a mind for networks

Allot MobileTrends
Global Mobile Broadband Trafc Report

H2, 2010

Allot MobileTrends

Global Mobile Broadband Traffic Report, H2/2010

a mind for networks

Executive Overview
The Allot MobileTrends Report is an ongoing initiative to track global IP application, bandwidth usage and bandwidth growth in mobile broadband networks. The anonymous data in this report was collected from July 1 to December 31 2010 (H2, 2010), from leading mobile operators worldwide with a combined user base of more than 210 million subscribers. This paper presents some of Allots key findings. This is the fifth Allot MobileTrends Report to date.

Key Findings from H2, 2010

Global mobile data bandwidth usage grew by a significant 73%, culminating in a 190% overall 2010 growth rate. Video streaming continues as the fastest growing application type with 94% growth. Video streaming remains the single largest application type worldwide, accounting for over one third of global mobile data bandwidth. YouTube remains the single most important website for video streaming and sharing, and is responsible for 17% of overall global mobile data bandwidth. Twitter grew with a breathtaking 378% increase in global mobile data bandwidth. During 2010, Twitters annual increase was an astounding 1800%. Apples App Store is responsible for 89% of overall app store download traffic. Googles Android Market experienced a rapid growth rate of 177%. File sharing represents a significant 30% of mobile bandwidth. Voice over IP (VoIP) and Instant Messaging (IM) application types remain the second fastest growing application worldwide with an 87% increase in global mobile data bandwidth. Skype continues its dominance of the mobile VoIP market, accounting for 87% of global mobile VoIP bandwidth.

Conclusion
Video streaming and social media, continue to assert their dominance within the mobile broadband market. In addition, the growth in app store downloads is testimony to the vibrancy, dynamic nature and potential of this market. The impact that mobile broadband has had on the way we live our lives cannot be underestimated as we take the age of anywhere-connectivity completely for granted. As operators move towards 4G/LTE and converged networks, they need to understand that it is not just the sheer volume of traffic that is relevant, but also the unique value that these individual applications provide to us. Leveraging this value will become even more critical as operators will be expected to provide a more enriched and personalized experience for their users.

2011 Allot Communications. All rights reserved.

Allot MobileTrends

Global Mobile Broadband Traffic Report, H2/2010

a Communications Allot mind for networks

Global Bandwidth & Application Growth Bandwidth and Application Growth

100%

80%

Global Mean: 73%

60%

Growth
40% 20% 0% Video Streaming VoIP & IM Web Browsing File Sharing Other Apps

Growth in mobile data usage, H2/10

Growth in mobile data usage , H2/10

2011 Allot Communications. All rights reserved.

Global bandwidth continued its steady growth during the second half of 2010 with 73% growth, culminating in a 190% overall annual growth for 2010. This strong growth intimates that, as mentioned in the previous report, the mobile broadband market has still not reached its full potential and that this dynamic market has a long way to go before achieving full maturity. Video streaming continued to lead the roster of application types with 94% growth over H2 2010, cementing its position as the fastest growing application type worldwide. The consumption of video streaming applications continues to increase, and with smartphone sales accounting for 19% of worldwide mobile devices sales1 and tablets becoming increasingly popular, videos popularity sees no sign of abating. File sharing continued to grow at a rate of 36%. These typically aggressive application types are still responsible for much of the congestion within mobile data networks. VoIP (Voice over IP) and IM (Instant Messaging) applications continued as the second fastest-growing application type with an 87% rise. The dramatic rise in bandwidth used by these types of applications reflects the depth of the synergy between social media apps and mobile broadband which is made more user-friendly by the increasing range of device-standard multimedia features.

http://www.readwriteweb.com/archives/gartner_smartphone_sales_up_50_android_takes_overt.php

2011 Allot Communications. All rights reserved.

Allot MobileTrends

Global Mobile Broadband Traffic Report, H2/2010

a mind for networks

Application Breakdown Application Breakdown

VoIP & IM 4% Other Apps 3% 45% 40% Web Browsing 26% File Sharing 30% Video Streaming 37% 35% 30% 25% 20% 15% 10% 5% 0% Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Web Browsing Video Streaming File Sharing VoIP & IM

Application Breakdown

Mobile data usage broken down by Mobile data usage broken down by top top applications, H2/10
applications, H2/10
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Mobile data usage trends broken down by Mobile data usage trends top applications, Q2/09-Q4/10broken down

by top applications, Q2/09-Q4/10

2011 Allot Communications. All rights reserved.

As expected, video streaming has remained the worlds most dominant application type with 37% of global mobile bandwidth, and shows no signs of waning popularity. File sharing represents 30% of global mobile bandwidth, as the application type continues to be popular with subscribers who regard the mobile internet as a direct substitute for fixed connectivity. VoIP and IM expanded their bandwidth share to 4% in the second half of 2010. Despite the significant 87% growth2 that these application types experienced, their actual bandwidth share is relatively minor. The real significance of these application types is in how easy they are to use on smartphones and mobile internet devices (MIDs), the loyalty that users display towards them, and their resultant must-have nature which has made them a strong driver for buying devices.

