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2 Conclusions

ConclusionsI global mobile broadband tra fc growth is at all indicative o economic resilience, operators could declarethemselves economy-proo . The substantial surge in video streaming, VoIP and App Store downloads tra fc shows

no sign o waning, as subscribers increasingly look to their mobile Internet as the primary source o entertainment,content and communication.

However, a deeper look inside mobile broadband networks reveals that neither operators nor OTT applicationproviders can yet rest on their laurels.

For operators, disruptive, cross-plat orm messaging technologies like WhatsApp are eating away at legacy SMSrevenues. OTT mega players like Facebook, Amazon and Apple are maintaining leadership through constant innovation, while YouTube is dominating video streaming. Established and new entrants are eating away at Operators tra fc share. The answer? Collaboration. Operators and OTT application providers who join orces canidenti y new models to deliver value to subscribers and proftability to their broadband networks.

Key Findings from H2, 2011Global mobile broadband tra fc grew by 83% in the second hal o the year with a CAGR o 234% during 2011.Video streaming tra fc continues to dominate mobile broadband, with a 42% share o all global bandwidth.

YouTube now accounts or 24% o global broadband tra fc; 14% o total YouTube tra fc is high-defnition.VoIP and Instant Messaging (VoIP & IM) tra fc grew by 114%, perhaps substantiating recent reports on thedecline o SMS(i) and international voice calls (ii).

Facebook messenger is an all-time killer app on mobile; rising rom zero to 22% o total IM tra fc in just our months.

However, Facebook mobile tra fc grew by 105%, relatively slower than the 166% in the frst hal o 2011.How will Facebook respond to this trend?WhatsApp now accounts or 18% o the IM total bandwidth, a dramatic increase in popularity rom only 3%in H1, 2011.Android Market tra fc grew by a phenomenal 232%, almost our times aster than the iOS App Store,increasing its momentum to become a true iPhone App Store rival.

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3 Tra fc Trends in Perspective

Traf c Trends in Perspective

Application Traf c Share and Growth

31%

29%

35%

2%

3%

X 8.5 Growth

3%

5%

H2, 2011

H1, 2010

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4 Mobile Application Growth

Mobile Application GrowthGlobal mobile broadband tra fc grew by 83% with a CAGR o 234% in the second hal o 2011, 6% aster than in H1.This remarkable growth seems unhindered by any global changes typically a ecting the digital economy.

The European sovereign debt crisis, the US administration clampdown on content pirating, the our-day Global BlackBerry outage in October, and most importantly, the expected demise (iii) o the unlimited mobile data plan didnot seem to a ect subscribers unquenchable thirst or mobile content and applications. However clear and distinct trends in mobile bandwidth consumption indicate the areas o most pressing consumer demand.

Video streaming tra fc continues its phenomenal rise, with a 88% growth rate in the second hal o 2011.

VoIP & IM tra fc grew by 114%, consistent with recent reports marking the decline o SMS

and international voice calls.

File sharing growth rate is in decline, posting 29% compared to a 33% growth rate in the frst hal o 2011.

Global Bandwidth and Application Growth

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5 Mobile Application Bandwidth Share

Mobile Application Bandwidth Share

VoIP & IM, and Video Streaming represent key emerging trends in the subscriber behavior shaping the uture o mobile Internet. Their share o overall bandwidth has been on the rise since 2009. These real-time, cross-plat ormand interactive applications are indicative o the type o experiences sought by mobile users. File sharing, which o ers a delayed experience, is on the decline.

Video streaming tra fc continues to dominate global mobile broadband, with a 42% share, re ecting subscribersdemand or real-time experiences.File sharing, consistent with the rise o video streaming, is in decline and now holds 26% o overall mobilebandwidth.Web browsing continues to show a slight decline, reaching 24% in H2, compared to 25% in the frst hal o 2011.

Although the VoIP and IM applications are the astest growing tra fc segments, their respective share o global bandwidth, at 5%, is still relatively low.

Application Breakdown

Mobile data usage broken down by top Applications

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6 VoIP and Instant Messaging

VoIP and Instant Messaging

Overall, the VoIP and IM space has emerged as one o the most vibrant, open felds or innovative new apps.In the second hal o 2011, Skype accounted or 79% o the global mobile VoIP bandwidth. However, as alreadyevident through the frst hal o 2011, Skype bandwidthshare, then 82%, continues to gradually drop, nowchallenged by new VoIP entrants Viber, ooVoo, Tango andothers.

Viber, an entirely new entrant experienced rapid growthto over 2% o the Global VoIP bandwidth, surpassingincumbent IM applications such as GoogleTalk andWindows Live.

Instant Messaging ApplicationBandwidth Share

VoIP ApplicationBandwidth Share

The Instant Messaging applications landscape experienceda remarkable change during the second hal 2011. Only

our months a ter its release, Facebook Messenger orMobile has become the dominant plat orm or Instant

Messaging and a killer app, accounting or 22% o total IM tra fc.

WhatsApp, the cross-plat orm mobile messaging appfnally experienced its overnight success during thesecond hal o 2011. Usage o this application hasincreased dramatically rom less than 3% in the frst hal o 2011 to 18% o total IM bandwidth share in the secondhal o 2011.

