the integrated charging and policy control route to data monetization

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Information Security Level 1 – Confidential © 2010 – Proprietary and Confidential Information of Amdocs1

The Integrated Charging and Policy Control Route to Data Monetization

Shahar Yaacobi, Amdocs



The Data Explosion

increase in mobile data traffic from 2009-2014*

> 5B devices + M2M

More Connected Devices

Personalization

Network Granularity

More Smartphone traffic up 42x

More Content/Apps

OTT Revenue models

*Cisco Visual Networking Index (VNI) Global Mobile Data Forecast, 2009–2014

3,900%



The Mobile Data Surge Mobile data traffic will double every year through 2014

> Video will contribute two-thirds of the traffic > 70% of traffic will be generated by laptops and other portable devices> By 2014, non-smart phones will contribute only 4% of the total traffic

Source: Cisco Visual Networking Index (VNI) 2010 forecast



First there was the unlimited data


The US fight- Cap, Charge or Throttle?



And Don’t Forget The Customer Experience



Users are in transition



From Unlimited to tiered pricing schemesVo

lum

e

Broadband on Mobile Data Plans Youth 1Mbps 2Mbps 7.2Mbps 14.4Mbps 21Mbps

Monthly Subscription $29 $22.42 $37 $69 $83 $99

Download Speed Up to 1.5Mbps 1Mbps 2Mbps 7.2Mbps 14.4Mbps 21Mbps

Upload Speed Up to 384Kbps 384Kbps 512Kbps 1.5Mbps 5.76Mbps 5.76Mbps

Upload Speed Up to Monthly Free Local Bundled Usage 50GB 30GB 50GB

Excess Charges $0.001 / 2KB (min. of $0.005 / session)

Speed

Combined Volume & Speed



Most operators are planning to launch tiered pricing plans in the next 6-12 months

Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

89%

11%

92%

8%

78%

22%

APAC Europe North AmericaN=30

The majority of respondents from all three regions are planning to offer tiered pricing in the next 6-12 months

Is tiered pricing being planned for launch in the next 6-12 months?



Are you being requested by marketing to enable innovative data plans?

The majority of service providers from APAC, Europe and North America say that commercialization of data plans are driven by their marketing departments

Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

78%

22%

83%

17%

89%

11%

APAC Europe North AmericaN=30

Are you being requested by marketing to enable innovative data plans?



Existing Solutions

The Evolution of Data Services

50GB for $65Split between family members

Individual Quotas: Parents: 30GB, 2 Kids: 10 GB each

Bandwidth QOS: Parents: up to 4Mbit/sKids: 2 Mbps

Move to Pre-Pay if exceeded

Block P2P services

Family Account

2GB for $20Bandwidth:up to 2 Mbps

2GB for $20For iPadUp to 7.1 Mbps



Family AccountThe Future of Data ServicesExisting Solutions

The Evolution of Data Services

5GB for 20$Bandwidth:up to 2 Mbps

5GB for 20$Across Multiple Devices Wire

less

Wirelin

e

IPTVBB

4G / LTE

3G

WiFi

PSTN



Operators demand for integrated policy and charging solution is overwhelming

Do you see a need for policy and charging integration?

Yes

No

0% 50% 100% 150% 200% 250% 300%

89%

11%

1 67%

33%

North America Europe APACN=30

Globally the need for integrated policy and charging by operators is overwhelming



Amdocs & BridgewaterRedefining the Data Experience

BSS

Self Service

Packet Core

DPIData GW

Radio Access NW User Equipment

Customer Management

Provisioning

PCRF

SPRSubscriber Data & Policies SPR

Bridgewater

10+ years pedigree in real-time, ‘non-stop’ network databases

150 Customers Largest installation – 100M subscribers,

14K transactions/sec. Open, Standards-based Product Strategy Multi-Vendor Neutrality Extensive Interoperability with all major

