Proactive measures for smooth data charging migration to LTE. RCA Conference March 29 th 2012 Marie Fiala Timlin, AVP Product Marketing
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1 Proactive measures for smooth data charging migration to LTE RCA Conference March 29 th 2012 Marie Fiala Timlin, AVP Product Marketing
2 Agenda Mobile Internet Evolution Charging models in 3G today Migration to LTE architecture How Network Policy Control and Analytics can ease the migration Service Provider Case Study - ClearSky Use of Analytics to manage customers networks most effectively Total Traffic Manager Leveraging insight for LTE migration strategy» Mobile VoIP» Device segmentation 2
3 About Sandvine Global leader in Network Policy Control Founded in 2001 Listed on Toronto TSX & London AIM Headquartered in Waterloo, Canada Over 400 employees worldwide Solutions deployed by more than 200 service providers In over 85 countries, globally Focused on delivering consumer Internet experiences, across all access 3
4 Mobile Internet Phenomena Real-Time Entertainment traffic will drive mobile usage and dominate mobile networks 4
5 Diversified Charging Models Share the data with a family plan Unify billing across multiple devices 5
6 Diversified Charging Models Application-based service tiers 6
7 Opportunity to Monetize Data Growth Policy management used to enable value-added services in mature markets, like North America Shared / multi-device/ family plans Service tiers based on volume / speed / time/ application» Price certainty: Unlimited social networking for a fixed fee Prepaid time-limited pass Regulatory compliance» Roaming bill-shock avoidance: notifications and cut-off mechanism once roaming subscriber s bill reaches certain threshold 7
8 Mobile Standards Evolution 3GPP Release 9 introduced one EPC (Evolved Packet Core) bearer per application Then: IMS centric with single bearer for the Internet Now: Over-the-Top (OTT) applications rule, not IMS THEN Voice Internet NOW Voice 8
9 Typical Migration for Operators 1. Existing CDMA voice network & EVDO data network, or GSM/UMTS voice & HSPA data network 2. Can first deploy HSPA+ in dual-band. Add LTE carrier for data, to service LTE-ready mobile smartphones. 3. Implement CDMA voice capacity enhancements to gain spectrum for LTE data. Can move UMTS voice to unused bands. 4. Gradually rescale LTE bandwidth as CDMA/UMTS spectrum clears and migrate applications to LTE 5. Add VoIP to LTE for simultaneous voice & data 6. Eventual replacement of CDMA/UMTS when LTE voice is proven and adopted by subscribers 9
10 Key Considerations for Operators Key considerations when considering infrastructure investment for LTE: Cost effective evolution to LTE Spectral Efficiency Service Quality Rural and Indoor Coverage Performance CAPEX and OPEX Efficiency Network Policy Control helps address these Investment to support innovative charging models today is future-proofed for LTE tomorrow 10
11 Policy Control Architecture MME enode B S-GW P-GW Cell Site 4G Network HSS / HLR Policy Engine UE Data Link OFCS Internet Control Link UE 2G/3G Network AF AAA / SPR OCS Cell Site BTS/ Node B BSC/ RNC FA/ SGSN HA/ GGSN 11
12 Policy Control Charging Use Case (prepaid family plan) Network Analytics & Reporting Configuration RAN S5/S8 S5/S8 SGi Internet S-GW Gy P-GW UDRs OCS LDAP OFCS SPR 12
13 Easing the LTE Transition using Policy Network Policy Control is a complete network and service management technique Provides insight into subscriber usage to determine optimal 3G -> LTE migration strategy 13
14 Traffic Classification Technology Policy Control rooted in granular IP traffic classification technology Moves beyond bytes and protocols with powerful measurements that produce metrics that matter 14
15 What Can Traffic Classification Reveal? Traffic classification technology goes beyond basic traffic identification Traffic Identification Sandvine Traffic Classification Netflix generates 3.5 Gbps on our network Netflix generates 3.5 Gbps, 27% of our users subscribe and contribute $50 million annually to Netflix revenue, the median duration is 42 minutes and increasing, the top device is the PS3, users watch 33 videos/month, the average quality is 3.4/5 and is lowest in our East region 15
16 Network Analytics Executive-style dashboards fully integrated with reliable source data feed & optional data import from B/OSS Examine service plan profitability and identify opportunities for additional revenue generation Measure the present to understand the past and predict the future 16
17 17
18 Handset Analysis Screen Network Summary Dashboard Details (Mobile) Examine the relationship between device and usage 18
19 Deep analysis of QoE. Quality of Experience Why is score worse Analysis Screen for one provider over another? Real-Time Entertainment Dashboard Details Examine video QoE and the factors impacting subscriber experience Long-term trending of selected metric QoE score by time of day & distribution by content provider Sandvine Confidential 19
20 Key Takeaways Intelligent networks are more efficient networks Differentiated charging necessary To profit from high broadband usage To build a satisfied, loyal customer base Networks are evolving charging infrastructure seamlessly migrates to LTE architectures Leverage the information you have network intelligence drives optimal investment decisions 20
21
22 ClearSky s Total Traffic Manager Providing regional operators sophisticated real-time traffic and policy management as a cost effective hosted/managed service Presented by Lou Grilli, Director of Product Management ClearSky proprietary information. Do not forward or duplicate without company permission.
