Data Offloading Opportunity


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Worldwide subscribers are downloading about 200 million wireless data applications per month and data traffic is far outpacing data revenues.

This presentation address the offloading opportunities and how to manage broadband wireless data demand.

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  • Broad Adoption of Data Service by Subscribers Developed market is slated to see 40% of subscribers on a data plan by 2012 Flat rate tariff plan that encourages use without any incremental cost for incremental data usage Advanced Devices 30% handsets sold will be smart phones by 2011 Smart phone’s sales surpassed 36.4 million units this year, a 12.7 per cent increase from the same period last year Attractive Data Services With more advance devices in store, a wider variety of applications are offered This establishes a large market for data services
  • Congested Network With the increasing mobile data traffic, network congestion is a fierce battle the MNO’s need to fight to keep their subscribers happy. Increased Churn Rate Congestion leads to poor network performance, resulting in declining user experience. Overtime, unhappy users look for alternative service providers. In other words, subscriber churn increases. Data Traffic Outpaces Revenue Growth Operators are increasingly offering flat rate tariffs to stimulate consumer demand. In turn, this causes unrestrained data usage with no incremental revenue.
  • Data Offloading Opportunity

    1. 1. The Ideal Data Offloading Solution Kelvin Lee Senior General Manager Green Packet
    2. 2. Data Traffic Growth Trend <ul><li>Data Traffic Consumption vs. Data Revenue Growth </li></ul><ul><ul><li>Mobile broadband and data usage is growing exponentially as this becomes a way of life for either work or play </li></ul></ul><ul><ul><li>In the next 5 years, there will be a 100x growth of aggregate data compared to 2x the growth of revenue </li></ul></ul><ul><ul><li>Operators are increasingly introducing data services </li></ul></ul><ul><ul><li>Data traffic consumption is outpacing data revenue </li></ul></ul>Sources: Cisco, 2008; Informa, 2008; Analyst Insight 2008
    3. 3. <ul><ul><li>Flat rate tariff plan that encourages use without any incremental cost for incremental data usage </li></ul></ul>Smart phones Social Networking, Widgets, Apps, Video Broad Adoption of Data Service by Subscribers Advanced Devices Attractive Data Services Contributing Factors
    4. 4. Impact on MNO Congested Network Increased Churn Rate <ul><ul><li>Data Traffic Outpaces Revenue Growth </li></ul></ul>unhappy switch operator frustrated
    5. 5. <ul><ul><ul><li>Expensive back-end infrastructure investment </li></ul></ul></ul><ul><ul><ul><li>Conflicting network standards </li></ul></ul></ul><ul><ul><ul><li>Lengthy partnership negotiation </li></ul></ul></ul><ul><ul><ul><li>High initial (setup) costs. </li></ul></ul></ul>Infrastructure Upgrade (Basestation) Connection Managers Offload Opportunities Escalating Cost Cost Saving Femtocells <ul><ul><ul><li>Automatically identify and connect users to the best networks available. </li></ul></ul></ul><ul><ul><ul><li>Designed to be network, device and OS independent. </li></ul></ul></ul><ul><ul><ul><li>Seamless switch during the offloading process, giving users uninterrupted connectivity experience. </li></ul></ul></ul><ul><li>Cost-effective solution – no infrastructure upgrade and license-driven. </li></ul><ul><li>Provide subscribers with single software to access ALL your networks. </li></ul>
    6. 6. <ul><li>Offload overly congested 3G network to WiFi Hotspots to optimize bandwidth and infrastructure investments. </li></ul><ul><li>Unified Connection Manager retains telco branding and user experience; helps user manage both 3G and WiFi access networks & single sign-on to multiple accounts and applications </li></ul><ul><li>Seamless handoff between different access networks to ensure uninterrupted voice and data sessions </li></ul>Case Study: PCCW One solution, multiple benefits: Seamless roaming between 3G and WiFi network Flexibility to prioritize network connection to PCCW Public WiFI or PCCW Enterprise WiFi Network Integrated with Phonebook’s SIM card (3G Datacard) to retrive contact number for SMS usage
    7. 7. <ul><li>Constant challenge of network congestion as subscriber base and bandwidth utilization increases </li></ul><ul><li>Maximize the use of current infrastructure </li></ul><ul><li>Offload overly congested network e.g. 3G/CDMA to WiFi – thus creating a balance in bandwidth utilization. </li></ul><ul><li>By utilizing and optimizing current infrastructure, save on huge investments to build/upgrade infrastructure </li></ul><ul><li>These savings can be channeled to customers </li></ul><ul><li>Offer mobile lifestyle applications/ services to subscribers </li></ul><ul><li>Gain additional revenue on top of their access network fees. </li></ul><ul><li>For example, end-user communication via video conferencing, file sharing, real-time messaging and games; all while on the move. </li></ul><ul><li>Retain customers by offering what matters to them </li></ul><ul><ul><li>One plan on a unified network </li></ul></ul><ul><ul><li>Savings </li></ul></ul><ul><ul><li>Attractive mobile lifestyle services and applications </li></ul></ul><ul><li>Single client supports multiple CPE, lower support cost </li></ul><ul><li>Ease of use, single client for multiple connection modes </li></ul>The Ideal Connection Manager Offload Traffic to OPTIMIZE Bandwidth Cost MINIMIZATION Avenue to INCREASE Revenue Customer RETENTION REDUCED Churn Bandwidth Costs Customer Revenue
    8. 8. Simplified and ubiquitous connectivity for better user experience resulting in churn reduction Ability to offer differentiated services Opportunity to Improve ARPU Connection Manager The Ideal Solution Freed up data capacity to offer quality mobile services Substantial cost savings through optimized usage of current infrastructure Conclusion UNLIMITED DATA PLAN 3G
    9. 9. <ul><li>For more information, kindly visit: </li></ul><ul><ul><li> </li></ul></ul><ul><li>Download InTouch Connection Management Platform Brochure: </li></ul><ul><ul><li> </li></ul></ul><ul><li>Download free Application Note: </li></ul><ul><ul><li> </li></ul></ul>Downloads
    10. 10. Thank You Kelvin Lee Senior General Manager