C97-645185-00 | © 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1 C97-645185-00 | © 2011 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1

May 2012

Jonathan Morgan

LTE World Summit 2012

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Market Background

Use Cases

Happy Hour

Value of the Network

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Xbox – Video

Games, Voice

PC – Skype

Video

iPhone – Facebook,

Text, Death Metal

Music

New England

Patriots Jersey

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0

2

4

6

8

10

12

2011 2012 2013 2014 2015 2016

Exab

yte

s p

er

Mo

nth

Mobile VoIP (0.3%)

Mobile Gaming (1.1%)

Mobile File Sharing (3.3%)

Mobile M2M (4.7%)

Mobile Web/Data (20.0%)

Mobile Video (70.5%)

Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, 2011–2016

(Figures in

legend refer

to traffic

share in

2016.)

78% CAGR 2011–2016

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Email 60

Email 60

Email 60

Email 60

Web 89

Web 89

Web 89

Web 89

Facebook 40

Facebook 40

Facebook 40

Pandora 55

Pandora 55

Netflix 109

0

50

100

150

200

250

300

350

400

Email+Web +Facebook +Pandora +Netflix

Meg

ab

yte

s p

er

Mo

nth

149 MB

Source: Arbitron Mobile, 2012

353 MB

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Device Growth Blended Work

Life Play

• 15 Billion connected

devices by 2015 and

growing

• 2 networked devices per

capita: 2015

• Connecting not just

people…but Machines

(2B by 2015)

• Half U.S. information

workers work outside office

• 35% workers use smart

phones

• Mobile Web overtakes

desktop usage: 2015

• 89% mobile Internet usage

occurs indoors

• 18X more mobile data:

2012–2016

• Wi-Fi access traffic

surpasses wired by 2015

• 24% growth in business

IP traffic

Traffic Growth

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Addressing

Spectrum

Requirements

Managing

Traffic

Growth

Monetizing

and

Differentiating

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Shape the

Subscriber

Experience

Mobility Control

• Application-based mobility control

Location Awareness

• Roaming

• Presence

• Reachability

Session-State Awareness

• Service manipulation

• Service control and time of day

Access Technology Awareness

• Access-based on applications

• Access based on roaming partner

Device Awareness

• Adaptation

• Translation

• Battery life

Usage Visibility

• QoS management

• Innovative service offerings

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Intelligent

Network

Radio Efficiency

3rd Party

Applications

Operator

Applications

Network Efficiency

Reduced RAN Costs

Increase

Service

Velocity

Harvest

Network

Intelligence

Optimal

Customer

Experience

Heterogeneous

Access

Mobile Cloud

Services

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Home

Network

Home

Network

Control

Operator to Consumer Value-

Added Network Services

Create

Operator OTT Services

FREEMIUM

Family

Plans

Multi-

Device

Tiered

Plans

Advertisers Broadcasters

Aggregators Apps Dev

Utilities Government

Collaborate

3rd Party Revenue Share

API Transaction Revenue

Voice/Video Msg/RCS

Social Ntwk Location

Home

Network

Operator

Network

Applic

ation &

Serv

ices R

evenue

AP

I T

ransaction

Revenue S

hare

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Advertisers

Mobile Operator

Publisher

Agency Ad Network

Ad Space !!

Sponsored site!

No mobile data charges.

Operator Enhanced Results

Improved Targeting

• Long term

• Short-term

• Device type

• Anonymous

Optimized for Network

• Access type

• QoS, Location, RAN conditions

• Home or Visited network

Opt-in

Subscriber

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• User wants to watch a video

• User is prompted with a SMS

Watch Ad = Free

No Ad = Charge

• Policy (e.g., QoS) for the subscriber flow is sent down for enforcement

• User accesses the content with the updated QoS for the time period

Upgrade quality for $.99? Quality upgraded

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Subscriber 1 - User Profile

MSISDN 14085264000

IP Address 20.20.10.1

APN apn.corporate.com

Billing Plan Corporate

Policy

Control

Profile

Corporate VPN

• 5GB quota

• 512Kbps limit

Personal Data

• 1GB quota

• 512Kbps limit

Services • VPN

• Video

• Browsing

• Email

• Download

Maximize Revenues for “Dual Modality” Devices

What’s the Opportunity?

• Give enterprises ability to manage mobile costs and enforce internal IT policies

• Enable employee-paid personal usage.

How Will This Impact My Business?

• Drive revenue from subscribers’ personal usage

• Sell more smart phone contracts to enterprises who no longer need to worry about uncontrolled spend

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Next Gen

HotSpot

3G/4G

User

Experience

Uninterrupted

Real-time Analytics

DPI, Policy Mgmt., QoS

Intelligent

Network

CDN

Seamless Handoff Between 3G/4G & WiFi

Credentials, Session, Connectivity

Videoscape Client

By 2016, nearly three-fourth’s (71%) of the

world’s mobile data traffic will be video.

Cloud

Services

Content Management

Content Acquisition

Command & Control

& More…

Differentiated

Indoor

Experiences

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V2oLTE

RCSe

OneAPI

IMS / LTE

Video

chat Messaging

Social

Presence

Location

Conferencing

Collaboration

Business

Services

Enhanced

Voice

Media

Sharing

Cisco ASR

5000 and CSP

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AS

4G

3G

SGSN,

S/P-GW, PCRF

MME

MSC Server

HSS

P/I/S/E-CSCF

Policy

Service enablement Network intelligence

SIP / RTP Media

Gateway

Call

Manager

RTP

UCS

SSC, SDP

SIP or

H.323

SIP

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Thank you.