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Research Report

Mobile Network Optimization
Performance Monitoring and Optimization for 3G and 4G Networks

Joe Madden Analyst Aditya Kaul Practice Director, Mobile Networks

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Mobile Network Optimization

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Section 1.
EXECUTIVE SUMMARY

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1.1

Introduction
In mobile communications, the act of “monitoring” and “optimizing” the network has historically referred to technicians visiting cell sites with test equipment, checking RF power levels and antennas, and performing drive tests. At the network operations center, wireless carriers have performed this act by watching parameters such as the dropped call rate and bit error rate/frame error rate to keep track of statistical performance. Throughout the 1990s and even into the early 2000s, the most important parameters were related to coverage and voice. The arrival of 3G created a longer list of key process indicators (KPIs) to track. Yet, operators generally focused their attention on voice-related metrics because most of their revenue and profit comes from voice services in 3G. Recently, operators have been surprised by the huge increase in mobile data, especially from Internet-friendly smartphones such as the Apple iPhone. As a result, they are beginning to emphasize data efficiency and signaling metrics in 3G and are focusing much more heavily on data-related metrics for LTE and WiMAX. Monitoring and optimization solutions are following this change in direction. Internet solutions such as deep packet inspection (DPI) are suddenly in high demand from mobile operators. Transport efficiency and radio signaling are becoming important metrics, surpassing the previous simple focus on dropped call rates and voice call handovers.

1.2

Market Drivers
The rise of mobile data is the most compelling market driver today, and multiple aspects of data demand are driving a variety of “bottlenecks” in the mobile network, including: • • Streaming video content is flooding the radio channel and transport equipment. Client applications on the smartphone are constantly enabling radios, checking some data, and then logging off again. When millions of these smartphones are authenticating radio channels every five minutes, the signaling and TCP (Transmission Control Protocol) transport setup is overwhelmed in a 3G network. Gaming applications demand ultra-low latency, which is not always met with 3G networks. Other bottlenecks are appearing – in almost every 3G network element.

• •

End users are beginning to notice the quality of service issues resulting from the bottlenecks. Voice calls are increasingly dropped on some networks, and latency issues on others are creating noticeable delay for gaming and even VoIP applications. Both uplink and downlink throughput are degraded by the constant signaling traffic on the network, thus reducing user-perceived throughput dramatically. In short, end users are now beginning to drive network improvements through their complaints and churn to new networks. What’s different about this? Nowadays, subscribers are moving to a new operator in order to get better data coverage – not necessarily better voice coverage.

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Mobile Network Optimization

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2009 3.0 200.0 99.0 193.0 378.0 65.0 2.0 940.0 2010 3.6 208.0 108.9 231.6 453.6 162.5 4.0 1,172.2 2011 7.2 216.3 119.8 277.9 544.3 325.0 14.0 1,504.6 2012 14.4 225.0 125.8 347.4 653.2 552.5 36.4 1,954.6 2013 21.6 225.0 132.1 416.9 783.8 828.8 69.2 2,477.3 2014 32.4 225.0 138.7 500.3 940.6 1,077.4 103.7 3,018.0 2015 48.6 225.0 145.6 600.3 1,128.7 1,292.9 155.6 3,596.6 CAGR (09-15) 59.1% 2.0% 6.6% 20.8% 20.0% 64.6% 106.6% 25.1%

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Table 1.1

Mobile Network Monitoring & Optimization Equipment Revenue, World Market, Forecast: 2009 to 2015 ($ Millions) Segment UE Clients Radio Test Radio Probes Routing/Transport OSS DPI Network Offloading Total

(Source: ABI Research)

To address bottlenecks throughout the mobile network chain, operators are investing in multiple monitoring and optimization solutions, ranging from client applications on the terminal to DPI solutions in the core network. The operators are investing in two directions: • • The network equipment manufacturers are providing more OSS software and self-organizing network (SON) features in both 3G and LTE networks. Independent suppliers of monitoring and optimization solutions are finding strong growth in direct sales to operators. Overall, the independent market for various monitoring and optimization solutions will grow at CAGRs of between 2% and 106% over the next five years.

1.3

Technology
Network operators are trying to balance the SON networks promised by their network OEMs with several independent monitoring and optimization ideas scattered through the network. In general, the SON use cases currently focus on radio parameters and self-configuration. SON functionality is expected to expand into true optimization of additional network layers in the future. Independent monitoring/optimization solutions include: • • • • • • • Client-based optimization solutions with software on the mobile terminal, typically to improve efficiency in the transport layer Portable RAN test equipment, which is used to verify compliance to standards and optimize the coverage/capacity of the radio layer at each cell site Fixed probes and related software for the radio layer to track call parameters and handovers to isolate the root cause of radio access and mobility issues Protocol analyzers and transport optimization hardware, installed in the core network to streamline packet sessions and improve on transport costs Operations support system (OSS) software, which aggregates performance data, inventory information, and fault information to speed up root cause analysis DPI infrastructure, which examines each packet of data to categorize it for application content Offloading solutions, which can divert Internet traffic to save bandwidth in media gateways and Gateway GPRS Support Node (GGSN) infrastructure

© 2010 ABI Research • abiresearch.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including, without limitation, to persons within the same corporate or other entity as such Licensee, without the express written permission of Licensor.

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without the express written permission of Licensor. Each solution can provide between 15% and 50% improvement in efficiency for one network element. World Market. The companies that can work in a coordinated way in teams to attack multiple bottlenecks will achieve the greatest network improvements. Chart 1. Network monitoring and optimization suppliers should ensure that they have focused solutions for 3G networks that are future-proof for use with LTE in the near future.Mobile Network Optimization ABIresearch ® No one single solution is a “silver bullet” that will boost the capability of a network.000 3. Large suppliers capable of handling multiple monitoring solutions should strive to cover end-to-end requirements and integrate probes. to persons within the same corporate or other entity as such Licensee. 1. as these large networks currently have insufficient data capacity to handle anticipated demand over the next few years. Smaller.4 Outlook The growth of monitoring/optimization solutions is accelerating. and thus will capture market share.000 1.000 ($ Millions) 2. Forecast: 2009 to 2015 4.500 3. and Japan are the most important growth markets in the near term.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including.500 1. network OEMs. Thus. without limitation. analyzers. highly targeted solutions to market together with a comprehensive portfolio. and time is critical for operators.5 Recommendations The unanticipated rush to the mobile Internet is happening now. interoperable strategy. specialist suppliers should partner with other vendors in order to bring simple. Europe. The most advanced data networks in North America.000 500 0 2009 2010 2011 2012 2013 2014 2015 (Source: ABI Research) 1. Several of these solutions must be used together in order to optimize all of the links in the chain. These solutions will grow at 24% overall during the next five years. and OSS software. and independent monitoring/optimization suppliers. but multiple bottlenecks exist simultaneously. it is critical for network operators to have a comprehensive.500 2. 4 .1 Mobile Network Monitoring & Optimization Equipment Revenue. © 2010 ABI Research • abiresearch.

As LTE networks are rolled out.Mobile Network Optimization ABIresearch ® 1. without the express written permission of Licensor.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. the data tsunami has hit 3G networks before the deployment of LTE. and it has been predicted that LTE/WiMAX networks will address data issues. to persons within the same corporate or other entity as such Licensee. forcing operators to invest early in solutions to better diagnose and optimize for data applications. © 2010 ABI Research • abiresearch. 5 .6 Conclusions A shift in focus has long been expected for mobile networks. without limitation. the market for network optimization will grow even stronger. In reality.

2009 (TB per Month) Web Brow sing. which had basically been designed to handle normal voice and SMS traffic throughout the AT&T network. World Market. The iPhones. The result: a heavy load of signaling traffic. 4. This approach can work reasonably well for voice traffic. MARKET OVERVIEW ® Today’s complex mobile networks simply cannot be managed by an army of technicians in blue jeans that drive to site locations and climb up towers to tweak the system. continuously shut down their radios to save power. then re-establish the data link for a quick data update. AT&T Wireless’ famous problems with backhaul and signaling in its 3G network are a prime example. many 3G networks are currently in operation with what is essentially an extension of the old 2G dependence on manual intervention. The techniques and processes used to optimize an analog or 2G network would require a huge amount of manpower in order to support 3G and 4G systems. Instead.Mobile Network Optimization ABIresearch Section 2. the mobile network must be managed statistically and automatically. It is possible to operate a voice network without sophisticated monitoring and optimization tools.615 Peer-to-Peer. without the express written permission of Licensor. as well as Android and many other smartphones.496 (Source: ABI Research) © 2010 ABI Research • abiresearch. with the technicians reserved for key interventions that are triggered by statistical analyses of the system. but data traffic impacts the network quite differently. without limitation. 6 . to persons within the same corporate or other entity as such Licensee.897 VOIP.242 Video. 35. AT&T has been surprised by the sheer weight of iPhone data traffic. 15. This issue has lingered for over a year because the solution involves more than simple increases in backhaul capacity.1 Mobile Traffic by Application. In fact.579 Gaming. Chart 2. 4. This unprecedented rise of signaling traffic from iPhones has created a bottleneck in the routing and radio signaling channels. as over 55% of its data traffic comes from less than 5% of its subscriber base.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. and ignoring the differences can result in poor OPEX efficiency. 30.

1 Networks Evolve into Optimization Networks tend to mature along a predictable timeline.829 Gaming. 2.2 Mobile Traffic by Application. without the express written permission of Licensor. simple manual interventions are not always possible due to the high level of complexity. 2G business processes are extremely simple. optimizing both cost and revenue.610 ® Chart 2. to persons within the same corporate or other entity as such Licensee. Interventions such as neighbor list updates or power level adjustments can be achieved remotely. 156. often due to the lack of information available to operators at a detailed level regarding the content downloaded by each user. 621.Mobile Network Optimization ABIresearch Web Brow sing. tablet.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. © 2010 ABI Research • abiresearch. total number of minutes.952 (Source: ABI Research) This problem is not unique to AT&T. optimized mobile network where business processes are tuned in to the network. Forecast: 2014 (TB per Month) VOIP. World Market. 3G networks have also evolved along the timeline to the point of implementing optimization solutions.177 Video. 2. or SMS messages. tiered billing structures to take advantage of end-user data preferences are uncommon. 173. Most 2G networks followed the process to monitoring/optimization with simple and manual interventions for optimization.336. Every carrier faces a similar loss of network quality if smartphone. covering some pricing differences for time of day. In this case. and mobile PC web traffic is allowed to continue growing without a corresponding increase in network sophistication. 7 . from the user equipment (UE) to the radio access network (RAN) to the core network. In 3G. without limitation. The bottlenecks are manifesting themselves in multiple locations throughout the network.732 Peer-to-Peer. 276. beginning with simple RF planning and provisioning of network elements and moving toward an automated.

Business processes still lag behind the optimization features available for network performance. the list of KPIs grew to include a few data metrics and the complexity of handovers between multiple air interfaces. 8 . without the express written permission of Licensor. but the rise in consumer data consumption will strongly drive the development of more innovative pricing policies. but the primary focus for most operators remained on voice performance: • • • • • • • • • Call setup success rate Packet Data Protocol (PDP) context activation success rate SMS/MMS success rate Call drop rate PDP context drop rate Soft handover success rate Hard handover success rate Inter-radio access technology handover success rate Call setup delay © 2010 ABI Research • abiresearch. including simple voice-related metrics such as: • • • Call drop rate Handover success rate Bit error rate (or frame error rate) For 3G networks.1 Typical Timeline for LTE Network Optimization (Source: ABI Research) 2.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. Figure 2.2 Key Performance Indicators KPIs for 2G systems were normally tracked on a short list of five to six items. without limitation.Mobile Network Optimization ABIresearch ® LTE networks will evolve even more quickly along the timeline. to persons within the same corporate or other entity as such Licensee. with self-configuration features taking a major role in the deployment of the network and optimization algorithms built in from the beginning.

com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including.Mobile Network Optimization ABIresearch ® © 2010 ABI Research • abiresearch. without limitation. 9 . without the express written permission of Licensor. to persons within the same corporate or other entity as such Licensee.

