Sandvine: Two-thirds of North American Internet Traffic Will Be Encrypted in 2016

Netflix's Encryption Transition to Serve as Tipping Point

WATERLOO, ON, April 30, 2015 /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 encrypted Internet traffic.

In the paper, Sandvine uses data collected for a live, representative network in North America to explain the current state of traffic encryption, 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:

• Netflix's recent decision to encrypt their traffic will result in over two-thirds of North American Internet traffic being encrypted in 2016
• YouTube is the largest source of encrypted traffic in North America, and still a significant contributor of unencrypted traffic
• Google Play traffic is encrypted, preventing the ability for third-parties to identify the apps, movies, and music being consumed by subscribers. Apple's iTunes traffic remains unencrypted.
• The simplicity of the Electronic Frontier Foundation's "Let's Encrypt" program, due to launch in mid-2015, will help drive encryption adoption among smaller sites

"The decision by leading applications to encrypt their traffic is great for subscribers because it ensures the content of their Internet traffic remains private," said Don Bowman, CTO, Sandvine. "The policy solutions that Sandvine focuses on have never required identification of content, just applications or application categories. Even with the majority of Internet traffic becoming encrypted, Sandvine will still be able to provide highly accurate identification of encrypted applications so that operators can continue to offer innovative application service plans to their subscribers."

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]