Policy control and business revenue cases
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Transcript of Policy control and business revenue cases
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Business & Network Policy Control
Presentation to XYZ
Sep 6th, 2012
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Today’s Market Forces
Sandvine Confidential2
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Sandvine Confidential3
Real-Time Entertainment is…
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Powering the Living Room
Sandvine Confidential4
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |2024 | 2025 | 2026| 2027 | 2028| 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 | 2039 | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 | 2047 | 2048 | 2049 | 2050 | 2051 | 2052 | 2053 | 2054| 2055 | 2056 | 2057 | 2058 | 2059 | 2060 | 2061 | 2062 | 2063 | 2064 | 2065 | 2066 | 2067 | 2068 | 2069 | 2070…
1949 | 1950 | 1951| 1952 | 1953 | 1954 | 1955| 1956 | 1957 | 1958 | 1959 | 1960 | 1961| 1962 | 1963 | 1964 | 1965| 1966 | 1967 | 1968 | 1969 | 1970 | 1971| 1972 | 1973 | 1974 | 1975| 1976 | 1977 | 1978 | 1979 | 1980 | 1981| 1982 | 1983 | 1984 | 1985| 1986 | 1987 | 1988 | 1989 | 1990 | 1991| 1992 | 1993 | 1994 | 1995| 1996 | 1997 | 1998 | 1999 | 2000 | 2001| 2002 | 2003 | 2004 | 2005| 2006 | 2007 | 2008 |
2009 | 2010 |
By data volume more video is now watched on devices other than a PC
The Post-PC era
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Monthly Mobile Usage
Sandvine Confidential5
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CSP Business & Digital Economy
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CSPs to balance out this scenario as efficient conduit among all these players
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CSPs as CDNs & Content Providers
Content Provider
(e.g. Netflix)Service
Provider CDN (e.g.
Akamai)Consumers
$0.18/GB
$7.99 / Video or Month
$0.0/GB
$0.08/GBNew Content Provider /
Service Provider Relationship
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The Rapid Evolution of Internet Traffic
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Network Policy control – big picture
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Why Network Policy Control
Network Policy Control is the key to maximizing business performance and profitability
• Business Intelligence• Operations Management• Traffic Optimization• Next gen Service Creation & Revenues
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Traffic Classification- Key to Policy ControlTraffic Classification: Technology OverviewTraffic classification is
generation beyond traffic identification
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“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…”
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Overall Bandwidth by Protocol
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Top websites by Bandwidth
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Missing Revenues? Identify new apps?Whatsapp undercutting SMS revenues of CSPs
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Utilizing Analytics Social Media & Skype Differentiated Charging @ Telefonica Business Intelligence products was fundamental to identify data consumption behaviours and application patterns (‘subscriber persona’)
Content based data plans in line with specific subscriber personasAccurate application identification was paramount for the success
Project rolled out on multiple phases
End to end implementation of packages: 4 weeks
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Indian Telecom Landscape
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Zero-Rating of Device Traffic
As a condition of carrying their devices, some mobile phone
manufacturers are imposing
requirements that particular device traffic be zero-
rated.Key Benefits:•Carry the hot new devices that your subscribers want, and gain the missed revenue
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Revenue Generation with Telefonica
“Working with Sandvine since 2008 has brought us closer to understanding and acting on the needs of our customers, while improving revenue opportunities and the cost-effectiveness of our network.”Vicente San Miguel – CTO
Actual screenshot from Sandvine/Movistar Implementation
Based on the success of these packages, similar plans have now
been rolled out to more than ten
countries across Latin America
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Shared Wallet: Family Plans
Many members within a household each have their own mobile device, and families are
looking to simplify their bills by subscribing to “Family Plans” in which data and minutes are shared between members and across devices.
Key Benefits:•Gain new subscribers, through service provider consolidation•Increased revenue from new subscriptions and subscribers•Increased subscriber loyalty/stickiness•Competitive/brand differentiation
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Shared Wallet:Multi-DevicePlans
“Customers don’t want individual accounts for each device, it drives them crazy, and would
raise our costs…So getting to one bill and going to account-based pricing is the way to go.”
