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September 10th, 2012, Vol:1

Diametriq Unveils Interactive LTE Diameter Traffic Calculator
Web-based Traffic Model Calculates LTE Diameter Signaling Load

Melbourne, FL – September 17, 2012 – Diametriq, a leader in addressing LTE signaling network issues, announced today the first web-based interactive tool that automatically calculates the Diameter signaling load based on a variety of input variables such as the number of LTE devices and how subscribers use them. The Diameter Traffic Calculator™ generates reports that include graphical presentations and signaling load by network element.

"While 4G opportunities are alluring, they are accompanied by non-trivial challenges including exponential growth in signaling traffic driven by data-rich applications from always-on smart phones. Unless appropriately addressed, excessive signaling can be detrimental to the data core potentially bringing down vital network elements" said Sridhar Pai, CEO of Tonse Telecom, a research firm tracking the wireless industry. More


Editor's Words

By Sridhar Pai, ceo, Tonse Telecom

Future OTTs and Impact on Telcos

To say geography has become history is clichéd. As the Internet transforms the globe, marginalizing several businesses and making others totally redundant, telecom service providers are finding themselves on the wrong side of progress too. OTT players are clogging the telcos' expensive digital highways for free and yet telcos have no known way to bill them. What might be coming in the form of the Cloud / data centres might just make it worse for telcos as the data tsunami seems to brew fresh mountains of trouble for these service providers.

As computing becomes a utility, infrastructure and storage become services delivered to the user on demand for a small fee. As handheld device processor capacity grows exponentially, personal and business content gets pushed into wireless core networks increasingly at lower dollar per bit than before. Increasing demand on the wireless operator to enhance network radio capacities, push the user to upload even more pictures, videos and data for sharing and archival. Document sharing / storage services such as Yousendit, DropBox and others provide easy to share /send large file sizes and thus create enormous mountains of data daily, thus pushing up demand for new global class utility hubs: data centres.

These data centres are the storage equivalents of traditional utilities or power grids – except that they do not produce but consume energy. Soon global data centres being built will resemble small townships and will scale dramatically higher, placing fresh demand on real estate, power supply, hardware and software. The data centres being built by the likes of Google and other OTT players are unlikely to be outsourced to telcos – but will be built, used and managed by themselves. The scale of some of these emerging data centres are nothing similar to what today's telcos may have seen or visualized, as the OTT players' data centres could be far more complex and demanding in terms of flexibility and scale.


This is bound to bring traditional telco equipment vendors to the brink as they now need to design networks to suit the demands of OTT players not necessarily the global telcos anymore. Could this signal a new shift in the traditional telco equation – where they pretty much have driven standards and the network gear required to suit themselves? With the economic equation tilting in favour of OTT players this may quite likely be the case. Traditional telco equipment vendors could find new revenue streams in data centre businesses as telco wide area networking requirements will be dwarfed by OTT data centre requirements.

As demand for data grows, to the telco, the cost of delivering every additional MB of data goes up too. Traditionally bandwidth volumes increase and revenue decreases following the scissors curve and the telcos will struggle to manage the gap to be as low as possible. However as greater network traffic forces additional year on to year capex (capital expenditure), just to keep up, the telcos could be facing a losing battle.

On the other hand, advertisement-led revenues seem to keep OTT players reasonably healthy and their increasing investments in data centres appear at this point to be a small price to pay. In other words the revenue to cost curves is favourable to the OTT players today. Should this trend continue over a period of five years or so, we could have a situation where profitability of the OTT players are far superior to the telcos. Should such a scenario emerge is it possible that someday, the telcos will become large mass bit-transporters across the globe carrying billions of minutes / Petabytes of data daily governed in some fashion by OTT players who could then have the ability to direct telco roadmaps and service introduction?

Increasingly the new Central office will be the Data centre and globally distributed nodes delivering compute, Value added services, storage and everything one needs in context and profile-centric fashion irrespective of location. Roaming will be an antiquated concept and server location entirely irrelevant. Data centre locations will be governed by cheap power and government policy. It wouldn't matter if your kid's birthday file, an 800GB 3D video file was sitting on a shared server sitting in a Data centre in Alaska or on a flotilla in the Pacific Ocean. Would it?

Read online >>

Sridhar Pai runs Tonse Telecom, a Bengaluru-based telecom research and consulting house that is a research partner to Light Reading India.

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About Tonse Telecom

Tonse Telecom is a research, consulting and advisory services organization focusing on the India telecom sector. Tonse Telecom enables telecom equipment vendors, ISVs, infrastructure developers and investors for success in the Indian telecom marketplace.

Tonse Telecom has onboard, a team of reputed senior industry executives and consultants who provide advisory services on specific projects. Tonse covers a broad spectrum of telecom technologies that include Wi-Fi /BWA / WiMAX, IMS, FMC and Triple Play, VoIP, Mobile VAS, End-device Applications and Mobile Content.

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