Case Study - Data Economics of the Edge and 5G
The Edge can reduce network congestion and therefore decrease the delivery cost of data and increase the revenue from that data delivery.
Note – This study was done in conjunction with Chetan Sharama Consulting and published in the report: Edge Internet: The Multi Trillion Dollar Ecosystem Opportunity.
Chetan Sharma Consulting, Edge Internet: The Multi Trillion Dollar Ecosystem Opportunity. 2019
The single-most important KPI for an operator will be how cost-effectively they can transmit data packets.
The Edge Internet will lead to new business models of deploying networks and service bundling involving more and newer players.
Advertising is the quintessential part of today’s mobile internet. Video advertisements dominate the market. Today, network inefficiencies pose a problem to the delivery of those advertisements.
The problem manifests when attempting to stream video ads during peak times of congestion. These attempts offered a poor consumer experience. Poor consumer experiences reduce customer engagement, reducing advertisement revenue ultimately wasting the advertisement opportunity.
A Tier-1 Operator was having a problem with network congestion. Their video advertising will suffer from network congestion and buffering issues. Edge helped to relieve congestion and improve all cost and performance KPIs.
Included above is a graphic depicting the network latency from streaming a video advertisement during the time of congestion. Without the Edge, Network Latencies can reach almost up to 100 ms, greatly diminishing the value of the advertisement. Conversely, with the edge, network latency remains below 45 ms greatly improving the value of an advertisment.
- Video resolution increased by 27%
- Data Throughput increased by 62%
- Startup time reduced by 33%
- Video ad completion increased by 42%
- Playback time increased by 26%
- Revenue increased by 30%
- MAU metric increased by 39%
- Reduction in revenue erosion by 88%
We looked deeply into an Edge implementation at a Tier-1 Network Operator who was looking to solve some specific video streaming issues. There was a dramatic decrease in cost structure and significant improvement in revenue enabled by new business models and service packaging.
This model is quite replicable across different use cases, domains, and industries.
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