AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION The Integrated Charging and Policy Control Route to Data Monetization Amdocs Revenue Management 1 Information Security Level 1 – Confidential © 2010 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION The Data Explosion More Connected Devices More Smartphone traffic > 5B devices + M2M up 42x Personalization Network Granularity More Content / Apps OTT Revenue models * Cisco Visual Networking Index (VNI) Global Mobile Data Forecast, 2009–2014 3,900% increase in mobile data traffic from 2009-2014* 2 Information Security Level 1 – Confidential © 2010 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION The Mobile Data Surge Mobile data traffic will double every year through 2014 Smartphone Source: Cisco Visual Networking Index (VNI) 2010 forecast = x24 Handheld Gaming Console = x60 Tablet = x122 Mobile Phone Projector = x300 Laptop = x515 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 3 Information Security Level 1 – Confidential © 2011 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Speed Volume From Unlimited to tiered pricing schemes Combined Volume & Speed Broadband on Mobile Data Plans Youth 1Mbps 2Mbps 7.2Mbps 14.4Mbps 21Mbps $29 $22.42 $37 $69 $83 $99 Download Speed Up to 1.5Mbps 1Mbps 2Mbps 7.2Mbps 14.4Mbps 21Mbps Upload Speed Up to 384Kbps 384Kbps 512Kbps 1.5Mbps 5.76Mbps 5.76Mbps 50GB 30GB Monthly Subscription Upload Speed Up to Monthly Free Local Bundled Usage Excess Charges 4 Information Security Level 1 – Confidential 50GB $0.001 / 2KB (min. of $0.005 / session) © 2010 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION 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? 22% No 8% 11% 78% Yes 92% 89% 0% 10% 20% N=30 30% 40% APAC 50% Europe 60% 70% 80% 90% 100% North America The majority of respondents from all three regions are planning to offer tiered pricing in the next 6-12 months 5 Information Security Level 1 – Confidential © 2011 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Towards Smart Capping Le Cat Streaming allowed 6pm-6am Le Wild Cat Le Tiger Le Lion Any application including P2P and tethering No P2P Any application No tethering P2P allowed 6pm6am 1GB 3GB 10GB 25GB Upload speed up to 3Mbps Upload speed up to 5Mbps Upload speed up to 7Mbps Upload speed up to 15Mbps No P2P No tethering 6 €15 € 25 € 35 € 59 Thereafter € 2 per day Thereafter € 1 per day Thereafter € 1 per day Thereafter back to 2.5G speed in time of congestions Information Security Level 1 – Confidential © 2010 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Are you being requested by marketing to enable innovative data plans? Are you being requested by marketing to enable innovative data plans? 11% No 17% 22% 89% Yes 83% 78% 0% 10% 20% N=30 30% APAC 40% 50% Europe 60% 70% 80% 90% North America The majority of service providers from APAC, Europe and North America say that commercialization of data plans are driven by their marketing departments 7 Information Security Level 1 – Confidential © 2011 – Proprietary and Confidential Information of Amdocs 100% AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Integration of Policy and ChargingEnables new Monetization Models 8 Information Security Level 1 – Confidential © 2010 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION The Evolution of Data Services Existing Solutions 9 Family Account 2GB for $20 2GB for $20 Bandwidth: up to 2 Mbps For iPad Up to 7.1 Mbps Information Security Level 1 – Confidential 5GB for 65$ Split between family members Individual Quotas: Parents: 30GB, 2 Kids: 10 GB each Bandwidth QOS: Parents: up to 4Mbit/s Kids: 2 Mbps Move to Pre-Pay if exceeded Block P2P services © 2011 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION The Evolution of Data Services Existing Solutions The Future of Data Services Family Account 5GB for 20$ 5GB for 20$ Bandwidth: up to 2 Mbps Across Multiple Devices 4G / LTE 3G WiFi PSTN 10 Information Security Level 1 – Confidential © 2011 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Operators demand for integrated policy and charging solution is overwhelming Do you see a need for policy and charging integration? No 11% Yes 33% 89% 0% 50% N=30 100% 100% North America 67% 150% Europe 200% 250% 300% APAC Globally the need for integrated policy and charging by operators is overwhelming APAC operators are displaying some resistance but that could be because of lack of understanding of the potential Market education and thought leadership by Amdocs in APAC will be helpful 11 Information Security Level 1 – Confidential © 2011 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Have you tried integrating charging and policy? Have you tried integrating charging and policy? No 67% Yes 92% 100% 22% 8% 0% 50% N=30 100% North America 150% Europe 200% 250% APAC The majority of service providers report that they have not tried integrating charging and policy Those who said they have, also noted that it was not successful 12 Information Security Level 1 – Confidential © 2011 – Proprietary and Confidential Information of Amdocs 300% AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Amdocs & Bridgewater Redefining the Data Experience BSS Amdocs & Bridgewater Customer Management Self Service 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 13 Information Security Level 1 – Confidential Provisioning Subscriber Data & Policies SPR SPR PCRF Packet Core Data GW Radio Access NW © 2010 – Proprietary and Confidential Information of Amdocs DPI User Equipment AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Service Monetization Examples 5GB for $30 5GB for $30 5GB for $30 Overall Cap Split between networks Data Type Limitation 3G Network usage - 1GB Video- 2GB limit 4G Network usage - 4GB P2P – 1GB limit Pay as you go if exceeded Get lower priority on network if exceed Block data type usage if exceed 5GB for $30 5GB for $30 5GB for $30 Split between family members Content Limitation Peak / Off-Peak hours Parents: 3GB Unlimited Facebook, 2 kids: 1GB each Limit 1GB –YouTube etc. Move to Pre-Pay if exceed 14 Information Security Level 1 – Confidential Compress videos if exceed 8am-5pm count usage, other hours do not count Reduce bandwidth if exceed © 2010 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Monetization Models Partner Agreements – Revenue Share Revenue share agreement Complementary add-ons Monetization adds-on QoS Step up, step down Bandwidth on demand Tiered packages parameters Qos Speed, Latency Quota \ Usage Time, Credit, Volume 15 Information Security Level 1 – Confidential Multi dimensional characteristics Device Type iPhone, iPad, Laptop, eReader… Traffic \ service type Video, VOIP, Tethering, P2P, Facebook… Service Location Home \ Office Zone, Roaming… Network Status Congestion Customer Info setting hierarchies and priorities Business, VIP, Family, Gov… © 2010 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Premium QoS for OTT Providers “HD Button” HD Video Streaming Offer the customer to view a piece of content in a higher quality guaranteed Current Price Tag Price for reservation “HD” bottom, price can be determined dynamically upon: 1. Network congestion 2. Demand for the content Define your reservation Submit 16 Information Security Level 1 – Confidential © 2011 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION What type of data plans are you thinking of offering? What type of data plans are you thinking offering? 11% Offering QOS boost for business users accessing business apps 28% 22% 45% Data plans shared between several family members 82% 75% 70% Data plans shared between several devices (e.g. tablet, smartphone) 92% 85% 0% 10% 20% 30% APAC 40% Europe 50% 60% 70% 80% 90% 100% North America The majority of respondents from all three regions are looking most to Data plans share between several devices followed by Data plans shared between several family members 17 Information Security Level 1 – Confidential © 2011 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Questions… How many HD movies can you view with a 5GB / month package? What minimum bandwidth shall you subscribe to for your FaceTime video calls? 18 Information Security Level 1 – Confidential © 2010 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION The Next Step - Value Based Pricing Unlimited Plans (e.g. $30 all you can eat) Small % users consume the most bandwidth Tiered Pricing Based on Quota (e.g. 1GB / 5GB / 10GB) MB/GB is not intuitive to customers Value Based Pricing Advanced Tiered Pricing Based on Value Base package with content add-ons (e.g. Movie / games package) 19 Information Security Level 1 – Confidential © 2010 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION 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 Experience Bundled Tiered Value based Quota based Unlimited Access 20 Information Security Level 1 – Confidential © 2011 – Proprietary and Confidential Information of Amdocs AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Thank you Shahar Yaacobi Shahar.yaacobi@amdocs.com 21 Information Security Level 1 – Confidential © 2010 – Proprietary and Confidential Information of Amdocs