Cable MSO Update: RiskView® Cost-Savings Case Study

Outage Risk Analytics

Robert CruickshankCEO & CTOrobert.cruickshank@rev2.com(703) 568-8379

Characteristics of a hidden issue include:

Small and intermittent Below real-time thresholds Not detected right away Add up in cost over time Get worse and become larger

Some issues - even after fixes - remain problematic & costly

Key Outcomes: Cost-savings analysis reveals “death by a thousand paper cuts” Proactively identifying issues saves money on calls and maintenance The longer an issue persists, the more voluntary disconnects result A key attribute of RV is its ability to identify incidents that lead to voluntary disconnects

RiskView Cost Savings

Hidden issues often last for days, resulting in a snowballing effect of voluntary disconnects.

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Correlation and Risk Concentration Analysis™ enables RV to find issues that are otherwise hidden.

RiskView Architecture

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RiskView® 90-Day Cost-Savings Case Study

MSO Case Study

Parameters of Blind Comparison Study by Maintenance Department• 1,000,000 subs in Region | 35,000 HFC miles | 180 technicians | 15 supervisors | 4 managers | 1 director • 7,500 nodes in 3,000 DOCSIS Serving Groups (combinations of nodes)

Hypothesis• [operating cost without Automation – operating cost with Automation] = Quantifiable Savings

Study Groups• Control Group = Business as Usual (BAU) • Test Group = RiskView (RV) Outage Risk Analytics

Goals• Minimize downtime of the “operating assets”

To enhance customer satisfaction while lowering care and support costs• Monitor maintenance activity for its effectiveness

Earlier detection helps in solving chronic problems thereby reducing disconnects

Departments Impacted by Control Group Discovered Issues • Service Department focuses on Non-Area Issues• Maintenance Department focuses on Area issues

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Call Center Connectivity Calls & Repeats

Field Service e.g., ARRIS WorkAssure TC = Service Calls & Repeats EC = Refer to Maintenance DI = Voluntary Disconnects Biz/Residential, 1/2/3 Services

Maintenance Activity Planned, Demand

Telemetry e.g., ARRIS SAA Hourly Degraded CMs US/DS Errors/SNR/Power/Util On/Offline, Node Combining

Find & Fix More Issues,Reduce Calls, TCs, Disconnects

Field Activity

Failed Telemetry

Connectivity Calls

Systematically Correlate Multiple Inputs Over Time

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Transaction Analytics

Problem Period: Any event which had a Reputational Cost of more than 15 transactions on a given day and stayed above 10 transactions for two days.

Reputational Cost: A dimensionless number that quantifies the potential effects on the reputation of the MSO among customers owing to the persistent problems in the network. It is represented by the following formula:

Call + 2*TC + RepTC + 3*EC + 2*DI + CHG + TRB + Fluctuating Levels + DnErr + UpErr

90-day Summary: Total problem periods identified by RV: 4,208 38% of these problem periods had BAU activity

RV identified 6% of problem periods before BAU did

Transactions Conn Calls TCs ECs DIs

Study Period 345,602 121,914 11,048 68,834

Problem Period 139,748 17,086 2,308 5,801

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Problem Period Example with Savings

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Model assumption: Early detection by RiskView saves 50% of the eventual cost.

A Serving Group with 8 Problem Periods

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Problem period

Finding: Reputational cost of 15 is a reliable early warning indicator.

Accumulation of Problem Periods – 90 days

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15% of Problem Periods last 4 days or longer.

Total Problem Periods: 4,108

Disconnects – 90 Days

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Total Disconnects: 68,834Total Problem Periods: 4,208

• The average number of voluntary disconnects steadily rise with the rise in the duration of problem period.

• With early detection, an operator can save on voluntary disconnects by fixing the problems in time.

Transactional Savings Impact on P&L (Proforma)

Maintenance Department: Additional Work 16K Preventative Maintenance Actions Created -4K Saved EC Tasks/year = 12K Net New Preventative Maintenance Actions/year $1.2M Cost due to additional Tasks @ $100 each

Service Department: Reduce Contractor Head Count Approx. 50% of Installs performed by Contractors @ $60.00 As TCs are reduced, Staff do “would be contracted” installs$900K Saved 15K TCs/year @ $60$360K Saved 6K Disconnects/year @ $60

Call Center: Reduce Capacity with normal attrition $320K Saved 40K Calls/year @ $8

Savings: $380K net per year for 1m subscribers

Thank you!