With every door that opens, another one closes. The popularity o Yahoo! Messenger, which was the top

IM application in recent years, dropped signifcantly, rom 29% to only 17% o total IM bandwidth share.

Other IM applications, such as GoogleTalk and Windows Live also su ered a signifcant decrease in their usagedue to increased competition. The tra fc generated by Google Plus Hangouts or Mobile that was launched inSeptember, 2011 (iv) is still negligible.

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7 Social Media & Video Sharing

Social Media & Video SharingTwitter usage continued its surge during the second hal o 2011 with bandwidth growth o 184%. Yet its growthwas somewhat slower than the stellar 297% recorded in H1, 2011.

Facebook tra fc growth also diminished, relative to the frst hal o the year, only 105% compared to 166%respectively.

Social Media & Video Sharing Bandwidth Growth

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8 Video Streaming

Video Streaming

In the second hal o 2011, YouTube increased its global bandwidth share to 24% rom 22% in the frst hal o the year. YouTube now accounts or 62% o all global video streaming tra fc.

The growth in the smart devices market clearly a ected mobile users demand or higher quality o experience,which led to a 300% growth in YouTube high-defnition tra fc.

YouTube high-defnition now accounts or 14% o total YouTube tra fc, compared to 11% in the frst hal o 2011.

Non-HD YouTube tra fc grew by 118%.

Overall YouTube tra fc grew by 143%.

YouTube as a percentage of totalglobal mobile bandwidth

HD Video as a percentage of totalYouTube streaming

YouTube as a percentage of totalglobal mobile video streaming

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10 Glossary

Glossary

App StoresApp stores re er to a service available to users o smartphones and mobile Internet devices, e.g., tablets, netbooks,etc., that enables them to download a wide range o ree and paid applications, specifcally suited or the particularMID. App stores include Apple App Store, Google Android Market, BlackBerry App World, Nokia Ovi Store, Palm AppCatalog, Windows Marketplace or Mobile and others.

File SharingRe ers to HTTP download services, in particular rom One-Click hosting sites such as RapidShare and Megauploadand P2P applications such as Bittorrent and eMule. In previous reports, File Sharing was broken down into Peer-to-Peer and HTTP download.

Instant Messaging (IM)Originally, instant messaging applications delivered real-time text-based communications between two or moreusers over the Internet. Todays IM applications o er a wider range o communication services including videocon erencing, voice communications and fle trans er. Instant messaging applications include Windows Live!,

Yahoo! Messenger, QQ and so on.

Video StreamingRe ers to communication directed through video sites including either user generated content (UGC) such as

YouTube or content provided by sites such as Hulu, cnn.com and BBC iPlayer.

Voice over IP (VoIP)Re ers to so tware applications that allow users to make voice calls over IP networks in general and Internet inparticular. Internet VoIP is provided by a range o applications such as Skype, GoogleTalk and also by most popularInstant Messaging applications. This tra fc also includes video calls rom these applications.

Web BrowsingRe ers to HTTP tra fc associated with website browsing or other HTTP tra fc which is not downloading or streaming.In addition, web browsing also includes apps delivering real time updates and statistics over HTTP.

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11 MobileTrends Report Methodology

MobileTrends Report MethodologyThe Allot MobileTrends Report is an ongoing initiative to track global IP application, bandwidth usage andbandwidth growth in mobile broadband networks. The seventh Allot MobileTrends Report presents Allots keyfndings and conclusions based on anonymous data that was collected over the second hal o 2011, rom leadingmobile operators worldwide with a combined user base o more than 250 million subscribers.

About Allot CommunicationsAllot Communications Ltd. (NASDAQ: ALLT) is a leading provider o intelligent IP service optimization solutions orfxed and mobile broadband operators and large enterprises. Allots rich port olio o solutions leverages DynamicActionable Recognition Technology (DART) to trans orm broadband pipes into smart networks that can rapidlyand e fciently deploy value added Internet services. Allots scalable, carrier-grade solutions provide the visibility,topology awareness, security, application control and subscriber management that are vital to managing Internet service delivery, enhancing user experience, containing operating costs, and maximizing revenue in broadbandnetworks. For more in ormation, please visit http://www.allot.com.

i http://www.wirelessintelligence.com/analysis/2011/11/sms-on-the-decline-as-third-party-messaging-gains-traction/

http://coleago.wordpress.com/2012/01/17/whatsapp-replaces-sms-12-year-on-year-decline-o -sms-tra fc-in-taiwan/

http://www.telecomspace.com/content/sms-declining-with-the-rise-o -ott-messaging

http://www.telecomtv.com/comspace_newsDetail.aspx?n=48379&id=e9381817-0593-417a-8639-c4c53e2a2a10

ii http://www.telegeography.com/products/commsupdate/articles/2012/01/10/international-call-tra fc-growth-slows-as-skypes-volumes-soar/

iii 86.5% o operators have walked away rom true unlimited data. Allot MobileTrends Charging Report H1, 2011 http://www.allot.com/index.aspx?id=3797&itemID=74804

iv http://googleblog.blogspot.com/2011/09/google-92-93-94-95-96-97-98-99-100.html

v http://www.smh.com.au/executive-style/gadgets/iphone-hot-but-android-handsets-on-fre-20120209-1rncc.html

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