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Contents
1. Executive summary: Application differentiation creates
added value in mobile broadband
3.
6.
Business models
10
11
10.
12
11.
13
13
14
15
18
13.
18
14. Abbreviations
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1. http://networks.nokia.com/news-events/press-room/press-releases/mobile-operators-keepyour-customers-loyal-by-focusing-on-voice-data-quality-1gbperday
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per month by 2019 from .8 GB per month in 20142. Usage of web, video,
audio and file sharing continues to rise due to a confluence of widespread
availability of 3G networks, continued speed improvements from HSPA,
and increases in smartphone penetration and device capabilities.
In 2013 mobile networks carried for the first time more than one
exabyte (1 Billion Gigabytes) and the Cisco Visual Networking Index (VNI)
projects that mobile networks will carry 2.5 exabytes of data per month
and further predicts data traffic to exceed 24 exabytes per month by
2019 (Figure 1).
Mobile video which earlier in the decade first became the largest single
traffic type on mobile networks continues to dominate traffic and is
expected to grow to three-quarters of all mobile data traffic by 2019.
Demand for mobile data is closely correlated to the evolution of
device and screen technologies, which are among the areas of the
Information and Communication Technology (ICT) industry that are
evolving the fastest. In 2007 the first iPhone was introduced with a
screen resolution of 320 x 480 pixels which in seven years increased
by 13.5 times to a display containing 1920 x 1080 pixels in the iPhone
6 Plus which users are filling with content at two times the data usage
of the smaller iPhone 63. Ultimately, only the human eye will limit the
amount of digital content that will be consumed by a mobile device. In
addition to consuming content, ubiquitous integrated cameras with high
resolution and frame rate are producing exabytes of digital content to
be distributed via networks.
Clearly, mobile networks are facing a growing possibility of congestion
during peak usage hours, despite investments in additional base
stations, advanced RF features, and other capacity improvements.
Exabytes/month
24
12
0
2014
2 015
2 016
2 017
2 018
2 019
2. http://www.cisco.com/c/en/us/solutions/service-provider/visual-networking-index-vni/index.html
3. http://www.citrix.com/content/dam/citrix/en_us/documents/products-solutions/citrix-mobile-analytics-report-february-2015.pdf
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Music
Video
Photos
Games
Productivity
Shopping
Storage
4. http://www.citrix.com/content/dam/citrix/en_us/documents/products-solutions/citrix-mobile-analytics-report-february-2015.pdf
5. http://networks.nokia.com/news-events/press-room/press-releases/network-and-service-quality-keeps-customers-loyal-nokiaretention-study-shows
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Smartphone
Tablet
Thermostat
IMEI
Gold
Silver
Bronze
IMSI
Access
9AM to 11 AM
4PM to 5PM
Time
Monthly
Daily
Volume
Home Zone
Location
Fig. 3. Current business models treat traffic equally under given conditions.
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6. Business models
Clever, tiered pricing models and bundles containing mobile broadband data
services are major tools to help operators combat revenue erosion. This will
only become more important going forward as operators explore new models,
such as price differentiation by quality and application.
Ultimately, however, there is an increasing danger that the business of
being a network operator is changing from a retail model to a utility type of
business, with limited room for positive differentiation. Handset vendors and
OTT providers are gaining more traction with consumers and it will be harder
than ever for operators to establish strong customer relationships in the
future as consumers are focused on the latest device and the coolest app.
In most markets, customer loyalty is in decline. Consumers are increasingly
selecting their mobile broadband service provider based on coverage,
performance along with service price and handset offers.
Its also clear that the number of cooperation agreements between operators,
OTT vendors and other industries will increase significantly, especially in the
areas of content delivery. Delivering services in a differentiated and managed
way opens up additional personalization and monetization opportunities
in partnership with content providers and global content delivery networks
(CDNs) by providing a clear value-add to the partners in the value chain and
ultimately the end users. A good analogy would be a value-adding logistical
service such as a premium postal service offering fast and reliable delivery.
Consider the example of video traffic delivery. The video traffic quality
issue can only be rectified by the network operator. The operator owns and
operates the only portion of the network between video servers and digital
video players that does not carry an explicit Service Level Agreement (SLA). If
operators can ensure a better service quality for specific OTT video streams
and provide SLAs on those streams that include the journey through the
RAN, various parties including consumers might be willing to pay for the value
added transport. Content providers want their end users to receive their
content at a reasonable quality. There are several potential revenue sources
for the operator: the end user paying for premium internet TV, the global
CDN, the content aggregator and the content provider paying for an explicit
SLA (in markets which allow various forms of paid prioritization).
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SGSN
3G BTS
Supported by
all devices
RNC
OSS
SPR
PCEF + DPI
PCRF
Charging
Internet
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PCRF
SGSN
Test UE
3G
BTS
RNC
PCEF
Fig. 5. Lab setup for testing 3G Application Aware RAN and Application Aware RAN with in-bearer
application optimization
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Test Description
Unloaded system
Single application
with priority
Single application
with priority
in-bearer optimization
FTP+HTTP
FTP+HTTP
on single RAB with cell load
NO PRIORTY (best effort)
Multi-tasking
with varying
application priority
Combination of Application
Aware RAN and in-bearer
application optimization
in-bearer optimization
FTP+YouTube
Multi-tasking
with varying
application priority
Combination of Application
Aware RAN and in-bearer
application optimization
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12
10
8
6
4
2
0
HTTP
Priority
No Load
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HTTP
Priority
Medium
Load
No HTTP
Priority
Medium
Load
HTTP
Priority
High Load
No HTTP
Priority
High Load
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8
7
6
5
4
3
2
1
0
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Video
Priority
No Load
Video
Priority
Medium
Load
No Video
Priority
Medium
Load
Video
Priority
High Load
No Video
Priority
High Load
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No QoS
UE YouTube TP
1
0
No QoS
2.1
2
2.8
2.85
UE FTP TP
0.6
0.34
2.31
UE HTTP TP
1.07
UE FTP TP
FTP + YouTube
0.7
FTP + HTTP
Application Aware RAN with in-bearer application optimization improves both the application
performance vs. no QoS and further increases the throughput and helps delay sensitive applications in
cell load conditions
40
20
0
141
28
18
No QoS
Application aware
RAN + In-bearer
App Optimization
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52
59
No QoS
Application
aware RAN
Application aware
RAN + In-bearer
App Optimization
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14.Abbreviations
2G
3G
3GPP
APN
BTS
CDN
DPI
NB
GBR
GGSN
GW
HSPA
HTTP
IMSI
IMEI
LTE
NW
OTT
OSS
PDP
P2P
PCEF
PCRF
QCI
QoS
QoE
RAN
RNC
SGSN
SLA
UE
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Nokia is a registered trademark of Nokia Corporation. Other product and company names mentioned herein may be trademarks or trade names of their
respective owners.
Nokia
Nokia Solutions and Networks Oy
P.O. Box 1
FI-02022
Finland
Visiting address:
Karaportti 3,
ESPOO,
Finland
Switchboard +358 71 400 4000
Product code C401-01176-WP-201503-1-EN
Nokia Solutions and Networks 2015
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