monetize diferentiate and create value for your customers
TRANSCRIPT
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INSTRUCTION
December 2012
MONETIZE YOUR NETWORK DIFFERENTIATE & CREATE VALUE FOR YOUR CUSTOMERS Iulian COSTEA – Head of Customer Marketing Middle East, [email protected]
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INSTRUCTION
1. TELECOM INDUSTRY TRENDS – OPPORTUNITY OR CHALLENGE
2. THE RIGHT STRATEGY TOUCHES BOTH DIMENSIONS OF YOUR BUSINESS – TOP LINE AND BOTTOM LINE
3. ADDRESS THE REVENUE DIMENSION BY CREATING VALUE FOR YOUR CUSTOMERS
4. CONTROL YOUR CAPEX/OPEX AND DECREASE PER-BIT DELIVERY COST
5. CONCLUSION
AGENDA
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INSTRUCTION
INDUSTRY TRENDS
FIXED BROADBAND CONNECTIONS
2011 2015
532Million
691 Million
MOBILE CONNECTIONS
2011 2015
5.5 Billion7.3 Billion
SMARTPHONE SALES
2011 2015
428Million
1Billion
APPLICATIONS DOWNLOADS
WI-FI PUBLIC SPOTS
2011
18.2Billion
41.7 Billion
2015
2011
1.3 Million5.8 Million
2015
177 Billion
2015
89.4 Billion
2011
+30% +32% +346%
+129% +134% +98%
PUBLIC CLOUDREVENUE
M2MDEVICES
2011 2015
1.1Billion
12 Billion
MOBILE VIDEO USERS
2011
429Million
2.4Billion
2015
+990%
+879%
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INSTRUCTION
INTERNET TRAFFIC DRIVEN BY SERVICES LIKE NETFLIX, HTTP, YOUTUBE
Source: Sandvine, Gartner, Ovum 2012, Traffic Index, 2012 - Bell Labs Modeling
REAL-TIME ENTERTAINMENT ON MULTIPLE SCREENS
BROADBAND AND INTERNET ACCESS ARE DRIVING FIXED AND MOBILE CONNECTIONS
0
1
2
3
4
5
6
7
8
9
2009 2010 2011 2012 2013 2014 2015 2016
GLOBAL CONNECTIONS 2010- 2016
Fixed subscriptions Mobile connections
Fixed broadband connections Mobile broadband connections
CAGR (2011-2015)Fixed Broadband Connections: 9 %
Mobile Broadband Connections: 32 %
BIL
LIO
NS
OF
CO
NN
EC
TIO
NS
4.8 BILLION BROADBAND CONNECTIONS BY 2015. OVER 80% ARE MOBILE
7 BILLION PERSONAL MOBILE DEVICES BY 2016
MOBILE DATA TRAFFIC FOR NAR, EU & APAC 2011- 2016
PB
/MO
NT
H
2016
2011
0
2000
4000
6000
8000
10000
12000
14000
16000
2011 2012 2013 2014 2015 2016
EU APAC NAR
MOBILE DATA TRAFFIC 25x TIMES
VIDEO STREAMING50% OF TRAFFIC
ON Wi-Fi27% OF MOBILE DATA
3G/4G CONNECTIONS99% OF TRAFFIC IN NAR
BY 2016
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INSTRUCTION
TRANZACTIONAL SESSIONS
COMMUNICATION SESSIONS
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INSTRUCTION
Source: Strategy Analytics
THE NETWORK IS THE LAUNCHING PAD BUT THE EXPERIENCE IS THE PRODUCT. COMPETE IN
QUALITY OF EXPERIENCE
CONVERGENCE OF EXPERIENCE
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INSTRUCTION
THE NETWORK AND BUSINESS MODEL ARE UNDER PRESSUREDRIVEN BY MASSIVE GROWTH IN VIDEO, SIGNALING, AND OTTs
How to grow and profit
in this environment?
