Operators Could Slash Mobile Data Costs by 60 Per Cent per Year, Says Bridgewater Systems Report

By Bridgewater Systems, PRNE
Sunday, February 7, 2010

New Research Highlights Cost Reduction Strategies and New Service Revenue Models for a Sustainable Mobile Data Future

OTTAWA, February 8 - Bridgewater Systems (TSX: BWC), the mobile personalization company, today
announced the publication of new research into the mobile data surge,
highlighting cost reduction strategies that can save mobile operators up to
60 per cent per annum by 2013. The report, "Towards a Profitable Mobile Data
Business Model" is available to download at


     - Towards a Profitable Mobile Data Business Model highlights the impact
       of growing 3G penetration, lower cost smartphones and USB dongles,
       new tablets like the iPad, and the popularity of mobile applications
       on the growth in mobile data traversing operators' networks.

     - It investigates the causes of mobile network congestion and the best
       methods to alleviate it based on exclusive research conducted by
       independent research firm Chetan Sharma Consulting. It also provides
       insights into new service models underpinned by Bridgewater's
       deployment experiences with operators and customer case studies from
       Ovum and Morgan Stanley.

     - Towards a Profitable Mobile Data Business Model looks at both network
       congestion management strategies and operator data pricing models
       with the following conclusions:

       -  Policy control could contribute substantial annual cost savings of
          over 10 per cent, equating to more than $15 billion in annual cost
          reduction by 2013 in the US market.

       -  Operators deploying a data traffic offload strategy to Wi-Fi,
          femtocells or 4G could expect savings of 20 to 25 per cent per
          annum by 2013, representing $30 to $40 billion in the US market.

       -  The evolution to HSPA and LTE could save just under 20 per cent in
          network costs by 2013, saving US operators $25 billion by 2013.

       -  Flexible, dynamic, and personalised pricing models that reflect
          subscribers' preferences and context, bandwidth and application
          usage, and network conditions will better align data revenues with
          network costs for the first time. New models include:

          -  Tiered and usage based models that take a smarter approach to
             service personalization and fair usage;
          -  Application-specific charging, to generate appropriate revenues
             from high-bandwidth services;
          -  Time-based models that charge based on time spent on the
             network; and
          -  Mobile advertising and mobile commerce funded approaches.


Chetan Sharma, President, Chetan Sharma Consulting

"The popularity of smartphones, mobile laptop dongles and flat-rate data
plans has brought explosive growth in mobile data traffic. A holistic
approach to managing this traffic including policy control, mobile data
offload, and evolution to 3.5G and 4G is critical or costs could exceed
revenues and become unsustainable by 2012 or sooner."

Steven Hartley, Senior Analyst, Ovum

"Mobile broadband profitability requires a holistic approach. Operators
must adopt a range of technical solutions to manage costs, from traffic
management tools, through to data offload and LTE or WiMAX. However, these
will need to be allied with commercial approaches that protect revenues, such
as tariff innovation and the enforcement of fair usage policies."

David Sharpley, Senior Vice President, Bridgewater Systems

"Our new report highlights the importance of implementing a multi-pronged
strategy to reduce mobile data costs and network congestion including policy
control, data traffic offload, and migration to 3G and 4G. By coupling this
strategy with personalized service models based on subscriber usage,
operators can benefit from a more profitable mobile data business model."

Visit Bridgewater Systems and see the Data Offload and Smart, Policy
Control Demonstrations at Mobile World Congress, Hall 1 - Stand 1F47,
February 15-18, 2010, Barcelona, Spain. Join Bridgewater's Russ Freen, Chief
Technology Officer, at the 'Network Breaking Point' session to discuss
solutions for managing mobile data growth on February 17th at 2:00 PM.


Bridgewater Systems, Chetan Sharma Consulting, Ovum, Morgan Stanley,
Policy Control, RAN Congestion Mobile data traffic offload, mobile data
growth, tiered services, Mobile World Congress








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About Bridgewater Systems

Bridgewater Systems, the mobile personalization company, enables service
providers to efficiently manage and profit from mobile data services, content
and commerce. The company's market leading mobile personalization portfolio
provides a real-time, unified view of subscribers including entitlements,
devices, networks, billing profiles, preferences and context. Anchored by
Bridgewater's Subscriber Data Broker(TM), the portfolio of carrier-grade and
standards-based products includes the Bridgewater(R) Service Controller
(AAA), the Bridgewater(R) Policy Controller (PCRF) and the Bridgewater(R)
Home Subscriber Server (HSS). More than 140 leading service providers
including America Movil, Bell Canada, Clearwire, Cox, Hutchison Telecom,
Iusacell, Scartel, SmarTone-Vodafone, Sprint, Tata Teleservices, Tatung,
Telmex, Telstra, and Verizon Wireless use Bridgewater's solutions to rapidly
deliver innovative mobile services to over 150 million subscribers. For more
information, visit us at www.bridgewatersystems.com.

Bridgewater, Bridgewater Systems, the Bridgewater Systems logo, WideSpan,
Smart Caps, myPolicy, and Subscriber Data Broker are trademarks or registered
trademarks of Bridgewater Systems Corporation. All other company, product
names and any registered and unregistered trademarks mentioned are used for
identification purposes only and remain the exclusive property of their
respective owners.

For further information: Ed Barker, Bridgewater Systems,
edward.barker@bridgewatersystems.com, +44(0)7939-492-656; Joanne Steinberg,
Bridgewater Systems, joanne.steinberg@bridgewatersystems.com, +1(613)884-8831

For further information: Ed Barker, Bridgewater Systems, edward.barker at bridgewatersystems.com, +44(0)7939-492-656; Joanne Steinberg,
Bridgewater Systems, joanne.steinberg at bridgewatersystems.com, +1(613)884-8831

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