LBz Huawei Grow Your Business With LTE Broadcast Marcelo Motta LTEWS June 2014 (1)

HUAWEI TECHNOLOGIES CO., LTD.

Grow Your Business with LTE Broadcast

Marcelo Motta [email protected] Carrier Network BG Carrier Marketing, MBB Solution 2014-06-25

mailto:[email protected]

HUAWEI TECHNOLOGIES CO., LTD. Long Ago, People Danced @ Concerts, Now They Video / Click / Share / Tweet…

The new pope’ reign at St Peter's Square in the Vatican

1990s

2010s


$800B

$2T

New verticals • Telemetric

• Education, health care

• Smart City

Total Connections: from 6.7 to 24 Billion

Traffic Monetization

MBB expansion • Smartphone, tablets

• Multiple devices, screens

• Cloud applications

MBB Users: from 1.1 to 6 Billion

2012 2020

Capability Monetization

New biz modes • B2B

• B2B2C

• OTTs, Enterprises

Openness: thousands of APIs

Connection Monetization

$820B 7.4 B 1.6 B Eco-system? 2.5% 10.5% 45%

2013 Update

MBB Golden Business Potential

FASTER expansion is mandatory to catch up the new opportunities

Source: Huawei MI


Expanded NFL mobile rights for $1B over 4 years.

Operators are investing heavily in content rights

Won broadcast rights for 2014 Winter Olympics and 2016 Olympics.

Agreed to pay £897M/year for UK Champions League rights.

Agreed to pay C$5.2B over 12years for NHL broadcast rights.

…..and � are � expanding � distribution � thru � mobile � and � mobile � TV � initiatives �

Netherlands

FiOS

FMC 2.0 Global Trend Content and distribution expansion to mobile

Source: BofA Merrill Lynch, Huawei MI

http://www.broadbandtvnews.com/wp-content/uploads/2014/06/VodafoneNLmobileTV.jpg

http://en.wikipedia.org/wiki/File:Telstra_logo.svg

http://en.wikipedia.org/wiki/File:Vodafone_logo.svg

http://en.wikipedia.org/wiki/File:Verizon_logo.svg


Content

• Drivers and Potentials of LTE Broadcast

• Global Initiatives, Use Cases & TTM

• Huawei´s Contributions and Market Steps


3G LTE

Radio Access Technology

User Traffic Consumption

Drivers For LTE Broadcast

1.8

11.5

2013 2017

Year

Global Mobile Data Traffic (Exabyte/Mon)

Video Non-video Data

6~7x

2~3x

3G LTE

Radio Access Technology

ARPU

1.1~1.4x

Source: Huawei TM Lab 2013 Source: GSMA Intelligence Nov 2013

CAGR +50% 70%

1 ~ 2.5 GB/Mon

+50% yoy

Source: GSMA Intelligence Nov 2013

How to improve efficiency and monetization in LTE era?


2012 2013

Glo

bal M

obile

Ads

. R

even

ue (U

SD)

• Google • Facebook • Twitter • Linkedin • Pandora

18 B

9.4 B

40 B

2015

Source: BofA Merrill Lynch, KPCB

Top 5 : ~ 65%

Potential New Revenues Are Growing Fast

Global Mobile Ad Revenues

And mobile apps:

• 90Bi USD in 2015 • 90% yoy

USD +130Bi in 2015: LTE broadcast to expand and change market place

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Verizon´s New Business Models Patent application for ad and broadcast/multicast services

Illustration from Verizon's ad platform patent application. (Source: U.S. PTO)

Advertisement • Bill discounts if ads accepted

• Watch ad to unlock screen

• Targeted ads: location, current activity

• Auction space on home screens to advertisers

Broadcast/Multicast • Bidding on shows/movies at specific time with

discounts if minimum no. of subscribers is reached

http://www.fiercecable.com/story/verizon-details-new-advertising-multicast-business-models-patent-applicatio/2014-02-07

http://en.wikipedia.org/wiki/File:Verizon_logo.svg


User Experience: Target for Differentiation

OTT performance reports: pressure for quality of experience

KT launched pilot LTE broadcast in Jan 2014: better user experience and branding

Netflix USA ISP Speed Index Google Video Quality Report

LTE broadcast: better user experience, more subs and retation

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Towards � “Experience � Centric”Operation: LTE broadcast service in KT

Jan 23-29, 2014, subscribers already owning Samsung Galaxy Note 3 smartphones can subscribe to Olleh Play LTE mobile TV for free

Requires subscribers to download software upgrade through the KT Olleh mobile IP TV application

Jan – April 2014 pre-commercial service limited to Songpa District in Seoul, South Korea

Only provides 1 baseball games live channel and supports Galaxy Note 3 smartphones

Commercial service planned for Aug 2014, supporting multiple terminals, country-wide coverage, and channels of different content