Sources: 1 Bell Labs Research, 2 Portio Research, 3 Juniper Research
• 25X DATA TRAFFIC BY 20161
2/3rd IS VIDEO STREAMING OR VIDEO COMMUNICATION
• SIGNALING TRAFFIC EXPLODING1
DRIVEN BY 22.6% SMARTPHONE CAGR 46B APPLICATION DOWNLOADS THOUGH
2016
• OTT MESSAGING WILL OVERTAKE SMS/MMS WITH 20B MESSAGES ANNUALLY BY 20162
• 200B OTT VOIP MINUTES ANNUALLY BY 20163From 2012 to 2020, “OTT VoIP will cost the global
telecoms industry $479bn in lost cumulative revenues, which represents 6.9% of cumulative total voice revenues” - Ovum
“In 2012, Ovum forecasts that mobile operators will lose $23.2bn in SMS revenues to over-the-top (OTT) messaging services. By 2016, Ovum expects this number to increase to $54.4bn.” - Ovum
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INSTRUCTION
EXPLODING DATA TRAFFIC AND LTE CREATE NEW OPPORTUNITIES
• ALIGN USAGE AND PRICE WITH NETWORK
COSTS
• BROADEN THE SUBSCRIBER BASE
• INCREASE CUSTOMER LIFETIME VALUE
• BOOST CUSTOMER QUALITY OF EXPERIENCE
• CHANGE OTTs FROM COMPETITORS TO
PARTNERS
• OPTIMIZE NETWORK EFFICIENCY
How to make the most of
these opportunities
?
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INSTRUCTION
1. TELECOM INDUSTRY TRENDS – OPPORTUNITY OR CHALLENGE
2. THE RIGHT STRATEGY TOUCHES BOTH DIMENSIONS OF YOUR BUSINESS – TOP LINE AND BOTTOM LINE
3. ADDRESS THE REVENUE DIMENSION BY CREATING VALUE FOR YOUR CUSTOMERS
4. CONTROL YOUR CAPEX/OPEX AND DECREASE PER-BIT DELIVERY COST
5. CONCLUSION
AGENDA
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INSTRUCTION
OTT PRESURECOMPETITION PRESURE
COST PRESURE REGULATORY PRESSURE
• LOST REVENUE ON VALUE ADDED SERVICES
• PER-BIT DELIVERED PRICE
• VALUE CREATIONTELECOM SERVICE
PROVIDERS
• PRICE EROSION
• TECHNOLOGY LEADERSHIP
• INNOVATION AS DIFFERENTIATION FACTOR
• CAPEX & OPEX REDUCTION
• PER-BIT DELIVERY COST
• SPECTRUM REGULATION
• LICENSING CRITERIAS
TELECOM SERVICE PROVIDERS – DRIVING FORCESTOPLINE AND BOTTOM LINE PRESURES
PROTECT YOUR REVENUE
REDUCE YOUR COST
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INSTRUCTION
Over-The-Top THREAT
CE VENDORSE.g. Sony, Samsung
Joint ventures, acquisitions, and
investments in OTT services
Deep integration with and adoption of OTT services, distribution, and business
models
SERVICE PARTNERSHIPS
SMART ENABLEMENT
APPLICATIONDEVELOPERS
E.g. WhatsApp, Nimbuzz
ONLINE PORTALS
E.g. Tencent, MSN, Yahoo!
DEVICE AND OS VENDORSE.g. Apple, Google, Samsung, Microsoft
SOCIAL NETWORKS
E.g. Facebook, Cyworld
CONTENT PRODUCERS
E.g. Disney, Universal,Warner Brothers
CONNECTIVITYBECOME AN OTT PLAYER
SEARCH PROVIDRSE.g. Google, Baidu
CONSUMER SERVICESVOICE, MESSAGING, TV AND VIDEO, GAMES, MUSIC, COMMERCE, SOCIAL MEDIA
OTT PLAYERS
TELCO RESPONSE
INTERNET TV PROVIDERS
E.g. Hulu, Netflix
ONLINE RETAILERSE.g. Amazon,
Alibaba
• DIFFERENTIATE WITH VAS• USE TELCO NETWORKS TO PROVIDE VAS• HARNESS THE WEB FOR OTT SERVICES
• PARTNER TO OFFER THIRD-PARTY OTT SERVICES • PROVIDE THIRD-PARTY OTT SERVICES AS PART OF THE TELCO OFFERING• ENGAGE WITH OTT PLAYERS TO INTEGRATE SERVICES
• JOINT VENTURES, ACQUISITIONS, AND INVESTMENTS IN OTT SERVICES• DEEP INTEGRATION WITH AND ADOPTION OF OTT SERVICES, DISTRIBUTION, AND BUSINESS MODELS
• SMART ENABLEMENT OF OTT SERVICES• LEVERAGE TELCO ASSETS SUCH AS BILLING, NETWORK APPLICATION PROGRAMMING INTERFACES, CUSTOMER INSIGHTS/ANALYTICS, AND SECURITY TOOLS
