The Pragmatic Innovator

The Customer is Always King (Well, until They Use Too Much Data)

We have predicted the current capacity crunch for some time and over the past months we have seen almost every wireless operator around the world begin to cap their users on a monthly basis. This all to contain the damage of streaming video.

But the fact that wireline operators are now capping their consumers and willing to jeopardize something as important as customer satisfaction demonstrates exactly how dire the situation has become. AT&T in the US and Rogers in Canada have now announced caps on DSL and Cable.

Consider, for example, that Netflix is cutting the quality of streaming video in Canada and that Verizon is planning to “throttle” its most-active users when its network is stressed. They are trying to find a solution to a very complicated problem, which is commendable, but is it really wise to further diminish an already poor quality of experience for the customer? For sure the data cap will help as a band aid to their network capacity crunch but operators and media distributors alike must find new technologies that work for both sides.

So how can operators mitigate the impact capacity crunch without sacrificing the consumer experience?  Unfortunately there isn’t a silver bullet.  There is not a solution or tool on the market today that can single-handedly solve the capacity crunch.  But there is some good news – there are a number of video delivery optimization solutions on the market today that can help ease the burden that mobile video places on the network.

Operators just need to be more realistic when they are evaluating them.  For example, solutions that rely on bit-rate throttling or transcoding are akin to putting a bandaid on a shotgun wound.  Sure, they reduce the amount of data flowing over the network, but it’s a relatively insignificant reduction that also often results in a poor end user experience.

Why not instead consider employing a strategy such as content pre-positioning, which provides consumers with a far superior playback experience on their device and maximizes the efficiency of the operators’ networks by leveraging underutilized capacity and flattening the peak loads. And it also enables innovative revenue growth applications that work outside of the cap.

It’s a win-win solution, in our opinion.  The customers get great quality playback on an unlimited basis, operators get to save their networks and don’t need to invest billions so that media companies can monetize it and media companies continue to grow in the digital content distribution market.

What do you think?

What’s the easiest way to publish rich media and video-based content to mobile devices? Introducing NetRover ePublisher!

It’s been a busy month over here at Opanga (as evidenced by the lack of blog posts!)  We’ve beenaccumulating record-breaking amounts of frequent flyer miles by trekking around the globe and meeting with savvy wireless operators who are searching for ways to alleviate the impact of mobile video on their networks, and on the homefront we’ve been busy growing our operations and working to protect our ever-expanding IP portfolio.  And last (but certainly not least!), we’ve been preparing for the launch of our new NetRover ePublisher platform!

We are very excited to have officially launched NetRover ePublisher, and with good reason – we strongly feel that this is the solution that operators have been searching for to help address the challenges surrounding the impact of mobile video on wireless networks.  You see, NetRover ePublisher is based on our patented NetRover technology, which transparently delivers large file video content using only surplus network capacity.  But in addition to being extremely network friendly, NetRover ePublisher also enables operators to provide consumers with the high quality mobile video they have been craving.

NetRover ePublisher accomplishes this by pre-positioning any form of rich media, e.g. video, text, images, audio, into the mobile device memory.  Pre-positioned content from subscription-based apps offers immediate and high-quality playback without freezing or buffering. Because the content is pre-positioned into device memory, the apps are always available, even when the device is offline.

We feel that NetRover ePublisher represents a tremendous advance in video delivery optimization technologies – by offering wireless operators and media companies a complete end-to-end media publishing platform that works outside data caps, we are providing them the tools that they need to thrive and succeed in today’s media-hungry world.

Instead of working against data caps, operators now have the tool they need to thrive within the cap.   As an example, wireless operators typically offer their consumers a monthly service plan that includes voice minutes, text and a data bucket (e.g. 500MB “cap” for $25). This data cap severely limits the amount of video that a consumer will view and consequently will reduce the value of video and associated advertising.

With NetRover ePublisher, this base plan can be augmented to add a number of NetRover-enabled “channels” that would not count towards the consumer’s monthly cap. This is only possible because of Opanga’s unique network friendly distribution technology, which also offers revenue growth that complements data caps or tariffs.

There’s been a lot of talk lately about data caps (see “Is AT&T’s new 150GB DSL data cap justified?” and the capacity crunch (see “Netflix Meets Its Kryptonite”), and we are so proud to be offering a platform that helps ease the burden of these challenges.

We’d love to hear your thoughts on our news!  Feel free to leave a comment or if you require an in-depth demo or briefing, shoot us an email at smarternetworks@opanga.com.

Part 3: The Content Pre-Positioning Opportunity

We’ve talked quite a bit about how streaming video places enormous strain on wireless networks, degrades network performance and creates a massive capital burden for operators.   This strain also affects the end-consumer as it results in a very poor and inconsistent playback experience.  Many operators are imposing data caps (check out this video from o2 talking about why they chose this route), but data caps alone will not ease the strain on networks.

The simple fact is that video is crippling our networks and the industry must explore new video distribution methodologies, as well as new consumer models that achieve superior service level characteristics.   We believe that new video distribution models must accomplish the following to be successful:

• Reduce operator CAPEX and OPEX. Operators have fronted the cost to build out the current network and the costs to maintain them.  Continuing to invest billions of dollars in network build out to facilitate other third party company revenue growth is simply not a long term viable business model   (see how much bandwidth Netflix is using without paying for the capacity)
• Creation of new revenue generating services. A more viable approach would be to create new services that generate revenue in a linear relationship with capacity consumption and provide wonderful video quality to consumers – something they will pay for.
• Improve quality of video for consumer. Operators must provide a substantially improved video playback experience.  The optimal playback experience should:
  • Never freeze and/or rebuffer;
  • Should leverage the high quality video components in today’s smartphone and tablet devices
  • Should utilize the ultra low cost of memory in wireless;
  • And allow consumers to enjoy their content without broadband connectivity.

It’s actually a rather basic proposition: operators simply need to provide a quality of experience that is worth paying for.  Innovative subscription-based applications allow consumers to subscribe to the content that they want, when they want it.  And that content is always available in flawless quality every single time. Everywhere. If operators can provide this type of high-quality service and experience, we think consumers would be willing to pay for it.  What do you think?