Telecom Sector Network Congestion Statistics for Q1-Q2FY15
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Statistics for Telecom Network Congestion and how to proactively handle using intelligence machine learning algorithms.
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Telecom Sector Network Congestion Statistics for Q1-Q2FY15
- 1. Network Congestion Statistics Indian Telecom Service Providers
- 2. What is network congestion PacketsDelivered Packets Sent Maximum Carrying Capacity Congested Desired Optimal The degradation of Quality of Service (QoS) when a link or node is carrying more than permissible amounts of data resulting in packet loss, drop calls, and network failure.
- 3. Key Metrics Teledensity <80%* TCH Call Drop Rate <2% Packet Loss Ratio <1% Network Latency <120 msec Metric TRAI Benchmark
- 4. Kerala Andhra 100% Teledensity 200% 250% Karnataka Delhi Mumbai All India Major Congested Areas 2011 2012 2013 Source: data. gov.in
- 5. High Call Drop Rates Average TCH (Traffic Channel) Drop or Call Drop Rates for worst affected cell sites. 2% 2.4% 3.5% 1.5% 2.2% Kerala Andhra Karnataka Delhi Mumbai Source: TRAI Report for Apr-June’15 About 2 in 50 calls are dropped due to network congestion!
- 6. Exploding Mobile Internet Usage VoIP calls, instant messaging apps, video calling replacing traditional voice calls. Global Mobile Data is skyrocketing exceeding 45 exabytes of data usage annually. With increasing array of intelligent devices like laptops, tablets and smartphones, the need for bandwidth isn’t simply increasing, it’s exploding. And so is the demand for network capacity. OTT apps Voice calling
- 7. Revenue shift due to Data Surge Idea Cellular Bharti Airtel (India) Data Contribution to Revenue (%) Voice Usage per User (mins) Voice RPM (paisa) Q1FY15 Q2FY15 Q3FY15 Q4FY15 11.5 14 15.7 16.9 12.4 14.5 16.2 17.6 401 384 388 400 435 418 416 418 37.1 36.2 35.6 33.9 38.1 37.7 37.6 36.2 According to Airtel, Data Call RPM is 7 paisa which is about 1/5th or 1/6th to that of the voice calls. Proliferation of Mobile Data with staggering voice usage is decreasing margins for the CSP’s across the nation. Estimated $2.76 Billion(Rs 17,545 Crore) cumulative loss in SMS(and value added service) revenue for India in the past 2 years due to growing popularity of OTT apps. Economic Times.; Ovum Study ‘15
- 8. Implications of Network Congestion Direct Implications ● Revenue loss of due to call drops only is around INR 406 and 441 Crore for Q1 and Q2 2015, which is roughly 1.5% of total revenue of these quarters. ● A recent lightreading study estimates the cost of network downtime can be as high as INR 7.1 Lacs per minute per site. ● Loss in revenue due to Mobile Data caused by network congestion is about 1/5th or 1/6th of the call drops(INR 170 Crore for Q1 & Q2 combined), but it is expected to increase in coming years owing to heavy data usage trends.
- 9. Implications of Network Congestion Indirect Implications Network congestion leads to bad service quality and the degrades the consumer experience which leads to consumer dissatisfaction causing consumer churn. Attractive offers by competitors triggers the consumer churn Churn Leads to Bad QoE Bad QoS Consumer churn is not an immediate result of an competitor offer, but rather is a result of cumulative experience of bad episodes. Indian Telecom churn rates are as high as 14% monthly with an average of about 55-60 million subscribers changing their operator monthly. $2B (INR 13,060 Crore) annual loss caused by consumer churn
- 10. Why now? With ever increasing demands and consumer expectations, networks of tomorrow need to adopt proactive strategies in order to excel. Pervazive Network Congestion Solution(PNCS) uses advanced machine intelligence algorithms to predict network congestion in real time, but it’s just not it. It also tackles network congestion by dynamic offloading to micro sites, Wi-fi, neighboring cell sites or location based shifting. PNCS also suggests real time subscriber based offers to increase retainability in heavily congested areas
- 11. Pervazive Automation Solutions Pvt. Ltd. #3061, Banashankri Stage 2, Bangalore, India www.pervazive.com
Editor's Notes
- There are a number of factors that can affect the quality of VoIP traffic as perceived by the end user. Some of the common factors include delay, jitter and packet loss. These factors can be key indicators of the overall health of the voice network and are defined as follows: Delay: The time it takes the VoIP traffic to reach from one endpoint to another is typically referred to as the end-to-end delay. Delay can be measured in either one-way or round-trip delay. The ITU G.114 recommendation states that the acceptable one-way delay for voice is 150 ms. Any delay > 150 ms can result in degraded voice quality and poor user experience. Jitter: It is the variation in delay over time from one endpoint to another. If the delay of transmissions varies too widely in a VoIP call, the call quality is greatly degraded. VOIP network typically compensates for this by having jitter buffers at the endpoints, to deliver the VoIP traffic to the end user at a constant rate. If the jitter it too high it can overflow the jitter buffer at the endpoints resulting in packet loss and poor voice quality. Packet loss: It is the number of dropped packets in the data path while carrying the VoIP traffic from one endpoint to another. A 3 percent packet loss is typically regarded as the maximum tolerable limit for good voice quality. The VoIP network should be design for < 1.5% packet loss in order to guarantee good voice quality.
- http://www.lightreading.com/data-center/data-center-infrastructure/whats-the-real-cost-of-network-downtime/a/d-id/710595