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The Integrated Charging and Policy Control Route to Data Monetization. Shahar Yaacobi, Amdocs. *Cisco Visual Networking Index (VNI) Global Mobile Data Forecast, 2009–2014. The Data Explosion. More Connected Devices. More Smartphone traffic . up 42x. 3,900% .
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The Integrated Charging and Policy Control Route to Data Monetization Shahar Yaacobi, Amdocs
*Cisco Visual Networking Index (VNI) Global Mobile Data Forecast, 2009–2014 The Data Explosion More Connected Devices More Smartphone traffic up 42x 3,900% increase in mobile data traffic from 2009-2014* > 5B devices + M2M Personalization More Content/Apps Network Granularity OTT Revenue models
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
From Unlimited to tiered pricing schemes Volume Speed Combined Volume & Speed
Most operators are planning to launch tiered pricing plans in the next 6-12 months Is tiered pricing being planned for launch in the next 6-12 months? The majority of respondents from all three regions are planning to offer tiered pricing in the next 6-12 months
Are you being requested by marketing to enable innovative data plans? Are you being requested by marketing to enable innovative data plans? N=30 The majority of service providers from APAC, Europe and North America say that commercialization of data plans are driven by their marketing departments
The Evolution of Data Services Existing Solutions Family Account 2GB for $20 Bandwidth:upto 2 Mbps 2GB for $20 For iPadUp to 7.1 Mbps 50GB for $65Split between family members Individual Quotas:Parents: 30GB, 2 Kids: 10 GB each Bandwidth QOS:Parents: up to 4Mbit/sKids: 2 Mbps Move to Pre-Pay if exceeded Block P2P services
The Evolution of Data Services Existing Solutions The Future of Data Services Family Account 5GB for 20$ Bandwidth:upto 2 Mbps 5GB for 20$ Across Multiple Devices Wireline IPTV BB Wireless 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? N=30 • Globally the need for integrated policy and charging by operators is overwhelming
Amdocs & BridgewaterRedefining the Data Experience BSS Customer Management Amdocs Bridgewater Radio Access NW User Equipment Amdocs & Bridgewater • 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 • 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 Charging Self Service Provisioning • 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 Subscriber Data & Policies SPR SPR PCRF Packet Core Data GW DPI
Integration of Policy and Charging- Enables new monetization models Complementary add-ons Complementary add-ons Customer experience Customer experience Monetization adds-on Monetization adds-on Real time notifications Real time notifications Redirect to choose additional /new packages Redirect to choose additional /new packages QoS Step up, step down QoS Step up, step down Bandwidth on demand Bandwidth on demand ! ! Tiered packages parameters Tiered packages parameters Multi dimensional characteristics Multi dimensional characteristics Simple and clear Qos Qos Device Type Device Type Service Location Service Location Network Status Network Status Speed, Latency Speed, Latency iPhone, iPad, Laptop, eReader… iPhone, iPad, Laptop, eReader… Home \ Office Zone, Roaming… Home \ Office Zone, Roaming… Congestion Congestion Quota \ Usage Quota \ Usage Traffic \ service type Traffic \ service type Customer Info setting hierarchies and priorities Customer Info setting hierarchies and priorities Time, Credit, Volume Time, Credit, Volume Video, VOIP, Tethering, P2P, Facebook… Video, VOIP, Tethering, P2P, Facebook… Business,VIP, Family, Gov… Business,VIP, Family, Gov…
Service Monetization Examples 5GB for $30 5GB for $30 5GB for $30 5GB for $30 5GB for $30 5GB for $30 Overall Cap Data Type Limitation Split between networks Content Limitation Peak / Off-Peak hours Split between family members • Video- 2GB limit • P2P – 1GB limit • Unlimited Facebook, • Limit 1GB –YouTube etc. • 3G Network usage - 1GB • 4G Network usage - 4GB • 8am-5pm count usage, other hours do not count Block data type usage if exceed Compress videos if exceed Get lower priority on network if exceed Reduce bandwidth if exceed Pay as you go if exceeded Move to Pre-Pay if exceed • Parents: 3GB • 2 kids: 1GB each
Monetization ModelsPartner Agreements – Revenue Share Revenue share agreement Complementary add-ons Monetization adds-on QoS Step up, step down Bandwidth on demand Tiered packages parameters Multi dimensional characteristics Qos Device Type Service Location Network Status Speed, Latency iPhone, iPad, Laptop, eReader… Home \ Office Zone, Roaming… Congestion Quota \ Usage Traffic \ service type Customer Info setting hierarchies and priorities Time, Credit, Volume Video, VOIP, Tethering, P2P, Facebook… Business,VIP, Family, Gov…
Premium QoS for OTT Providers“HD Button” “HD” bottom, price can be determined dynamically upon: 1. Network congestion 2. Demand for the content HD Video Streaming Offer the customer to view a piece of content in a higher quality guaranteed Current Price Tag Price for reservation Define your reservation Submit
Questions… How many HD moviescanyouviewwith a 5GB / month package? What minimum bandwidth shall you subscribe to for your FaceTime video calls?
The Next Step - Value Based Pricing Value Based Pricing
From Data Access to Data Experience Data monetization strategies are slowly shifting from providing simple access to data to providing the best user experience and enhanced capabilities Advanced monetization schemes require integrated charging and policy capabilities Quality of Service Bundled Smart capping Value based Tiered pricing Unlimited Access Experience
Thank you Shahar.yaacobi@amdocs.com Shahar Yaacobi