As Mobile Network Optimization Segment Blossoms, Carriers Feeling Pressure to Implement Now

We started 2011 with an introduction of SEVEN Open Channel, our breakthrough mobile traffic optimization technology, and as the last couple months of this year dwindle away, the market predictions for traffic optimization are becoming larger than ever and carriers are feeling the pressure to implement a solution as soon as possible – in fact, for some networks, the clock is really ticking! In a 2011 report, Tellabs claims that “in North America the average cost of delivering a bit of mobile data will exceed the average revenue collected from that bit by the end of 2013.”

Operators are forced to find new ways to not only monetize, but also optimize the massive surge in mobile data on their networks. At this rate, the end of profitability is just around the corner.

Revenue/GB is going down faster as usage explodes on unlimited data plans

Speaking to this market growth, ABI Research recently published its new study, “Mobile Network Optimization,” which examines the tools and technologies used for mobile network optimization, including the current trends and future directions. According to Jim Eller a principal analyst on wireless infrastructure, in 2016, mobile network operators will spend more than $4.5 billion on optimization solutions.

One city that is feeling the pressure to implement mobile optimization technologies is London, as warnings arose in October that London is expected to run out of mobile capacity within a year, a problem that is sure to balloon out of control with the influx of visitors to the 2012 Olympics.

As we’ve said before, we believe SEVEN Open Channel is a perfect solution for the carriers around the world that are racing to defend against the mobile data tsunami and are anxious to debut it in the coming months. Until then, we’ll continue to share new industry developments and news with you here and look forward to your thoughts in the comments below.

About SEVEN Networks

SEVEN Networks software solutions deliver device-centric mobile traffic management and analytics for wireless carriers. Extending control from the network to the mobile client gives operators the power to manage and optimize data traffic before it impacts the network. Device-based analytics offer deeper and timelier insight than solutions that are solely network based. SEVEN’s Open Channel products reduce operator costs, increase efficiency in the use of wireless infrastructure, and enhance end-user experience. They bring immediate capacity relief to overloaded networks, simplify the creation of innovative new service plans, and provide actionable intelligence for mobile carriers.
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