Test equipment is distinct from the market for monitoring and optimization gear. In doing so. and QoS optimization within LTE only. The five LTE KPI definitions are: • • • • • Accessibility: Measured by the E-UTRAN radio access bearer setup rate Retainability: Measured by the radio access bearer drops per unit of time Integrity: Measured by downlink throughput and latency Mobility: Measured by handover success rate Availability: Measured as the fraction of total time that a cell is unavailable Most operators use additional KPIs to address cost optimization targets as well. 10 . Real-time monitoring is achieved through the use of probes at multiple interfaces throughout the network. The difference between 3G and 4G will be seen in the manpower required to deploy. configure. and OSS software that span multiple network vendors and can deal with the multi-technology complexity of a modern mobile network. Anritsu. This leaves an open field for optimization tools to augment Layers 3 and 4 with routing and transport setup. Both CAPEX and OPEX are tracked by operators in calculations of parameters such as spectral efficiency. suppliers of optimization tools are able to provide signaling analyzers.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. at SGSN and GGSN locations. and power levels will increasingly be set through coordinated data from neighboring eNodeB sites. which are most closely tied to the radio access network. multivendor network in which the network equipment manufacturers (NEMs) do not coordinate data with each other. the network monitor can synthesize a summary of the performance of a complex. and Tektronix filling most niche areas. and a wide variety of preferences are used by operators around the world. 3GPP hopes to address the confusion that has resulted from 3G KPIs defined differently by each vendor. The test equipment is generally designed to be portable and temporary so it can be used for setting performance on a given network element and then taken away to another site. and even energy efficiency. Through the collection of statistical data on retransmissions. to persons within the same corporate or other entity as such Licensee. which cannot be achieved through software and automated controls alone. and at the LTE Mobility Management Entity (MME) and serving gateway. including both 3G and 4G probes at the interfaces to NodeB and eNodeB sites. In particular. without the express written permission of Licensor.Mobile Network Optimization ABIresearch ® In LTE. with established vendors such as Agilent. error rates. While technicians will always need a spectrum analyzer within reach. without limitation. 2. SON committees related to the 3GPP standards have focused primarily on use cases that impact Layers 1 and 2. 2.3 R&D/Testing/Deploying the Network The ecosystem for test equipment in mobile networks has matured over the past twenty-five years.4 Monitoring the Network So far. as well as maintenance functions such as alarm management. Radio test equipment will continue to be required for drive testing and adjustments to the radio layer. thus improving interoperability at an equipment level and communication at a human level. The market’s evolution to 4G does not change the equation for radio test gear very much. and maintain the network. Rohde & Schwartz. SON technology will result in automatic programming of cell site parameters such as neighbor lists and default frequencies. inventory. including precise mathematical definitions of the KPI calculation. probes. © 2010 ABI Research • abiresearch. SONs will hopefully reduce the number of times that they need to start up their truck and drive to the cell site. throughput per backhaul fiber or microwave link. The 3GPP organization has been much more careful in the case of LTE to define KPIs with standard definitions. 3GPP defines KPIs in five categories with a clear focus on data quality of service. and signaling traffic.

in order to isolate the signaling issues and identify the root cause of traffic issues.1 Cost Reductions One of the most direct and natural outcomes of improved network monitoring is that the existing equipment can be tuned to be optimally efficient. as well as a parallel system of probes throughout the network. 2. As an example. questions quickly arise: • • • • What can we do to improve data throughput efficiency? Can we reduce CAPEX by avoiding future equipment upgrades? How can we reduce OPEX by eliminating site visits and reducing time spent by technicians? What adjustments will most directly improve quality of service? In the area of optimization. and revenue increase. operating costs can be reduced significantly if issues can be resolved quickly with information available in a central database – without a truck. not on the fine-tuning of optimization. resulting in a deferral of upgrades and capacity overhauls. By deferring upgrades and new line cards. without the express written permission of Licensor. 2. since revenue is generally independent of network performance.5 Optimizing Performance Self-optimizing networks (as distinct from self-organizing networks) are still in their infancy. interference. 11 . an ongoing market for OSS has developed slowly and gradually. 2. which allow the infrastructure to run closer to its rated capacity. without limitation. operators complain that the level of detailed information available in the OSS for troubleshooting is inadequate. Cost reductions and quality improvements are the two areas that can be impacted through changes to network settings. to persons within the same corporate or other entity as such Licensee. In short. They will remain immature for years because the focus of major NEMs centers on self-configuration of network radio elements. quality improvement.1. the €800 million budget for CAPEX might be reduced by €120 million. In addition.1 CAPEX Reduction Inefficiency caused by retransmissions. multiple vendors believe that they can create between 15% and 30% capital savings for a particular network element. but intervention algorithms are not. © 2010 ABI Research • abiresearch. One of the primary functions of protocol analysis tools and related probes throughout the network lies in the need for operators to quickly diagnose and solve problems. Almost any OSS on the mobile market can track basic KPIs such as dropped call statistics and handovers between different vendors.Mobile Network Optimization ABIresearch ® In the 100-year history of telecom networks. none of the major OEMs can offer true optimization of a multivendor network. Furthermore.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. or poorly set radio parameters can be eliminated with effective monitoring and timely changes and upgrades. for a European operator with 30 million subscribers. isolating problems through analysis of the signaling between network elements on standard interfaces.5. the annual CAPEX budget for network capacity is significant.5. while most major OEMs support the collection of data from multivendor network elements. interfaces are well standardized. Assuming the low end of 15% applies to key core network elements such as SGSN and the RAN in 3G. When the operator has visibility into the data patterns on the network. However. network operators are focused on three basic concepts: cost reduction. A typical 3G network today includes an OSS provided along with the mobile network. Today’s probes and monitoring systems provide more specific data than a typical OSS.

for streaming media. which averages roughly 30% of total operating cost for mobile operators worldwide. so the technicians do not need to drive to multiple locations. or roughly 5% of the total operating cost budget. the throughput efficiency is critical but latency can be absorbed through buffering of the media. latency is key but throughput may not be critical. As an example. without limitation. such as packet retransmissions and overall throughput. As a result. The tools provide the ability to troubleshoot problems instantly from the network operations center. In the United States. Transport efficiency improvement of 15% can result in cost savings of $24 million to $28 million per year in transmission costs.5. The self-configuration of network elements saves technician time and the number of drive tests required. Harnessing transport optimization tools to take advantage of 15% efficiency improvement can translate directly into reduced transport cost. others are more useful in tracking quality of service and quality of experience for the end user. without the express written permission of Licensor. and means fewer trips to the NodeB or eNodeB site. since as much as 50% of operating costs is spent on fiber and leased lines.2 OPEX Reduction Operating costs constitute another significant area of cost savings.5. The savings are difficult to distinguish in hypothetical comparisons to an “unoptimized” LTE network. streamlining data packets can save a surprising amount of bandwidth in the transport layer. The OPEX savings from a suite of optimization solutions can be significant. backhaul cost reduction is particularly important. Vodafone has proposed the establishment of different grades of service (GoS) in order to separate different users into virtual networks. for a regional American mobile network with 6 million subscribers: • • The savings in technician labor and associated trucks/support can be in the range of $30 million per year.Mobile Network Optimization ABIresearch ® Similar figures apply to LTE deployment. As an example. to persons within the same corporate or other entity as such Licensee. Therefore. True QoS metrics are increasingly focused on parameters that refer to the efficiency of the network itself. Monitoring tools with probes installed throughout the network can save a great deal of technician time. In addition. for VoIP and game users. 2. the tools for monitoring and optimizing QoS are evolving to examine a greater number of KPIs and the definition of “success” has moved well beyond a simple view of dropped calls. improving throughput efficiency by roughly 15% to 25%. since the system will be initially installed to handle limited capacity and will be stretched to accommodate users as LTE services are adopted. 12 . QoS metrics have been changing quickly during the recent explosion of mobile data because the experience of a VoIP user is very different than a streaming video user or web browsing user. 2. but vendors and network operators agree that significant savings are built into their plans for LTE optimization. This process would allow the operator to track different KPIs for different grades of service and even optimize each group’s traffic for their particular usage pattern.1.2 Quality Improvement While some KPIs are useful in cost efficiency optimization.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. these two users require different KPI profiles for optimized QoE. Conversely. © 2010 ABI Research • abiresearch.

2. DPI tools are capable of high capacity. passive intermodulation (PIM) has become an important test parameter. with the increase in the number of frequency bands used worldwide.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. Technology is now coming into place to make new business schemes feasible.7 Test Equipment Market Mobile networks have antennas and cables mounted in exposed. The rise of LTE is resulting in a surprisingly smooth transition from legacy spectrum analyzers and power meters to newer models with additional functionality. outdoor locations. The equipment is growing in sophistication as LTE signals are added and analyzers have additional signals to demodulate and new parameters such as error vector magnitude (EVM) to monitor in the RF chain. Further investment in data networking capability must eventually be supported by a commensurate increase in revenue. Over the next five years. Simpler protocol analyzers can identify the source of content as a captive server. to persons within the same corporate or other entity as such Licensee. vendors supporting the test equipment market. without limitation. they are not detailed enough to utilize as a basis for complex pricing plans. ranging up to 80 Gbps. As with cable TV in the 1980s. However. In addition. and other RF performance parameters. Rohde & Schwarz. and Tektronix. Verizon Wireless has hinted that its strategy calls for migration to multi-tiered billing structures. Thus.6 Optimizing Revenue The final – and arguably the most important – step in optimizing the network will come in the form of pricing plans tailored to extract more money from the end user. power output. DPI tools can identify the content in each IP packet. intermodulation from passive components was considered negligible. Overall. occupy a relatively stable capital equipment market that is currently entering a phase of supplying deployment/monitoring gear for LTE. 13 . Coming out of the Internet market. triggering the OSS/BSS (Operations Support System/Business Support System) to enforce policies on whether individual users may access each content type. The potential for increased revenue remains untapped in the market. they will always need RF test equipment and trained technicians to check antenna position. or another mobile user to establish some coarse data categories. mobile networks will be moving away from flat-price data plans and toward a variety of pricing tiers. without the express written permission of Licensor. spending 70% or more of capital investment on the data network and deriving 75% of revenue from voice traffic.Mobile Network Optimization ABIresearch ® 2. Many network operators feel that these solutions are more suitable for troubleshooting and diagnostics. content-driven plans tailored to end-user preferences. network operators have yet to deploy DPI widely enough to implement new pricing plans. Anritsu. During the past year. we expect several major operators to gradually move pricing plans toward tiered. ABI Research expects operators to continue driving their networks toward better monitoring and diagnostic tools so that they can implement policies based on content. but dual-band antenna and radio front-end systems make it possible for loose connectors or dirty interfaces to create interference for mobile signals. In the past. such as Agilent. A complete suite of DPI boxes (to accompany every GGSN on the network) is necessary before an operator can implement a content-based pricing structure. an Internet server. Special PIM testers have emerged as a new item on the market to address the loss of capacity and performance that accompanies PIM. spectral emissions. For example. © 2010 ABI Research • abiresearch. The mobile operator finds itself in a strange dilemma today.

Figure 2. or replace failed components.8 Probes While portable RF test equipment is sometimes necessary. adjust the position of an antenna.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. the operator must periodically send a technician into the field to measure radio parameters. and LTE gateways can provide information for almost instant diagnosis of simple problems. In addition to protocol analyzers. OSS systems. The most common configurations involve probes in the 3G mobile core network. SGSN. with a recent trend to add more probes at 3G and LTE radio network interfaces. Probes report data up to a centralized aggregation point. A monitoring system that uses probes installed at interfaces to RNC.2 An Example of a Portable Spectrum Analyzer (Source: Anritsu Co) 2. They also typically include Ethernet ports so that a technician can plug in a laptop to view a probe’s data output locally. Probes are generally passive data-collection devices that can be inserted at the interfaces of a network without affecting communications between the network elements. perform a drive test. GGSN. and the other diagnostic tools discussed in this report. © 2010 ABI Research • abiresearch. 14 . MME. as well. They can range from 19-inch rack-mounted boxes to standardized (ATCA) racks with multiple probe cards. without limitation. and are sold along with software to view a summary of network data. to persons within the same corporate or other entity as such Licensee.Mobile Network Optimization ABIresearch ® Network operators procure portable RF test equipment as a part of their comprehensive monitoring and maintenance plan. most problems can be diagnosed immediately through information available from the network elements themselves. without the express written permission of Licensor.

As the network OEMs introduce more self-organizing and self-optimizing networks. 15 .com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. and $160 million in probes for the radio and Layer 2 signaling. Thus. typically located at interfaces to SGSN and GGSN equipment. and Alcatel-Lucent. Huawei.Mobile Network Optimization ABIresearch ® Figure 2. In these cases. to persons within the same corporate or other entity as such Licensee. in many cases. These operators are more likely to rely on diagnostic elements built into the network and summarized in the OSS provided by their primary supplier. NSN. typically located near the RNC equipment in 3G networks. Operators have mixed responses to this trend: • Operators that want to maintain flexible and manual control over the network are reluctant to turn over control to an automated system. the probe vendors will continue to see growth in the number of units sold and complexity/capacity of the probes. the network diagnostic capability will expand and the network’s ability to automate a response will also improve.3 An Example of an ATCA Rack-Mounted Network Probe (Source: Tektronix Communications) The market for network monitoring probes and related software/transport optimization includes more than $300 million in routing and transport layers. Operators that want integrated data collection (especially operators that have experienced problems with multivendor interoperability) see the network OEM as the best way to summarize diagnostic data. without limitation. without the express written permission of Licensor. driving an ongoing growth market. • © 2010 ABI Research • abiresearch. an interesting level of competition will arise between probe vendors and network equipment manufacturers such as Ericsson. When LTE systems roll out. the OEMs will limit initial SON features to self-configuration aspects.

protocol analyzers are a key link between performance monitoring systems and optimization processes for the network operator.4 Network Monitoring Solutions Applied to Different OSI Layers (Source: ABI Research) 2. technicians must be able to duplicate the loading conditions that stress the network. As such. Astellia. and Agilent Technologies provide protocol analyzers with diagnostic capability supplied through a graphic user interface at the network operations center. Figure 2. tracing a call or data session to determine what bottlenecks are affecting performance.Mobile Network Optimization ABIresearch ® Overall. and Tektronix are filling the holes left in modern networks by providing valuable missing information in a simplified and aggregated central console. and then visualize the impact on Layers 1 through 4.9 Protocol Analyzers To fully understand the root causes of limitations in the network. ABI Research does not expect to see these vendors step too deeply into automation of network responses. Radcom. Some companies. Rack-mounted protocol analyzers normally allow multiple users to log on simultaneously. Agilent. the protocol analyzer and related equipment can simulate heavy loading conditions to emulate the conditions during a recent failure. step further into optimization of the transport layer through active intervention in session setup. EXFO. Due to the reluctance of operators to give up control. as well as a hard disk drive for storage of data session signaling information. to persons within the same corporate or other entity as such Licensee. without the express written permission of Licensor. such as Tellabs. They will also gradually offer higher sophistication in the analysis of problems and recommended response by operators. Companies such as Tektronix Communications. © 2010 ABI Research • abiresearch.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. EXFO. protocol analyzers are typically brought in to investigate issues that span multiple communication layers. Nevertheless. these vendors will continue to increase the scope of their probe offerings to accommodate LTE networks. and Spirent. While network probes generally focus on the operation of Layers 1 and 2. probe vendors such as Astellia. In many cases. without limitation. Analyzers can be portable test equipment or stationary installations in rack-mounted enclosures. Emulators are sometimes used to simulate heavy loads of network traffic (late at night) so that testing a more optimal solution can take place without impacting too many users. 16 . Each subsystem includes the data collection/capture electronics.

