ABI Research today said telecom service providers can save $28.7 billion through mobile data and video optimization over LTE over a five year period.

TCO / virtual capacity savings could contribute 32 percent, churn reduction 45 percent, and end-user tariff plan upgrade revenues 23 percent, according to ABI Research.

The report said the average traffic generated per user per month will expand from 275 megabytes in Q3 2014 to 1.85 gigabytes in 2019.

Video traffic is expected to reach 65 percent within 5 years. Mobile operators are starting to realize a poor video and Internet experience could lead end-users to try out other service providers.

This week, a GSMA report prepared by Analysys Mason said mobile data subscribers in China – on 3G and 4G networks – will result in almost 15,000 petabytes of data per year by 2019. This is nearly 25 percent of total traffic for the entire Asia Pacific region and a compound annual growth rate of more than 55 percent by 2019.

Jake Saunders, VP and 4G Practice Director at ABI Research, said: “End-users are increasing their expectations to be able to access their Facebook page and/or stream their favorite video clips or soap operas from YouTube or Youku whenever they want.”

Mobile data traffic is surprising everyone in the telecom industry. In May 2014, online search engine Yahoo had 430 million mobile users, an increase of 43 percent. Yahoo expects its mobile traffic to outstrip its desktop traffic by the end of 2014, said Ovum. As a result of the growth, Yahoo increased the number of employees working on mobile from 60 to over 500 within two years.

Some of the mobile video optimization solution providers include Opera’s Skyfire, Citrix, and Flash Networks. Cisco, Opera Software, Citrix, and Ericsson have all made recent acquisitions to boost their video traffic management portfolios.

Baburajan K
[email protected]