Posts Tagged ‘mobile internet’

Device Awareness: The Key to Service Planning

Thursday, July 22nd, 2010 by Cam Cullen

Recently there has been a lot of talk among DPI vendors about location awareness. Location awareness is critical to understanding where the bottlenecks on your network occur, and giving you the ability to actively manage traffic in those locations. Although this is a key capability of what Procera offers (and in much more depth than many other vendors), I want to focus on another key “awareness” component that is not often talked about that can vastly improve the capability of an operator to plan their capacity upgrades and pricing plans.

What is device awareness? Simply put, device awareness is the ability of the DPI system to understand what device is sending/requesting traffic on the network. With so many “internet-connected” devices on networks today, the variety of places and formats to access data has exploded. You can watch Netflix on many TVs, DVD or Blu-Ray players, dedicated boxes (like Roku), consoles (PS3, Wii, and Xbox), smartphones, tablets, or your PC, and Hulu on many of the same.

Why is device awareness important? Understanding what devices your users have connected to the network helps an operator to understand the potential impact of several different scenarios:

1)     If I have x users with a certain device on my networks with a certain location bias and usage profile, what happens if that number becomes 2x?

2)     If a new application comes out (say for example Netflix for PS3, or Hulu Plus for PS3), and I have x users with that device, what is my exposure if 20% of my users start using the new application?

3)     If I want to launch a service with a new device (new iPhone or Android device) and other operators have announced that the normal usage profile for that device is 200GB/month, what might happen to my network with an aggressive take rate?

For Product and Marketing planners, being able to answer these types of questions ensures that the network can handle any changes in user behavior – either application or device related. For users, it ensures that the network can adapt to their usage and not experience dissatisfaction with network performance as usage patterns morph over time. All operators are very aware of the user dissatisfaction issues floating around the world as Smartphone and mobile broadband laptop connections become mission critical for corporations. Proactive management and planning are possible with the right kind of awareness and reporting engines.

How is device awareness implemented?  There are many ways that this can be gathered on the network. In mobile networks, it is common for operators to include this information in the Business or Operational Support Systems for each user account, and often make it part of the user authentication and accounting exchange where it can be snooped by a DPI system. It can also be determined by the applications used by the subscriber (i.e. if the traffic matches Rock Band for the PS3, the user is most likely using a PS3). Another method is by information gleaned from the user agent or application specific information that can be gathered by the DPI engine during Layer 7 analysis. Although each of these methods is not a fail-safe method to gather device information, the combination of these methods can provide a very close approximation for network operators. For example, a query on how many unique subscribers matched a PS3 signature during the month could provide the basis for determining how many subscribers would have access to the new Hulu Plus video streaming application when it was released for the PS3, and another query to see how many of those subscribers had used Hulu (or any streaming video service) before would provide additional planning input to determine the impact of that new service on their network.

Device awareness is a key aspect of the “Awareness” capability of the Procera solution, and without awareness, analysis and control are not possible. I will have more to say on location awareness in a future blog, as this is another key awareness factor, not only for mobile networks, but also for fixed and wi-fi deployments as well. As devices proliferate, being able to ensure that the content is served appropriately for those devices and ensure the correct amount of bandwidth is available will be critical.

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Mobile Data Overtakes Voice In Revenue

Thursday, June 10th, 2010 by Jon Linden

Only 18 months ago I was sitting with a mobile operator who told me that their main objective was to ensure that data services didn’t cannibalize their voice revenue. The reason was simple – data service generated about 5% of the revenue.

Fast forward to June 2010. The sun is shining and the World Cup in soccer is just about to kick off, but more importantly Softbank Mobile Japan announces that data services for the first time overtook voice services in revenue in Q1! Japan has always paved the way for mobile data services, and NTT DoCoMo are expected to follow suit during the second half of this year.

But Japan is no different (at least not in this specific sense) than any other country in the western world. I see mobile operators here in Sweden spend the majority of their TV advertising on promoting mobile data services. It has become a differentiator and a big enough piece of the pie. We will shadow Japan and probably break the 50% marker in 2011 in many cases. Mobile data is a $50bn+ business this year in the US according to Chetan Sharma Consulting; a significant business where minor changes and adjustments in packaging, pricing, production cost and ARPU has a substantial impact on bottom-line.

Chetan Sharma also said that the US mobile subscription penetration was approximately 94% at the end of Q1 2010, and past 100% if we take out the demographics of 5 yrs and younger. Growth won’t come from winning new voice users, but from making the ones you have more profitable and to steal customers from the competition – e.g. with compelling data offerings. And you’ll have to control production cost since they’ll constantly expect more at the same price.

The conclusion is that mobile operators must take a seriously look at the packaging of their data services. “All you can eat” is not the best for (almost all) your customers, and it’s certainly not the best for your business case – especially as access speeds go up. That’s why we see more and more mobile operators moving away from flat rate data packages, as Cam referred to in his recent blog post. Tiered services are happening – thank God!