See page 2

2011 Allot Communications. All rights reserved.

Allot MobileTrends

Global Mobile Broadband Traffic Report, H2/2010

a Communications Allot mind for networks

Video Streaming Video Sharing

YouTube 17% YouTube 45%

Other Apps. 83%

Other Video Streaming 55%

YouTube as a percentage of total YouTube as a percentage of total global mobile bandwidth, H2/10 global mobile bandwidth, H2/10
2011 Allot Communications. All rights reserved.

YouTube as a percentage of total global YouTube as a percentage of total global mobile video streaming, H2/10 mobile video streaming, H2/10

YouTube experienced significant growth in H2, 2010 of 190% as compared with 123% in H1, 2010. The overall annual growth during 2010 was 547%. As video streaming continues to reign supreme within mobile networks, YouTube continues as the single most significant website for video streaming and sharing, now accounting for 45% of the overall mobile video streaming traffic and 17% of the total traffic on mobile networks. Although VoIP and IM applications account for a small percentage of the overall mobile broadband bandwidth, their growth indicates that despite their low impact on actual bandwidth usage, their popularity and rising installed base indicate that these applications are likely to play an increasingly significant role as they are often seen as direct alternatives for other operator services.

2011 Allot Communications. All rights reserved.

Allot MobileTrends

Global Mobile Broadband Traffic Report, H2/2010

a mind for networks

App Stores Apps Stores

Ovi 1% Android Market 9% Other 1% 200% 175% 150% 125% 100% 75% Apple App Store 89% 50% 25% 0% Android Market 5% Apple App Store Other Ovi

Apps Stores Growth

App Store Share, H2/10

0%

App Store Growth, H2/10

Apples App Store is by far the most popular app store to date, with downloads from this store responsible for an 89% share of the overall app store download traffic. Googles Android Market lags far behind with only 9% of the download traffic. However, in terms of growth this situation is reversed with Android Market experiencing a rapid growth rate of 177% during H2, 2010 as opposed to App Store which grew at a much slower 54%. As the mobile value chain continues to evolve, operators are increasingly looking at launching their own app stores as a means for them to add value to their offering and increase their ARPU. The relationship between the app stores and the take-up of smartphones and MIDs is symbiotic with each element driving the other forward. With worldwide mobile app store revenue forecasted to increase by 190% in 20113, app stores are certain to play a prominent role in the mobile value chain evolution.

http://www.gartner.com/it/page.jsp?id=1529214

2011 Allot Communications. All rights reserved.

Allot MobileTrends

Global Mobile Broadband Traffic Report, H2/2010

a Communications Allot mind for networks

Social Networking and Video Sharing Social Networking Application Breakdown

400% 350% 300% 250% 200% 150% 100% 50% 0% Twitter Facebook YouTube MySpace

Growth in top social networking & video sharing applications, Growth in top social networking and video sharing applications, H2/10H2/10
2011 Allot Communications. All rights reserved.

Twitter continued to grow at a breathtaking rate during the second half of 2010, with a 378% increase in global mobile bandwidth. The overall annual growth rate for 2010 was a tremendous 1800%. This is undoubtedly due to a variety of factors including the increase of 100 million registered accounts over 20104, the growth of Twitter as a mainstream form of communication where people are increasingly tweeting instead of texting messages, the continuing integration of Twitter into other social networking sites, and of course the increase in smartphone and MID adoption. Facebook experienced significant growth during H2, 2010 with a 267% rise in global mobile bandwidth and a 1000% growth rate in 2010. One of the likely explanations for this is the ongoing increase in mobile Facebook users which now stands at 200 million active users who are twice as likely to be active on the website as non-mobile users, and also the increasing number of mobile operators who are actively promoting Facebook to their subscribers5. The fusion that exists between different social media websites continues to strengthen as these sites expand their offering for users and they become a more entrenched part of our daily lives.

