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For Service Providers, the Opportunity to MOVE to Greater Profitability

February 13, 2011 - 0 Comments

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:

With Cisco MOVE, a mobile operator with 10 million subscribers can realize a benefit of nearly $1 billion over a 5-year period through revenue generation and cost savings. RAN costs can be reduced up to 27% by optimizing mobile data and video traffic while freeing up to 30% of network capacity for future growth and new services.  And, every $1 invested in MOVE can save you $35-$40 in network operating expenses and capex.

Through Cisco MOVE, the Mobile Internet can become your profitability engine.

For more info, check out the Cisco Mobile Network Business Model and ACG white paper.

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