23 ClearSky Overview Established in Offices in Orlando, Dallas and Boulder. Closely held private corporation. Acquired competitor GetLisa Dec Over 80 carrier clients in six countries. Provide hosted network infrastrucuture and data services to approximately 8 million subscribers. Financially stable with a profitable, multimillion dollar annual revenue stream. Seasoned senior management team with average of over 25 years of wireless industry experience. ClearSky Corporate Offices in Downtown Orlando ClearSky proprietary information. Do not forward or duplicate without company permission.
24 Introducing Total Traffic Manager (TTM) Total Traffic Manager (TTM) is a fully managed service offering from ClearSky that enables carriers to manage exponential growth in data traffic and to create new revenue generating services. Increase Revenue Offer plans that tailor usage to needs (2G for $20, 4G for $40, family plans to aggregate multi-lines). Detect, allow and charge for prohibited uses (e.g., $12.95 for tethering, $5/mo for VoIP). Offer rate plans to access specific types of media (Social media package). Decrease Costs Implement Fair Usage. Alleviate congested cell site. Increase Subscriber Satisfaction Detect users nearing their data plan limit and send txt. Warn users when roaming. ClearSky proprietary information. Do not forward or duplicate without company permission. Every packet of data is checked for content type, origin, destination, and the subscriber s data plan.
25 Case Study Mobile VOIP Minutes Problem: Subscribers are increasingly using over-the-top VoIP apps, further decreasing voice minutes, and increasing data usage. Increasing problem in 3G, poised to explode in 4G. Mobile VoIP is a leading indicator of VoLTE. Solution: Offer an incremental data plan which permits X minutes of VoIP (priced lower than voice minutes) for specific services, with a managed and monitored service. Carrier recovers some compensation for voice over data usage. Subscriber gets monitored call quality in an understandable metric (minutes versus MB). ClearSky proprietary information. Do not forward or duplicate without company permission.
26 Understanding Mobile VoIP Usage Skype dominates; VIBER, goobermessenger, Voxox, others continue to develop. Free and cool to use. Challenge is how to provide a service to monetize this? Measure VoIP via relevant metrics such as Minutes, Calls, Average Call Duration. Tools well-established in POTS need to be replicated for VoIP. Creates a solid path in LTE. ClearSky proprietary information. Do not forward or duplicate without company permission.
27 VoIP QoE Reporting (MOS) High Percentage of Poor Calls Peer RX Loss RX TX Loss TX Central Peer Central RX Loss RX TX Loss TX Central Central ClearSky proprietary information. Do not forward or duplicate without company permission. 27
28 Case Study Device Segmentation Problem: Different device families consume data at different rates. Demographics, apps for OS, streaming handling contribute to differences. Which devices to offer create different network patterns. Heightened differences in LTE deployments. Solution: Access comprehensive reporting to view traffic usage by OS, by device type, by app, and by URL. Network Engineers use rules and actions to tune the network for better performance. Marketing uses data to determine which devices to promote, offer specialized plans. ClearSky proprietary information. Do not forward or duplicate without company permission.
29 Understanding Devices and their Net Volume Contribution Subscriber Count by Device Type Each HTC G1 adds 76 Bytes per second of user access. Each Dash WM6 adds 9 Bytes per second of user access. ClearSky proprietary information. Do not forward or duplicate without company permission.
30 TTM Solves Problems Now and is Ready for the Future with Full LTE Compatibility Works with current generation network TTM works on any generation of CDMA or GSM/UMTS network. Uses RevShare and ProVision for rapid implementation TTM works with ClearSky s RevShare billing integration and ProVision provisioning integration to enable existing customers to rapidly roll out sophisticated traffic policies and advice of charge features. Ready for LTE TTM is compatible with LTE infrastructure acting as the PCRF in the packet core. ClearSky proprietary information. Do not forward or duplicate without company permission.
31 TTM Benefits Cost Savings and Customer Satisfaction Control Expenditures TTM actively manages bandwidth usage based on factors like time of day and congested cell site to better utilize network resources and prevent massive capital expenditures on unnecessary expansion. TTM can decrease demands on tower backhaul networks to keep third-party T1 costs in check and/or reduce capital expenditures on back haul equipment upgrades. Satisfy Key Customers Policy management can enable high value traffic such as public safety communications to take precedence over lower value traffic such as YouTube videos to typical subscribers. Instantaneous traffic shaping can provide all customers their fair share during heavy usage periods. ClearSky proprietary information. Do not forward or duplicate without company permission.
32 Thank You Marie Fiala Timlin AVP, Product Marketing Sandvine 408 Albert Street Waterloo, ON N2L 3V3, Canada Lou Grilli Director of Product Management ClearSky Technologies, Inc. 390 North Orange Ave, Suite 1295 Orlando, FL ClearSky proprietary information. Do not forward or duplicate without company permission.
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