• MANAGE CONNECTIVITY TO OTT SERVICES AND PLAYERS• DEFENSIVE STRATEGIES – CAPPING OR “OTT TAXES”• OFFENSIVE STRATEGIES – MANAGED CONNECTIVITY/WHOLESALE
VALUE ADDED SERVICES
“10% POINT INCREASE IN SMARTPHONE PENETRATION COULD COST EUROPEAN OPERATORS BETWEEN
0.5% AND 0.6% IN SERVICE REVENUES FROM VOICE AND MESSAGING” (INFORMA)
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INSTRUCTION
TWO BUSINESS DIMENSSIONS – DEMAND & SUPPLYCREATE VALUE BY ADDRESSING THEM BOTH THROUGH AN ORCHESTRATED STRATEGY
DEMANDSUPPLY
• INTANGIBLE ASSETS• AIRTIME• SPEED• CAPACITY• CONNECTIVITY• CUSTOMER EXPERIENCE
• VALUE CREATION• REAL TIME SERVICES• FLEXIBILITY• RELIABLE SERVICE• USER EXPERIENCE• REWARD
PERISHABLE
VOLATILE
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INSTRUCTION
1. TELECOM INDUSTRY TRENDS – OPPORTUNITY OR CHALLENGE
2. THE RIGHT STRATEGY TOUCHES BOTH DIMENSIONS OF YOUR BUSINESS – TOP LINE AND BOTTOM LINE
3. ADDRESS THE REVENUE DIMENSION BY CREATING VALUE FOR YOUR CUSTOMERS
4. CONTROL YOUR CAPEX/OPEX AND DECREASE PER-BIT DELIVERY COST
5. CONCLUSION
AGENDA
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INSTRUCTION
DESIGN AND DELIVER A MARKET-LEADING CUSTOMER EXPERIENCE
CUSTOMER MANAGEMENT
ANALYTICS EXPERIENCE OPTIMIZATION
CONSULTING
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INSTRUCTION
CUSTOMER MANAGEMENT: SIMPLIFY CUSTOMER INTERACTIONS TO IMPROVE PROFITABILITY. TOUCHPOINTS SERVICE FUNCTION
CHANNELMODEL
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INSTRUCTION
ANALYTICS: USE CUSTOMER INSIGHTS TO IMPROVE BUSINESS PERFORMANCE.
Quality Care Value Customer Satisfaction
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INSTRUCTION
OPTIMIZATION: CREATE AN EXPERIENCE THAT POSITIVELY INFLUENCES USAGE BEHAVIOR TOWARDS STATES OF HIGHER PROFITABILITY
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INSTRUCTION
CONSULTING: DEVELOP A PRIORITIZED ACTIONABLE PLAN TO IMPROVE THE CUSTOMER EXPERIENCE.
Deep Expertise Patented Methodology for CSPs A Prioritized, Actionable Plan
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INSTRUCTION
MOBILE MONETIZATION FRAMEWORK
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INSTRUCTION
MOBILE MONETIZATION FRAMEWORK
1ST STEP: VOLUME BASED - ASSIGN VALUE TO BANDWIDTH
2ND STEP: VALUE BASED - START TO MEASURE AND ACCOUNT FOR DATA, BASED ON THE APPLICATION THEY ARE USING (DPI, POLICY)
3RD STEP: SEGMENTATION/DISCRIMINATION - USING SMARTS FROM POLICY AND CHARGING TO CREATE SERVICE BUNDLES AND PERSONALIZED OFFERS THAT CAN ENCOURAGE MORE USAGE OF THE INFRASTRUCTURE
4TH STEP: NETWORK APIS - ACCESS NEW BUSINESS MODELS
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INSTRUCTION
1. TELECOM INDUSTRY TRENDS – OPPORTUNITY OR CHALLENGE
2. THE RIGHT STRATEGY TOUCHES BOTH DIMENSIONS OF YOUR BUSINESS – TOP LINE AND BOTTOM LINE
3. ADDRESS THE REVENUE DIMENSION BY CREATING VALUE FOR YOUR CUSTOMERS
4. CONTROL YOUR CAPEX/OPEX AND DECREASE PER-BIT DELIVERY COST
5. CONCLUSION
AGENDA
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INSTRUCTION
TRAFFIC VS REVENUE DICHOTOMY
Source: Informa Global mobile network traffic and ARPU Forecast (2011)
DATA TRAFFIC GROWTH AND DECLINING OR FLAT ARPU PUTS SERVICE PROVIDER PROFITABILITY AT RISK
HOW CAN OPERATORS MANAGE DATA GROWTH AND INCREASE REVENUE?
