Solving Network Congestion Requires Traffic and Demand Management

by Ken Denman, CEO, Openwave

When Openwave helped introduced the wireless application protocol (WAP) over 14 years ago, it was with a vision that mobile data would become an indispensable part of our lives. In 2009 there were more than 450 million mobile internet users worldwide. That number is expected to be one billion by the year 2013.

Be careful what you wish for.

Today more and more mobile operators are finding it difficult to keep up with ever-increasing demand for mobile data services. Their networks – the ones that were gathering cobwebs a few years ago – are suddenly straining to cope with the crush of data traffic during peak periods.

In Chinese, the written word “crisis” is comprised of two characters: one represents danger and the other represents opportunity . Demand for the mobile internet continues to pose a danger to operators’ networks, but we’re talking about unprecedented demand here. The opportunity to capitalize and monetize this demand is truly unique.

Manage the Traffic
The most immediate way for operators to deal with surging data traffic is to reduce it by optimizing the content sent over the air. Video content is the primary culprit as it is both heavy and popular. All content can be optimized through the use of compression techniques, caching and network acceleration. Reducing the data required for a popular video actually increases an operator’s effective bandwidth and delivers a smoother, faster video and browsing experience to the consumer.

Manage the Demand
One of the most effective ways of managing data traffic is managing the demand that drives that traffic. Shifting the heaviest users away from peak hours is a fundamental technique in shaping demand for a limited resource like wireless spectrum.

The days of unlimited data plans are numbered. Already, tier-one operators in the US and Europe are transitioning to consumption-based pricing models. Today, the tiers we see are mostly volume-based with caps at each level. But imagine metering usage based on time of day, speed of access, or content type. Operators could target heavy social network users with unlimited access to Facebook in the evenings.

As the market matures, we expect savvy marketers to take tiered services and pricing to the next level where the real value comes from the flexibility and transparency with which operators can empower their subscribers to discover (and maybe one day create) the right data plan for them.

Smarter Networks
Effective traffic and demand management depends on in-network analytics. Mobile service providers have virtual reservoirs full of subscriber data. Analytics can collect, aggregate and translate disparate data into actionable business intelligence.

Analytics-driven traffic reports can locate and alleviate bottlenecks across the access network, backhaul or applications and web sites. By pinpointing the users and devices most likely to cause network congestion, your traffic optimization techniques are that much more effective. Analytics can also help guide the operator to increased revenue by identifying popular mobile internet and data trends on which to base relevant services, promotions and premium content.

The Future of the Mobile Internet
Even if the consumer appetite for data services plateaus, the growing number connected devices means machine-to-machine communication could make up the bulk of the traffic flowing across networks. According to the Cisco Visual Network Index report, globally, mobile data traffic is expected to double every year through 2014, increasing 39 times between 2009 and 2014. Operators with a clearly defined strategy for managing and monetizing this high bandwidth traffic will be the winners in the future.