17 . Over time. to persons within the same corporate or other entity as such Licensee. DPI equipment. well. without the express written permission of Licensor. and other high-layer capability will be added to the simpler radio algorithms. in theory the optimization is. offloading. How will this affect the market for network monitoring and optimization gear? It may be too early to draw any final conclusions to this question. and other handy tools from competing outside suppliers. These cases illustrate the undeniable trend toward the outsourcing of network management toward the major OEMs. In the end. we can expect the simple. the dynamics of selling independent solutions into the changing network management community will shift as OEMs increasingly call the shots. optimal.5 Use of a Protocol Analyzer to Monitor Network Messaging (Source: Radcom) 2. while 38% of Ericsson’s revenue is derived from mobile operator services. too much reliance on in-house solutions can leave the network without the best tools for optimizing each communications layer. If the trend toward services outsourcing continues as planned.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. without limitation. radio-centric SON algorithms offered by major OEMs to become more sophisticated for services customers. However. large network equipment suppliers are often more reluctant to engage with independent suppliers of probes. Network equipment manufacturers are increasingly gathering revenue through services contracts. Ericsson has made some high-profile announcements of its management of major networks on behalf of major wireless service providers such as Sprint Nextel and Bharti.10 Impact of Managed Services on Optimization Roughly half of Nokia Siemens Networks’ revenue comes from services. the leverage applied by the major OEMs will put limits on market growth for independent suppliers.Mobile Network Optimization ABIresearch ® Figure 2. DPI. as two-thirds of network operators still manage their own equipment. © 2010 ABI Research • abiresearch. with companies like In cases where the OEM manages and optimizes the network. However.

Bundled OSS from the network equipment manufacturers comprise roughly 65% of total 3G NodeB sites globally. Independent OSS vendors tend to move more quickly than NEMs to adapt to changes desired by the network operators. without limitation. mobile networks.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. Thus. Independent vendors such as Agilent. 18 . without the express written permission of Licensor. Merchant OSS Market. Anritsu. Many network deployments include sales of both network elements and an OSS. satellite. 2010 Merchant Market. Chart 2. Service providers and even large enterprises employ OSS to monitor and manage their network elements over a growing breadth of network complexity. In the mobile world. the “captive” or bundled market for OSS is difficult to separate from the sales of network equipment.Mobile Network Optimization ABIresearch ® 2. to persons within the same corporate or other entity as such Licensee. so differentiation takes place in the speed and flexibility of customization and in the ease-of-use for the applications using OSS information. Smaller players such as Mycom offer visibility in simple software that aggregates information from multivendor networks so that operators can visualize the entire network in one place. and Internet systems.11 Operations Support Systems The multibillion-dollar market for OSS software spans wired telephony. Both network OEMs and independent suppliers can access the standardized data from network interfaces. due to the difficulty for any one company to cover all of the possibilities in complex multivendor. 65% (Source: ABI Research) The served market for mobile OSS software is at $400 million per year and growing steadily. World Market.3 Captive OSS Market vs. 35% Captive Market. the OSS is responsible for organizing information on the status of network elements. © 2010 ABI Research • abiresearch. and Tektronix also offer more flexibility in OSS integration with business systems. and aggregating performance information reported by each network component. multi-generation systems. cable networks. including inventory and relationships between network elements.

The OSS does not typically interfere with any systems because the process is oriented around information gathering. which aggregates and displays information for the operator. LTE/WiMAX metrics are a bit different than the 2G and 3G KPIs gathered in some of today’s systems. 19 . without limitation. As LTE and WiMAX networks are overlaid on top of existing 2G/3G networks.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including.Mobile Network Optimization ABIresearch ® OSS typically consist of the software itself. ABI Research expects the OSS software to need even more flexibility and capability in order to gather multivendor data. to persons within the same corporate or other entity as such Licensee. the OSS provided by a major network OEM is connected to its own network elements. In most cases.6 OSS Architecture and Applications (Source: Nokia Siemens Networks) © 2010 ABI Research • abiresearch. so a significant trend in the LTE/WiMAX OSS market will involve software upgrades to integrate new parameters. Many of the independent OSS solutions sold today are packaged together with network probes or protocol analyzers in order to create a more complete picture of the entire multivendor network. rather than controlling network elements. without the express written permission of Licensor. resulting in islands of information. Figure 2.

Monitoring data can be reported to the network operator to initiate a business action. routing. such as suggesting a new data/pricing plan to the customer. throughput. optimization algorithms using the monitoring data collected can be implemented to change radio. Those days are over. without the express written permission of Licensor. and other KPIs in Layers 2 through 4. GGSNs. eNodeB. and backhaul come from competing vendors. mechanical intervention. S-GW Software at a NOC server GGSN. Tools available to network operators include the following: • • • • • • • Portable test equipment for initial network deployment is used periodically to monitor and maintain the radio layer. S-GW RNC/SGSN interface Primary OSI Layer Addressed Layers 5-7 Layer 1 Layers 1-2 Layers 3-4 Layers 1-7 Layers 5-7 Layers 3-7 Example of Impact End-to-end optimization possible Improved spectral efficiency. which examine the data packets for signatures that indicate what type of application is used. Table 3. error rates. RNC sites SGSN.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. climb up on a rooftop or even onto a tower to change the tilt of an antenna. As operators begin to deploy LTE. GGSN. Operations support systems (OSS) are implemented to centralize the collection and control of multiple elements within the radio access and core networks.Mobile Network Optimization ABIresearch Section 3. and thus manual intervention is a smaller part of the overall picture. RNCs. to persons within the same corporate or other entity as such Licensee. collecting data from base station and NodeB sites. as well as a multivendor environment in which elements of the mobile network.1 Applicability and Impact of Various Monitoring Solutions Equipment Location UE NodeB and eNodeB sites NodeB. In all cases. without limitation. Instead of simple antenna tilting and other tweaks to the radio layer. Stationary probes can be installed at almost every interface in the mobile network. Protocol analyzers are often used to monitor the traffic and statistical data such as retransmission rates. © 2010 ABI Research • abiresearch. network optimization today involves changes to Layers 2 through 7 using a wide variety of tools and techniques. making an overall monitoring and optimization solution work requires an active and organized strategy. core network. 20 . or application parameters. cell technicians would endlessly drive around and watch the received signal strength indicator (RSSI) on a special handset. SGSNs. in many cases. TECHNOLOGY ® In the 1990s. QoS Improved transport efficiency Improved troubleshooting time Improved traffic prioritization Clears capacity for other traffic (Source: ABI Research) Solution Type UE Clients Radio Test Radio Probes Protocol/Signaling Analyzers OSS DPI Network Offloading Almost every major mobile network today involves a mixture of 2G and 3G. The traffic itself can be monitored through deep packet inspection (DPI) tools. The complexity of 3G and 4G networks is making this simplistic type of radio optimization much less effective. and media gateways. QoS Improved handover. MME. hoping to solve many different issues with this manual. They would then.

as SON use cases are primarily aimed at radio-related issues in early deployment. and set optimal parameters for handoff to/from the neighboring cells. populate the list of neighboring cells.1 Self-Configuring Networks The first use cases considered and implemented in 3GPP clearly rank among the most important in terms of operational cost savings. SONs can save time in multiple different areas – from RF planning to inventory management. © 2010 ABI Research • abiresearch. 21 . As it recognizes the new eNodeB.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. without the express written permission of Licensor. In addition to SON. In practice. many network operators will deploy DPI solutions or other end-to-end monitoring solutions to oversee network performance. fairly manual processes and tools while relying on SONs to save manpower and effort in the LTE overlay network.1 Self-Organizing Network Features (Source: Mobile Experts) 3. many network operators plan to continue monitoring and optimizing 2G and 3G networks with their existing. 3. The SON approach does not solve many problems. to persons within the same corporate or other entity as such Licensee. the network will also automatically update the neighbor lists for the other eNodeB elements and trigger the re-optimization of their respective handoff parameters.1. setup and configuration of a new eNodeB relies on the new network element to configure itself for frequency selection. without limitation. In LTE networks.Mobile Network Optimization ABIresearch ® Overall.1 Self-Organizing Networks Self-organizing networks (also often known as self-optimizing networks) encompass a vast range of use cases in which the network itself takes care of tasks that previously had been handled manually by the RF planning and maintenance technicians. Figure 3.

As a result. including: • • • • • RF power or antenna tilt optimization to reduce pilot pollution Load balancing between cells Interference avoidance through changes in channel selection and power levels Transport optimization through adjustment of packet sizes and signaling QoS adjustments based on DPI to change packet scheduling priorities 3. 3GPP has defined several use cases for self-optimizing networks. which can then be used to fine-tune the network settings.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. the typical functionality of a NodeB and a radio network controller are rolled into a single low-cost consumer box. the intelligence can easily be applied to more mundane tasks to assist in tracking network elements and software updates. spectral efficiency. Typical LTE or WiMAX use cases for self-configuring networks include: • • • • Installation and radio provisioning of each eNodeB Automatic neighbor relations (ANR) used to populate a list of handoff candidates Authentication of the new eNodeB to the element management system (EMS) Setting radio parameters (C/I and RSSI) for handoffs to neighboring cells 3. without limitation. In a femtocell. to persons within the same corporate or other entity as such Licensee. without the express written permission of Licensor. 22 .4 Self-Healing Networks Automated network responses to problems constitute an important part of maintaining high-quality services available for the end user. the configuration algorithms must take into account both the radio parameters typically set for the NodeB and the handoff and transport setup that is typically achieved in the RNC. Use cases include: • • • Rapid network reconfiguration to compensate for eNodeB outages Re-routing of traffic for loss of service in the transport layer Isolation of faults to identify the root cause of a failure automatically © 2010 ABI Research • abiresearch.1.2 Self-Optimizing Networks Optimization of a 4G network normally focuses on the collection of KPIs.1.1. combined with reconfiguration or re-optimization as necessary Reporting of KPIs to key personnel in the network operator organization Tracking of fault data within the network – with 2G/3G and even multivendor complex networks 3. The goal for a network operator is to optimize for operating cost efficiency. or transport cost efficiency and balance this optimization with its targets for quality of service. Key use cases include: • • • • Automated inventory tracking for each network element Automated software updates for eNodeB hardware.3 Self-Operating Networks With a network that sets itself up and optimizes its operation.Mobile Network Optimization ABIresearch ® Femtocell implementation makes this functionality crucial. since femtocells are intended to be installed in the field by end users instead of trained network technicians.

