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