4 5

http://blog.twitter.com/2010/12/whos-new-on-twitter-hindsight2010.html http://www.facebook.com/home.php#!/press/info.php?statistics

2011 Allot Communications. All rights reserved.

Allot MobileTrends

Global Mobile Broadband Traffic Report, H2/2010

a mind for networks

VoIP and Instant Messaging Application Breakdown VoIP and Instant Messaging Application Breakdown
Yahoo! Messenger Windows Live 1% 1% Google Talk 1% Other VoIP 10%

Windows Live 24%

Yahoo! Messenger 27%

Skype 87%

Other IM 15% ICQ 3% QQ 19%

Google Talk 12%

Top VoIPVoIP applications inmobile Top applications in mobile broadband, H2/10 broadband, H2/10
2011 Allot Communications. All rights reserved.

Top IMTop IM applicationsmobile applications in in mobile broadband, H2/10 broadband, H2/10

Skype has continued to increase its dominance of the VoIP market and is now responsible for 87% of global mobile VoIP bandwidth. During H2 2010, Skype grew by a tremendous 114%, increasing further the gap between itself and other VoIP applications including Google Talk, Yahoo! Messenger and Windows Live. Skypes increased hold on this market is due in part to the rise in partnerships with mobile operators to preload Skype on handsets, and therefore to present users with a ready-touse, official VoIP alternative to traditional phone calls. Yahoo! Messenger has remained the most popular Instant Messaging application (in terms of nonVoIP usage) and accounts for almost 27% of global IM bandwidth. However, it should be noted that since H2/2009 Yahoo! Messengers share of IM bandwidth has consistently eroded6. QQ, a Chinese language IM application has retained its popularity amongst its international target market with 19% of the global IM bandwidth and remains the third most popular IM application worldwide. QQs audience resides mainly but not wholly in the APAC region.

Allot MobileTrends Report, H2/2009

2011 Allot Communications. All rights reserved.

Allot MobileTrends

Global Mobile Broadband Traffic Report, H2/2010

a Communications Allot mind for networks

MobileTrends Report Methodology

The MobileTrends Report is based on statistics collected from mobile networks around the world, representing more than 210 million subscribers. The detailed information was gathered using the long term reporting capabilities of Allot NetXplorer, Allots centralized management & reporting system. The length of the collection period allows accurate identification of usage trends and patterns, reducing the influence of any temporary events in the monitored networks. The data collected for this report was totally subscriber-anonymous. Subscriber identifying information such as IP addresses, usernames or MSISDN were not retained in the data gathered from the mobile networks.

2011 Allot Communications. All rights reserved.

Allot MobileTrends

Global Mobile Broadband Traffic Report, H2/2010

a mind for networks

Glossary

App Stores
App stores refer to a service available to users of smartphones and mobile internet devices, e.g., tablets, netbooks, etc., that enables them to download a wide range of free and paid applications, specifically suited for the particular MID. App Stores include Apple App Store, Google Android Market, BlackBerry App World, Nokia Ovi Store, Palm App Catalog, Windows Marketplace for Mobile and others.

File Sharing
Refers to HTTP download services, in particular from One-Click hosting sites such as RapidShare and Megaupload and P2P applications such as Bittorrent and eMule. In previous reports File Sharing was broken down into Peer-to-Peer and HTTP download.

Instant Messaging (IM)

Originally, instant messaging applications delivered real-time text-based communications between two or more users over the internet. Todays IM applications offer a wider range of communication services including video conferencing, voice communications and file transfer. Instant messaging applications include Windows Live!, Yahoo! Messenger, QQ and so on.

Video Streaming
Refers to communication directed through video sites including either user generated content (UGC) such as YouTube or content provided by sites such as Hulu, cnn.com and BBC iPlayer.

Voice over IP (VoIP)

Refers to software applications that allow users to deliver over IP networks in general and internet in particular. Internet VoIP is provided by a range of applications such as Skype, GoogleTalk and also by most popular Instant Messaging applications.

Web Browsing
Refers to HTTP traffic associated with website browsing or other HTTP traffic which is not downloading or streaming. In addition, web browsing also includes apps delivering real time updates and statistics over HTTP.

2011 Allot Communications. All rights reserved.

a mind for networks

About Allot Communications

Allot Communications Ltd. (NASDAQ: ALLT) is a leading provider of intelligent IP service optimization and revenue generation solutions for mobile and fixed broadband operators and large enterprises. Allots rich portfolio of solutions leverages Dynamic Actionable Recognition Technology (DART) to transform broadband pipes into smart networks that can rapidly and efficiently deploy value added Internet services. Allots scalable, carrier-grade solutions provide the visibility, topology awareness, security, application control and subscriber management that are vital to managing Internet service delivery, enhancing user experience, containing operating costs, and maximizing revenue in broadband networks. For more information, please visit www.allot.com

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