Inside telecommunications Issue 8

Technology

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With more than one hundred commercial LTE networks worldwide, industry players are turning their attention to the potential for LTE-Advanced technology.

Mobile traffic management and optimization technologies set for growth

Spend on technologies that help mobile operators optimize their data traffic management is expected to rise sharply in 2013.

According to forecasts from ABI Research, the mobile market for policy service, deep packet inspection (DPI) and web/video optimization is expected to total US$2bn in 2013, up 42% year-on-year1.

Growth credentials also appear strong in the medium-term. By 2017, the overall mobile monitoring and optimization market is set to be worth US$8bn, with policy, DPI and content optimization accounting for almost three-quarters of the total.

As operators focus on improving Quality of Experience (QoE), vendors are broadening their service propositions.

Looking ahead, DPI technologies will underpin operators’ efforts to monetize traffic. Vendors are supporting this growing focus by integrating real-time charging and subscriber analytics to their existing solutions.

There is growing interest in integrating different monitoring solutions, such as DPI and video optimization.

The rise of shared data plans – where data is shared between subscribers or devices – is likely to spur additional operator investment in flexible policy management solutions.

Global mobile policy, DPI and web/video optimization market forecast2

Global mobile policy, DPI and web/video optimization market forecast

Source: “Mobile Policy, DPI, and Web/Video Optimization Market To Reach $2 Billion in 2013,” ABI Research,
2 November 2013.

Despite the positive prognosis for investment in network monitoring and optimization solutions, challenges remain.

Privacy concerns are rising in tandem with the new techniques that help determine the types of content consumed by users. Negative connotations concerning net neutrality also dog the debate on improving QoE.

Looking ahead, clear definitions, agreed use cases and ongoing customer assurances will prove integral to the fast-evolving market for network optimization.

Operators and vendors move forward on LTE Advanced

With more than one hundred commercial LTE networks worldwide, industry players are turning their attention to the potential for LTE-Advanced technology.

Also known as LTE Release 10, it reportedly offers three times the spectral efficiency of LTE, while offering speeds of up to 1Gbps on the downlink and 500Mbps in terms of uploads.

Operators are outlining plans to offer LTE Advanced services in 2013, with Russia’s Yota the first to launch a network in October 2012.

Despite the pockets of progress in terms of testing future iterations of LTE, standardization for next-generation mobile technologies as a whole remains a work in progress.

The move towards more sophisticated mobile network technologies involves far more than gains in data throughput.

Meanwhile, other standardization bodies, such as 3rd Generation Partnership Project (3GPP) and Institute of Electrical and Electronics Engineers (IEEE) will also need to help cement new mobile standards so that vendors and operators can build and deploy new equipment.


1ABI Research “Mobile Policy, DPI, and Web/Video Optimization Market To Reach $2 Billion in 2013” 2nd November 2013
2ibid