2014.1 2014.8 1/23 1/29

Galaxy Notes 3 subscribers can try

service for free

2014.4

eMBMS pre-commercial service in Seoul, South Korea

Planned for country-wide commercial service

KT SVP: “eMBMS will come for better quality of experience and branding”

http://en.wikipedia.org/wiki/File:KT_Logo.svg


Traffic Monetization • New differentiated services • New business models

Network Efficiency

• Hot contents distributed to mass users • Capped network resources & TCO

Better User Experience • Consistent quality while on the move

or during network busy hours • “No Edge” experience with MBSFN

MBSFN – Multimedia Broadcast over Single Frequency Network


LTE broadcast started in Jan 2014

TDD

TDD

LTE Broadcast Global Initiatives

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Innovative Use Cases

Live Video

Pre-Loaded Content

Home Screen

App Screen

User-initiated in-video ad

Add Details

Content Selection Booking

LTE broadcast unleashes new business potentials


Use Case 1: Venue Casting

Live event broadcast – channels only assigned for event duration

In-video advertisement menu (user initiated)

User-selected advertisement

For tablets and smartphones


News Channel - Channels assigned for all day

Movies Channel Fashion Channel

In-video advertisement

menu (user initiated)

User-selected advertisement


Use Case 2: Mobile TV


Use Case 3: Pre-Loaded Content

Home Menu - use-selected push time

Video Music

Push time selection - Tariff discounts during network non-busy hours

Order confirmation



Use Case 4: Push Advertisement

LTE broadcast network

Push Advertisement

Platform

Advertisements

- bandwidth usually assigned during off-peak hours

Digital Display


TV Channels - Channels assigned for all day

Shopping Channel

TV + STB CPE


Electronic Program Guide

Online Betting

• LTE to reduce last mile costs: lack of access fiber/copper

• TV + MBB + voice services thorugh LTE

SD and HD for regular TV viewing

Use Case 5: Home TV

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=TnPk7IdgLUABvM&tbnid=p5d4UKB8ufXHTM:&ved=0CAUQjRw&url=http://attonlineoffers.com/bestoffers/tv&ei=dUV7U761Aeqb0wX1oYH4AQ&psig=AFQjCNEpdY1w5XRxAIZBRTNO9zLoLYYEIw&ust=1400674019866868

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=17XjmmiZif7USM&tbnid=A7fBhL_EAph-bM:&ved=0CAUQjRw&url=http://www.engadget.com/2008/12/31/atandt-hiking-package-rates-for-new-customers-in-wisconsin-any/&ei=rUV7U-SlLKLJ0AXYlICABA&psig=AFQjCNEpdY1w5XRxAIZBRTNO9zLoLYYEIw&ust=1400674019866868

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=TYsIJwI12QufkM&tbnid=KYPEh8wDuhiaHM:&ved=0CAUQjRw&url=http://www.sportsbettingsites.com/&ei=plx7U7mmOerH7Aa2y4GICg&psig=AFQjCNGlgZDOJlbFCI5UX3J3o7Q1sxnoVg&ust=1400679938541196


TV STB eMBMS-capable

CPE

WiFi devices


Internet

Bus stop On bus

IPTV platform

Trial in China

• B1 tourist bus route • Advertisement, bus schedule & route info and WiFi access at bus stops • Mobile TV, advertisements and WiFi access on buses

Content

Use Case 6: Bus TV & WiFi

http://blinktag.com/blinktag-bus/


Use case 7: MVNO or Channel Wholesale

MVNO’s � eMBMS Core Network

MCE

MBMS-GW

BM-SC

MVNO’s � IPTV

Platform

Operator’s � LTE � Core Network

eNB

eNB

eNB

MVNO

Shares spectrum and eNBs with operator

Builds its own eMBMS core network

Has its own mobile network ID Same use cases as normal operator



PTT Over Cellular Server platform

Smartphones with PTT App

Use Case 8: Push-To-Talk


Use Case 9: Radio Over LTE Broadcast


http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=Y3SkvNcPBToU_M&tbnid=uO7pDsBPKCa4iM:&ved=0CAUQjRw&url=http://mylifemagazine.com/dice-and-livios-internet-radio-app-offers-a-subscription-free-alternative-to-satellite-radio&ei=E862U6qbN4jY7Aa0rIGwCw&psig=AFQjCNHQy9AyrmD4YNBUAmv4ihbE2j9aEw&ust=1404575565851961

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=FOxaIhAMYhc91M&tbnid=ZN0hpXfRScF6aM:&ved=0CAUQjRw&url=http://www.dailymail.co.uk/sciencetech/article-1373692/Pandoras-box-Smartphone-app-developers-federal-investigation-sharing-YOUR-information.html&ei=kc-2U8PJBY3A7AayxID4Bg&psig=AFQjCNHQy9AyrmD4YNBUAmv4ihbE2j9aEw&ust=1404575565851961

