Evaluating Monetization Strategies in an All IP World

Shailin SehgalSenior Vice President & CTO, Multimedia, GENBAND

2

Consumer adoption of OTT is significant

24% of mobile data

22% of all IM - related mobile bandwidth5% of global messaging

30M subscribers

mVoIP - 42% CAGR

Will LTE accelerate the success of OTT services?

3

Operator Battle FieldMarket Risk & Financial Impact

Re

ve

nu

e &

Str

ate

gic

Im

pa

ct

High

Low Market Risks Factors Outside of Operator Control

High

Significant Long term decline

The Apple Value Chain

5

The Internet of Things

24,000,000,000 Devices

$1,200,000,000,000 in Mobile Operator Revenue!

6

New Battle Grounds to Drive Revenue

Smart Energy, Connected Home, Mobile Health, Logistics industries have started to take advantage of mobile broadband

Cloud is replacing purpose built Service delivery networks

Over the tops (Apple, Google, Skype, FB) are closed communities. They do not provide ubiquitous user experience across all device types

New technologies like webRTC, & HTML5 remove the barriers to entry and enable federation of closed communities

Time to Adjust, Defend, & Invest

7

Mobile Data - Engage

• Optimize Broadband• Personalize Broadband• Monetize

Cloud Services – Invest

• IaaS• PaaS• SaaS• CaaS

Messaging - Adjust

• M2M

Voice - Defend

• Offer Voice plus Services• Federate Social Networks• Create Wholesale offer with

differentiated QoS

8

Operators can win on their historical strengths

Brand

Quality

Billing

Device Management

Subscriber Ownership• Telephone number = Mobile number is one’s Identity

“Internet of things” - M2M Market Forecast

The M2M market is driven by high value vertical services

M2M connectivity revenue alone will amount to a US$8.3 billion in 2016 world wide

Half of it is Mobile centric

M2M Opportunity – Billions of Devices

M2M Verticals

Mobile Health Smart Grid – Energy Telematics – Automotive Logistics – Fleet Management Connected Home Surveillance and Security

Operator’s Unfair Advantage

Connectivity QoS Device-Network Interaction Foster Ecosystems Partnership with the Verticals Fully Integrated Turnkey Solutions

M2MDevice

Access Network

Device management, Authentication, Security and SLA delivery (e.g. Priority, QoS)

M2M service

Service provider revenue potential

Example M2M solution – Operators are the key enablers

Speed of change is embraced over stability Standards follow and usually document deployed practices Facebook - New code changes are pushed randomly, without notice (up to

weekly) that can affect the GRAPH API

Products, Applications, Interfaces, Deployments – all must react RAPIDLY A New Model is Required for Businesses Interacting with Social/OTT/M2M Systems

API Change

Bug Fix

Facebook Release History

Web is Different Than Telecom

Don’t miss riding new wave!

1995 2008 2012 2020

Connecting Social networks

Connecting “Everything”

2000

Connecting PCs

Helping Carriers Evolve from the PSTN…

Subsidized

Easy to deploy

Cost effective

Fast deployment of new services

On going innovation

Federation with existing Social Networks

Complement existing Social Networks

Universal

Rich user experience – multimedia

Good and predictable quality

Viral adoption

Voice Services

RCS / RCS-eRCS 5

Cloud DeploymentWebRTC/HTML5

Social Networks Integration

Targeted Advertising

GE

NB

AN

D F

ocus

VoLTE, VoWiFi, FMC