SAP Study Shows Mobile Operators Increasingly Turning to IPX as Consumer Mobile Data Rises

DUBAI, United Arab Emirates – November 10, 2013 – SAP AG (NYSE: SAP) today reported that the use of IPX is on the rise among mobile operators. According to “Navigating Complexity: The Quest for True IPX,” a study released by SAP in conjunction with TelecomAsia, more than half (56 percent) of operators surveyed reported that they were connected to an IPX network, as compared to just 30 percent in 2011. The uptake in IPX means faster, higher quality roaming capabilities for consumers and greater access to networks’ LTE spectrum offerings.

“We’re seeing the transformation of IPX from a network to interconnect mobile communications service providers into a cloud that hosts a wide range of software defined services,” said Michael van Veen, business manager IPX, SAP Mobile Services. “As LTE deployments continue, mobile operators are turning to IPX as a secure, private ecosystem for interconnections based on service hubs. With this approach, mobile operators have found they gain far shorter time-to-market, greater efficiency and long-term cost-savings, allowing them to move beyond voice and to richer communication services.”

More than 200 LTE network deployments have taken place since 2010, as mobile operators have increasingly found their networks stressing to keep up with the surge in mobile IP traffic. While voice remains the most popular service connected over IPX networks, with almost 80 percent indicating that they have already deployed voice capabilities, SMS (45.5 percent), video (42 percent) and GRX (41 percent) are some of the services that are fast catching up as IPX becomes more prevalent. Signaling standards such as Diameter and SIGTRAN remained less common, with respectively 28.4 percent and 35.2 percent of respondents reporting that their companies already offered these services via IPX.

A majority of survey respondents (66.5 percent) said the greatest benefit mobile operators derived from IPX interconnections was the assurance that comes from a privately managed, cost-effective and secure network. Additionally, nearly 72 percent of those surveyed reported that support for different commercial models or LTE roaming was significant. This can be seen in many mobile operators’ business models when it comes to offering LTE-based services beyond the usual voice and data package. SAP found that 34 percent of mobile operators were commercially ready to offer LTE roaming service when they initially deployed their LTE networks.

As LTE networks spread and demand for high-speed data services continues to expand rapidly, IPX deployments have accelerated. The IPX market has evolved significantly over the last two years: the survey shows that 56 percent of respondents are now connected to an IPX network compared to only 30 percent two years ago.