without the express written permission of Licensor. Trading off radio. Therefore. However. RAN probes and protocol analyzers provide data to a central graphical user interface that displays more granular data than the OSS. user-friendly. but in fact the packet transmission was successful each time. resulting in a failure that appears to be related to call traffic and RAN performance. network operators plan to use end-to-end monitoring equipment and specific analysis gear from tool vendors to gain the overall visibility and multivendor analysis that their OEM solutions lack. presenting a unified picture to the operator. latency. transport. Inventory and quick-response actions to recover from failures will also be implemented. we anticipate that SONs will not result in fully automated networks. 3. Operators know that their networks are not prepackaged solutions that are fully tested in a sterile lab environment. The development of femtocells has accelerated this trend. The RAN re-transmits the packets (e. © 2010 ABI Research • abiresearch. whereby KPIs are tracked and adjustments are made to parameters in Layers 1 through 7 to maximize efficiency and minimize cost. The operator’s data applications demand a wide variety of jitter. without limitation.Mobile Network Optimization 3. as well as some EV-DO networks.g. Above the radio access layers.1. as well as between the SGSN and GGSN. Many 3G HSPA and HSPA+ networks. independent tools will provide more granular.. ABI Research expects SONs to become normal practice for the configuration of eNodeBs. include features for self-configuration and self-healing. this Holy Grail is still several years away due to the technical barriers to true optimization in multivendor network environments where the system is essentially untestable until deployment in the field. and actionable information than the 4G SON. leading to a separate parallel monitoring system with probes at several interfaces in the network chain. 3G voice and data services. from the RNC to the SGSN) two or three times. Independent suppliers of monitoring and optimization tools therefore have fertile soil in which to grow businesses based on the aggregation of network performance data. and suggesting changes to the network. In 3G networks today. and will add 4G data services soon. to persons within the same corporate or other entity as such Licensee. allowing for more specific troubleshooting. A coordinated set of protocol analyzer probes between the RNC and SGSN. The processor of the RNC is eventually overloaded.2 Monitoring and Optimization Tools A typical mobile operator has 2G voice and SMS services.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. The end game for SONs is to achieve a network with truly self-optimizing performance. with steady growth in the sophistication of solutions over the next five years. the OSS provided with the original network deployment is often seen as inadequate.5 Trends in Self-Organizing Networks ABIresearch ® OEMs are introducing features of SONs ahead of the launch of 4G/LTE systems. causing the radio access network to assume that the packets have not been successfully transmitted. A common problem arises when peering delays in the IP core produce latency. Yet. Overall. as well as inventory control features. and network parameters to help all of these services coexist optimally is challenging for any one network equipment manufacturer. 23 . since the self-configuration and self-optimization features of femtocells are implemented in extremely inexpensive equipment and can be easily applied to the RF layer of any NodeB. can isolate the problem and identify the IP latency as the true root cause. As such. as well as 2G and 3G base stations. Here’s an example to illustrate a typical troubleshooting scenario. many operators are very reluctant to implement any optimization algorithms that take over control of the network. and throughput requirements from the network.

monitoring the throughput for data applications and. SONs. in some cases. The client-based monitoring and optimization approach is quite new. Mobidia. it is currently emerging with pre-revenue startup companies. By positioning an optimization client in the smartphone. DPI. Roughly twenty trials are underway worldwide to verify compliance and interoperability with OSS tools.Mobile Network Optimization ABIresearch ® Figure 3.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. to persons within the same corporate or other entity as such Licensee. and Venturi Wireless take the challenge of end-to-end performance monitoring all the way to the user device itself. and other network-based optimization features. without the express written permission of Licensor. © 2010 ABI Research • abiresearch. Up to 30% efficiency improvement in the transport layer is possible through these techniques. 24 . Mobidia or Venturi can optimize the TCP link through either compression or a proxy for the TCP sessions. These companies have clients that reside on the smartphone.2. though some of the compression techniques will cause problems with any DPI tools that are deployed by the operator since the normal data signature will be altered. working with its sister software in the core network to optimize the transport layer. without limitation.1 Smartphone Clients Companies such as Keynote.2 An Example of a Network Probe Analysis Report (Source: Tektronix Communications) 3.

S11. probes are often installed to monitor multiple locations throughout the system as follows: • • • • • • A passive air interface probe can monitor the Uu interface (between the handset and the NodeB) for mobile throughput/error rate issues The Iub interface (between nodeB and RNC) can be monitored for call drop. 25 . without the express written permission of Licensor.) connect to the Evolved Packet Core elements such as the Mobility Management Entity (MME) and serving gateway. including: • • The X2 interface between eNodeB sites duplicates the Iur functionality Multiple Sx interfaces (S1-U.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. Astellia. Anritsu. etc.2. signaling. In a 3G network. stationary feature of the network monitoring strategy.2 Network Probes ABIresearch ® Equipment inserted into the network to monitor performance can monitor traffic on almost any interface.3 Probe Locations in a Typical LTE Network (Source: Agilent Technologies) A probe can be used temporarily for initial setup of a network. This is an established market in 3G networks. to persons within the same corporate or other entity as such Licensee. as well as handover between 3G and LTE © 2010 ABI Research • abiresearch. with companies such as Agilent. and other Layers 2 through 4 KPIs The Iur interface (between RNCs) can be monitored for handover and neighbor list updates The Iu-CS and Iu-PS interfaces (between RNC and MSC/SGSN) can be monitored for transport efficiency The Gn interface (between the SGSN and GGSN) can be monitored for transport efficiency The Gi interface (“north” of the GGSN. S6a. offering an opportunity to monitor IP traffic for content and efficiency. Figure 3. handover. but increasingly the probes are being implemented as a permanent.Mobile Network Optimization 3. S1-C. without limitation. S4. and Tektronix providing probes both to network equipment manufacturers and directly to the network operators. at the interface to the IP core network) As the network migrates to include LTE. S3. a few new interfaces are added.

DPI tools typically include equipment permanently installed in the IP layers of the mobile network. FTP files. independent of the data application. DPI solutions have advanced to the extent that they can pick off signaling traffic to identify the individual user device and/or NodeB associated with each data packet. allowing the operator to precisely understand which users are downloading video content. without the express written permission of Licensor.2. companies such as Allot Communications. which can provide analytical data on the signaling at each network element.4 Deep Packet Inspection To analyze the content in the data stream. configure a UMTS NodeB. several suppliers have introduced DPI tools. and the current trend is for high-capacity solutions (60 Gbps and trending up to 100 Gbps) to monitor every packet transmitted through the network. which enables every packet to be inspected in real time. DPI vendors appear to be focused on Layer 5-7 identification of applications and session traffic. Portable analyzers are a common historical method for this type of troubleshooting. together with a graphical user interface or integrated with the vendor’s OSS software. probes are utilized as a troubleshooting tool rather than an automated optimization tool.Mobile Network Optimization ABIresearch ® A typical monitoring probe solution is usually employed to keep track of performance data. 3. DPI is presently moving toward the prioritization of traffic by application while other solutions are focused on network/transport layer efficiency. Currently.3 Signaling and Protocol Analyzers The wired Internet world has created a robust market for IP protocol analyzers. to persons within the same corporate or other entity as such Licensee. highlighting bottlenecks and issues in the data flow through the network. working together with a signaling or protocol analyzer to summarize network performance data. CCPU. providing data to multiple users through web interfaces. trace calls. 3. or it can reside on the packet core network elements as a software application. Current state-of-the-art DPI tools provide the ability to perform real-time analysis on high-capacity data networks. In summary. web pages. while protocol and signaling analyzers focus on Layer 3-4 efficiency. or even record and store a voice call. signaling and protocol analyzers offer operators a convenient user interface with which they can see graphical representations of traffic loading patterns at Layers 2 through 4 and a limited view into specific users and applications. Note that these probes are typically sold as a package.2. Procera. instead of simply monitoring the type of signaling used to establish data connections. 26 . DPI tools can isolate the type of traffic transmitted. or other applications. This type of analyzer can be implemented as a rack-mounted box with integrated storage. and Tellabs were showing DPI capabilities up to 60 Gbps to 80 Gbps. © 2010 ABI Research • abiresearch. VoIP traffic. without limitation. I complexity and speed of today’s mobile data environment demands that the signaling and/or protocol analyzer must be permanently attached to the network and multiple probes.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. Signaling analyzers can store analytical data representing a user’s data usage. So far. At CTIA 2010.

that privacy is an issue that may inhibit the growth of DPI tools. other users will have different priorities. On the other hand. to persons within the same corporate or other entity as such Licensee.3 Centralized vs. any ongoing discussion of “net neutrality” in regulatory circles could inhibit the growth of DPI tools in the mobile data network. taking advantage of a central point for data collection. the use of the data will require time to mature. New pricing plans for end users will evolve based on the capability inherent in DPI engines in order to separate the pricing for different kinds of data. video. The rich diversity of end-user preferences creates fertile ground for DPI-based pricing plans to grow. without the express written permission of Licensor. Note. but there is a risk that privacy concerns in the wider consumer audience will impact an operator’s ability to prioritize traffic.Mobile Network Optimization ABIresearch ® Although DPI tools are becoming highly sophisticated and capable. VoIP traffic may require higher priority to avoid latency. Actions that require data from multiple network elements and affect parameter settings in multiple modules are usually centralized. etc. without limitation. but the future evolution of these tools will become more integrated with different levels of optimization. the general public has not reacted to an operator’s capability to monitor traffic usage.. © 2010 ABI Research • abiresearch. while web browsing may be more tolerant). actions that can take place independently of other network resources can be localized in a single eNodeB.). Conversely. So far. Consider the following: • • Certain types of network traffic will automatically be given higher priority (i. Mobile operators today typically use the analysis to understand data traffic patterns (VoIP vs. Distributed Optimization The algorithms used for decision making in network optimization are often carried out in a central operations support system (OSS). and software optimizing these areas can reside in the eNodeB itself. In addition. but not for VoIP traffic. 3. though.e. web browsing vs. Facebook fanatics may be willing to pay a premium for each Facebook megabyte. 27 .com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including.

As a result. without limitation. Figure 3.4 Interoperability for Multiple Optimizing Algorithms The danger of creating a system with dozens of algorithms lies in the tendency for separate processes to work at cross purposes to each other. and adaptation to failure conditions are use cases that are expected in future LTE systems but have less relevance in the early deployment phase.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. This issue becomes especially acute in the case of multi-generational. Distributed SON Architectures (Source: Comarch) 3. 3G optimization on Vendor A’s NodeB may conflict with 4G optimization on Vendor B’s femtocell or Vendor C’s LTE infrastructure. with different use cases handled in different ways. 28 . Concern over interoperability leads to a major question for mobile operators: Should they combine SONs supplied by their major OEM suppliers with monitoring/optimization solutions from third-party vendors? © 2010 ABI Research • abiresearch. An overall strategy is necessary to resolve any conflict between systems. without the express written permission of Licensor. ABI Research anticipates SONs will move from distributed architectures toward more centralization over time.Mobile Network Optimization ABIresearch ® The distributed SON architecture is best suited to use cases involving network element self-configuration. Optimization of efficiency. While one algorithm may be adjusting parameters such as frequency settings to avoid interference. a second algorithm may be changing the frequency settings back to accommodate changes in another cell. to persons within the same corporate or other entity as such Licensee. QoS. multivendor systems. which typically take place upon deployment of the system.4 Centralized SON vs.

RNC.5 Mobile Offloading The notion of pulling mobile data traffic away from the mobile core network has risen very quickly to the forefront of the industry recently. but we can highlight a few of the known issues as examples: • • Any optimization in the Layer 2 or 3 packet protocols that compress data will render DPI useless for monitoring the content at higher layers. hundreds or thousands of data connections will initiate at once. resulting in either constant oscillation in the optimization algorithms or convergence (a non-optimal compromise). HLR. Multiple algorithms that address Layer 1 and 2 radio settings may compete with each other. RF frequencies and power levels can be adjusted by multiple algorithms as new cells are configured or as interference avoidance is adjusted. the network can also offload its own data traffic. standardization of SONs and DPI will help to define the boundaries for each solution.Mobile Network Optimization ABIresearch ® The scope of endless possible issues between different vendors and algorithms is too large to address in this report. 29 . the concern about interference between algorithms is not well articulated in the market today. 3. and backhaul offloading have all become very hot topics lately. Femtocells. without limitation.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. without the express written permission of Licensor. In brief. When the users re-register on the network. though. Vendors with partnerships and pre-tested solutions will emerge over the next few years in order to satisfy customer anxiety. overloading the NodeB. but it remains a nagging doubt for operators. to persons within the same corporate or other entity as such Licensee. and SGSN simultaneously. the overall complexity of possible interactions between solutions is so large that standardization and OSS software alone will not be enough. To some degree. as the mobile tsunami threatens to swamp many mobile data operators. © 2010 ABI Research • abiresearch. Growth of the market for independent optimization solutions depends on each vendor’s ability to pre-test its solutions in a wide variety of network environments. Femtocells and Wi-Fi lie outside the scope of this report since they are consumer premises solutions. A firewall crash (or virtually any failure in the core network) can drop thousands of users at one time. • Overall. New solutions from companies such as Stoke can recognize the originating application for network traffic and can redirect the traffic directly to an Internet node instead of routing the traffic through a 3G SGSN/GGSN or through an LTE media gateway. Nevertheless. Wi-Fi.

