STOCKHOLM, Sweden, April 3, 2002 (PRIMEZONE) -- Effnet, a leading developer of Internet Protocol (IP) Header Compression technologies, announced the completion of the first comprehensive study that analyzes the impact of IP Header Compression on the cost of deploying 2.5G and 3G mobile phone networks. By shrinking the size of Internet packet headers, the Header Compression software is expected to save mobile operators up to U.S. $15B in reduced infrastructure costs through the end of 2005.
Leading market research firms, such as Gartner and Yankee Group, anticipate that mobile operators will spend billions of dollars worldwide on 2.5G and 3G infrastructure in the next few years. For some types of IP traffic, Header Compression technologies will save as much as 75% of the required bandwidth and thereby reduce necessary investments.
To gain a better insight into the potential benefits for operators, Effnet and consulting firm Logical Tree AB (www.logicaltree.se) conducted a detailed analysis of Internet traffic and mobile network performance characteristics. Effnet and Logical Tree then developed a financial model to calculate the savings that would result from using IP Header Compression in these mobile networks.
The resulting financial model predicts that a large portion of this infrastructure investment in 2.5G and 3G would be wasted moving IP packet headers between radio network controllers, base transceiver stations and mobile handsets. By implementing Robust Header Compression (RoHC), an industry standard for reducing the size of Internet packet headers, mobile operators can reduce IP headers to less than 1% of the total IP user traffic by 2005.
The model accommodates more than twenty adjustable input parameters that take into account such things as traffic mix, message lengths and types of IP packet headers. From those input values, the model predicts that if the total investments through 2005 are $100B, the savings will then be nearly $15B in unneeded infrastructure equipment, representing 15% of the total.
Effnet has shown the details of its study to large network operators who have been favorably impressed by its findings. Effnet is making both the study and the use of its economic analysis tool available now to mobile operators who wish to analyze the impact of Header Compression technology on their network investment plans.
"We knew that Header Compression had the potential to significantly reduce the amount of redundant Internet traffic, but we were surprised by the magnitude of the expected reduction in infrastructure cost," explained Orjan Grinndal, Effnet CEO. "Our financial analysis tool also shows that even when we make very conservative assumptions about the deployment of 2.5G and 3G networks, and a modest proliferation of Internet use on mobile phones, the impact of this software technology is enormous."
Header Compression is Part of 3G Standard
Developed and approved by the Internet Engineering Task Force (IETF), the RoHC protocol for Header Compression is a mandatory component of the endorsed UMTS standards. Header Compression can reduce the size of IPv6 packets by as much as 75%, drastically reducing the bandwidth and infrastructure needed to support voice-over-IP, video conferencing, interactive gaming, streaming media and other mobile Internet applications.
IP Header Compression also improves transmission delay and interactive response time. Subscribers therefore enjoy a higher level of quality when using Internet services that employ Header Compression, even as the burden on network infrastructure is reduced.
Effnet is the only independent commercial source of Header Compression. The company has completed extensive Header Compression tests with major telecommunications manufacturers to insure interoperability between handsets and infrastructure equipment manufactured by Effnet technology licensees and other leading equipment vendors.
About Effnet
Effnet innovates and licenses award-winning technologies that resolve data speed, efficiency and security challenges in Internet Protocol (IP) networking. Effnet's IP packet processing technologies enable optimum performance. Founded by leading researchers in the field of Header Compression, the company operates in Stockholm, Sweden and Tucson, Arizona. Effnet Group AB shares are traded on Sweden's Nya Marknaden (symbol:EFFN). Read more about Effnet at the company's website: www.effnet.com.
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