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For Service Providers, the Opportunity to MOVE to Greater Profitability

Mobile data traffic will surge through 2015, growing 26-fold to 75 exabytes per year.  A remarkable 66% of that traffic will be video!  (Source:  Cisco VNI Mobile Data Traffic Forecast, 2010-2015).  My family uses an iPad or iPhone to watch Netflix movies and YouTube video clips and I see a lot of smartphone and tablet users doing the same.

This explosion in mobile data and video traffic creates challenges for service providers and mobile operators.  First, to reliably provide a user experience that is “more” – more personal, more visual, more social, more collaborative, and more productive.  Second, to efficiently manage the sudden increase in data traffic while concurrently expanding the number and kinds of services offered.  AND, as if that weren’t enough, to do all this while decreasing costs and increasing revenues.

Definitely not business as usual… in fact, “challenging” may be an understatement.

Fortunately, the networks creating these challenges can also turn these challenges into opportunities with a new set of solutions we’ve named “Cisco MOVE” (Monetization, Optimization, and Videoscape Experience).   We asked ACG, a respected analyst firm, to verify Cisco’s MOVE value propositions.  Here are some of their key findings:

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Cisco MOVEs the Mobile Internet

As we gather in Barcelona for this year’s Mobile World Congress, I am excited about the announcement of our new strategic framework for Cisco’s Service Provider mobility solutions.

We’re calling this framework “MOVE,” which stands for Monetization, Optimization, and Videoscape Experience, and it expresses our plan to design and deliver network solutions that will help mobile operators succeed and profit in this rapidly changing environment.

As we heard in the recent Cisco Mobile VNI Forecast, mobile users are driving huge increases in mobile Internet traffic, with the majority of that traffic being mobile video, with its high bandwidth and QoS demands.

To manage this tidal wave of video traffic, mobile operators face a three-fold challenge: they must monetize their networks by developing new services and business models; they must optimize their networks to ensure reliable service delivery at low cost; and they must differentiate and personalize their video services to satisfy every-growing consumer expectations.

With MOVE, we introduce three new solutions to help mobile operators meet these challenges:
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Cisco at Mobile World Congress 2011 – Bigger and Better

Cisco at Mobile World Congress 2011

It’s that time of year again, and though this will be my 5th Mobile World Congress, I’m very excited to be returning to Barcelona.  I think this show will be the biggest in the GSMA’s history, and I know, from Cisco’s perspective, this will not only be our biggest, but also our best MWC.

For those of you who will also be attending MWC, I want to take a few moments to let you know what you’ll find at the Cisco booth.  And for those of you not attending, I want to give you some information and links to help you feel like you’re right there with us.

First, we have a full line-up of impressive speakers, including our Chairman and CEO, John Chambers.

And in the booth, we’ll showcase our comprehensive next-generation mobile network and demonstrate how our solutions can help operators capitalize on today’s opportunities while more effectively addressing network challenges.

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The Intelligent Mobile IP Network: The Engine for Profitability

Contributed by Ash Dahod, Cisco SVP/GM of the Mobile Internet Technology Group

Mobile communications are expanding rapidly, and this is changing the way we all work, live and entertain. We are now truly able to stay connected virtually anywhere, anytime. The market and its associated technological advancements are moving very quickly and this was even more apparent as I met with customers, partners and colleagues at 4G World in Chicago.

We are all aware of the Mobile Internet tidal wave that is upon us and a lot of the talk at the show was how we can prepare for this next wave of technical advancements.  Additionally, what was on most of our minds was how we can do this profitably.

I had the opportunity to speak at the conference and shared some thoughts on how the right network with the right combination of performance and intelligence will drive mobile operator profitability.

In the simplest form, we have to change the way we are looking at the market from a technical and business point of view.

We need to look at profitability and the ways we will address revenue and expense. Intelligence will be central to our new business models, new revenue streams and the efficiency of the network. From this perspective, we see that we need to increase the investment in network intelligence.

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Intelligence for Monetization and Optimization: In-Line Services on the Cisco ASR 5000

As is often discussed, mobile data and demand for high-bandwidth mobile applications is exploding.  Additionally, the business and technical landscape is changing dramatically -- expanding competition, shift in revenue streams, next gen broadband technology deployments, move to all-IP architecture.   These forces require mobile operators to build networks in new, “smarter” ways in order to address profitability.

This topic was addressed by Ash Dahod, Cisco SVP/GM of the Mobile Internet Technology Group, at 4G World -- check out this video.

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