Allot Research Reveals Shift Toward Quality of Experience as Telecom Industry Prepares for 5G
November 13 2019 - 10:22AM
Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a leading global provider
of innovative network intelligence and security solutions for
service providers and enterprises worldwide, today released
findings from its latest Telco Smart Trends Report. The report
identifies the attitudes of Communication Service Providers (CSPs)
toward Quality of Experience (QoE) and the evident need for
intelligent network congestion management solutions to ensure
customer experience, even as the industry transitions to
high-capacity 5G.
The Allot research report contains results and analysis from a
recently conducted survey conducted among senior engineering
managers from 106 CSPs worldwide. The report explores the metrics
and tools CSPs use to measure QoE, how they augment it, what
threatens QoE and where customers see its greatest value. It also
shows how CSPs can actually reduce infrastructure-related costs
while improving QoE. Key findings include:
QoE is More Central to Customer Satisfaction than
Price
- CSPs ate network QoE as their top business objective (26%),
followed by competitive pricing (25%), churn reduction (18%),
capital expenditures (CAPEX) reduction (17%) and market share
(14%).
- When asked to explain the importance of measuring QoE, 69% said
it was to evaluate customer satisfaction, followed by customer
retention (19%), regulatory requirements (9%) and resource planning
(3%).
Browsing Takes Number One Spot in Churn
Concern
Asked to rank the activities where poor QoE causes customer
churn, the number one reason was browsing, which 77% put among the
top 3 reasons, followed by content upload (66%), video and voice
(tied at 60%) and gaming (36%).
Congestion and DDoS Are QoE Killers
- 48% of CSPs report that DDoS accounts for 3-5% of their traffic
and an additional 11% report it accounts for 6-10% of the traffic,
which contributes to congestion.
- There is high concern that growing IoT deployment will create
more traffic; 66% of CSPs are very concerned that IoT will generate
outbound DDoS, 51% fear that 5G is going to further increase DDoS
traffic.
Effective Congestion Management Can Deliver Customer
Satisfaction While Reducing Costs
- Survey respondents noted they need to expand capacity of 20% of
cells annually and at an approximate cost of $30,000 per cell.
- However, according to Allot benchmarks, by optimizing
congestion management, CSPs can gain back up to 20% of
inefficiently utilized bandwidth
“CSPs are keenly aware of the need to become more
customer-centric and are prioritizing quality of experience for
end-users,” said Mark Shteiman, VP Product Management at Allot.
“However, growing network congestion, the launching of new services
and the transition to 5G, coupled with the increasing number of
unwanted DDoS traffic – itself fueled by IoT and 5G – requires
advanced technology solutions that use machine learning and
artificial intelligence to detect encrypted traffic, evaluate end
user QoE and manage congestion in real-time. Once CSPs have these
tools, they not only improve QoE, but can also save a lot of
CAPEX.”
CSPs need visibility of both network performance and customer
experience, and need to take control of their bandwidth
consumption. If they combine real-time QoE visibility with the
ability to prioritize traffic to deliver optimal QoE at minimal
bandwidth cost, they can protect their bottom-line profitability
while keeping their customers happier. The full report is available
here.
###
Additional resources:
Q4 2019 QoE Research Report:
https://info.allot.com/telco_quality_of_experience_report.html?utm_source=pr&utm_medium=external&utm_campaign=TST_QoE_Q4_2019
Allot Blog: https://www.allot.com/blog/
Follow us on Twitter: @allotcomms
Follow us on LinkedIn:
https://www.linkedin.com/company/allot-communications/
About Allot
Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a provider of leading
innovative network intelligence and security solutions for service
providers and enterprises worldwide, enhancing value to their
customers. Our solutions are deployed globally for network and
application analytics, traffic control and shaping, network-based
security services, and more. Allot’s multi-service platforms are
deployed by over 500 mobile, fixed and cloud service providers and
over 1000 enterprises. Our industry leading network-based security
as a service solution has achieved over 50% penetration with some
service providers and is already used by over 21 million
subscribers in Europe.
Allot. See. Control. Secure.
Forward Looking Statement
This release contains forward-looking statements, which express
the current beliefs and expectations of company management. Such
statements involve a number of known and unknown risks and
uncertainties that could cause our future results, performance or
achievements to differ significantly from the results, performance
or achievements expressed or implied by such forward-looking
statements. Important factors that could cause or contribute to
such differences include risks relating to: acceptance of our
products by our reseller and customer in EMEA, our ability to
compete successfully with other companies offering competing
technologies; the loss of one or more significant customers;
consolidation of, and strategic alliances by, our competitors,
government regulation; lower demand for key value-added services;
our ability to keep pace with advances in technology and to add new
features and value-added services; managing lengthy sales cycles;
operational risks associated with large projects; our dependence on
third party channel partners for a material portion of our
revenues; and other factors discussed under the heading "Risk
Factors" in the company's annual report on Form 20-F filed with
the Securities and Exchange Commission. Forward-looking
statements in this release are made pursuant to the safe harbor
provisions contained in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are made only as of
the date hereof, and the company undertakes no obligation to update
or revise the forward-looking statements, whether as a result of
new information, future events or otherwise.
- Allot_QoE_TST_Report_Cover_NOV2019
Seth Greenberg
Allot
0549222294
sgreenberg@allot.com
Ashley Ray
Fusion PR for Allot
ashley.ray@fusionpr.com
Ehud Helft / Gavriel Frohwein
Allot Investor Relations
+1-646-688-3559
Allot@gkir.com
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