#1 in Policy

PCC developments to take advantage of LTE capabilities

Oisin O’Connor, Product Marketing Manager, Openet

LTE World Congress, Barcelona, 23 May 2012

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Sources: 1) Cisco, VNI Report, 2010, 2) Broker Research, 3) IMS, 2011, 4), Infonetics, 5) Tellabs, 2011

Industry Context

Despite Explosive Growth

In Data Usage And Complexity…

…CSPs’ Growth Prospects

Remain Subdued

Exponential Data Growth(1) Increased Network Complexity

More Data-Hungry Devices(1) Cloud Delivery Models

Content / Apps Explosion(2) Growth In M2M(3)

Revenue & Traffic Decoupled

Disintermediation Threat From Non-

Traditional Competitors(4)

Decrease In Profitability(5)

0.24

6.25

0

2

4

6

8

2010 2015

TB

per

mo

nth

(m

)

LTE

LTE

Advanced

GSM

CDMA

Edge

WiMAX WiFi

CDMA

2000

Data Dominant

Voice Dominant Traffic

Revenues

Smartphones

=

x 24 data

Gaming Consoles

=

x 60 data

Tablets

=

x 122 data

Saas

Applications

PaaS

Components

Services

IaaS

Compute

Network

Storage 700

800

650

700

750

800

850

2006 2010

# O

pera

tio

ns New Players

8.2

75.1

0

20

40

60

80

2010 2014

Do

wn

load

s (

Bn

)

5

22

0

5

10

15

20

25

2010 2020E

Glo

bal

Inte

rnet

Co

nn

ecte

d D

evic

es

(Bu

)

24.8

5.1

17.5 8.0

05

10152025

2010 2015

(U

S$)

Revenue per GB Total Cost per GB

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The role of Policy Control & Charging (PCC)

Co-ordination of data charging in concert with access control

(across multiple devices and networks)

PCC plays a more central role in LTE networks as all traffic

migrates to IP

Policy &

Charging Control

Operator Core Network Data Applications Access Networks Devices

BSS OSS Back

Office

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Traditional PCC Use Cases

Fair Usage Roaming & Bill Shock

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Increasingly complex policy use cases

Speed Tiers Prioritization

Netherlands

App Restrictions

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Evolving charging models

Shared Device Plans User Provisioned

Service Passes

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Intelligent Video Management

Policy + Video Optimization can enable new models

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Evolved

Packet

Core Voice & Data

Traffic

LTE Network

GPRS Packet

Switched Core

IMS

Core

VoLTE requires co-ordinated policy & charging control:

Defined QoS: Application level QoS definition is required with

minimum guarantees around latency, jitter and packet loss

Flexible Charging: To zero rate VoLTE control traffic, support

legacy voice tariffs and new flexible bundled propositions

Defined QoS

Flexible Charging

PCC & VoLTE

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Subscriber Engagement & Personalization

Increased demand for functionality to personalize the experience

Source: Extract from

Openet Operator Survey

Jan 2012

Operator branded mobile portal functionality

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Charging

Evolution of PCC to include Engagement

Policy & Charging Control (PCC)

Subscriber

Subscriber &

Network Control

Flexible

Monetization

Inform & Engage

Subscribers

DPI / PCEF

Video

Optimization

Rating

Subscriber

Engagement

Policy

Management

Evolved

Charging

Balance

Management

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The role of Engagement

Real-time Account

Management

Personal Usage

& Spend Controls

Dynamic Service

Purchase

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Engagement & Partners

Enables operators to retail & promote partner content through ‘toll

free’ data offerings and other 2 sided business models

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Questions

More information at: www.openet.com