Amdocs has excellent know-how in defining the customer experience and should be able to offer some useful tools for the monitoring/management of higher layers (Layer 4 and above). As networks have developed. CDMA.3 Alcatel-Lucent Alcatel-Lucent supplies network infrastructure to the mobile market. with a reputation for having efficient solutions for high-capacity DPI applications. the company is likely to continue to have difficulty capturing a major share of the general mobile OSS market. whereby Alcatel-Lucent can monitor and troubleshoot multivendor networks. Allot’s products examine every packet and can isolate the user and the cell site involved in order to integrate with policy control functions. and has placed over twenty systems with network operators globally over the past eighteen months. Overall.Mobile Network Optimization ABIresearch Section 4. The company reached $41 million in both fixed and mobile network revenue during 2009. Agilent has migrated toward more support of “live” networks. The company also supplies OSS software for mobile networks. Only a small proportion of its revenue comes from the mobile infrastructure market. and UMTS/HSPA technologies.2 Agilent Technologies Agilent has participated in the mobile ecosystem from its early days as a supplier of test equipment in the radio layer and protocol and signal analyzers to develop network infrastructure. Lucent. 4. due to the integrated bundles offered by mobile specialists such as Ericsson. to persons within the same corporate or other entity as such Licensee. with probes and software to monitor and aggregate information for the operator.5 Amdocs As a large supplier of OSS for a wide variety of networks.8 billion in revenue annually. Actix offered a self-optimizing network solution during early 2009 for LTE networks. 4.4 Allot Communications Allot is an independent supplier of DPI solutions with a focus on the mobile market. 4. Allot is in a good position. Actix is an independent private company that supplies OSS software. and today’s organization combines business groups from Alcatel. Amdocs collects roughly $2. without limitation. Still. The company supports both network operators and OEM customers with software development related to network management and optimization.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. The company offers its “Wireless Network Guardian” as a “dynamic control” OSS solution. without the express written permission of Licensor. 30 .1 Actix Ltd Based in London. Alcatel-Lucent has been able to move quickly into the monitoring/optimization space and will directly compete with nimble smaller companies for a sizable share of the independent monitoring market. The company is focused on the multivendor aspect of this monitoring/optimization product line. and Nortel to cover GSM. Huawei. 4. © 2010 ABI Research • abiresearch. The company devotes significant R&D effort toward finding efficient “signatures” for mobile data traffic so that it can handle high-capacity DPI cases in which 45 Mbps to 60 Gbps must be handled in real time. and Nokia Siemens Networks. KEY INDUSTRY PLAYERS ® 4. However.

Anritsu collected roughly $490 million in test and measurement-related revenue in 2009.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including.9 Comarch Based in Warsaw. 4. Overall. Vodafone. taking information from network elements or network management systems to present a unified view of network performance. the company supplies OSS-related software monitoring solutions to 3. as well as information from network elements. T-Mobile.Mobile Network Optimization ABIresearch ® 4. ranging from wireline telephony to cable networks and mobile networks. it has migrated into the DPI market. While Azimuth does not participate heavily in the monitoring of live networks. protocol stacks and software for 3G and 4G networks.6 Anritsu Company Anritsu Company and its parent Anritsu Corp in Japan are focused on the test and measurement market.12 Ericsson AB Ericsson holds leading market share in the mobile network infrastructure market. 4. as well as professional services to customize monitoring solutions. growing slightly despite the global recession. 4. 4. Comarch is more active in OSS outside of the mobile/wireless market. it does get involved with troubleshooting and optimization of the radio performance layer. Empirix has had a slow start in capturing major mobile customers and may be challenged to find a place in the mobile market as LTE vendor relationships solidify. Telcel. rather than to network operators. During the past few years. Astellia is publicly traded with headquarters in France. In addition. Ericsson maintains its leadership through strong relationships with hundreds of network operators. They have established leading market share for portable radio test gear for mobile networks. 4. to persons within the same corporate or other entity as such Licensee.7 Astellia Astellia has supplied radio probes and related monitoring software to as many as 150 operators worldwide. but has focused recent efforts on the stronger growth in the mobile OSS market. Comarch is an established supplier of OSS mediation software. The company works closely with either network operators or OEM customers to bring its staff’s experience in radio frequency propagation and channel conditions into drive test scenarios. and other operators. without limitation.10 Continuous Computing Corp Continuous Computing provides enabling technologies directly to OEMs. The company supplies mobile radio © 2010 ABI Research • abiresearch. The company also focuses on inventory management and the use of network configuration information to trace the root cause of network issues.11 Empirix Privately held and headquartered near Boston. 31 . Continuous Computing addresses both macro layer and femtocell solutions. providing at least twelve different mobile infrastructure manufacturers with a basic DPI engine to analyze their traffic.8 Azimuth Systems Inc Azimuth Systems focuses on pre-deployment laboratory testing for mobile networks. The company supplies ATCA-based racks with software for network monitoring.000 employees worldwide. The company provides quality assurance software for IP networks in multiple markets. Based in Stockholm with over 80. 4. Comarch will be challenged to compete with large network equipment manufacturers and independent mobile specialist vendors. with new development stepping out into field testing for trials and deployment. The company collected roughly $35 million in revenue during 2009. Empirix has roughly 280 employees. focusing on helping operators optimize their radio layer. Astellia currently supports 2G and 3G technologies and can aggregate KPIs from its own probes. without the express written permission of Licensor.

to persons within the same corporate or other entity as such Licensee. The company has won contracts with very inexpensive hardware. and the software provided with the network has been useful for managing the Huawei elements in the network. It reported roughly $60 million in revenue related to EXFO’s protocol analysis/troubleshooting tools and wireline focus and roughly $40 million related to NetHawk’s protocol analysis. and service assurance solutions for mobile networks. including SON systems for LTE. without limitation.Mobile Network Optimization ABIresearch ® access. transport. 4.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. as well as protocol analysis and troubleshooting tools.16 Mobidia Mobidia is a pre-revenue startup company that focuses on optimization of the transport layer. Ericsson acquired Redback Networks in 2006. Huawei’s OSS suite is less popular with regard to aggregating performance monitoring from multivendor networks. Huawei has been extremely effective in capturing new network opportunities for GSM and WCDMA networks.13 EXFO Inc EXFO acquired NetHawk Oyj in March 2010. creating a combined company to offer a strong competitor in IP packet capture. giving the company greater capability and market share in IP routing. and transport monitoring tools. It is interesting to note that in 2003. The company’s solutions address fixed and mobile IP networks. only 24% of revenue came from services. Mobidia has roughly 15 million connection manager clients installed so far with one major global mobile operator. 4. Recently. A growing opportunity to support Huawei networks with software solutions and monitoring systems will be a key part of the independent market for optimization solutions. this organization has been able to provide Ericsson with DPI tools for mobile networks as well. Keynote currently controls virtually all of the revenue for monitoring solutions based on UE client applications. network simulation. DPI. probes.15 Keynote Systems. 4. Roughly 38% of Ericsson revenue comes from the services organization. Note that Ericsson systems present an opportunity for independent vendors to enter with OSS software. © 2010 ABI Research • abiresearch. The company provides a proxy for TCP sessions that uses software loaded in the user’s device and in the GGSN (or a separate box) to bypass the mobile transport layer and boost efficiency.14 Huawei Technologies China-based Huawei has quickly become a strong competitor to Ericsson and Nokia Siemens Networks in the mobile infrastructure market. overlaying its infrastructure on legacy systems provided by other vendors in most cases. without the express written permission of Licensor. 32 . In addition. DPI. 4. Ericsson provides OSS software solutions and services to assist operators in monitoring and optimizing their networks. with a clear focus on the mobile market despite revenue behind some competitors in protocol analysis and DPI. showing a trend toward more service support – even though there is no official company strategy to move in that direction. Inc Keynote Systems provides a unique mobile monitoring solution based on a smartphone client. An estimated 15% to 30% efficiency increase in Layer 4 is typical for existing smartphones and 3G networks. thus providing Ericsson with better diagnostic capability for mobile networks. and packet core infrastructure. and DPI solutions because the company’s infrastructure is perceived as relatively inflexible for monitoring and optimization customization. The Keynote “Mobile Device Perspective” measures download speeds for web sites using a typical smartphone. creating a useful service for network operators and enterprise customers to check the performance of mobile web services.

along with Zain Saudi Arabia and others. as well as the political clout and scale of Ericsson/NSN/Alcatel-Lucent. highlighting its continued presence as a strong infrastructure supplier within the Japanese market. Its solutions attempt to analyze not just Layers 1 and 2.18 Nippon Electric Corp (NEC) NEC began shipping LTE base stations to NTT DoCoMo during March 2010. During 2010. The company supplies both OEMs and network operators and has a focused strategy. with roughly $17 million in annual revenue from fixed and mobile networks. Radcom’s system can pick off information about the origin or type of data transmitted without DPI so that the company can optimize radio parameters.21 Radcom Based in Israel. ABI Research sees Procera as a company to watch. Motorola plans to deploy an LTE network for KDDI in Japan.600 applications identified by Procera today. The limited scope of the Radcom solution is likely to be successful. but also the higher layers. The company provides a system of probes and service monitoring software that operates as a standalone solution. In addition. The company includes SON technology in its LTE solution. 33 .19 Nokia Siemens Networks Nokia Siemens Networks is a joint venture of Nokia and Siemens. NEC has some early LTE trial deployments with Telefonica and SingTel. 4.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including.000 employees and a global presence as a supplier of mobile infrastructure. 4. NSN has a good stable of service assurance products and can handle multivendor networks.17 Motorola Despite a very strong history in mobile communications. which it uses to provide the best high-resolution view of applications running on the network. as well as software from Actix as an optimization algorithm. with some capability to handle multivendor inputs for standardized KPIs. it will be challenged by nimble third-party vendors of service monitoring and optimization solutions as NSN’s GSM footprint becomes less important in vendor selections. leaving the company with a relatively small but loyal customer group. independent of the radio access network it is monitoring. NEC will face a challenge in competing with the low costs of Huawei and ZTE. The company claims to have the most comprehensive library of signatures available. Radcom is a specialist supplier of network monitoring solutions with expertise in radio optimization. 4. without the express written permission of Licensor. The company differentiates through the use of multiple SON layers in the radio layer. the routing/transport layers. but only in its niche of radio optimization. but sees strong revenue growth coming in the radio optimization space. with 60. © 2010 ABI Research • abiresearch. Therefore.Mobile Network Optimization ABIresearch ® 4. Radcom currently reports roughly $12 million in annual revenue. NSN has renewed its push to provide service assurance solutions to mobile operators. to persons within the same corporate or other entity as such Licensee. Inc Procera is a fast-growing supplier of DPI products for both fixed and mobile networks. 4. However. without limitation.20 Procera Networks. Motorola has struggled to capture a major position in 3G and LTE networks. and a new capability to be introduced in the core network. The company has developed a distributed approach for SONs and is pushing to gain advantage through adoption of TD-LTE as a major variant of the LTE standard. These solutions cover multivendor networks and bring SON features to market in advance of LTE networks. This claim is supported by network operator comments and the 1. NSN’s SON uses a multi-level architecture with distributed elements and centralized elements.

Inc Stoke is a Silicon Valley startup company that has grown a reputation for effective offload of mobile network traffic. Tektronix Communications acquired Arantech in 2008.26 Venturi Wireless Venturi Wireless is a private company based in California with multiple technologies for mobile data optimization.” which performs DPI to enable optimization in the core network and routing/transport layers. Spirent may be left out of key segments if the company cannot move quickly to offer a more comprehensive suite of probes and software. Venturi Wireless uses a proprietary protocol to replace TCP for higher efficiency without compressing data. instead of the monitoring and optimization of live mobile networks. in the fast-changing market for mobile monitoring and optimization. The company offers server-based optimization for video and data applications. adding roughly $35 million in OSS revenue and an expanded product focus. Inc Tellabs generated $1. The company supplies to both OEMs (13% of revenue) and network operators (87% of revenue). giving the organization a focus on monitoring and optimization of mobile networks. Its session exchange solution diverts IP traffic. monitoring the Iups interface to reroute the traffic as needed. 4. The company supplies a “Smart GGSN.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including.22 Spirent Spirent focuses most of its effort on test solutions.23 Stoke. ABI Research expects rapid growth in the offload segment. Spirent’s core expertise in the measurement of jitter and latency is useful in isolating problems. The Stoke hardware resides physically between the RNC and SGSN. Tellabs’ equipment typically does not replace network elements like the GGSN. and monitoring software. © 2010 ABI Research • abiresearch. and its relationships with almost all key players ensure a strong place as LTE network monitoring ramps up. to persons within the same corporate or other entity as such Licensee. as well as a client server architecture with software on the mobile terminal.25 Tellabs. 4.5 billion in revenue during 2009. Rather. with business areas ranging from mobile networks and backhaul solutions to optical networks and Ethernet networks. bypassing the SGSN and GGSN for Internet traffic and selectively passing other mobile traffic through. The company collects roughly $300 million per year in annual revenue for test equipment. thus allowing new business models and savings in backhaul equipment. probes. 4. most of which comes from the mobile market. capturing information on throughput and packet loss through probes embedded in the network. 4. and Stoke will likely move quickly to take a significant share. 34 .Mobile Network Optimization ABIresearch ® 4.24 Tektronix Communications Tektronix Communications is a wholly owned subsidiary of Tektronix Inc (which is owned by Danaher). Tektronix commands a leading position in probe-based monitoring and optimization software. without limitation. Tellabs also gets involved with policy engines to block traffic or prioritize certain applications. However. Stoke includes a DPI solution or an IMEI (International Mobile Equipment Identity) “sniffer” to detect the application and user type. the company’s equipment makes the elements more efficient through by providing a dedicated DPI engine and feeding information back to the GGSN or other network elements for optimization savings of up to 15%. The company participates in the optimization of transport layer for mobile networks. without the express written permission of Licensor.

