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Showing posts from October, 2018

Live Streaming Might Well Salvage Most Linear Accounts

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For 42 percent of customers who continue to buy linear video subscriptions, live programming is the primary reason for keeping such a subscription. But 30 percent of such customers say  they would cut the cord if they knew they could live stream all of their favorite sports, events, and news, a new study by Telaria and Adobe Advertising Cloud has found.
An additional 40 percent would consider doing so as well.
But live streaming is the latest new change. Live streaming provides the advantages of live television content, but consumed as a real-time OTT service rather than through a traditional cable or satellite connection.
Cost is the other major variable. Some 73 percent of customers who terminated their traditional linear video subscriptions cited cost as a reason for dropping the service.
So we may someday find that such surveys of cord cutting were not as predictive as we once thought, for a couple of reasons.
The emergence of live programming services that cost less and  are strea…

Mobile Industry Revenue Growth Falls to 0.3%

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Revenue growth is the single biggest problem facing the global mobile services industry. Globally, mobile revenue has just 0.3 percent compound annual growth rate.
And even in the fastest-growing mobile markets globally--Sub-Saharan Africa-where subscriptions are growing at a compound annual growth rate of of 6.1 percent to 2020, about 50 percent faster than the global average, revenue growth is not keeping pace, expanding only about two percent per year. source: GSMA Intelligence
That is why the search for big new revenue contributors in the internet of things, entertainment video and other potential big new markets is so intense.
Total mobile revenues in Sub-Saharan Africa reached $40 billion in 2016, an increase of 3.9 percent, year over year. But revenue growth since 2017 has been trending downwards, driven in part by economic weakness.
Revenue growth will “remain subdued for the remainder of this decade due to the increasing cannibalization of traditional voice and messaging reven…

SD-WAN Market Size is Not So Much the Issue: Enterprise Networking Market is Key

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Revenue for the SD-WAN market overall was $221 million in the second quarter of 2018, doubling year-over-year and up 25 percent in sequential quarters, according to a report from IHS Markit.

source: IHS

Most of the revenue earned in the SD-WAN space is earned by edge device suppliers, although service provider alternatives are proliferating fast.

But that is not the point. If SD-WAN becomes a replacement for MPLS, the addressable market is much larger, on the order of $35 billion in service provider service provider revenue.

source: IHS

VMware had 18 percent market share, Aryaka was in second place with 15 percent and Cisco entered the top three with 12 percent, the report says.

source: IHS Markit

Cost of Using Internet Access Drops, Globally

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By 2025, entry-level (fixed network) broadband services should be made affordable in developing countries at less than two percent of monthly gross national income per person. That matters as the cost of using internet access services as a percentage of income is a key measure of affordability.
More importantly, the total number of active mobile broadband subscriptions is expected to reach 4.4 billion by end 2018, up from 3.3 billion, at the end 2015,  the International Telecommunications Union says. That matters since mobile internet access is the way most people in developing countries use internet access services.
This is a clear case of perceiving a “glass half empty, or half full.”
In January 2017, the Broadband Commission lowered the de-facto standard for Internet  affordability to two percent of average income, from the previous five percent levels, evidence of significant price declines.
Although the majority of the world’s population (52 percent or 3.7 billion) currently remai…

"Factual" and "True" Observations about Internet Access Quality

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Some statements are factual, but arguably not “true.” It is factual that fixed network or terrestrial network coverage gaps exist in rural and other “hard to reach” areas. In many rural areas, especially mountainous areas where few people live, there might be zero mobile network coverage, to say nothing of fixed network coverage.
The existence of such gaps might, or might not, bear much relationship to the state of service quality in dense, suburban and other areas with greater population density. In other words, it is not a “failure” of government or industry that some areas have poor to no terrestrial network coverage. Some areas simply have such low population density that only satellite service is commercially viable, even with deployment subsidies.
The simple reality is that coverage of the “last couple of percent” of people in most countries with rural, mountainous or island geographies is quite expensive. In the U.S. market, for example, it is coverage of the last one percent o…

5G Millimeter Wave Capacity: Bits per Hertz Matters

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There are several reasons why the advent of millimeter wave spectrum for 5G vastly increases bandwidth, and thereby creates new business opportunities for mobile operators. Not only will millimeter wave spectrum represent a vast increase in mobile capacity (an order of magnitude to two orders of magnitude effective new spectrum), but millimeter wave spectrum also is more efficient.

Where spectrum below about 2 GHz has a spectral efficiency up to 2.5 bits per Hertz in a 4G context, and up to 3.8 bits per Hertz on a 5G network, millimeter wave spectrum has an efficiency up to seven bits per Hertz.

