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Monetization: Driving Profitability for Monetization: Driving Profitability for the Next Generation Mobile Internetthe Next Generation Mobile Internet

Giuseppe Giuseppe RicagniRicagniTechnical Director | Mobility Architecture EMEARTechnical Director | Mobility Architecture EMEAR

November 20, 2012November 20, 2012

Keynote Keynote –– Plenary Report 2Plenary Report 2

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subs WW by CY16 Y/E

How Far Have We Come?

operators in

countries are investing

commercially deployed NWs in

countries

Source: GSA, Informa telecoms & media, Engadget

units sold in the 1st weekend

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450-550 MB/month

1200-1300 MB/monthAverage Monthly Data Consumption

The Impact of LTE

22--3x3x

Sources: Internal, Validas

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CoverageCoverage CapacityCapacity ServicesServices

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3000

2500

1500

1000

500

100

0

2010 2011 2012 2013 2014 20152010 2011 2012 2013 2014 2015

2X

26X

Data Revenue

Data Volume

Source: Cisco VNI, Cap Gemini, WCIS

Dat

a Vo

lum

e (P

B/m

o.)

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VIDEOVIDEOEXPERIENCE EXPERIENCE

ARPUARPU per Bit per Bit ARPUARPU per Bit per Bit

Data Data TrafficTraffic(Cost)(Cost)

Data Data TrafficTraffic(Cost)(Cost) ComingComing

Profitability Profitability GapGap

ComingComingProfitability Profitability

GapGap

EnableEnable Premium Services CreateCreate new business models

Reduce CostsReduce Costs

Increase RevenueIncrease Revenue

Improve Customer ExperienceImprove Customer Experience

Manage Manage “over the top” videoMaximizeMaximize spectrum and radio assets

CompetitiveCompetitive Quality of ExperiencePopularPopular Services and Features

MONETIZEMONETIZE

OPTIMIZEOPTIMIZE

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Traffic

Revenue

Function Function IntegrationIntegration

Video / DataVideo / Data

PolicyPolicy

OffloadOffload

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Traffic

Revenue

ConsumerConsumer

EnterpriseEnterprise

B2B2CB2B2C

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Generating Revenue on Both Sides of Transaction

Creating New Business Models

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ConsumersContent Providers

Operator network advantage is key to increasing revenues

Operators

B2B2C

¥

$€

¥$€ ¥

$€

¥$

€¥€

€

$ ¥$Operators

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NextGen Business Architecture Mobile Internet B2B2C

B2C

Application Detection and ControlApplication Detection and Control

Policy Control & EnforcementPolicy Control & Enforcement

Content Filtering, InsertionContent Filtering, Insertion

PersonalizationPersonalization

Charging ModelsCharging Models

Location, Roaming, PresenceLocation, Roaming, Presence

B2

ApplicationApplicationProvidersProviders

AdvertisersAdvertisers

Content Content Aggregators & Aggregators & BroadcastersBroadcasters

EE--tailerstailers

Content OwnersContent Owners

SPs Must Expand from Today’s OneSPs Must Expand from Today’s One--Sided to a TwoSided to a Two--Sided Business Sided Business ModelModelValue Add of the Intelligent Mobile NetworkValue Add of the Intelligent Mobile Network

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MonetizationTiered Tiered PricingPricing

Premium Mobile Premium Mobile Video GamingVideo Gaming

Mobile TVMobile TV

Internet of Internet of ThingsThings

PersonalizationPersonalizationBYODBYOD / Dual Persona/ Dual Persona

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Work Play

Small Cell Gateway

EPC: Policy, DPI, Charging, &

Content Filter

Security:ePDG & IPSec

Dual Persona BYOD

• ‘Work Persona’ managed & paid for by IT Dept.• Secure access to business apps, intranet, email• Includes corporate restrictions on data speed &

monthly data quota

• ‘Play Persona’ managed & paid for by individual• Access to all personal applications• No access to the company’s intranet• Data usage is billed to individual

Reduce IT Mobility Costs

BuildCustomer

Loyalty

IncreaseARPU

Up to 20%

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Reaching out to New Markets – Internet of Things

Vehicle & container trackingConsumer OEM telematicsConsumer Aftermarket Telematics

Automatic Metering Infrastructure

Remote Monitoring & Automation

ATM/POS

Remote Information DisplaysTelehealth

Fixed Wireless Terminals

Industrial PDAs

$$20B 20B by 2014by 2014

Telematics

Wireless Local Loop

Telemetry

* ABI ResearchSecurity

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Creates New Monetization Opportunities

Orchestration ANALYTICSANALYTICSPOLICYPOLICY

Harvest and Harvest and Correlate Correlate

DataData

Program Program the Networkthe Network

NetworkNetwork

Network IntelligenceNetwork Intelligence

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Thank you.