1© 2019 NetCracker Technology Corporation.NETCRACKER CONFIDENTIAL AND PROPRIETARY. FOR INTERNAL DISTRIBUTION ONLY.Disclose and distribute solely to employees of NetCracker Technology Corporation that have a need to know.

© 2019 NetCracker Technology Corporation.NETCRACKER CONFIDENTIAL AND PROPRIETARY. This document contains proprietary and confidential information that may not be reproduced or disclosed to individuals that do not have a need to know. Disclose and distribute solely to those individuals that have a need to know.

Getting your BSS and OSS 5G Ready

Ari Banerjee, VP Strategy, Netcracker

2© 2018 NetCracker Technology Corp.

Battle for consumers with Fixed Wireless

• Forbes say 5G FWA will be $1B market in 2019

• AT&T will offer FWA in 12 markets by late 2018

• Verizon will deploy in a handful of markets in 2H18

• T Mobile with Layer3TV acquisition and You Tube deal can disrupt with FWA

5G provides foundation for CSPs to be disruptive

5G places CSPs at the center of the new digital economy with a platform for new business opportunities that is not possible with existing networks

Diversify into business and verticals

• 89% CSPs say B2B and B2B2C will be the new source of 5G revenue -GSMA

• Virtual/Augmented reality are popular early use cases at the Superbowl, Winter Olympics, and planned 2020 Olympics and Spain city projects:

• CSPs can expose their more powerful 5G network (bandwidth, slices, latency, NaaS etc) to partners to build services from

• New long tail use cases enabled by 5G will drive incremental revenue

• According to IHS, the global value chain with generate $3.5 trillion in output and support 22 million jobs in 2035

• And the global output enabled by the value chain is estimated at 12.3 trillion by 2035

Turn the Network into a Platform EconomyFoundation to be Disruptive

3© 2018 NetCracker Technology Corp.

Where are the real 5G Opportunities?

Decreasing Latency1kbps

10GbpsReal 5G Use Cases

10s

Incr

easi

ng B

andw

idth

10us

High Bandwidth High Bandwidth / Low Latency

Low LatencyNo Need for 5G10Mbps

50ms

• 4k/8k streaming• 360° video• VR single user gaming• AR video screens• Fixed wireless access

• Autonomous cars• VR: esports, live events,

multi-user gaming• AR collaboration

(engineering, medical)

• Remote control vehicles (drones, lorries)

• Automated industry/robotics• Remote medical diagnostics• Electric grid

• SD/HD streaming• IoT sensors, cameras• IoT wearables

Can be served by 4G/3G/2G

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5G Brings New Partner-Enabled Opportunities

Industry Size by year

% of CSPs using Partner or Joint venture strategy

Industrial Automation

Remote Monitoring & Control

Global Smart Grid

Smart City Technology Investments

Digital Health

Global Connected Car

$239Bby 2023

$27Bby 2023

$70Bby 2024

$158Bby 2024

$379Bby 2024

$219Bby 2025

69%

62%

58%

67%

60%

48%

Source: TMF “Executing a partner strategy to monetize 5G and IoT” (2019)

Partners

Network slice 1 (eMBB)Network slice 2 (URLLC)Network slice 3 (MMTC)

Small & Medium BusinessesIndividuals Enterprises & Government

Service Providers

Customers

Network

XaaS Apps IoT Content

5G allows CSPs to become B2B2X enabler and offer attractive, targeted services in conjunction with partners

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Key OSS Enablers for 5G

Automated orchestration of distributed multi-domain services

Enhanced modelling and design flexibility

New operations environment

breaking down OSS, NFV, SDN silos

Extreme multitenancy,

network slicing isolated operation

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Service Design for 5G

• Easy creation of service, network slice and slice subnet templates compliant with 3GPP • Application-centric and Non Functional Requirement (e.g. scalability, performance, availability, etc.) driven

design• Utilization of application aware blueprints• AI assistance in design – conflicts resolution, automated suggestions on practicality

Definition of Key network slice characteristics

Topology Dependencies

Service Attributes

Provisioning Rules & Flow SLA & QoS

Charging Requirements

Capacity Dependencies

Variety of Policies

Propagation Rules

Slice Template + Dependencies Templates Library Go-liveDesign

eMBB

uRLLC

mIoT

V2X

• C-IoT optimization • Power saving mode• Priority handling• Traffic QoS handling• Mobility• Caching• Latency• Jitter• Pre-set applications• Level of independence

MVNO 1 MVNO 2

MVNO 3

• On-demand instantiation

• Automatically scales to match demand

MVNO 1 MVNO 2

MVNO 3

• Additional applications

• Custom SLA settings

• Custom network settings

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Domain Orchestration for 5G slicing & MEC

Service Design & Onboarding

CSMF

NSMF

NSSMF

Service Offer/Blueprint

Network Slice Template/Blueprint

NS Subnet Template/Blueprint

Digital Marketplace and Self-Service Portal

Cross-Domain Orchestration CSMF NSMF

Edge DO (5G RAN, MEC)

NSSMF

MEAO

Transport DO NSSMF Core

DO NSSMF

RAN

5G gNBMobile Core

NetworkX-haul and Transport

RAN Slice Subnet Transport Slice Subnet Core Slice Subnet

8© 2019 NetCracker Technology Corporation.NETCRACKER CONFIDENTIAL AND PROPRIETARY. This document contains proprietary and confidential information that may not be reproduced or disclosed to individuals that do not have a need to know. Disclose and distribute solely to those individuals that have a need to know.

