How the tablet generation is pushing networks to the edge: research from Alcatel-Lucent's Bell Labs shows impact of surging

   How the tablet generation is pushing networks to the edge: research from
     Alcatel-Lucent's Bell Labs shows impact of surging video consumption

By 2020 people will be watching seven hours of video each day versus 4.8 hours
today, with a dramatic shift from broadcasting to on-demand video viewing

PR Newswire

PARIS, Dec. 13, 2012

PARIS, Dec. 13, 2012 /PRNewswire/ --With Christmas expected to bring another
leap in ownership of tablets, smartphones and other devices, new research from
Bell Labs, the research arm of Alcatel-Lucent (Euronext Paris and NYSE: ALU)
suggests that increasing consumption of video content on such devices will
push the wired broadband networks that carry this traffic to their absolute
limits over the next decade.

  oBell Labs projections suggest that, by 2020, consumers in the United
    States alone will access seven hours of video each day – as opposed to 4.8
    hours today, and will increasingly consume this additional video on
    tablets, both at home and on the go.
  oSignificantly, the research also points to a dramatic shift in viewing
    habits, as consumers switch from broadcast content to video-on-demand
    services, which will grow to 70% of daily consumption compared with 33%
    today.
  oThe projections also suggest a twelve times increase in internet video
    content as cloud services, news sites and social networking applications
    become more video based, and continuously accessible anywhere, anytime on
    tablets.

Importantly, the study also highlighted how these trends will stretch the
capabilities the residential broadband networks many service providers use
today: as the delivery of video content rapidly moves from traditional
broadcast TV to the 'unicast' delivery of personalized content to individuals,
disproportionate pressure will be placed on the ''IP edge' of these networks.
The IP – or Internet Protocol - edge is the part of the network where most of
the intelligence is needed to deliver sophisticated video and high-speed
Internet services is located. Broadcast is a much more efficient way of
delivering video services, so the move to unicast creates enormous bandwidth
demands on networks.

Marcus Weldon, Chief Technology Officer, Alcatel-Lucent, said: "Delivery of
video from the cloud and from content delivery networks to tablets, TVs and
smartphones - with guaranteed quality -, presents an exciting new revenue
opportunity for communications service providers, but only if they are
prepared to take advantage of it. Left unmanaged, the rapid growth in video
traffic can turn into a deluge and spell disaster. It is important to look at
where service providers' investments can have the most impact, and this
research makes clear that the IP edge of both wireline and wireless networks –
which are increasingly becoming one and the same - offers the greatest
opportunity to improve network performance. At the same time, it also presents
the greatest source of risk if not managed appropriately."

Bell Labs found that on-demand video services, such as high definition premium
movie services as well as video sharing sites, will become even more popular
over the next five years. As a result, on-demand video will command an
increased share of viewing hours, causing peak-hour traffic at the 'edge' of
new IP-based networks to grow 2.5 times faster than the amount of traffic on
the broadband connections reaching households. This challenge will need to be
addressed, comprehensively, if communications service providers are to
maintain their ability to deliver high-quality residential multimedia services
to consumers.

Specific Findings
The study compared data about video usage and growth from 2012 to 2020 in
'triple-play' (video, data and voice) communications service providers, and
identified the following trends:

  oThe total time spent watching video will grow from 4.8 hours to seven
    hours per-user, per-day. Much of this contribution will come from the
    latest generation of consumers who are more likely to multi-task – such as
    watching television while conducting a video call on their tablet -
    resulting in seven hours worth of video consumed in as little as five
    hours.
  oThe proportion of time spent watching managed video-on-demand services and
    web-based video (also known as over-the-top - 'OTT' - providers) will grow
    from 33% to 77%. This will come at the expense of traditional broadcast TV
    services, whose relative share of time will drop from 66% to 10%.
  oInternet-based video consumption each year will grow twelvefold, from 90
    Exabytes to 1.1 Zettabyes.
  oConsumption of managed video-on-demand from services providers versus OTTs
    is expected grow at 28 percent annual rate, from 44 Exabytes to 244
    Exabytes.
  o10.5% of managed video consumption and 8.5% of OTT video consumption will
    occur at the peak hour, 8:00 p.m.

Explore the study in more detail in this article in our online publication
TechZine, or visit our website to learn more about how service providers can
Energize the Edge.

About Alcatel-Lucent (Euronext Paris and NYSE: ALU)
The long-trusted partner of service providers, enterprises and governments
around the world, Alcatel-Lucent is a leading innovator in the field of
networking and communications technology, products and services. The company
is home to Bell Labs, one of the world's foremost research centers,
responsible for breakthroughs that have shaped the networking and
communications industry. Alcatel-Lucent was named one of MIT Technology
Review's2012 Top 50 list of the "World's Most Innovative Companies" for
breakthroughs such as lightRadio™, which cuts power consumption and operating
costs on wireless networks while delivering lightning fast Internet access.
Through such innovations, Alcatel-Lucent is making communications more
sustainable, more affordable and more accessible as we pursue our mission -
Realizing the Potential of a Connected World.

With operations in more than 130 countries and one of the most experienced
global services organizations in the industry, Alcatel-Lucent is a local
partner with global reach. The Company achieved revenues of Euro 15.3 billion
in 2011 and is incorporated in France and headquartered in Paris.

For more information, visit Alcatel-Lucent on: http://www.alcatel-lucent.com,
read the latest posts on the Alcatel-Lucent blog
http://www.alcatel-lucent.com/blog and follow the Company on Twitter:
http://twitter.com/Alcatel_Lucent.

SOURCE Alcatel-Lucent

Website: http://www.alcatel-lucent.com
Contact: ALCATEL-LUCENT PRESS CONTACTS: SIMON POULTER,
simon.poulter@alcatel-lucent.com, +33 (0)1 40 76 50 84, or WENDY ZAJACK,
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