INCREASE REVENUE:
• Deliver personalized services
• Accelerate time to market
• Develop new business modelsREDUCE COSTS:
• Scale and manage capacity
• Reduce cost of operations
• Environment Sustainability
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INSTRUCTION
HIGH LEVERAGE NETWORK A PLATFORM FOR INNOVATION THAT REALIZES THE VALUE OF THE NETWORK
INCREASE REVENUE
• DELIVER PERSONALIZED SERVICES
• ACCELERATE TIME-TO-MARKET
• DEVELOP NEW BUSINESS MODELS
REDUCE COSTS
• SCALE AND MANAGE CAPACITY
• REDUCE COST OF OPERATIONS
• REDUCE FOOTPRINT
Cost
Revenue
VOLATILE
PERISHABLE
• HIGH COST• LOW UTILIZATION
• CREATE VALUE• PERSONALIZATION
A CONVERGED, SCALABLE, INTELLIGENT EFFICIENT ALL-IP NETWORK THAT DELIVERS BANDWIDTH AT THE LOWEST COST PER BIT.
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INSTRUCTION
NETWORK CONVERGENCE STRATEGY
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INSTRUCTION
BUSINESS CASE OVERVIEW
PURPOSE A generalized service provider business model that evaluates an Alcatel-Lucent IMS overlay onto
an existing LTE network, inclusive of a full range of IMS services such as VoLTE, RCS, messaging, and video communications. This is compared to a network which overlays Circuit Switched Fallback (CSFB) for voice.
OBJECTIVES Two primary modes are evaluated.
1. Mode 1: Launch with LTE laptops, then add smartphones and mobile internet devices (e.g., tablets) in Year 32. Mode 2: Launch with all 3 types of devices – LTE laptops, smartphones, and mobile internet devices
In addition to IMS versus CSFB, a migration from CSFB to IMS in Year 3 was studied
SERVICE PROVIDER A Tier-1, French service provider who already has an LTE network or who has decided to use LTE,
which is considering whether to use IMS’ full suite of services or CSFB’ voice-centric service.
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INSTRUCTION
DEMAND: MODELING WILLINGNESS-TO-PAY BASED ON PRIMARY MARKET RESEARCH
Converged Comm. LTE/IMS LTE /CSFB
Messaging
Multi-Screen
Mobile/PC Synch
One-number Voice
Enhanced NAB
Presence enabled Calendar
Video share & calling
Relative Market Value 16x 1x
Video Comm. & Location LTE/IMS LTE /CSFB
Enhanced Mobil Video
Multi-Party Video Call
Mobile Video Monitoring
Location-based Services
Live Messaging
Relative Market Value 5x 1x
Converged Comm. LTE/IMS LTE /CSFB
Unified Messaging
Mobile Extension
Video Conferencing
Video Mail
Web Conferencing
Location Services
Enhanced NAB
Relative Market Value 7x 1x
Video Comm. & Location LTE/IMS LTE /CSFB
Mobil Collaboration
Multi-Party Video Call
Wireless BB Branch Office
Location-based Services
Interactive Mobile Kiosk
Relative Market Value 7x 1x
CO
NS
UM
ER
M
AR
KET
EN
TER
PR
ISE
MA
RK
ET
Source: ALU Primary Market Research, 2009
IMS enables a richer set of services with a higher market value
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INSTRUCTION
PROVIDING A NEW CONVERSATION EXPERIENCE FOR 4G LTE SUBSCRIBERS
CSFB:LEGACY VOICE, MESSAGING
versusversus
IMS:IMS VOICE, VIDEO, RCS, MESSAGING;APIS FOR MANY APPS, QUICKLY
DIRECTLY LAUNCHING IMS ONTO AN EXISTING LTE NETWORK PROVIDES SUPERIOR ECONOMIC RESULTS, WHEN COMPARED TO CSFB OR A CSFB-TO-IMS MIGRATION
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INSTRUCTION
COMPETITIVE TRANSFORMATION – IMS versus CSFB
TELCOS NOW DRIVEN BY COMPETITION FROM ADJACENT MARKETS
Customer experience
Innovation Efficiency
IMS CSFB
IMS CSFB
IMSIMS
IMSIMS
THE “TRANSFORMATION TRINITY” (1)THE “TRANSFORMATION TRINITY” (1)
(1) “What do transforming telcos measure?” Ovum, 30 June 2010 {includes BT, DT, FT, KPN, Telefonica, TNZ, Telstra(1) “What do transforming telcos measure?” Ovum, 30 June 2010 {includes BT, DT, FT, KPN, Telefonica, TNZ, Telstra
NEW METRICS ARE NEEDED (EXPERIENCE, INNOVATION, EFFICIENCY) BECAUSE ONLY FINANCIAL, TECHNICAL, AND NETWORK METRICS NO LONGER PAINT THE COMPLETE PICTURE
IMS ENABLES COMPETITIVE TRANSFORMATION;
CSFB TAKES CARE OF ONLY THE NETWORK’S EFFICIENCY
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INSTRUCTION
HOW IS 4G LTE USED?