- Lowell McAdam, President and CEO of Verizon
Key Benefits:•Gain new subscribers, through service provider consolidation•Increased revenue from new subscriptions and subscribers•Increased subscriber loyalty/stickiness•Competitive/brand differentiation
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Short-Term Data Packs
Prepaid short-term data packs offer predictable pricing within known limits (units of time, units of data usage), typically at a
significantly higher revenue-per-byte than a monthly plan, and appeal to users who need
only short-term connectivity.Key Benefits:•Increased revenue from new subscriber opportunities•Brand awareness with these short-term subscribers•Competitive differentiation•Higher revenue-per-byte than monthly subscriptions
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Upsell/Promotion Notification
Many subscribers aren’t aware of promotions and special offers, because they are
unreachable through traditional media. Time-sensitive promotions need to reach
subscribers on-time and in a medium they use.
Key Benefits:•Increased absolute revenue from new service subscriptions•Increased average revenue per user (ARPU)•Brand awareness and competitive differentiation•Increased subscriber loyalty
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Congestion Management
Congestion management maximizes the quality of experience for the maximum
number of subscribers for the maximum amount of time for any given capital
investment. Real-time QoE measurements (QualityGuard) ensure that management policies are only applied when and where
congestion exists.Key Benefits:•Improved subscriber QoE•Extended infrastructure lifetime•Massive capital deferral savings•Increased network efficiency•Fair bandwidth allocation
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Qua
lity o
f Exp
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nce
Capa
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Time (Minutes)Low-Value Traffic Bandwidth High-Value Traffic Bandwidth High-Value Subscriber QoE (95-99% of Users)
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Network Summary – Subscriber Analysis
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Network Summary – Regional Analysis
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Network Summary – Market Analysis
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Traffic OptimizationFairness and efficiency to optimize shared resource utilizationCapital expenditure reduction and deferralHigher subscriber satisfactionMeeting regulatory requirements for equity and fairness
Aggregate TrafficManagement
Fairshare TrafficManagement
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Effective QoS management Fairshare Traffic Management
• Guarantee high value traffic prioritization without ‘starving’ low priority data• Drop low priority when ‘ceiling’ is exceeded (i.e. capacity)• Never drop low traffic beyond a certain minimum configuration• Values configurable. Example below: 155Mbps DSLAM, Minimum 50Mbps (low priority)
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155Mbps DSLAM Capacity
Minimum50Mbps
T1…T5 • Idle network capacity available• No traffic prioritization in place
T5…T9 • Capacity reached• Shapes low value traffic• High value traffic usage continues to grow to meet normal user demand
T9 …T12
• Minimum total bandwidth for low value traffic reached• High value traffic start to drop
Prioritized traffic
Idle capacityNo Shaping
Low priority drop Low priority drop
High priority drop
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Operations ManagementProactive headache prevention
Simplify regulatory filtering complianceIdentify quality issues before subscribers doLimit the impact of malicious network traffic
SubscriberQuality of Experience
URLAccess Control
NetworkProtection
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Business case for a CSP (Telco)
4 main money buckets:• ARPU increase -- #1 priority/value• OpEx reduction -- #2 priority/value• CapEx deferral -- #3 priority/value• Customer Experience -- #4
Product OpEx CapEx
ARPU
Traffic Management
Usage management
Network Analytics Network Security
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CSP BenefitsService Fulfilment & Assurance
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CSP BenefitsCustomer Experience Management
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Network Summary – Handset Analysis
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Network Summary – Dynamic Analysis
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Available Dashboards
Five dashboards currently available•And the list is always growing
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Network Summary Dashboard
Real-Time Entertainme
nt Dashboard
Traffic Manageme
nt Dashboard
Usage Manageme
nt Dashboard
IPv6 Transition Dashboard
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Deploying Business IntelligenceBusiness Intelligence: Product Suite Overview
San 36
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Enabling Value-added Applications
Network Demographics
ReportingReports traffic stats,
applications, subscriber behaviourAggregate large
amounts of data
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Service Definition Manager
User-friendly GUICentralized policy
configuration and deployment toolDeploy policy individually or
network-wide
Subscriber Policy Broker and Database
Collects and stores stats and subscriber profile observed by PTS and SDESubscriber-IP mappingAPI to B/OSS to enable new
services
SRP 3000-D Portfolio
SPB and DB
Software Platform
and Application
s SDM NDS
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