to-use appliance rather than the sophisticated DPI solution we see today. Enterprise class products were “good enough” to help these early adaptors.

During 10 years of deployment of bandwidth management solutions in ISP netwroks, the market has gone through a number of changes, resulting in with today’s solutions:
  • P2P file-sharing applications became very popular, and are used to download and upload music, video and other large files. During the years, the P2P applications (Emule, BitTorrent and others – collectively described as “bandwidth hungry” applications) consumed 60-70% of the internet capacity.
  • Detecting the bandwidth hungry applications became a major engineering challenge, as their creators found many ways to avoid control. A number of techniques had to be developed to identify these applications – creating the core of DPI.
  • The network capacity has grown in 3 orders of magnitude. DPI solutions today support throughput of 10s of Gbps vs. few 10s of Mbps
  • New applications, such as real-time voice and video-streaming appeared creating high expectations for QoE by the subscribers
  • Traffic management solutions are expected to be integrated with other network elements and services, such as subscriber management systems, policy management servers and others services elements. All together they should create a cost-effective and well-managed solution solving the service provider business needs.
As a result of the above trends and changes, Wan Optimization and DPI products and solutions are no longer the same. While the basic core technology may look the same, the differences are significant enough to expect separate product lines (and in most cases, vendors) for each market.

More on DPI for bandwidth management on the next post.