OPERATORS USE LTE’S …
High bandwidth with low latency Per-service QoS Spectral and CapEx efficiency
improvement
… TO PROVIDE MOBILE DATA SERVICE WITH
Faster speed Improved experience Multiple concurrent sessions
THAT’S THE DATA STRATEGY, BUT WHAT ABOUT COMMUNICATION SERVICES?THAT’S THE DATA STRATEGY, BUT WHAT ABOUT COMMUNICATION SERVICES?
CSFB provides Voice, only voice Minimizes near-term spending Perpetuates 2G/3G’s CS + PS duality Cost-centric strategy
IMS provides Voice and beyond Connect, share, & organize conversations Full LTE utilization: all-IP, multi-application
concurrency, video, … User-centric strategy
IMS PROVIDES COMMUNICATIONS THAT FULLY UTILIZE 4G LTE’S PERSONAL, UNTETHERED BROADBAND
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INSTRUCTION
WHY IS VoLTE ESSENTIAL FOR 4G LTE?
VOLTE ENABLES COMPETITIVE VOICE AND IS FOUNDATIONAL FOR FURTHER SERVICES
Subscriber’s serviceVoLTE CSFB
OTT/ACP Providers
New conversations Voice-centric Many services
Standards’ value
Global roaming w/ full feature suite XGlobal interoperability w/ full feature suite XEnd to end QoS; also Emergency calling X
Multimedia
All-IP path enables video-comms, etc. X Multiple concurrent services enabled by 4G LTE X Blend voice with video, web, RCS-like, etc. X
Voice
Simultaneous voice and 4G LTE data service X Minimal voice call setup delay X Evolved voice: HD, new features, clickable URL, etc. X
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INSTRUCTION
GO TO MARKET, QUICKLY: A COMPETITIVE LAUNCH STRATEGY
2011 2012 2013 2011 2012 2013
VoLTE: 2nd line VoLTE: mass market
Collaboration & messaging
LTE video communications
Application Enablement Convergence
Use IMS to define the early LTE communications market, fueling profits.Then expand into mass services, having won the initial battles.Use IMS to define the early LTE communications market, fueling profits.Then expand into mass services, having won the initial battles.
Entice subscribers to IMS/LTE, because the service is not available in 3G. Video calls, sharing, storage lockers, social networking, multiscreen, etc. Across LTE, fixed, and web portals.
Entice subscribers to IMS/LTE, because the service is not available in 3G. Video calls, sharing, storage lockers, social networking, multiscreen, etc. Across LTE, fixed, and web portals.
2nd line VoLTE. Price low or free; no incentive to switch to alternative voice providers.
Mass market VoLTE. When ready, sell at a premium. Unbeatable appeal the OTT can’t match due to geographic coverage (legacy handover), global service via roaming, global service inter-operability for all-IP services (HD audio, video), QoS, etc.
2nd line VoLTE. Price low or free; no incentive to switch to alternative voice providers.
