© 2010 Acision BV. All rights reservedVersion No: 1.0 / Status: Final Enabling the Mobile Data...

© 2010 Acision BV. All rights reserved Version No: 1.0 / Status: Final

Enabling the Mobile Data Revolution Through Innovative Solutions

Sherif Hamoudah, SVP, Middle East, Africa & Pakistan

13th of May 2010Arabcom,2010, Lebanon

Version No: 1.0 / Status: Final

• Trends in The Telecoms Market

• Trends in Middle East and Africa

• Managing the Mobile Data Revolution

• Leadership & Innovation in Mobile Data

Agenda


Source: Informa; Future Mobile Operator Business Models April 2008 Amounts in $Bn

From Communications to Data

2006Voice/Text

2009Voice/Data

2012Total Operator revenue 1.059

2008Total Operator revenue 821

2012+Data Communications

3


A New Paradigm Shift Occurs

When two technologies converge…..

Mobile Phone

Landlines

Desktop

Internet

Personal

Computer

Mini

Computer

Mainframe

Computer

SMS

3G

Mobile

Broadband

WAP

1990’s 2000’s 2010’s1980’s1960’s1940’s1900’s

Internet and

Mobile Phone

Converged

Telex Fax

Mobile Data

© 2010 Acision BV. All rights reserved


Where is the Money? Changing Ecosystem

• No Unified Mobile Operating

System?

- Java, Apple, BlackBerry, Android• Apps Stores?• Operator wants to become the

shopping center• A pipe provider or an active player?• The value chain is changing?• New Business Model

© 2010 Acision BV. All rights reserved Slide Number: 5


Consumer Expectations

Value forMoney

Reliable

Safe/Secure

Immediate

Always On/Connected

Fast

Personalised

Physical



• Trends in Middle East & Africa



Agenda


Trends in Middle East and Africa

• By 4th Quarter 2009, Subscriber Connections reached:

- Nigeria 71.5 M- Iran 58.9- Egypt 56.4- SA 50.8- Saudi Arabia 43.5

• Biggest Quarterly Net additions (4Q09)- Egypt 3.49, Tanzania 3.1, - Nigeria 2.5, Iran 1.96, Saudi 1.4

• Market Penetration reached - 80% in The Middle East- 50% in Africa

• Biggest Countries for YoY Growth (4Q09)- Rwanda 91.5%, Qatar 57.43%- Niger 56.6%, Lebanon 51.39%

• No of Subscribers

- Middle East 250 M, Africa 450M © 2010 Acision BV. All rights reserved Slide Number: 8


Trends in Middle East and Africa

• Overall Mobile Data Subscriptions grew by 36% to reach over 30M+ as of end of Q2-FY09 (Informa – WCIS)

• 2010/2011 is the Year of Broadband Mobility, with 126% Growth in Mobile Broadband Growth rate between Q2 2008 and Q2 2009 (Informa –WCIS)

• Smaller markets with low mobile penetration are to see the largest CAGR % in Africa, as there is still strong room for growth in these market

• Moves by Regulators to Unified Licensing would help in 3G and Mobile Broadband Uptake

• Landing of major submarine cables across Africa is supposed to assist in lowering back-haul costs and overall broad-band pricing

© 2009 Acision BV. All rights reserved Slide Number:9

Acision

Is this data specific to Africa?

Acision

Is this global?



• Trends in Middle East & Africa



Agenda


Launching data services - typical life cycle T

raffi

c V

olu

me

→

Penetration must increase!

Drop in ARPU erodes revenue

Increasing cost erodes profit

Volume growth impacts QoS!

Service Penetration →

20% 40% 60% 80% 100%Get maximum market share

Increase capacity

Decrease Capex & Opex

Differentiate to raise ARPU



Rocketing Bandwidth Demand…..

9600 Bps Modem (BB) 64Kbps Modem(simple HTML)

WAP HTML via Mobile YouTube + video via the phone

DSL (live tickers,streamed video, pictures)

Bandwidth increases drive services which consume even more bandwidth (Jevon’s Paradox)

Mobile content started as SMS . . .

⇒ Then MMS⇒ Now Video⇒ Virtual worlds⇒ 3D images⇒ HD Movies

Calls

⇒ then Messages⇒ then Entertainment⇒ then Mass Media



Tra

ffic

Vol

um

e →

Service Penetration →

20% 40% 60% 80% 100%

Mobile Broadband – A paradigm shift

Penetration must increase!

Volume growth impacts QoS!

