With over-the-top OTT video services threatening to choke even the most robust mobile networks, Telenor Group is tapping Alcatel-Lucent (NYSE:ALU) to help it optimize Internet traffic over its 2G, 3G and LTE mobile networks markets in the Nordic region, Central and Eastern Europe and Asia.
Under a three-year global frame agreement, Norway-based Telenor will deploy technology that automatically manages the delivery of Internet traffic over a mobile network, automatically adapting video streams to the most suitable format according to a customer's mobile device, location and subscription level.
The mobile Internet optimization solution includes Opera's Skyfire Rocket Controller and Optimizer, which is virtualized software that optimizes video streams and Web traffic in real-time based on device, user and session requirements. It also includes ConteXtream's Session Control to manage end-to-end sessions across the network, automatically directing video traffic to Skyfire based on rules or policies decided on by the operator.
In addition, Alcatel-Lucent will contribute its Velocix 7810 Transparent Caching to temporarily store popular content closer to subscribers, as well as its 9900 Wireless Network Guardian to monitor service quality and provide network analytics. Alcatel-Lucent is also providing professional services including system architecture, design, planning and end-to-end integration and testing to provide a tailored solution for each of Telenor's markets.
"Our own network analytics show an explosion in the use of video as we move from 3G to 4G networks. Using our professional services expertise and experience, we are integrating Alcatel-Lucent and partner products to create an innovative solution that helps Telenor deal with this explosion in video traffic. And by improving the subscriber experience, Telenor will foster subscriber loyalty and tap into the growing revenue being generated by mobile subscribers," said Luis Martinez Amago, president of Alcatel-Lucent's EMEA region.
Analyst firm Informa predicts mobile video streaming will represent 34 percent of all global mobile traffic by 2016. Further, the latest Citrix ByteMobile Mobile Analytics Report for the second quarter of 2013 revealed that 82 percent of mobile video entertainment traffic is generated by Google's (NASDAQ:GOOG) YouTube.
"Telenor is committed to giving our customers the best possible experience when they use our networks. As their passion for video from sites like YouTube grows, we want to make sure we keep our network capacity and intelligence one step ahead of demand," said Witold Sitek, senior vice president of technology at Telenor Group.
The agreement with Telenor appears to fit in with Alcatel-Lucent's latest restructuring effort, called the Shift Plan. Under that plan, the vendor will slim down and focus on Internet Protocol (IP) networking products and high-speed broadband in fixed and mobile.
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