R Galicia, Spain Cable Operator, MVNO R Saves 15% on MVNO Bandwidth by Optimizing Video and Web Traffic About R R provides cable broadband service to consumers in the province of Galicia in Northern Spain. While R delivers multiplay services (voice, TV, Internet) via their own cable infrastructure, they also offer mobile broadband connectivity by contracting with one of the existing MNOs in the country to use their 3G-4G mobile access network. The company’s client base is primarily residential, but also includes business customers, offering digital services to all customers. The Challenge R’s mobile data usage is growing, which is a good thing because as customers use their mobile service more, they come to rely on it. Marketing efforts and satisfied customers who spread the word, have helped R acquire new subscribers and expand their mobile business. But as usage increases, so do costs. As an MVNO, R pays their host MNO for the volume (Gigabytes) of traffic that R customers generate to and from the Internet. Their business model is very straightforward - higher traffic volume translates directly into higher costs, with very limited ability to pass on those increases to the customer through quota plans and overage charges. Therefore, R decided to implement a mobile data optimization solution that would reduce the volume of data traffic to and from the MNO network and thereby save bandwidth costs within a short time-frame. Allot Solution Allot proposed a Video Optimization solution powered by Allot VideoClass, and promised to save 15-20% of overall traffic volume, assuming that half of the mobile traffic was video that could be optimized. Allot employs patent-pending technologies, including video channel sensing, transrating, pacing, content adaptation and compression, to deliver the most efficient video optimization and the best perceived video quality. The project was driven by three main considerations: 1. 2. 3. The reduction in traffic volume had to be significant; The bandwidth savings must have no negative impact on user experience or satisfaction; The solution had to be sustainable and scalable in a way that maintained or increased MVNO business profitability. Proof of Concept In a proof-of-concept, an Allot VideoClass system was installed at R premises to compress and optimize the delivery of video traffic. While Allot VideoClass succeeded in reducing video volume by 30%, Allot monitoring reports showed that only 20% (and not 50%) of R’s traffic was indeed video. As a result, the initial overall savings fell short of the promise. The silver lining in this result was that the granular visibility provided by Allot revealed a traffic mix that had much more HTTP traffic than video. “We were sold on the traffic optimization solution when Allot was able to demonstrate that our bandwidth savings would provide full payback in just over a year.” Mr. Julio Sanchez Agrelo CTO, R Challenge Find a sustainable and scalable way to reduce MVNO bandwidth costs and maintain profitability without negatively affecting user experience and satisfaction. Solution Deploy Allot Video Optimization and Web Optimization solutions (within Allot Service Gateway) to reduce the volume of traffic on the host MNO network. Benefits 15% savings on MVNO bandwidth each month ROI in just over one year Better business insight of application usage and user behavior Same infrastructure supports service monetization R, MVNO in Spain It became clear that to achieve the overall bandwidth savings goal, Web traffic also needed to be optimized. The trial was extended to include Allot Web Optimization, which provides web compression that is especially effective for reducing the size of the numerous images that are downloaded with most Web pages, without affecting perceived quality. With both Video and Web Optimization in action, R is reducing overall traffic volume and saving approximately 15% on total bandwidth usage and costs each month. Results In addition to saving 15% on bandwidth costs, R also gains valuable insight regarding the mix of traffic generated by MVNO subscribers, their behavior and the applications they use. Armed with this insight and Allot’s unified framework for service delivery and monetization, R can consider new ways to differentiate and increase ARPU through application-centric charging and value adds such as such as parental control and anti-malware services. “Allot solutions not only save us money today, they provide a sustainable and scalable cost model for growth which is critical to our MVNO business” said Mr. Julio Sanchez Agrelo, CTO at R. Allot Video and Web Optimization provide significant savings on Internet and RAN bandwidth Benefits The proof is in the savings! Allot Video and Web Optimization solutions enable R to reduce MVNO costs and to maintain and even increase their MVNO business profitability. The valuable benefits realized by R include. Immediate savings: 15% reduction in traffic volume results in 15% savings on direct costs of MNO bandwidth. Fast ROI: Return on investment begins from the first day of operation, with full payback in just over one year. Better business insight provided by granular visibility of application and user traffic, and deeper understanding of usage trends and subscriber behavior. Monetization opportunities provided by revenue-generating services that are fully integrated and delivered via Allot Service Gateway platforms. Conclusion In the MVNO world there is little room for extra costs that do not deliver a tangible increase in returns. The visibility, reliability, performance, and service integration provided by Allot solutions allow MVNOs like R to differentiate their brand and monetize their service offering while saving on bandwidth costs and assuring service delivery to their customers.
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