Allot MobileTrends Charging Shows 33% of Operators Delivering Mobile Cloud Services

HOD HASHARON, Israel, June 19, 2012 /PRNewswire/ --

Content Partnerships and Revenue Sharing on the Rise

Allot Communications Ltd. (NASDAQ: ALLT), a leading supplier of service optimization and revenue generation solutions for fixed and mobile broadband service providers worldwide, announced today that its Q2, 2012 Allot MobileTrends Charging Report shows that 33% of operators are leveraging revenue sharing models and partnerships with cloud-based content providers such as Spotify to deliver mobile cloud services. The second bi-annual Allot MobileTrends Charging Report is based on publicly available data, collected during Q2, 2012 from over 100 mobile operators worldwide.

Allot MobileTrends Charging Report Q2, 2012 - Key Findings:

• 46% of operators offer Value-based plans, with services such as parental control or music streaming
• LTE operators have embraced Value-based pricing in a similar manner as the 3G Operators
• Operators' cloud is on the rise with 33% offering cloud-based services through partners such as Rhapsody, Spotify and Deezer
• 32% of operators charge for WiFi access (offload). The challenge for operators is to incorporate offloaded traffic into their policy control architecture
• The number or operators charging for tethering almost doubled over the past nine months from 15% to 29%, marking a rise in operator efforts to closely monitor and monetize the interminable surge in data consumption

Since the previous Allot MobileTrends Charging Report (Q3, 2011), the introduction of intelligent Value-based service plans across mobile networks has become more wide spread. Application-based plans, multi-device plans, time-shifting and parental control plans are becoming more common. Operators are also starting to recoup their losses on previously unbillable usage patterns. 32% of operators now offer paid WiFi access. The challenge for operators is to incorporate offloaded traffic into their existing policy control and charging architecture.

Comparing 3G and LTE pricing, the percentage of operators offering Value-based plans is identical. Despite the increased capacity available on LTE networks, it appears that operators are careful not to run into the congestion and declining ARPU issues now faced in 3G environments. Instead, they are building Value-based policy enforcement into their LTE networks from the get go.

"LTE is expanding the scope for value-based pricing innovation over 3G," said Monica Paolini, PhD, Founder and President of Senza Fili Consulting, "We will see even more pricing choice offered to LTE subscribers over time, as subscribers increasingly expect their broadband plan to reflect their preferences with regards to content, usage and services that are valuable to them, and give them the flexibility to make the choices that work best for them."

"Working with some of the world's largest operators, we found the need for pricing innovation to be a cross-regional requirement," said Andrei Elefant, Allot's Vice President of Marketing. "We are currently helping our customers to evolve their data charging, focusing on providing consumers with more choice and operators with unique service differentiation."

The full Q2, 2012 Allot MobileTrends Charging Report (complete with graphics) can be found on:

http://www.allot.com/MobileTrendsChargingReportQ2_2012.html?campid=701D0000000lNnv  

About Allot Communications

Allot Communications Ltd. (NASDAQ: ALLT) is a leading provider of intelligent solutions to optimize and monetize over-the-top traffic in fixed and mobile broadband networks and in large enterprises worldwide. Allot's scalable, carrier-grade solutions leverage dynamic actionable recognition technology (DART) to provide traffic analytics, policy enforcement and video optimization. Allot enables value-based services and charging models that are vital for network operators to deliver a consistently great user experience, contain costs and maximize revenues from network usage. For more information, please visit http://www.allot.com .

Safe Harbor Statement

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the company's plans, objectives and expectations for future operations. These forward-looking statements are based upon management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. These factors include, but are not limited to: changes in general economic and business conditions and, specifically, a decline in demand for the company's products; the company's inability to develop and introduce new technologies, products and applications; loss of market; and other factors discussed under the heading "Risk Factors" in the company's annual report on Form 20-F filed with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Allot Communications Contacts:

Jonathon Gordon
Director of Marketing
Allot Communications
Tel: +972-9-7628423
[email protected]

PR Contact

Justine Schneider
Calysto Communications
Tel: +1-404-266-2060 x507
[email protected]

SOURCE Allot Communications Ltd.