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November 13, 2014

Video and data optimisation could net MNOs $28 billion

Research reveals how optimisation could land mobile operators $28 billion net gain over next five years.

By CBR Staff Writer

Video and data optimisation would improve user experience and help mobile operators globally to benefit to the tune of $28.7m during the next five years, according to research.

The survey by ABI Research – carried out on behalf of Skyfire, which is part of Opera Software – suggests optimisation could improve the quality of experience for users, which translates into reduced churn, increased tariffs upgrades and total cost of ownership (TCO) savings.

"End-user expectations are rapidly evolving; operators must now deploy mobile data and video optimisation solutions that can effectively enhance the amount of traffic the operator can handle in a given location," said Jake Saunders, vice president and practice director at ABI Research.

The researcher developed a model to assess the impact of mobile video and data optimisation that uses country market data, from economic and demographic data to mobile operator subscription and radio access network information.

Boosting the quality of experience for users brings about churn reduction savings, estimated at £12.9m.

Operators can generate additional income – estimated at $6.5m – from higher tariffs, driven by improved user experience and a greater desire for data.

TCO savings are based in part on improvements to software-based virtual capacity for mobile video, which results in more data being used.

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