Sandvine: 70% of Global Internet Traffic will be Encrypted in 2016

WATERLOO, ON, Feb. 11, 2016 /CNW/ - Sandvine, (TSX:SVC) a leading provider of intelligent broadband network solutions for fixed and mobile operators, today released a new Global Internet Phenomena Spotlight on the state of Internet traffic encryption in 2016.

In recent years, a significant number of major Internet services and applications have begun to encrypt their traffic in order to ensure their user's content remains private. In this report, Sandvine uses data collected from networks in North America, Europe, and Latin America to explain the current state of traffic encryption, make predictions on where it is going, as well as provide a high level overview of the technical terms and technology associated with encrypted Internet traffic.

Some notable points from the research include:

• A forecast that 70% of global Internet traffic will be encrypted in 2016, with many networks exceeding 80%
• North American fixed networks have the lowest share of encrypted traffic, globally, thanks to the popularity of streaming video applications which are not fully encrypted
• Netflix, the leading source of North American traffic has begun to transition towards delivering encrypted video in select web browsers, although over 90% of their traffic remains unencrypted
• Over two-thirds of traffic on fixed access networks in Europe and Latin America is already encrypted thanks to popularity of sites like YouTube and Facebook
• Encryption on mobile networks globally lags slightly behind fixed networks, but averages around 60% of total traffic
• Instagram is the leading mobile application yet to fully encrypt their traffic, leaving most pictures and videos unencrypted

"The rapid rate at which encrypted traffic is growing is a reality that few network vendors seem willing to admit to themselves or their customers," said Don Bowman, CTO, Sandvine. "Traditional traffic classification approaches will no longer be effective in providing network operators with the information they need to run their business with a broadly encrypted Internet. Network vendors will need to develop more advanced traffic classification techniques, which will require both innovative approaches and intensive computing power, in order to ensure that the business intelligence, traffic management, and subscriber service offerings operators rely on remain effective in the age of encryption."

On Tuesday, February 16, Sandvine's CTO Don Bowman will be hosting a webinar entitled "Preparing Your Network for the Encrypted Internet" where he will further expand upon the research covered in this Internet Phenomena Spotlight and discuss ways in which service providers can prepare for a fully encrypted Internet. Interested parties can register on Sandvine.com.

The Global Internet Phenomena Spotlight on encrypted Internet traffic, as well as a technology showcase examining Sandvine's Internet traffic classification techniques can be downloaded from the "Encryption Trends" page on Sandvine.com.

ABOUT SANDVINE

Sandvine's network policy control solutions add intelligence to fixed, mobile and converged communications service provider networks to enable services that can increase revenue and reduce network costs. Powered by Sandvine's Policy Engine and SandScript policy language, Sandvine's networking equipment performs end-to-end policy control functions including traffic classification, and policy decision and enforcement across the data, control and business planes.  Sandvine's products provide actionable business insight, the ability to deploy new subscriber services and tools to optimize traffic while enhancing subscriber Internet quality of experience.

Sandvine's network policy control solutions are deployed in more than 250 networks in over 90 countries, serving hundreds of millions of data subscribers worldwide, www.sandvine.com.

FORWARD-LOOKING STATEMENTS
Certain statements in this release which are not historical facts constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements") and are made pursuant to the "safe harbour" provisions of such laws. Statements related to the scope of deployment of Sandvine's products by a specific customer, the potential revenue opportunity with any particular customer or in any market segment, the benefits of Sandvine's products and services to be realized by customers, Sandvine's market position, future opportunities, product development plans and demand for Sandvine's products and services are forward looking statements, as are any statements relating to future events, conditions or circumstances. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements involve both known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Sandvine to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. These risks and uncertainties include, without limitation, changes in internal deployment strategies or plans by specific customers; the growth of broadband internet usage and levels of capital spending on broadband network management systems; the timing of orders and manufacturing lead times; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; increased competition in the broadband network equipment industry; dependence on the timely development and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks including dependence on key suppliers and key technologies; dependence upon indirect channel sales and resellers; factors such as business and economic conditions and growth trends in the broadband network equipment industry and in various geographic regions; global economic conditions and uncertainties in the geopolitical environment including the impact of regulation related to the internet and the delivery of internet services. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and Sandvine does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except to the extent required by applicable law.

SOURCE Sandvine

INVESTOR CONTACT: Rick Wadsworth, Sandvine, [phone] ext. 3503, [email protected]; MEDIA CONTACT: Dan Deeth, Sandvine, [phone], [email protected]