Increasing costs erode profit

Drop in ARPU erodes revenue

Get maximum market share

Increase capacity

Decrease Capex & Opex

Differentiate to raise ARPU



No service will have more impact…Middle East & Africa

Traffic will grow >140% each year in MEA (in TB/Month)

Source: Cisco, Informa 2009 Source: Cisco, Informa 2009

Slide Number: 14

2008 2009 2010 2011 2012 2013

ME

A: T

era

byt

es

pe

r m

on

th (

‘00

0)

10

20

30

40

50

60

70

80

69 times growthCAGR 133%

1,7k4,3k

10k

24k

54k

120k120

Traffic per sub to grow 12 times faster(2008 = 100)

2008 2009 2010 2011 2012 2013

Traffic Growth ME&A(69x level of 2008)

Re

lativ

e g

row

th,

wh

ere

20

08

= 1

00

2000

3000

4000

5000

6000

7000

8000

9000

MB subscribersin ME&A

(11x level of 2008)

100072% 60% 57% 56% 57%

Acision

This is for MEA - do you have anything for Africa?


The impact on the business

Pro

fit per G

igab

yte

Cost per GB

• Traffic will grow 66 times by 2013

• Investment in RAN primarily to support mobile broadband

• Investment in backhaul will be substantial

• Subscriber acquisition costs are rising

Revenue per GB

• Traffic to outgrow subscriber uptake by 3 to 4 times

• Flat fee competition drives down RpGB, e.g. Europe 10-50% decline in 2009

• Pre-paid is also set up as flat fee

• No monetization of unique Mobile capabilities in VAS

15© 2010 Acision BV. All rights reserved


Control Cost

Minimize network investments through Peak Traffic Management. Create different Quality of Service offerings based on elements like time, application, location, etc.

Manage Quality of Experience

Improve Quality of Service by prioritizing key users / services in case of congestion. Provide end user spend control to stimulate usage and prevent bill shock.

Raise Mobile Broadband ARPU

Differentiate access against tiered pricing of elements like time, application, bundles, etc. Open additional revenue streams through Value Added Services like User Profiling.

AND

AND

Growing a profitable broadband business



Control Cost

• No P2P during peak• Max 1 GB before 18:00 hr• Unlimited browsing after 20:00• Download max 500kb at peak• Free WiFi at predefined spots• VOIP priority over P2P

Tiered QoS

Levels

Usage

Location Speed

Application

Time Priority


Manage quality of experience

When cell congestion occurs• Identify cell and users within cell• Prioritise key customers and key

services (e.g. browsing)• Address other services (such as p2p and

video) case by case• Minimise the amount of people affected

Spend control• “When I roam, block P2P traffic and limit

video to 500MB”• “I am on post pay, alert me when I have

spent over 50$” • “When roaming, please reduce my

internet speed so I don’t overspend”


Raise ARPU

• Family Package• Business customer• Gaming Package• Fixed/Mobile bundle• Roaming Package• Happy hour• VAS: Security, Virus control• Add sponsored packages

Tiered Pricing &Packages

Bundle Time

Application Location

User segment

Priority Speed


Broadband Mobility Suite

Distributed Data

Live sessions


Policy

LocationManagement

Policy Control• Financial• QoS• Optimisation

PolicyEnforcement

Optimization

WebOptimisation

DeviceOptimisation

MediaOptimisation

Caching

Value AddedServices

VASIntegration

Advertising

User Profiling& Intelligence

Content Control

Devices Subscribers Analytics



• Trends in Africa



Agenda


World Leader in Mobile Data

Delivering the future of mobile data services

Acision’s real-time mobile data solutions power innovation and profitable growth for network operators and service providers across the globe

• Powering more than 1.8 billion subscribers around the world• Delivering over 900 billion text and multimedia messages annually• The No.1 enabler of the world’s leading messaging service



Complete Mobile Data Portfolio


SMS-MMS-IM-Voice-Advertising

• Scalable and reliable delivery of messages

• Personalized messaging• Open Services Delivery

Platform • Power Mobile Networking

and Marketing

Mobile Data Services

Authentication-Charging-Identity

• Make mobile data services chargeable: real-time, flexible, convergent

• Reduce time to revenue• Maximize revenue per

Megabyte

Mobile Data Charging

Optimisation-Caching- Policy Management

• Optimize mobile data traffic profiles & user Quality of Experience

• Control operator costs• Enable mass-market roll-out

Mobile Data Control

NETWORK AGNOSTIC CARRIER GRADESECUREREAL-TIME


Acision Innovation Network

Worldwide syndication Global network, local intelligence

© 2010 Acision BV. All rights reservedVersion No: 1.0 / Status: Final Enabling the Mobile Data...

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