Key BSS Enablers for 5G

Digital-first, omnichannelcustomermanagement

Real-time, convergent revenue management

Cloud-native, microservices-based

architecture

Digital partner ecosystem

enablement

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Personalization with Intelligent Customer

Profile and Digital Identity

Seamless omnichannel

customer journeys

Optimal journey selection and smart content

personalization

Mobile optimized, dynamic, contextually

aware experience

Out of the box AI driven

use cases

Comprehensive support for B2B and

B2C scenarios

Customized loyalty programs across any

platform and any channel

Digital retail experience

1 2 3

Digital-first, Omnichannel Customer Management

10© 2019 NetCracker Technology Corporation.NETCRACKER CONFIDENTIAL AND PROPRIETARY. This document contains proprietary and confidential information that may not be reproduced or disclosed to individuals that do not have a need to know. Disclose and distribute solely to those individuals that have a need to know.

Digital Partner Ecosystem Enablement

Cloud Providers SDN/NFV providers IoT providers

Developer Tools

API Lifecycle Management

External APIsAPI Management Platform

Self-onboarding environment

Digital Marketplace for partner-enabled

services

E2E Partner Lifecycle

Management

Vendor-agnostic license

management

Service Management &

Control

11© 2019 NetCracker Technology Corporation.NETCRACKER CONFIDENTIAL AND PROPRIETARY. This document contains proprietary and confidential information that may not be reproduced or disclosed to individuals that do not have a need to know. Disclose and distribute solely to those individuals that have a need to know.

Multidimensional Convergent Rating & Charging for 5G

Network Slicing Information

Online Session Parameters

Partner Ecosystems

User Device Attributes

Converged Rating Engine

• Adaptive rating based on dynamically defined multi-dimensional parameters

• Dynamically adjusted personalized discounting algorithms

• Smart rating considering only QoScompliant data traffic

• Real-time capturing of any changes in partner agreements, offerings, etc.

• Slice-based rating scenarios with in-flight adjustment capabilities

• Differentiated device-based rating with online changing QoS parameters

Real-time charging for any slice, user or device-based event or attribute

12© 2019 NetCracker Technology Corporation.NETCRACKER CONFIDENTIAL AND PROPRIETARY. This document contains proprietary and confidential information that may not be reproduced or disclosed to individuals that do not have a need to know. Disclose and distribute solely to those individuals that have a need to know.

Complex B2B2X Settlements

• Wholesale, interconnect, roaming, IoT, OTT, MVNO/E, VAS, content, SDN/NFV, and variety of non-telco partners involved into a value chain

• Settlements with different partner types including commission, loyalty points calculations and partner traffic reconciliation with configurable multi-level traffic comparison

• Definition of individual billing account hierarchical structure for each partner

• Flexible revenue sharing (fixed, flat rate per transaction, percentage per transaction, progressive percentage, commitment, etc.)

• Flexibility on data charges (one-time, usage based, recurring charges, spot pricing, freemium, sponsored data, etc.)

• Cross-product discounts (e.g. connected car and residential broadband)

• Automated resolution of partner billing-related issues to improve partner loyalty

Single platform supporting different 5G-based multi-partner models enables significant cost reduction

Service Provider

Partner Revenue Management

Partners

Contentproviders

Application providers

IoTproviders

XaaSproviders

Products & Services

Multi-partner Settlements

Individuals SMBs Enterprises

Products & Services

Products & Services

13© 2019 NetCracker Technology Corporation.NETCRACKER CONFIDENTIAL AND PROPRIETARY. This document contains proprietary and confidential information that may not be reproduced or disclosed to individuals that do not have a need to know. Disclose and distribute solely to those individuals that have a need to know.

End-to-End Digital Transformation at Rakuten• Japan-based global e-commerce leader• Mobile Virtual Operator• Transforming into Mobile Network Operator

Implement “Digital First” approach for better customer acquisition

Enable MNO launch with a disruptive approachto Japan’s digital market

Achieve powerful lifestyle-based digitalcustomer experience

Introduce entirely new lines of businessin B2C / B2B cloud services

True Digital-first Customer ExperienceSoft MVNO->MNO Transition Cloud, IoT & 5G Enablement

Digital Content Fin-Tech SDN/NFVE-commerce

KEY BENEFITS

Cloud Platform

Unified Management

Partners

Channels Customers

Products

Charging & Billing Hybrid Services & Resources

ADVANCED ANALYTICS

HealthCare

Fast customer onboarding viaany channel

Advanced loyalty points management

Interactive, dynamic video engagement

AI-driven omnichannel customer journeys

Membership-based business models

NETCRACKER SOLUTIONGOALS

COMPANY SERVICES

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Cross-Channel Digital Customer Experience O2• Market leader in the United Kingdom• Serves over 20M B2C and B2B customers• Part of international Tier-1 Telecom Group

SERVICESCOMPANY

Long time-to-market with 90 days minimumrelease window

Lack of unified view on customer interactions and customer data

Limit customer personalization capabilities

Legacy IT system environment which is scattered and costly to configure

NETCRACKER SOLUTIONCHALLENGES

AI-Driven Customer ExperienceIT Cost Optimization Quick Launch of Digital Offers

Home Broadband Home Phone FinanceMobile

KEY BENEFITS

Cloud Platform

Digital Experience Solution

Customers & Partners

Marketplace Channels

Products

Hybrid Services & Resources

Infrastructure Management

ADVANCED ANALYTICS

Business

Sales & Marketing

Charging & Billing

Unified Interactions

B2C, SOHO and SMB business support

Support for digital and traditional channels

Full prepaid – postpaid convergence

Single view on interactions and journeys

Cross channel product management

15© 2019 NetCracker Technology Corporation.

In summary – 5G demands new approach to BSS/OSS

Cloud native, real time, open, standards based

AI-driven automation within and across CSP domains and multi-cloud environment

Dynamic digital partner ecosystem enablement, B2B2X ecosystem monetization

New architecture Hyper automation Partner-enabled business models monetization