DPI and Gateway vendors First worldwide LTE implementation of HSS

and PCRF Seamless 3G and 4G LTE Support

Amdocs

25+ years experience and expertise in BSS BSS Market Leader with 27% Market Share Over 80 tier 1-2 reference Carrier grade performance and scalability –

benchmarked for 150M subscribers Over 200M convergent charging

subscribers

Holistic customer view across Multiple devices per user Multiple users per account Multiple lines of business All SP’s network types

Amdocs & Bridgewater

Bridging the Network and BSS to Deliver a Superior Data Experience

Uniquely couple granular network information and subscriber policies with state-of-the-art real-time charging capabilities

Offer a complete solution enabling service providers to achieve market differentiation through personalized, advanced data monetization business models

Achieve faster time to market by streamlining BSS processes and eliminating data inconsistencies



Integration of Policy and Charging- Enables new monetization models

Multi dimensional characteristics

Device Type

iPhone, iPad, Laptop, eReader…

Service Location

Home \ Office Zone, Roaming…

Network Status

Congestion

Traffic \ service type

Video, VOIP, Tethering, P2P, Facebook…

Customer Info setting hierarchies and priorities

Business,VIP, Family, Gov…

Tiered packages parameters

Qos

Speed, Latency

Quota \ Usage

Time, Credit, Volume

Complementary add-ons

Customer experience

Real time notifications

Redirect to choose additional /new packages

Monetization adds-on

QoSStep up, step down

Bandwidth on demand!


Device Type


Service Location


Network Status

Congestion






Qos

Speed, Latency

Quota \ Usage



Customer experience

Real time notifications

Redirect to choose additional /new packages



Bandwidth on demand!

Simple and clear



Service Monetization Examples

5GB for $30

Pay as you go if exceeded

Overall Cap 3G Network usage - 1GB 4G Network usage - 4GB

5GB for $30

Get lower priority on network if exceed

Split between networks Video- 2GB limit P2P – 1GB limit

5GB for $30

Block data type usage if exceed

Data Type Limitation

Unlimited Facebook, Limit 1GB –YouTube etc.

5GB for $30

Compress videos if exceed

Content Limitation

8am-5pm count usage, other hours do not count

5GB for $30

Reduce bandwidth if exceed

Peak / Off-Peak hours5GB for $30

Move to Pre-Pay if exceed

Split between family members

Parents: 3GB 2 kids: 1GB each



Revenue share agreement

Monetization ModelsPartner Agreements – Revenue Share


Device Type


Service Location


Network Status

Congestion






Qos

Speed, Latency

Quota \ Usage





Bandwidth on demand



Premium QoS for OTT Providers“HD Button”

HD Video Streaming Offer the customer to

view a piece of content in a higher quality

guaranteed

“HD” bottom, price can be determined dynamically upon:

1. Network congestion2. Demand for the

content

Price for reservation

Define your reservation

Current Price Tag

Submit



Questions…

How many HD movies can you view with a 5GB / month package?

What minimum bandwidth shall you subscribe to for your FaceTime video calls?



The Next Step - Value Based Pricing

Unlimited Plans

(e.g. $30 all you can eat)

Tiered Pricing Based on Quota

(e.g. 1GB / 5GB / 10GB)

Advanced Tiered Pricing Based on Value

(e.g. Movie / games package)

Small % users consume the most bandwidth

MB/GB is not intuitive to customers

Base package with content add-ons

Value Based Pricing



From Data Access to Data Experience

Advanced monetization schemes require integrated charging and policy capabilities

Data monetization strategies are slowly shifting from providing simple access to data to providing the best user experience and enhanced capabilities

Access

Experience

Unlimited

Tiered pricing

Smart capping

Bundled

Quality of Service

Value based



Shahar Yaacobi

[email protected]

Thank you

the integrated charging and policy control route to data monetization

Documents

data explosionincrease

phenomena of data explosion

mobile versionpersonalization

traffica smartphone

smartphone trafficother

smartphone traffica

devices e

videoand portable devices