Mass market VoLTE. When ready, sell at a premium. Unbeatable appeal the OTT can’t match due to geographic coverage (legacy handover), global service via roaming, global service inter-operability for all-IP services (HD audio, video), QoS, etc.
RCS spans 3G, fixed, and the web; also LTE. Wraps comms with collaboration and messaging.
RCS spans 3G, fixed, and the web; also LTE. Wraps comms with collaboration and messaging.
Quickly create and deploy many apps Innovative apps for the network
Quickly create and deploy many apps Innovative apps for the network
Fully embrace the subscriber, everywhere
Fully embrace the subscriber, everywhere
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INSTRUCTION
COMPARING THE TOTAL COST OF OWNERSHIP
0
50
100
150
200
250
300
350
400
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
M E
UROS
Expenses Comparison
LTE IMS
LTE CSFB
0
5
10
15
20
25
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
M E
UROS
Investments Comparison
LTE IMS
LTE CSFB
0
200
400
600
800
1,000
1,200
LTE IMS LTE CSFB
M E
URO
S
Total Expenses Comparison
Device Subsidies
Opex
Sales & Marketing
General & Administrative
0
10
20
30
40
50
60
70
80
LTE IMS LTE CSFB
M E
URO
S
Total Investments Comparison
Pro-rated Device Subsidies dominate any other investment or expense
IMS’ TCO IS MODERATELY HIGHER
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INSTRUCTION
NETWORK COST OPTIMIZATION
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INSTRUCTION
CAPACITY IS WASTED IN MOBILE NETWORKS TODAY
• A study Alcatel-Lucent conducted for a major Tier-1 operator in North America revealed:
68% average base station busy hour utilization
The busy hour is unpredictable. It differs from base station to base station and even differs day to day for the same base station
13% daily traffic in busy hour
27% base station average utilizationoutside the busy hour during theproductive day (8 a.m. to midnight)
UNPARALLELED DEGREE OF WASTE
LOTS OF CAPACITY FOR LOW PRIORITY TRAFFIC
Percentage of daily load in busy hour of cell
10%
15%
20%
25%
30%
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INSTRUCTION
CONSIDERATIONS FOR YIELD MANAGEMENT IN MOBILE NETWORKS
1. CELL IS THE CRITICAL RESOURCE TO CONSIDER FOR YIELD MANAGEMENT 80% of network cash cost is in the Radio Access Network
Radio Frequency is generally a scarce resource
Core Network peaks are long (8am – midnight) and flat Contrary to cell peaks
Offering less interest for Yield Management then
2. CELL LOAD SHOULD BE CONSIDERED AT EACH CELL INDIVIDUALLY Each cell has a different traffic profile
3. CELL LOAD SHOULD BE CONSIDERED DYNAMICALLY There is no static traffic profile for a given cell
Trends can be observed but cell load is mostly unpredictable
There is a great deal of free capacity in each cell even when people are active 70-90% of the time between 8AM and midnight
Traffic Distribution of 20 Busiest Base Station
0%
5%
10%
15%
20%
25%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
(hour 24 hour clock)
(% o
f d
aily
ba
se
sta
tio
n lo
ad
)
(Done for a Tier-1 mobile operator, using the Alcatel-Lucent 9900 Wireless Network Guardian – WNG)
(Done for a Tier-1 mobile operator, using the Alcatel-Lucent 9900 Wireless Network Guardian – WNG)
Distribution of resource consumption whole network
0%
1%
2%
3%
4%
5%
6%
7%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hour
% D
aily
co
ns
um
pti
on
Bytes
Airtime
Signalling
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INSTRUCTION
UNUSED ACCESS NETWORK CAPACITYPLENTY OF NETWORK RESOURCES AVAILABLE FOR MONETIZATION AT VIRTUALLY NO INCREMENTAL COST
RADIO ACCESS NETWORKS RESOURCES:
• Abundance of unutilized capacity
• Meets basic Yield Management requirements: Limited and “perishable” capacity with dynamic demand
OBJECTIVES:
• Reduce overall network costs by lowering cell peak traffic.
• Realize the value of spoiled capacity: Introduce offers that increase RAN usage during off-peak hours at virtually no incremental cost.