Eventually we will have options for people with different needs. But let’s stop for a second and consider what you’re trying to accomplish. Tiered services can either be a customer incentive or a cost insurance – or both. Don’t get too introvert in controlling potential exceptions with caps and limitations. This will add complexity, customer concern (even if they’re not even close to any limit/cap), and you’re up against some serious competition out there. But still, as said, small changes can have a big impact. Offloading peak hours to better utilize your network, attract new customers, or offer added value services that can boost ARPU can boost your profitability and ability to invest even more in your services and customer support.

I hate to say it, but we know from experience that devices (e.g. iPhone launches or subsidiesed phones) actually sell more subscriptions than any packages we produce. But service packages will support the devices and add to the differentiation. Make sure you know who your customer is, where he is, what applications he’s running, and what device he’s using – in order to accommodate his then current and general needs. Make sure your information is reliable since accurate intelligence enables proper business decisions.

So what are my recommendations? I’ve said it before (Do’s and Don’ts in Bandwidth Control) – keep it simple! Your biggest challenge will be to communicate it, implement it, and justify it (“is YouTube video or web?”). Know your customer. Define your target group and offer applicable services. Serving young savvy nerds with the same offering as unsophisticated 65+ Internet users won’t work. Don’t become too technology-driven and introvert in your business model. And avoid too many options since they will cause confusion.

So, do I need to say that we know this space and offer the solution you’re looking for? Well, we are, and we’re darn good at it! I look forward to you reaching out to me to discuss this further, but in the meantime I’ll kick back and enjoy some seriously good World Cup soccer. Sweden didn’t qualify this year, which gives Swedish mobile operators another four years to work out a business model that supports the network being flooded with real-time streaming video. Good luck (no irony intended).

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iPad – Telecom Armageddon or Savior?

Monday, April 19th, 2010 by Cam Cullen

I was having a discussion with a service provider (wireline broadband, interestingly enough) and he asked me if I thought that the iPad would have a significant impact on his network. My initial reaction was no, but as we talked through the issue, my opinion shifted.

When asked that question, my first thought was that the iPad would not affect a wireline broadband network that much, right? It is only a small number of devices (relatively speaking), and it is not like it can be used for file sharing. Sure, it can stream video, but how often are you going to sit and watch video on an iPad?

Then I started thinking about the real impact of the iPhone. Although the iPhone is a great device, and has certainly caused ATT issues in the US, and other operators abroad, as users take advantage of the media capabilities of the phone, it had a much broader effect on the industry as a whole (that incidently led directly to the iPad). Before the iPhone, phone-based data usage was mainly email (ala RIM and Blackberry devices) and light web browsing. The long lasting effect of the Blackberry was that people became used to being connected, and with the scarcity of Wi-Fi hotspots, people began to want always on mobile broadband, and business users began to purchase the data plans from mobile operators. Once the iPhone was released, it kick started the smartphone market like never before, and brought more users to the mobile broadband buffet. Every vendor wanted an “iPhone-killer”, and Android, Palm, Microsoft, and other operating systems began to proliferate on handsets at reasonable prices. These devices gave users a taste of what high quality media and browsing experiences could be had with mobile platforms, and even a taste of some really useful applications (phone-based GPS and mapping applications) that took advantage of the mobile data connections – including some streaming media and VOIP applications. The advent of flat rate mobile data plans (at least in name) for reasonable prices has spurred the demand for mobile broadband, and with so many devices able to connect to the mobile broadband network, has driven operators to invest heavily in the infrastructure to meet the increasing demand.

So the impact (I think) of the iPad will be similar. The “iPad-killer” race is on, with HP, Dell, Google, and many others racing to release devices based on Android or Windows that will compete with the iPad. There have already been application releases for Kindle and Netflix on the iPad, and more streaming applications will follow on these alternative platforms. I am not sure I want to watch all my TV on an iPad-like device, but it is easier than watching on a laptop or an iPhone. Add a camera and a USB port (hint, hint) to a device like this with a 10 hour battery life, and the potential for a truly portable media device is not a future – it is the present.

This is the future I see coming out of the iPad – one that has the potential to dramatically increase the usage (especially streaming media) on both wireline and wireless broadband networks. People will use their wireless at home and mobile broadband while traveling. If you are a heavy media consumer, traveling with an iPad and a laptop makes sense – I can read or watch movies on the plane with the iPad, do email on the laptop, and even multitask in hotel rooms – watching media on the iPad while working on the laptop.

So if you are a provider that is ready for this – and can deliver a high Quality of Experience to your users (and monitor it to make sure that you are delivering a high QoE) – you have a bright future ahead of you.

Me – I can finally have a data pad like I always saw on Star Trek.

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Mobile World Congress…It is all about the Apps!

