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News
Issue #2002 - 15
(April 2002)
(Updated Apr.
17, 2002)
TECHNOLOGY
Next-Generation Operators Will
Save $15-Billion, study says
Internet Protocol (IP)
Header Compression software, which shrinks the size of Internet
packet headers, is expected to save 2.5G and 3G mobile phone
operators up to $15-billion in reduced infrastructure costs over the
next three years, according to a study by Effnet, a developer of IP
Header Compression technologies.
What is IP Header Compression?
Developed and approved by the Internet Engineering Task Force,
the RoHC protocol for Header Compression is a mandatory component of
UMTS standards. According to Effnet, Header Compression can reduce
the size of IPv6 packets by as much as 75 percent, drastically
reducing the bandwidth and infrastructure required to support
voice-over-IP, video conferencing, interactive gaming, streaming
media and other mobile Internet applications.
Determining Cost Savings
Working with consulting firm Logical Tree AB, Effnet conducted a
comprehensive analysis of Internet traffic and mobile network
performance characteristics. They then developed a financial model
to calculate the savings that would result from using IP Header
Compression in these mobile networks.
The resulting financial model predicts that investment dollars
would be wasted moving IP packet headers between radio network
controllers, base transceiver stations and mobile handsets. But by
implementing the RoHC protocol, operators can reduce IP headers to
less than 1 percent of the total IP user traffic by 2005.
In addition, the model takes into account over 20 adjustable
input values such as traffic mix, message lengths and types of IP
packet headers. Based on these input values, the model predicts that
if the total investment through 2005 is $100-billion, an operator
could save $15-billion in unneeded infrastructure equipment,
representing 15 percent of the total.
For more information: http://www.effnet.com
MobileInfo.Com’s Coments and Advisory: IP header
compression is only one way of optimizing wireless traffic. This is
good approach and should be embedded in IP6 and 3.G and 4G networks.
Having agrred with the approach, let us not be carried away by the
estimates of dollar savings projected by the consulting firm. We
have seen a number of approaches to solving this problem. What we
need is a holistic approach that looks at optimization at different
network layers, including content optimization. Unfortunately,
network operators are less interested in this than they are in
inefficient use of the bandwidth. We think that it is a misguided
strategy. More efficient use of scarce wirelss bandwidth and
therefore less expensive application deloyment will lead to greater
number of applications getting wireless-enabled. This will lead to
ever-increasing use of wireless link capacity on 2.5 G and 3G
networks.
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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