In one Radio Cell
Cell Data Traffic Demand* (as % of capacity)
0%
20%
40%
60%
80%
100%
8:00 16:00 0:00
"Spoilage" (unsold) Traffic demand (sold)
Decreased costReduced congestions
Increased Revenue
YIELD MANAGEMENT IS THE PROCESS OF UNDERSTANDING, ANTICIPATING AND INFLUENCING CONSUMER BEHAVIOR IN ORDER TO MAXIMIZE YIELD OR PROFITS FROM A FIXED, PERISHABLE RESOURCE (SUCH AS AIRLINE SEATS, HOTEL ROOM RESERVATIONS OR NETWORK RESOURCE/CAPACITY)
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INSTRUCTION
YIELD MANAGEMENT
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INSTRUCTION
BUILDING BLOCKS OF YIELD MANAGEMENT
VENDORS & PARTNERS
SUBSCRIBER
•USER INTERFACES•DEVICE
ANALYTICS•CONNECTION
MANAGEMENT
•APPLICATION ENABLEMENT
DATA COLLECTION
•NETWORK USAGE ANALYTICS•MARKET ANALYTICS•DEVICE-CLIENT STATISTICS
EXECUTION
•POLICIES & CONTROL•RULES ENFORCEMENT •BILLING•CUSTOMER RELATIONSHIP MANAGEMENT
CAPACITY & PRICING DECISION
•USER BEHAVIOR PREDICTION & SCORING (SEGMENTATION)
•NETWORK CAPACITY ALLOCATION & PRIORITIZATION
•DYNAMIC PRICING
SERVICE PROVIDER
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INSTRUCTION
INTELLIGENT TRAFFIC MANAGEMENTLEVERAGING NETWORK INTELLIGENCE WITH POLICY
5780 DSC (Dynamic Services Controller)
9900 Wireless Network Guardian
Monitor and Analyze
Anomaly Notification
Process and Trigger
Customer Analytics
Enforce and Deliver
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INSTRUCTION
1. TELECOM INDUSTRY TRENDS – OPPORTUNITY OR CHALLENGE
2. THE RIGHT STRATEGY TOUCHES BOTH DIMENSIONS OF YOUR BUSINESS – TOP LINE AND BOTTOM LINE
3. ADDRESS THE REVENUE DIMENSION BY CREATING VALUE FOR YOUR CUSTOMERS
4. CONTROL YOUR CAPEX/OPEX AND DECREASE PER-BIT DELIVERY COST
5. CONCLUSION
AGENDA
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INSTRUCTION
1. CUSTOMER EXPERIENCE SHOULD BE AT THE CORE OF YOUR BUSINESS
I. CUSTOMER INTIMACY IS THE MOST VALUABLE ASSET FOR AN OPERATOR
II. CUSTOMER EXPERIENCE IS THE SECRET WEAPON TO DEFEND THE OTT THREAT
2. PROTECT YOUR REVENUE BY DEPLOYING REAL-TIME CHARGING CAPABILITIES INSIDE YOUR NETWORK
3. DEPLOY ONE CONVERGED, SCALABLE, INTELLIGENT ALL-IP NETWORK THAT DELIVERS BANDWIDTH AT THE LOWEST COST PER BIT
4. CONTROL YOUR NETWORK COSTS BY MANAGING PROPERLY THE DATA TRAFIC INSIDE YOUR NETWORK THROUGH YIELD MANAGEMENT
OPERATOR NETWORK STRATEGY CONSIDERATIONS
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INSTRUCTION
OPERATORS BUSINESS STRATEGY CONSIDERATIONS
IMPROVED CUSTOMER EXPERIENCE
INFRASTRUCTURE AND COST
OPTIMIZATION
NEW REVENUE OPPORTUNITIES
BEST-OF-BREED DATA MINING AND
ANALYTICS
MAINTAIN A STRONG MARKET PRESENCE
Service providers will have to develop services and applications that may well cannibalize their existing revenue streams. While this may affect their bottom lines, it well help them to defend against new disruptive players and remain relevant to their customers.
CREATE NEW PARTNERSHIPS
Forming partnerships will help service providers to increase innovation and time-to-market, which will enable them to exploit new gaps in the market.
LOOK FOR NEW WAYS TO MONETIZE
Existing business models will be hard to maintain, so service providers will need to work hard to find new innovative ways to monetize their services.
TURN CUSTOMER DATA ASSETS INTO REVENUES
Service providers will need to leverage customer data by investing in best-of-breed analytics platforms and capabilities.
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INSTRUCTION
Q & AQ & A
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INSTRUCTION