Thursday, February 18th, 2010 by Cam Cullen

I have spent the week in Barcelona attending the Mobile World Congress event. Anyone that thinks that there is no vibrancy in the networking world should have been here to see the show. The halls were packed, the booths were busy, and the meeting rooms fully booked. There is a lot of excitement about where the mobile industry is going, and the opportunity that exists for mobile providers going forward.

One thing that jumped out at me during the show was the growing focus on the applications that are driving mobile usage. Yes, there was plenty of LTE hype, and lots of platform and operating system buzz (you should have seen the line for the Android developers lab as well as the push Microsoft made for Windows 7 Mobile), but focus seems to be shifting towards the applications that are driving mobile usage. The operators are keen on pushing new applications, because they will drive up data usage and increase the urge for users to upgrade their devices and service packages.

There is a clear recognition that mobile success may be won or lost on the application front. In the US, Apple has done a good job with marketing the iPhone by focusing on the everyday things that it can do to make your life easier with mobility (finding restaurants, checking on movie showtimes, etc). Google did a great ad during the SuperBowl (American Football for those outside the US) that showed Google search used to progress a storyline for a person’s life (http://www.youtube.com/watch?v=nnsSUqgkDwU) which is not specifically targeted at Android, but can be applied to Android and mobility. Microsoft was showing the same type of applications and integration at MWC as part of their booth show. Ericsson announced an applications store (eStore) with more than 30,000 applications that carriers can offer those apps to their own customers.  A new alliance was formed between 24 operators (including ATT, China Mobile, Orange, etc) called the Wholesale Applications Community (WAC) designed to simplify how application vendors get their applications to the end user.

Why is this important to a DPI vendor? Mobile operators who want to understand what applications are clicking with their users need to look no further than to a “robust” DPI system to understand what applications, clients, and software their users are running – even down to the device level. Application vendors obviously want the operators to know that their application is popular, since it will open up more opportunities to sell that application, whether it is through the operators own application store or the mobile OS store (iTunes, Android market, etc). The DPI “lite” solutions provided by some vendors will never keep pace with the ability of a dedicated DPI solution. At Procera, application recognition has always been a core element of our solution, we release updates every two weeks to keep pace with the new applications our customers encounter in the wild, and this includes mobile applications.

The applications that really jumped out at me are the “useful” applications that can simplify or make life easier for people. Simple navigation capabilities can be helpful even if you are walking through a large city – looking for a specific location for a meeting, searching for a restaurant, looking for a store. VOIP applications (which are finally being approved for mobile use by some operators) can be cheaper than international calls in some instances (or using the VOIP over wi-fi is even better). Even bar-code scanners that allow instant internet price comparisons are really useful if you are shopping and want to make sure you are getting a better deal.

As mobile operators look to understand what they need to do to generate revenue, I am certain that going forward, applications will be a big part of that plan – whether it is enabling some of the applications in real-time (even if it is not sold by the operator – like GPS), or form a retail perspective in their application stores. DPI can help them understand where their greatest opportunities are – and will allow them to service their customers better by meeting their expectations.

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Mobile Internet – Just A Bit Pipe?

Wednesday, December 2nd, 2009 by Jon Linden

I’ve argued that mobile Internet is “just another Internet access”. This used to be a controversial and provocative statement when talking to mobile operators who defended their premium network investments they made,  in order to deliver pretty fast Internet connectivity.

Imagine my surprise when I recently attended a traffic management conference in London where all mobile operators in chorus surrendered to being just a bit-pipe competing with wireline broadband… What happened?

I assume they’re realizing that they don’t have the recipe for the all-resolving secret sauce, which is why it currently feels a bit hopeless. Walled gardens didn’t work, a price war has driven prices down, customers don’t pay for added-value services, and another network upgrade, this time to the fourth generation, is just around the corner.

The good thing is that this puts the spotlight on the fundamentals – production cost. You consider how you can limit OPEX by minimizing helpdesk calls, you look at how you can maximize the utilization of your network, you want to automate up-sales, and you implement cost thresholds like volume quotas and international roaming control. Oh by the way, these are all things you can do using DPI.

Once we’re past this realization we must get ourselves out of this sorrow and start looking forward. Mobile Internet certainly has added value over wireline. The growth in mobile Internet is probably the best validation of this. But speed, i.e. bandwidth, is not one of them. Maybe it’s time to take the lead on selling non-bandwidth-centric services? How can you leverage mobility? For what customers is mobile Internet the only, or the best, option? How will built-in 3G modems in laptops impact the market and the ability to sell pre-paid services?

This is putting a lot of demand on the business developement and product management people at mobile operators. It’s time to get your moneys worth guys! Every case is certainly unique. Do you provide mobile and fixed line, do you go after specific customer segments, or are you the low price option? This will impact your strategy more than ever.

So I guess I must convert to the other side and argue “Mobile Internet is more than just a bit-pipe”. It doesn’t feel as controversial, but a man’s got to do what a man’s got to do.

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