Surging video consumption on tablets will push US networks to their limits

New research from Bell Labs predicts that by 2020, US consumers will be watching seven hours of video each day compared to 4.8 hours today, putting a huge strain on broadband networks.

The Bell Labs (the research arm of global telecommunications equipment company Alcatel-Lucent) report stresses that investment is needed in order to keep up with consumer demand.

Marcus Weldon, chief technology officer, Alcatel-Lucent, said “Delivery of video from the cloud and from content delivery networks to tablets, TVs and smart phones – 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.”

The research also pointed to a dramatic shift in viewing habits, as consumers switch from broadcast content to OTT video-on-demand services, which will grow to 70% of daily consumption compared with 33% today.

Internet video consumption is expected to grow 12 times, from 90 Exabytes to 1.1 Zettabytes. Growing user demand for VoD will also drive spectacular growth of managed VoD services, which are expected to show a cumulative annual growth rate of 28 percent, from 44 Exabytes to 244 Exabytes.

More findings from the Bell Labs research can be found here.