Optimizing the Video Revolution: A Collaborative Path for Content and Telecom Providers
The video streaming landscape has undergone a spectacular transformation in recent years, with video consumption exploding to become the undisputed champion of entertainment today. This surge is expected to continue as new, higher-bandwidth services emerge. Video now plays a key role in entertainment and communication, with leading content providers increasingly focusing on video. Traffic from platforms like Alphabet, Amazon, Apple, Disney+, Meta, Microsoft, Netflix, and TikTok now accounts for almost two-thirds of total internet traffic volume.
This video revolution is driven by a desire for the best user experience and seamless connectivity, creating an opportunity for communication service providers (CSPs) and content application providers (CAPs) to collaborate for a more sustainable ecosystem. This paper explores how optimizing traffic and improving content delivery efficiency should be the focus of this partnership.
Adopting optimization strategies beyond traditional radio access network (RAN) management can reduce video buffering, optimize network costs, minimize disruptions, and enhance playback quality, all while meeting end-customer needs.
These collaborative efforts contribute to a more efficient digital infrastructure, benefiting all stakeholders in the content delivery ecosystem. Working together on smarter, more sustainable solutions ensures the digital ecosystem evolves to support innovation, opportunity, and a better user experience as demand grows.
Network traffic is continuously increasing globally, with Telefónica expecting a 30% annual growth in total traffic demand until 2030 and a 20-25% increase in consumption per user across fixed and mobile networks. This is largely driven by the explosion in video consumption, especially short-form video. The shift towards higher-quality video formats like 4K and 8K, along with live and interactive content, also contributes to this increase. As a result, video now accounts for 70% of overall internet traffic volume, a figure expected to reach 80% by 2028, and specifically on mobile networks, it makes up 50-80% of total traffic.
The telecommunications sector is at a critical juncture due to the exponential growth in video traffic, particularly impacting the mobile sector. Telcos are evaluating ways to maintain and upgrade infrastructure to meet service quality expectations. Current efforts have been insufficient due to massive capital requirements and other underlying issues. Fragmented optimization efforts between CAPs and CSPs further complicate the digital ecosystem.
However, this convergence of regulatory pressure, commercial challenges, and technological evolution creates an opportunity for enhanced industry collaboration. A more collaborative approach to network optimization is a strategic necessity. By implementing sophisticated optimization techniques, telcos can significantly reduce operating costs, improve customer experience, and better manage peak traffic periods. Optimized networks also lead to improved energy efficiency and provide detailed insights into network performance and user behavior. For video platforms, efficient delivery mechanisms reduce egress and CDN costs and enhance the user experience, especially in challenging network conditions.
TikTok is actively pursuing network optimization through strategic partnerships and technical initiatives, including developing standardized approaches to Quality of Experience (QoE) and Quality of Service (QoS) metrics. TikTok’s participation in initiatives like Low Latency, Low Loss, Scalable Throughput (L4S) and the IETF SCONE working group, along with the GSMA’s Open Gateway initiative, exemplifies its commitment to advanced video delivery and standardized network APIs. These collaborations, like the partnership with Telefónica on Open Gateway in Brazil, aim to create a more sustainable digital ecosystem.
Beyond industry-wide collaborations, TikTok employs proprietary technologies and partnerships with telcos to address network congestion, utilizing a multi-layered approach involving algorithms, edge computing, and advanced video processing. TikTok uses Adaptive Bitrate Streaming (ABR) and state-of-the-art network detection algorithms to ensure video quality and maximize bandwidth utilization. Its proprietary BVC codec system and AI-enhanced encoding solutions achieve best-in-class compression efficiency and reduce computational costs. TikTok is also shaping the future of video codec technology through GSMA-led collaborations. These technical initiatives have been validated through pilot programs with CSPs, demonstrating their real-world effectiveness.
Key Takeaways
- Explosive Growth of Video Consumption: Video streaming has become the dominant form of entertainment, with its consumption rapidly increasing and expected to continue growing as higher-bandwidth services emerge. Traffic from major video-centric platforms now accounts for nearly two-thirds of total internet volume.
- Need for Industry Collaboration: The report emphasizes a crucial opportunity for communication service providers (CSPs) and content application providers (CAPs) to collaborate. This partnership is essential for optimizing traffic, managing bandwidth more effectively, and working towards a more sustainable digital ecosystem to ensure seamless connectivity and the best user experience.
- Challenges Faced by Telecommunications Sector: The exponential growth in video traffic presents significant challenges for telcos, particularly in the mobile sector. These include difficulties in maintaining and upgrading infrastructure, monetizing 5G investments, and overcoming fragmented optimization efforts between CAPs and CSPs across different regions.
- Benefits of Network Optimization: Implementing sophisticated network optimization techniques can lead to significant benefits. These include reduced operating costs, improved customer experience through better service reliability and reduced latency, more efficient resource utilization, and enhanced energy efficiency, all while maximizing the potential of existing infrastructure.
- TikTok’s Collaborative and Technical Initiatives: TikTok is actively engaged in network optimization through strategic industry partnerships and technical initiatives. This includes participation in standard-setting bodies like IETF L4S and SCONE, involvement in GSMA’s Open Gateway initiative, and the development of proprietary technologies like Adaptive Bitrate Streaming (ABR) and the BVC codec system for efficient video delivery.
- Path Forward: Standardization and Next-Generation Codecs: Two immediate action items for the industry are identified: broader participation in developing standardized network APIs through initiatives like L4S and SCONE, and accelerating the adoption of next-generation video codecs such as Versatile Video Coding (VVC). These steps are crucial for creating a more efficient and sustainable digital ecosystem for future growth.
