Mobile network operators are facing a great challenge with the escalating growth in mobile data. The need is to have new tools to balance network capacity growth and revenue growth which will help network operators to improve network efficiency and performance, as well as new revenue opportunities.
Mobility solutions provider Mahindra Comviva in association with Ovum (News - Alert) Consulting, one of the premier ICT and telecoms-focused advisory and consulting firms, released a research study which highlights the benefits operators would reap by deploying intelligent media optimization to deliver an assured service experience and better monetize data traffic.
According to Ovum Research's recent forecasts, global mobile broadband connections will cross 4.5 billion at a CAGR of 19 percent from 2012 to 2018 as demand for data connectivity from big- and small-screen devices continues. It also predicts that mobile broadband revenues will grow to approximately $278 billion in 2018 at a CAGR of 11 percent.
Data traffic is distributed unevenly on the network. An approximate 20 percent cell sites are congested at any point of time, says the study. The research also talks about the current optimization techniques which are applied principally as a blunt instrument for Capex containment. The study posits a more intelligent approach to optimization.
The study suggests having MNOs invest in an intelligent media optimization system which selectively applies performance-improvement techniques, based on a combination of variables including: cell traffic load, customer location, network type, application, device and ARPU profile. It suggests MNOs to move from simple media optimization to a more intelligent implementation which requires them to develop business policies and rules and invest in Policy and Charging Rules Function (PCRF) and related capabilities to enable more sophisticated data services.
Intelligent optimization would generate new monetization opportunities for operators by enabling them to offer innovative, real-time QoE-based plans to customers, concludes the study. Currently 20 percent of operators have invested in intelligent optimization tools. The report indicates 60 percent of operators would deploy intelligent media optimization within the next 12 months, driven by the need to deliver a consistent QoE (Quality of Experience) and grow revenues.