ZTE has grown very quickly to become a solid global contender in GSM. OSS software. Chart 4. 4. ZTE offers SONs for the LTE standard. and has established customers in more than 140 countries. As network operators get buried in complexity. and software. without the express written permission of Licensor. analyzers. The company is now traded publicly in Hong Kong and Shenzen. 3G. 35 . and LTE networks. Specialist vendors in individual areas such as DPI. the ability to handle this end-to-end functionality will become more and more important. and has integrated some of the self-diagnostic features of this technology into its existing GSM and 3G network solutions. 2009 Agilent 13% Others 29% Anritsu 20% Astellia 5% Tektronix Comms 27% EXFO 6% (Source: ABI Research) © 2010 ABI Research • abiresearch. without limitation.Mobile Network Optimization ABIresearch ® 4.1 Market Shares for Independent Monitoring/Optimization Vendors. or specific monitoring areas without the breadth of a wider product line are not able to compete for the larger contracts involving test equipment. to persons within the same corporate or other entity as such Licensee.28 Overall Market Share Estimates A look at the overall market for independent monitoring and optimization solutions (excluding SON solutions and OSS software provided by major OEMs) reveals that just a few major vendors have the overall breadth of product capability to capture major market share. probes.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including.27 Zhong Xing Telecommunications Equipment Company Ltd (ZTE) Founded in 1985 by state-controlled companies involved in China’s Ministry of Aerospace.

The EU’s goal for SOCRATES is to assert European leadership in mobile networks. as well as: • • • • Automated neighbor relations Automated software downloads Automated inventory tracking Automated Peripheral Component Interconnect (PCI) assignment Release 9 is expected to address issues related to more mature LTE networks.htm 5. Vodafone. http://www. including: • • • • • • RF optimization for coverage and capacity Random Access Channel (RACH) optimization Load balancing Energy savings Operation and Maintenance interfaces to control femtocells UE reporting for end-to-end radio optimization Technical report TR-36. with the aim to accelerate the adoption of technologies to enable SONs in mobile networks. The SOCRATES project is supported by the European Union under the 7th Framework Program. Nokia Siemens Networks.fp7-socrates.org/ftp/specs/html-INFO/36902. Release 8 covers configuration features. to persons within the same corporate or other entity as such Licensee.org/ © 2010 ABI Research • abiresearch. beginning with Release 8. and others.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. 2008 to December 31. including Ericsson. http://www.902 codifies the proposals for Release 8 and Release 9 SON features. coordinating a strategy for global standardization to benefit European suppliers and network operators.Mobile Network Optimization ABIresearch Section 5. and is currently scheduled to run from January 1. 2010. without the express written permission of Licensor. Additional SON functionality will be added to future releases. INDUSTRY COLLABORATION ® 5. Standardized SON features will expand in scope as the expected LTE network evolves over time.1 3GPP Self-Organizing Networks SON use cases are defined in the LTE (E-UTRAN) standards by the RAN3 working group. The primary purpose behind the standardization of use cases is to ensure the interoperability of SONs in multivendor environments. This organization creates a forum for discussion of use cases and architectures outside of the political environment of the 3GPP standards process.3gpp.2 SOCRATES The SOCRATES project (Self-Optimisation and Self-Configuration in Wireless Networks) brings together a non-profit consortium of companies. without limitation. 36 .

Mobile Network Optimization ABIresearch Section 6. the market for network monitoring and optimization solutions includes several bright spots. 37 .200 Radio Test Radio Probes 1. Chart 6. SON solutions will compete with independent radio optimization solutions. On the other hand. © 2010 ABI Research • abiresearch.400 UE Clients 1. World Market. However. as strong growth is expected in technologies that improve efficiency and quality of service. to persons within the same corporate or other entity as such Licensee. tools that provide good end-to-end visibility (such as DPI and some OSS software) and highly focused solutions for specific cost reductions (such as offloading or transport optimization) will be adopted most quickly in both 3G and 4G networks. without the express written permission of Licensor. UE clients will see solid growth from almost zero in 2010. MARKET FORECASTS ® The overall outlook for wireless infrastructure involves slow growth. without limitation. with severe price erosion cutting into the profitability of RAN equipment and hardware for both 3G and LTE.1 Mobile Monitoring & Optimization Equipment Revenue by Segment. stunting the growth of independent probe-based monitoring tools in the radio layer.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. Forecast: 2009 to 2015 1. with the potential to become a mainstream solution if lightweight client applications are proven to be effective in end-to-end optimization.000 ($ Millions) Routing/Transport OSS 800 DPI Offloading 600 400 200 0 2009 2010 2011 2012 2013 2014 2015 (Source: ABI Research) In particular.

North America’s growth wave is taking place earlier than other regions and should flatten out in 2014-2015. and the Middle East use less mobile data than power users in more mature networks. © 2010 ABI Research • abiresearch. For mobile operators. This forecast is due to the higher expected subscriber base and higher growth in mobile Internet data in Asian countries without widespread broadband service.200 Asia-Pacific North America 1. ABI Research expects the Asian market to overtake North America and Western Europe for advanced monitoring and optimization equipment. Chart 6. and China will implement. Quality-of-service requirements in these emerging markets will not demand the robust monitoring solutions that Japan. South America. The five-year outlook for developing markets in Africa. with the United States catching up quickly. when the basic monitoring hardware for most LTE networks has been fully deployed. South America. 38 . Korea. Africa.1 Regional Outlook Countries with the most advanced data networks will lead the way in monitoring and optimization. Developing markets lag behind. Japan and Western Europe represent the strongest markets for advanced monitoring equipment.000 Western Europe Eastern Europe 800 ($ Millions) Africa South America Middle East 600 400 200 0 2009 2010 2011 2012 2013 2014 2015 (Source: ABI Research) Currently. without the express written permission of Licensor. Forecast: 2009 to 2015 1. World Market. as users in Eastern Europe.Mobile Network Optimization ABIresearch ® 6.2 Mobile Monitoring & Optimization Equipment Revenue by Region. Smartphone and laptop users are changing their data patterns so quickly that operators fear the kind of public embarrassment that AT&T Wireless has experienced during 2009 and 2010. to persons within the same corporate or other entity as such Licensee. Over the next five years. without limitation.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. and the Middle East lags behind Asia. monitoring 3G networks is currently viewed as a defensive measure.

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6.2

OEM Market vs. Direct Sales to Operators
Independent suppliers of network monitoring solutions are currently moving more quickly than major OEMs. The result is a trend toward more direct independent business with network operators. In particular, DPI solutions, network probes, and OSS software are currently trending toward outside suppliers despite the product offerings of a few network equipment manufacturers. Over time, ABI Research expects this trend to reverse. Network OEMs will increase the sophistication of SON solutions, and as LTE is deployed, the number of use cases and functionality for self-optimization will rise. OEMs will buy many of the best solutions from independent suppliers, and will implement pieces like the radio optimization and self-configuration functions internally. By 2015, revenue for independent suppliers of monitoring/optimization solutions will be roughly 30% through OEMs and 70% direct to operators.

Chart 6.3

Mobile Monitoring & Optimization Equipment by Customer Type, World Market, Forecast: 2009 to 2015
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2009 2010 2011 2012 2013 2014 2015
(Source: ABI Research)

Netw ork Operator OEM

© 2010 ABI Research • abiresearch.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including, without limitation, to persons within the same corporate or other entity as such Licensee, without the express written permission of Licensor.

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6.3

Outlook by Network Generation (2G/3G/4G)
Monitoring/optimization of 3G networks will dominate the market for the next five years. As LTE networks are deployed, supporting monitoring and optimization equipment will always lag behind, addressing problems as the system gets loaded (and sadly, in some cases, addressing problems after the system gets overloaded). ABI Research’s forecast includes radio test equipment used for monitoring emissions and power levels for GSM and 2G CDMA networks, which represented roughly 40% of the 2009 market. Excluding radio test equipment, almost all of 2010 monitoring and optimization revenue will be tied to 3G networks, with 90% of the solutions monitoring U-TRAN (UMTS/HSPA/HSPA+) networks and 10% monitoring EV-DO networks. Operators are clearly focused on mobile data optimization, and spend far less effort on mobile voice optimization nowadays. In addition, many independent solutions such as OSS and DPI are in deployment on 3G networks today, but will be used for LTE networks later. ABI Research’s forecast categorizes the monitoring/optimization solutions according to the initial primary usage, even if the same solution is used for multiple generations over time.

Chart 6.4

Mobile Monitoring & Optimization Equipment, 2G/3G/4G, World Market, Forecast: 2009 to 2015
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2009 2010 2011 2012 2013 2014 2015
(Source: ABI Research)

4G 3G 2G

© 2010 ABI Research • abiresearch.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including, without limitation, to persons within the same corporate or other entity as such Licensee, without the express written permission of Licensor.

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6.4

Smartphone Client Outlook
Solutions that utilize client software on the mobile terminal itself offer an intriguing alternative to pure network solutions, addressing the network operator’s desire for a true “end-to-end” solution. The revenue associated with these solutions sits at practically zero today, with early solutions just reaching the market. As a result, even with very strong growth, the market for client-based solutions is likely to remain small through 2015. It is unclear today whether every smartphone will need a monitoring client installed. In cases such as the Venturi Wireless optimization protocol or the Mobidia TCP proxy, the step toward transport optimization requires a client on every smartphone. Simpler monitoring concepts may not need every user to act as a mobile “drive test.” As the market for client-based solutions develops, the choice between monitoring and full optimization will dictate the scale of growth.

Chart 6.5

Mobile UE Clients for Network Monitoring Revenue by Region, World Market, Forecast: 2009 to 2015
60 Middle East 50 South America Africa 40 ($ Millions) Eastern Europe Western Europe 30 North America Asia-Pacific 20

10

0 2009

2010

2011

2012

2013

2014

2015
(Source: ABI Research)

Note: Enterprise sales of clients to monitor mobile web traffic or web site performance are not included in ABI Research’s forecast. The above chart refers to client-based monitoring and optimization solutions and includes sales of the smartphone client software, as well as any accompanying server software in the network.

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with new features added to the box. Chart 6. due to the attention paid in Western countries to emissions regulations. While these portable instruments are not always characterized as “monitoring and optimization” solutions. Over the next five years.5 Radio Test Equipment Outlook Spectrum analyzers. ABI Research expects the Asian. and scalar analyzers today often sit in the back of a cell technician’s truck. At a radio level. LTE-capable test equipment is available in the market today. in fact these are the primary tools for optimizing the physical aspects of the radio layer. vector network analyzers. Forecast: 2009 to 2015 250 200 Middle East South America ($ Millions) 150 Africa Eastern Europe Western Europe 100 North America Asia-Pacific 50 0 2009 2010 2011 2012 2013 2014 2015 (Source: ABI Research) Western Europe and North America have represented the majority of the RF test equipment market for many years. to persons within the same corporate or other entity as such Licensee. without the express written permission of Licensor. Even if the equipment is used for 2G or 3G systems. © 2010 ABI Research • abiresearch.6 RAN Portable Test Equipment Revenue by Region. ready for the endless site tests and drive tests that accompany changes to 2G and 3G networks. Eastern European. the new standards represent business as usual.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. without limitation. New sales will include new functionality for LTE/WiMAX testing. as well as optimizing power levels and antenna tilt in the field for improved coverage and capacity. but the price differences and volume increases will be flat. operators planning for the future want LTE functionality built in. The market for portable RAN test equipment will be essentially flat because the market has already grown during 2G and 3G operations to involve multiple test boxes for each technician. and emerging markets to begin monitoring compliance with emissions regulations. Essentially every base station and every NodeB is tested for compliance to spurious emissions targets. so sales are shifting quickly from 2G/3G test gear to the full capability. 42 .Mobile Network Optimization ABIresearch ® 6. World Market.

LTE networks may. without the express written permission of Licensor. to persons within the same corporate or other entity as such Licensee. World Market. Forecast: 2009 to 2015 160 140 120 Middle East 100 ($ Millions) 80 60 40 20 0 2009 South America Africa Eastern Europe Western Europe North America Asia-Pacific 2010 2011 2012 2013 2014 2015 (Source: ABI Research) © 2010 ABI Research • abiresearch. Chart 6.6 Outlook for Probes in the RAN Probes in the radio access network essentially provide a duplicate or parallel source of information. with other regions increasingly investing in improved diagnostics as operators in developing countries dive into multivendor networks. Thus.Mobile Network Optimization ABIresearch ® 6. 43 . in fact. the penetration of probes in Layers 1 and 2 for 2G and 3G networks has grown less rapidly than other network features. As operators consider deployment of LTE networks with self-organizing features.7 RAN Monitoring Probes Revenue by Region. the likely outcome over the next five years will be slow growth for RAN probes at 5% to 10% per year. need fewer probes for monitoring and troubleshooting than 3G networks.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. at times with better granularity and visibility than the network elements provide through the original OSS software. Operators buy RAN probes today in order to access a more user-friendly and intuitive troubleshooting interface provided by a third-party vendor. without limitation. Operators are unsure of the eventual scope of self-optimizing LTE networks and how their future systems will be integrated. The dominant Western European/American market for RAN probes will grow incrementally.

