The enormous popularity of over-the-top (OTT) streaming services such as NetFlix, Hulu, Apple TV and others is driving broadband networks to near capacity. Since broadband service pricing has remained relatively unchanged over the past several years, this sharp increase in OTT traffic volume without related revenue puts traditional operator business models in jeopardy. In fact, the issue of "uncompensated traffic growth" is receiving increased scrutiny at many network operators today.
The problem is even more severe for Tier 2/3 operators that must buy IP Transit Service for upstream Internet connectivity. Transit bandwidth is quickly consumed as video traffic volume grows, resulting in greater congestion and poor quality of service. The only remedy available to operators has been to increase transit capacity, resulting in higher monthly cost and reduced profit margins.
In response, a growing number of operators have turned to Verivue's OneVantage Content Delivery Solution to manage these dramatic increases in internet traffic. Using caching technology to replicate content at the edge limits the amount of traffic transmitted across the network, reducing bandwidth costs while improving the customer's Quality of Experience (QoE).