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=CoagyhOGEUyphM&tbnid=X2M2-8i0YfPB3M:&ved=0CAUQjRw&url=http://www.nujow.com/paradisenews.php&ei=lNG2U6KDAuGv7AaV7YGgDw&psig=AFQjCNGQIfc_AvyhNzBPgQQa2U9lY0oMSQ&ust=1404576406638991

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=WmYSuATfIb5svM&tbnid=NUcIbiPcyV7WqM:&ved=0CAUQjRw&url=http://medyamerkezi.yasar.edu.tr/en/studios/radio-studio/&ei=CNK2U6ajDMTe7AayrIDoAg&psig=AFQjCNGQIfc_AvyhNzBPgQQa2U9lY0oMSQ&ust=1404576406638991

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=G8g5NUPqVYI1lM&tbnid=yzDbR6D9AsazTM:&ved=0CAUQjRw&url=http://beginnerstech.co.uk/bbc-iplayer-android-updated-version-2-0/&ei=Mdi2U-TKE-Se7AaDnICoCg&psig=AFQjCNGs6JFQhm3vaWabuYZVXInS4nwcZA&ust=1404578207873835



Remote Monitoring and Control Centre,

data bases, etc.

Use Case 10: Public Safety

http://www.theredguidetorecovery.com/fire-departments-get-the-guide/

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=dE88Wx4gE8ZE8M&tbnid=1tO7XlI7HfIjRM:&ved=0CAUQjRw&url=http://www.pressofatlanticcity.com/communities/atlantic-city_pleasantville_brigantine/atlantic-city-police-struggle-to-integrate-laptops-with-antiquated-computer/article_7e6fbdaa-e96f-11e0-8c96-001cc4c03286.html&ei=zwSqU7iGOoOV0AWY54HoCw&psig=AFQjCNGFBTWVb_PnhIvbNpTSxL7GQCNRKQ&ust=1403737636391987

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=ooVaDAC4XMCl8M&tbnid=tvWqY3xRiOPpJM:&ved=0CAUQjRw&url=http://www.slashgear.com/huawei-mediapad-10-fhd-review-10254698/&ei=L_2pU5etDeyo0wWXhYHQAg&psig=AFQjCNH6ZNjlcRpO9QxCxD-_lTenuM2ykg&ust=1403735689099534


Business Models

• Venue Casting • Mobile TV • Home TV • Bus TV & WiFi

• Push Advertisement • Pre-Loaded Content • Bus TV & WiFi • Public Safety

“User” Pay 3rd Party Pay Revenue Shared

Add

“User” Pay

Content

Revenue Shared or 3rd Party Pay

• All

LTE broadcast enables endless possibilities in B2C or B2B2C scenarios

Revenue Sharing Sponsored Data Hybrid

Use Cases: Use Cases: Use Cases:

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Promising Estimations of New Revenues

LTE broadcast can improve data revenue by ~20% over 5 years

Additional Broadcast Revenue as a % of Total Data Revenue

Year 1~5

Forward

Live TV

6% Booked Video

Newspaper

Datacard live TV

MiFi live TV

Backward AD/Leased 14% Total 20%

• Reference: one city in Asia, joint study of case with operator • LTE adoption similarly to 3G curve

+20%


How eager are operators to change the market place?

Fixed-like

2014

Mobile Mass 2015 ~ 2016

“Nomadic” 2014 ~ 2015

eMBMS-Capable CPE & Dongles

eMBMS-Capable MiFi

eMBMS-Capable Smartphones & Tablets

• Home TV • Bus TV & WiFi • Push Ad

• Home TV • Bus TV & WiFi • Push Ad • Venue Casting

• Venue Casting • Mobile TV • Pre-Loaded Content • Push Ad

Enablers

LTE broadcast TTM: from market readiness perspective


Content





Deployment Considerations

Business Models & Strategy

Contents

• Operator owned – high production costs

• 3rd party sourced – expensive content rights

or revenue share

• Coverage

• Broadcast capability

• BSS/OSS

• LTE broadcast enabled

devices & affordable

•China Mobile: e2014 • 500K eNode Bs • 100M LTE subs

$100

10M’s


LTE Broadcast Ecosystem Development Huawei partnerships and contributions

• TCL • Quanta • LG • Sony • Coolpad • ....

http://en.wikipedia.org/wiki/File:QualcommLogo.svg

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/commons.wikimedia.org/wiki/File:Sequans_logo.jpg

http://www.lte-tdd.org/

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Demo in MWC 2013

World’s 1st “FDD & TDD” trial in Nov. 2013

Demo of Huawei’s own chipset, terminals, network and media platform in Dec. 2013

IODT with Qualcomm chipset in H2 2013

Announced trial partnerships with TI, EE and PT MEO at Mobile World Congress 2014

HUAWEI: unique E2E in industry, from devices, network infra & content platform

THANK YOU www.huawei.com

Copyright©2014 Huawei Technologies Co., Ltd. All Rights Reserved. The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.

LBz Huawei Grow Your Business With LTE Broadcast Marcelo Motta LTEWS June 2014 (1)

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