Growth in Layer 3 and 4 solutions should scale along with data traffic growth. North America. In the RAN. Growth in China and India will take place later as mobile broadband begins to comprise a significant portion of traffic. to persons within the same corporate or other entity as such Licensee. so the independent market for monitoring solutions should see strong growth over the next five years.8 Transport Monitoring/Optimization Equipment Revenue by Region. 44 . as the capacity handled by monitoring/ optimization solutions will grow quickly in conjunction with the growth in data usage. and Japan are the strongest markets for transport optimization. Forecast: 2009 to 2015 700 Middle East 600 South America Africa 500 Eastern Europe Western Europe North America ($ Millions) 400 Asia-Pacific 300 200 100 0 2009 2010 2011 2012 2013 2014 2015 (Source: ABI Research) © 2010 ABI Research • abiresearch. and optimization schemes than Layers 1 and 2 (radio layer and data link layer). in setting up data sessions and setting packet sizes for transport.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. and several vendors have found ways to improve on the efficiency of TCP and are finding willing customers.Mobile Network Optimization ABIresearch ® 6. Western Europe. without limitation. Chart 6. as iPhones and other web-friendly smartphones are driving a huge increase in data signaling traffic. Nobody expects SON to address this issue for 3G networks or even early LTE networks. However. both ends of the communications link can be controlled.7 Outlook for Transport Monitoring/Optimization Layers 3 and 4 (network layer and transport layer) represent a stronger market for stationary probes. Monitoring 3G data sessions has also become a major concern for network operators. World Market. the air interface is generally not changed to streamline traffic due to the wide variety of handsets and data terminals on the network. troubleshooting solutions. without the express written permission of Licensor.

000 Africa Eastern Europe 800 ($ Millions) Western Europe North America 600 Asia-Pacific 400 200 0 2009 2010 2011 2012 2013 2014 2015 (Source: ABI Research) © 2010 ABI Research • abiresearch. The independent market for OSS to augment visibility and management of the system will reach $450 million in 2010.8 Mobile OSS Outlook The total OSS market for mobile networks totals is in the billions of dollars annually. which can adapt more quickly and flexibly to unique aspects of each network’s vendor base and architecture. OSS software provided by major OEMs will increasingly be replaced by independent software. without limitation. with the majority of sales bundled together with network infrastructure. Chart 6. Forecast: 2009 to 2015 1. with 20% growth over the next five years driven by increasing complexity in the network.Mobile Network Optimization ABIresearch ® 6. 45 . without the express written permission of Licensor.200 Middle East South America 1. World Market.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including.9 OSS Monitoring/Optimization Tools Revenue by Region. to persons within the same corporate or other entity as such Licensee.

400 Middle East 1. to persons within the same corporate or other entity as such Licensee. World Market.Mobile Network Optimization ABIresearch ® 6. Due to the exponential growth of mobile data traffic in these regions. Because DPI is proven in Internet networks. Western Europe. DPI revenue will also grow quickly. without the express written permission of Licensor. Chart 6. driving 70% to 100% growth over the next few years. 46 . without limitation. LTE deployment in highly developed countries should accelerate DPI adoption even more as operators prepare for their customers using LTE as a broadband replacement. and North America all represent strong markets for high-capacity DPI tools that examine every packet. The dozens of DPI tests and trials underway now should bear fruit during 2010 and 2011.9 DPI Outlook One of the strongest growth segments in mobile infrastructure centers on Deep Packet Inspection tools.200 South America Africa 1.10 Mobile DPI Infrastructure Revenue by Region. Forecast: 2009 to 2015 1.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including.000 Eastern Europe Western Europe ($ Millions) 800 North America Asia-Pacific 600 400 200 0 2009 2010 2011 2012 2013 2014 2015 (Source: ABI Research) © 2010 ABI Research • abiresearch. Asia. mobile operators can readily adopt the technology from established vendors and expect high levels of reliability.

and ABI Research expects strong growth in those regions through 3G networks over the next three years. operators do not have the expertise to feel comfortable in implementing a new solution.11 Mobile Backhaul Offloading Infrastructure Revenue by Region. This approach should find a timely market window for the most data-intensive networks now and acceptance from a wide number of global networks over the next three years. femtocells divert all traffic to the Internet. Chart 6. In Asia and developing countries. without the express written permission of Licensor. so the growth of offloading solutions will be slower in those regions. an offloading solution moves the most bandwidth-hungry applications off the operator’s core infrastructure. to persons within the same corporate or other entity as such Licensee. Rather than “optimizing” transport. North American operators and multinational operators based in Europe and advanced Asian economies are conducting trials now. Offloading is likely to be most popular with network operators that feel capable of implementing third-party solutions.Mobile Network Optimization ABIresearch ® 6.10 Offloading Outlook Mobile network offloading will expand quickly during the 2011-2012 timeframe due to the growing gap between transport bandwidth and end-user demand. 47 . so the 3G market is the primary focus for now.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. Forecast: 2009 to 2015 180 160 140 120 ($ Millions) 100 80 60 40 20 0 2009 Middle East South America Africa Eastern Europe Western Europe North America Asia-Pacific 2010 2011 2012 2013 2014 2015 (Source: ABI Research) © 2010 ABI Research • abiresearch. instead. LTE networks are likely to be outfitted with offloading solutions on deployment. World Market. Femtocells (not included in the forecast for “offloading” as an optimization solution) are distinct in that femtocells will not sense the content and divert individual packets to the Internet. without limitation.

to persons within the same corporate or other entity as such Licensee. RECOMMENDATIONS ® 7. Competing independent solutions will struggle with interoperability issues. both of which can be multiplied by the use of innovative diagnostic tools and a set of easy-to-use optimization algorithms. and new billing systems with tiered pricing structures will reap the benefits of increased customer traction. The first operators that push through the painful process of integrating DPI tools. However. Operators should stay focused on the end goal: increasing average revenue per user through multiple data options with the infrastructure and policy engines to match.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. Differentiation in mobile networks is moving toward ease-of-use and scalability.3 For Monitoring/Optimization Solution Vendors Most monitoring/optimization suppliers will see strong growth in the next two to three years.Mobile Network Optimization ABIresearch Section 7. only the companies with a clearly defined objective and obvious interoperability will be able to penetrate the mainstream mobile markets. Vendors of client-based solutions should focus on optimization. without limitation. network diagnostics. © 2010 ABI Research • abiresearch. Network equipment manufacturers can differentiate by folding all possible optimization solutions into a multivendor.2 For Network Equipment Manufacturers Network OEMs should partner with other companies in multiple areas in order to integrate the best possible flexibility and visibility into their networks. without the express written permission of Licensor. Probe vendors should partner with network infrastructure manufacturers to drive the use of probes into LTE hardware. 48 . Close integration with top-tier OEMs will drive the sales of monitoring equipment more quickly than competing for attention with up-and-coming SON solutions. 7. comprehensive optimization suite that has clear priorities. As network OEMs increasingly move into managed services. not simple performance monitoring. suppliers should stick to a focused strategy and avoid extending solutions into areas that optimize multiple other layers simultaneously. but very few operators have adequate visibility to pinpoint the source of bottlenecks in their networks. Interoperability with other optimization systems will be best served when the transport compression or session protocols are predictable. in order to drive ROI through network efficiency savings. Network OEMs may find that a unique approach to optimization is a differentiator in their services business. the top-tier OEMs can succeed by testing hundreds of combinations of network equipment and optimization solutions and refining their overall set of algorithms to consistently adapt to complex networks. Thus. each company should pay attention to keeping network optimization solutions lined up with its services business strategy.1 For Network Operators Every network operator has seen the tremendous rise in mobile data consumption. In transport optimization. Operators need to develop a comprehensive monitoring and optimization strategy in order to avoid costly mistakes and delays. in the long term. 7.

The market demand is inescapable. 49 . so simple offloading solutions that interfere as little as possible with other network diagnostics and optimization will dominate this new segment. © 2010 ABI Research • abiresearch. without the express written permission of Licensor. to persons within the same corporate or other entity as such Licensee. regardless of the infrastructure used.Mobile Network Optimization ABIresearch ® OSS vendors that can adapt quickly to an extremely wide array of network configurations will rise above the pack. experienced limitations in network visibility for mobile data diagnostics. by now. Most customers have. Offloading vendors simply need to establish a track record of reliability in the field.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. the network operators are looking for OSS solutions that can drill down to the root cause in troubleshooting scenarios. Therefore. without limitation.

com Ericsson AB (Sweden) www. without the express written permission of Licensor. without limitation.apple.wireless. Inc www.fi Nippon Electric Corp (NEC) (Japan) www.com Huawei (China) www.allot.nethawk.com Tektronix Communications www.com Amdocs Ltd www.empirix.com Apple Inc www.amdocs.com Procera Networks.azimuthsystems.com Agilent Technologies www.com Rohde & Schwarz (Germany) www.huawei.com EXFO Inc (Canada) www.radcom.com AT&T Wireless www.stoke.com Azimuth Systems Inc www.mobidia.com Stoke Inc www.facebook.ccpu.com Keynote Systems.com NetHawk Oyj (now EXFO) (Finland) www.com Astellia (France) www.agilent.ericsson. Inc (Canada) www. Inc www.comarch.spirent.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. Inc www.com Nokia Siemens Networks (Finland) www.com Motorola.com Mobidia.keynote.anritsu.com Radcom (Israel) www.proceranetworks.exfo.astellia.com Facebook www.com Spirent Communications (United Kingdom) www.actix.nec. 50 .alcatel-lucent.com Alcatel-Lucent (France) www.com Anritsu Company (Japan) www.Mobile Network Optimization ABIresearch Section 8.com © 2010 ABI Research • abiresearch.rohde-schwarz.tektronixcommunications.com Comarch (Poland) www.motorola.com Continuous Computing Corp www.com Allot Communications (Israel) www.com Empirix www.nokiasiemensnetworks. COMPANY DIRECTORY ® Actix Ltd (United Kingdom) www.att. to persons within the same corporate or other entity as such Licensee.

(ZTE) (China) www. 50 .com.zte.tellabs. to persons within the same corporate or other entity as such Licensee.com Venturi Wireless www.venturiwireless.com © 2010 ABI Research • abiresearch.com Zhong Xing Telecommunications Equipment Co.Mobile Network Optimization ABIresearch Vodafone (United Kingdom) www.cn ® Tellabs www. without limitation.vodafone.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. without the express written permission of Licensor.

51 .Mobile Network Optimization ABIresearch Section 9. to persons within the same corporate or other entity as such Licensee.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. without the express written permission of Licensor. without limitation. ACRONYMS ® 2G 3G 3GPP 4G ANR ARPU ATCA BSS C/I CAGR CAPEX CCPU CDMA CPRI CSCF C-SON CTIA DPI D-SON EMS eNB EPC Second Generation Cellular Services Third Generation Cellular Services Third Generation Partnership Project Fourth Generation Cellular Services Automatic Neighbor Relations Average Revenue per User Advanced Telecommunications Computing Architecture Business Support System Carrier to Interference Ratio Compound Annual Growth Rate Capital Expenditure Continuous Computing Corp Code Domain Multiple Access Common Public Radio Interface Call Session Control Function Centralized Self-Organizing Network Cellular Telephone Industry Association Deep Packet Inspection Distributed Self-Organizing Network Element Management System Enhanced Node B Enhanced Packet Core © 20q0ABI Research • abiresearch.

Mobile Network Optimization ABIresearch Evolved Universal Terrestrial Radio Access Network CDMA Evolution-Data Only Error Vector Magnitude File Transfer Protocol Gigabits per Second Gateway GPRS Support Node Grade of Service General Packet Radio Service Global System for Mobile Gateway Home Location Register High Speed Packet Access Home Subscriber Server Integrated Digital Enhanced Network International Mobile Equipment Identity Internet Protocol Intellectual Property Key Process Indicator Long Term Evolution Megabits per Second Mobility Management Entity Multimedia Messaging Service Multimedia Resource Function Mobile Station Controller Nippon Electric Corp Network Equipment Manufacturer ® E-UTRAN EV-DO EVM FTP Gbps GGSN GoS GPRS GSM GW HLR HSPA HSS iDEN IMEI IP IP KPI LTE Mbps MME MMS MRF MSC NEC NEM © 2010 ABI Research • abiresearch. 52 . to persons within the same corporate or other entity as such Licensee. without the express written permission of Licensor. without limitation.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including.

com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including.Mobile Network Optimization ABIresearch Network Operations Center Nokia Siemens Networks Operations. 53 . to persons within the same corporate or other entity as such Licensee. Administration. and Maintenance Open Base Station Architecture Initiative Original Equipment Manufacturer Operating Expense Open System Interconnection Operations Support System Personal Computer Peripheral Component Interconnect Policy Control Rules Function Packet Data Network Packet Data Protocol Packet Gateway Passive Intermodulation Public Standard Telephone Network Quality of Experience Quality of Service Research & Development Random Access Channel Radio Access Network Radio Frequency Radio Network Controller Return on Investment Receive Signal Strength Indicator Serving GPRS Support Node ® NOC NSN OAM OBSAI OEM OPEX OSI OSS PC PCI PCRF PDN PDP P-GW PIM PSTN QoE QoS R&D RACH RAN RF RNC ROI RSSI SGSN © 2010 ABI Research • abiresearch. without the express written permission of Licensor. without limitation.