Basically, not only does millimeter wave spectrum represent an order of magnitude more capacity (Hertz), it also represents more bits per Hertz, as much as double what is possible on a 5G network using spectrum below 2 GHz or so. The reason has much to do with frequency and its relationship to symbol representation.  

source: T-Mobile US

By 2028, 90% of All 5G Traffic Will be Video

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The importance of content, especially video content, delivered on mobile networks can be glimpsed from a new forecast by Ovum. By 2028, about 90 percent of 5G traffic is expected to be video.
Between 2019 and 2028, Ovum analysts predict, media and entertainment companies will compete for about $3 trillion in cumulative mobile content revenues, of which about $1.3 trillion will be earned on 5G networks, Ovum suggests.

By 2025, 57 percent of mobile revenue globally will be earned on 5G networks, say researchers at Ovum. By 2028, Intel and Ovum expect that number to rise to 80 percent.
he report, sponsored by Intel,  predicts that augmented reality and virtual reality will generate cumulative revenues of $140 billion (£106 billion) between 2021 and 2028.
Immersive and new media applications which don’t even exist today could generate $67 billion (£50.8 billion) a year by 2028, equivalent to the value of the entire global media market in 2017, including games, music and films, the study s…

Colt Technology to Launch Virtual Network in 2019

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Colt Technology Services Group says it plans to start a three-stage company-wide deployment of NFV capabilities in 2019. What will that entail? The ability to use generic universal CPE (uCPE) supporting virtual firewalls, cloud-based WAN acceleration and SD-WAN.
To complicate matters, the use of generic CPE might clearly be an instance of NFV, but virtual firewalls, WAN acceleration and SD-WAN might properly be considered SDN applications.
That illustrates neatly the problem we have when describing network virtualization.
As a practical matter, it sometimes can be difficult to understand precisely what a “virtual communications network” actually does. It also can be difficult to understand how a "virtual" network is created, as that most often includes a mix of changes broadly including both network functions virtualization and software defined network adaptations.
Network functions virtualization (NFV) is one key aspect of virtualization, but not the only key aspect. It als…

Nokia Launches Fixed Network "Network Slicing"

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In a move with huge potential implications, Nokia has launched its fixed access network slicing solution, allowing fixed network service providers to create virtual networks as mobile operators will be able to do on their 5G platforms.
That might potentially enable full control of virtual networks that allow many new providers (app providers, platform providers, device suppliers, mobile virtual network operators, content providers) to essentially create their own national or global networks quickly and flexibly, with differentiated network features, to an extent.
Sure, entities have been able to construct private networks using traditional wholesale purchase agreements. But network slicing should allow faster, easier, more flexible flow-through networks all the way to the network edge. Over time, such virtual networks also should be less costly.
Network slicing allows fixed network operators to “scale to a virtually unlimited number of discrete network slices that can be independently …

Fiber to the Lightpole in 5G Era

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“Fiber to the light pole” is one of the ways to think about optical fiber and other backhaul networks for 5G small cells.
Additional spectrum and smaller cell sizes are the two fundamental tools network designers can use to increase network bandwidth. In the pre-5G eras, when networks operated at lower frequencies, a macrocell tower (at 950 MHz) might transmit more than 17 miles, on flat terrain without major obstructions.
A 4G network using 1.8-GHz to 2.1-GHz signals might transmit only about 7.5 miles, by way of comparison. Low-frequency spectrum often is described as assets at and below 800 MHz (450 MHz, 600-MHz, 700 Mhz and 800 MHz). “Mid-frequency” tends to include 1.8 GHz to 2.1 GHz spectrum. “High frequency” traditionally has meant the 2.5-GHz range.
All that will change in the 5G era, as millimeter wave assets are commercialized. When millimeter spectrum is used (28 GHz, 39 GHz), small cells might cover a few to several hundred meters radius. In those cases, small cells might …

Large Enterprises Want to Compute at the Edge, Study Finds

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Most large enterprises are looking to deploy Internet of Things devices (IoT) on the edge but are struggling to do so, a survey by VansonBourne, sponsored by Software AG has found.
Some 80 percent of respondents want to deploy IoT on the edge but only eight percent are actually doing that already.
source: NTT What firms would like to do is process data locally. Instead of sending all the data from a wind turbine to the cloud and processing the data centrally, users want to process data and analytics locally and then send the results to the cloud.
That reduces network load, cloud processing and storage requirements while making IoT feasible in areas without reliable networks. (Get full survey results)
Many other applications with real-time and low-latency requirements likewise will benefit from processing at the edge: medical, smart cities, image recognition, speed recognition, smart house or gaming applications, for example.
According to market research firm IDC, the IT spend on edge infr…