54 . to persons within the same corporate or other entity as such Licensee.Mobile Network Optimization ABIresearch Serving Gateway Short Messaging Service Self-Optimisation and Self-Configuration in Wireless Networks Self-Organizing Networks (and sometimes Self-Optimizing Networks) Terabyte Transmission Control Protocol Time Domain Long Term Evolution Time Domain-Synchronous Code Domain Multiple Access User Equipment Universal Mobile Telecommunications System Universal Terrestrial Radio Access Network Voice over Internet Protocol Wideband Code Domain Multiple Access Wireless Fidelity Worldwide Interoperability for Microwave Access Zhong Xing Telecommunications Equipment Company ® S-GW SMS SOCRATES SON TB TCP TD-LTE TD-SCDMA UE UMTS UTRAN VoIP WCDMA Wi-Fi WiMAX ZTE © 2010 ABI Research • abiresearch. without limitation.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. without the express written permission of Licensor.

........1........................................................................................................................... 6 Market Overview..... 30 Key Industry Players.......................................................................................... 16 2.....................5.........1................................. 29 Section 4.............. 10 2..............................................................................................................................................................................4 Outlook...................................................................................................................... 27 3....................3 Signaling and Protocol Analyzers ................................5 Mobile Offloading ....................................................................... 30 4......................................... 26 3.................3 R&D/Testing/Deploying the Network .......2................................................................................................................... 2 1....................................................... 11 2.... 12 2............................ 20 Technology .........10 Impact of Managed Services on Optimization .... .........................5 Recommendations ..................................................................5 Optimizing Performance ......... 2 1........1 Introduction .....5.................2 Monitoring and Optimization Tools ......................................................................................................... to persons within the same corporate or other entity as such Licensee.............. 26 3....................................com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including.....2 Key Performance Indicators.................... .......2....................... 30 4.....................1 Cost Reductions..................................... without the express written permission of Licensor......8 Probes..................................................................... 12 2.............................................................. 30 © 2010 ABI Research • abiresearch........3 Self-Operating Networks.................... 28 3...................1 Self-Configuring Networks ....1 Self-Organizing Networks .....................................................................................................2 Quality Improvement ............................................................ 23 3.........................................................5....................................................................... 20 3................4 Deep Packet Inspection .....................2........................................9 Protocol Analyzers ..........................................1......................................................................................... 2 1...................................... 23 3.............1 CAPEX Reduction... 5 Section 2........................................................................................................................................................................ 2 Executive Summary ....6 Optimizing Revenue................................................................................5.................................................................................4 Allot Communications ..................................... 22 3........6 Conclusions.......1.... 13 2....2 Network Probes..............3 Centralized vs....... 22 3........................................ 14 2..............................1............................................................................... 4 1.............................. 4 1......................... 21 3..... 30 4.......................................5 Trends in Self-Organizing Networks ..............................3 Alcatel-Lucent ..................................................................11 Operations Support Systems ......................................................................................................... 55 .......................................................................................................................................................................1............................................... 30 4..................7 Test Equipment Market .............................................3 Technology................... Distributed Optimization .............................................................................................1 Actix Ltd ... 25 3.............................. 11 2......4 Interoperability for Multiple Optimizing Algorithms.. ............................ 13 2.................... 8 2.......................... 10 2................ 6 2......................................................................................................................................................................................................................................2 OPEX Reduction ............................................................................................................. without limitation....... ............................................................................................................................................................................................................................................................................................................................1 Smartphone Clients...................................4 Self-Healing Networks .................................2 Market Drivers.................................................................................................. 17 2....................2........................... 3 1............................... 24 3..........................................1.......................................................... 22 3......................................................................4 Monitoring the Network ...................... 7 2............................ 18 Section 3..................................................................... 11 2......2 Agilent Technologies............................................................................................. 21 3.................................................................................1 Networks Evolve into Optimization ..................................................................2 Self-Optimizing Networks....Mobile Network Optimization ABIresearch Table of Contents ® Section 1..................................................................................................................................................................................................................

......................................................................................................... 31 Continuous Computing Corp......................................... 56 ............ 35 Section 5.................. 37 Market Forecasts....................................................................................................... to persons within the same corporate or other entity as such Licensee...................................14 4.................................................................................5 4............................................. without the express written permission of Licensor..................................... ....................................18 4............................4 Smartphone Client Outlook ............................................................................................................................ 31 Comarch..................................................................................... 39 6...... 35 Overall Market Share Estimates ........2 SOCRATES .............................................................................................................................................................................................26 4...............................................................................................................................................................11 4...8 Mobile OSS Outlook.......1 For Network Operators....... 34 Tellabs............................................................................................ 38 6.........................19 4..................................................... 48 7.......................... Direct Sales to Operators....................................................24 4.............10 4............................................................... ............. 47 Section 7......15 4..................................... 50 Section 9........................... 36 5......... 44 6............................. 33 Nippon Electric Corp (NEC) ..................................................................................................................................................................................................................... 45 6..............................................................................................................................1 3GPP Self-Organizing Networks............................ 32 Mobidia..............................9 DPI Outlook....................... 34 Tektronix Communications ............................................................................... 31 Astellia................................................................................................................................................................................................................................. 36 Section 6.................................... 31 Ericsson AB...... 32 Motorola ..................................... 34 Zhong Xing Telecommunications Equipment Company Ltd (ZTE) ...................................................................................................................................................................................................... 33 Spirent............................................................................................................................9 4........... 48 Recommendations ...................... 42 6............................................................................................................... 48 7................................................................................... 33 Procera Networks...com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including............................. 51 © 2010 ABI Research • abiresearch............................................ without limitation.......................................................................................................................................................7 4...................... 43 6.............................10 Offloading Outlook ..................................................................................... 33 Radcom..17 4..................................................................... 48 Section 8......13 4.............3 For Monitoring/Optimization Solution Vendors .................................................................................................................. 36 5............................ 32 Keynote Systems........................................................................ 50 Company Directory .............7 Outlook for Transport Monitoring/Optimization ......27 4................... ............................................................... 48 7.............................................. 41 6............................................21 4............................................................................... 33 Nokia Siemens Networks..................... 34 Venturi Wireless ............................. 37 6................................... .........6 4........................................................................................... Inc ......................8 4...................................... ...2 For Network Equipment Manufacturers ..............................................25 4........................................................................1 Regional Outlook............................................................................. Inc...............22 4.................................................................... 31 Empirix ..........................28 Amdocs .............................................................................................5 Radio Test Equipment Outlook .........20 4........................................... 34 Stoke................................................2 OEM Market vs............................................................................................... 30 Anritsu Company.................................. Inc ........................................................................................... 46 6......................................................................... 31 Azimuth Systems Inc...................................................................................3 Outlook by Network Generation (2G/3G/4G)...................Mobile Network Optimization ABIresearch ® 4.................................. Inc..........12 4.............23 4................................................................................ 32 Huawei Technologies............6 Outlook for Probes in the RAN......................................... 36 Industry Collaboration......................................... 31 EXFO Inc................................16 4.............................. 40 6..............

............ Forecast: 2009 to 2015 Table 6-4.... RAN Portable Test Equipment Revenue by Region..................................... World Market. World Market........................... Mobile DPI Infrastructure Revenue by Region.................... When downloading this report as a PDF from the ABI Research web site.............. Mobile Network Monitoring & Optimization Equipment Revenue... RAN Monitoring Probes Revenue by Region........ Forecast: 2009 to 2015 Table 6-2............ without the express written permission of Licensor........................... TABLES Table 1-1.... Transport Monitoring/Optimization Equipment Revenue by Region.. World Market........... 58 Sources and Methodology ............................ please check to see if the Excel worksheet is also available for download................... OSS Monitoring/Optimization Tools Revenue by Region... World Market.......... without limitation....com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including............ to persons within the same corporate or other entity as such Licensee.. Forecast: 2009 to 2015 Table 6-6................. Mobile Backhaul Offloading Infrastructure Revenue by Region.... World Market... Forecast: 2009 to 2015 Table 6-8........ World Market.......... Applicability and Impact of Various Monitoring Solutions Table 6-1....... 59 Notes ........ Forecast: 2009 to 2015 © 2010 ABI Research • abiresearch. 57 .................................. 59 Please be aware that an Excel worksheet containing all market forecasts accompanies this document................... please contact our client relations department........................................ Forecast: 2009 to 2015 Table 6-3..... Forecast: 2009 to 2015 Table 6-5............................................ World Market................ Mobile Monitoring & Optimization Equipment Revenue by Region................. Mobile UE Clients for Network Monitoring Revenue by Region. 51 Scope of Study ....... If you have any questions regarding this.. Forecast: 2009 to 2015 Table 3-1........... World Market........... Forecast: 2009 to 2015 Table 6-7... World Market.........Mobile Network Optimization ABIresearch ® Acronyms........

including business support system software and other tools for tracking and billing the wireless subscriber. including the interfaces and network elements to be monitored and the actions taken for optimization. ABI Research compiled a comprehensive overview of the technologies used for network monitoring and optimization.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. Note that the self-organizing network is generally sold to a wireless operator by a network equipment manufacturer.Mobile Network Optimization ABIresearch SCOPE OF STUDY ® In researching and reporting on mobile monitoring and optimization. are not included in the scope of this report. ABI Research limited its scope to the solutions available as products in the merchant market. Details on the specific implementation of individual products are omitted for the sake of brevity. to persons within the same corporate or other entity as such Licensee. Portable test equipment was included to the extent that the equipment is used for diagnostic monitoring and troubleshooting of an operating network and not simply for initial system setup. © 2010 ABI Research • abiresearch. A wide scope was used in looking at multiple solutions and segments. Problems with interoperability between optimization solutions are described at a high level. Self-organizing networks are included in the scope of the technology description in this study since they represent an important piece of an operator’s overall strategy for network optimization. Network equipment manufacturers with bundled solutions for infrastructure equipment and OSS software are not covered. without limitation. without the express written permission of Licensor. adaptations of the OSS solutions offered separately by network OEMs for use with multivendor networks are included in the body of the report and the market forecasts. However. The technology scope covers descriptions of monitoring and optimization techniques. Therefore. 58 . ABI Research did not include a forecast for SONs in the merchant market quantified in this report. with a few specific examples for illustration. ranging from Layer 1 through Layer 7 and from smartphone clients to hardware and server-based software. Note that business solutions. though these solutions can involve some monitoring and optimization.

Each company was asked to project a view of its market and the driving forces behind future growth. Percentages may not add up to 100 due to rounding. It is from these conversations that market conditions and trends begin to emerge. software. CAGRs presented in the tables are for the entire timeframe in the title. The text addresses hard data and well-defined trends and is supported by forecast tables and charts. Where data for fewer years are given. For this report on mobile network monitoring and optimization. using the formula: CAGR = (End Year Value ÷ Start Year Value)(1/steps) – 1. engineers. the ABI Research analyst interviewed multiple network operators. or application efficiency in Layers 5 through 7.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. the CAGR is for the range presented. All values are expressed in year 2010 US dollars unless otherwise noted. and suppliers of specific test equipment. 59 . industry directories. and optimization solutions. they are often precursors of the next technology wave. shipments. Figures are based on the best estimates available at the time of calculation. since most solutions address the RAN in Layers 1 and 2. © 2010 ABI Research • abiresearch. The three basic steps in that process are: information collection. to persons within the same corporate or other entity as such Licensee. and information analysis. and other resources. corporate financial reports. without the express written permission of Licensor. that is. Where relevant. free from media hype. the core network efficiency in Layers 3 and 4. information organization. CAGRs for shorter timeframes may be given as well. Analysts’ conclusions take several forms. It is segmented generally by Open System Interconnection (OSI) layer. The forecast was derived from company reports and network operator comments. Analysts use secondary sources as well. NOTES CAGR refers to compound average annual growth rate. Regional forecasts and other market segmentation were derived from specific comments from suppliers and regional operators. Lying at the margins of an industry. monitoring solutions. government and private databases. Research and query specialists helped lay the data and information groundwork for the analyst. The key element in ABI Research’s information collection process is developing primary sources. who also developed a focused interview strategy. The text also addresses issues and trends that are difficult to quantify and present in neat.Mobile Network Optimization ABIresearch SOURCES AND METHODOLOGY ® An analyst was assigned to coordinate and prepare this Research Report. network equipment manufacturers. talking to executives. including industry periodicals. Annual revenues. without limitation. trade group reports. and sales are based on end-of-year figures unless otherwise noted. and marketing professionals associated with a particular industry. ABI Research teams follow a meticulous process when examining each market area under study. tabular form.

without the express written permission of Licensor.com The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including. © 2010 ABI Research • abiresearch. photocopied. recorded. to persons within the same corporate or other entity as such Licensee.Mobile Network Optimization ABIresearch ® Published 2Q 2010 ©2010 ABI Research PO Box 452 249 South Street Oyster Bay. 60 . No part of this document may be reproduced.com/analystinquiry. electronic. Electronic intellectual property licenses are available for site use. The owners of this data may or may not be so noted where this data appears. Please call ABI Research to find out about a site license.jsp ALL RIGHTS RESERVED. Exceptions: Government data and other data obtained from public sources found in this report are not protected by copyright or intellectual property claims. without limitation. NY 11771 USA Tel: +1 516-624-2500 Fax: +1 516-624-2501 http://www.abiresearch. entered into a spreadsheet or information storage and/or retrieval system of any kind by any means. mechanical. or otherwise without the expressed written permission of the publisher.

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