Business & Network Policy Control

Presentation to XYZ

Sep 6th, 2012

Today’s Market Forces

Sandvine Confidential2

Sandvine Confidential3

Real-Time Entertainment is…

Powering the Living Room

Sandvine Confidential4

2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |2024 | 2025 | 2026| 2027 | 2028| 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 | 2039 | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 | 2047 | 2048 | 2049 | 2050 | 2051 | 2052 | 2053 | 2054| 2055 | 2056 | 2057 | 2058 | 2059 | 2060 | 2061 | 2062 | 2063 | 2064 | 2065 | 2066 | 2067 | 2068 | 2069 | 2070…

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2009 | 2010 |

By data volume more video is now watched on devices other than a PC

The Post-PC era

Monthly Mobile Usage

Sandvine Confidential5

CSP Business & Digital Economy

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CSPs to balance out this scenario as efficient conduit among all these players

CSPs as CDNs & Content Providers

Content Provider

(e.g. Netflix)Service

Provider CDN (e.g.

Akamai)Consumers

$0.18/GB

$7.99 / Video or Month

$0.0/GB

$0.08/GBNew Content Provider /

Service Provider Relationship

The Rapid Evolution of Internet Traffic

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Network Policy control – big picture

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Why Network Policy Control

Network Policy Control is the key to maximizing business performance and profitability

• Business Intelligence• Operations Management• Traffic Optimization• Next gen Service Creation & Revenues

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Traffic Classification- Key to Policy ControlTraffic Classification: Technology OverviewTraffic classification is

generation beyond traffic identification

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“Netflix generates 3.5 Gbps on our network”

“Netflix generates 3.5 Gbps, 27% of our users subscribe and contribute $50 million annually to Netflix’ revenue, the median duration is 42 minutes and increasing, the top device is the PS3, users watch 33 videos/month, the average quality is 3.4/5 and is lowest in our East region…”

Overall Bandwidth by Protocol

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Top websites by Bandwidth

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Missing Revenues? Identify new apps?Whatsapp undercutting SMS revenues of CSPs

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Utilizing Analytics Social Media & Skype Differentiated Charging @ Telefonica Business Intelligence products was fundamental to identify data consumption behaviours and application patterns (‘subscriber persona’)

Content based data plans in line with specific subscriber personasAccurate application identification was paramount for the success

Project rolled out on multiple phases

End to end implementation of packages: 4 weeks

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Indian Telecom Landscape

Zero-Rating of Device Traffic

As a condition of carrying their devices, some mobile phone

manufacturers are imposing

requirements that particular device traffic be zero-

rated.Key Benefits:•Carry the hot new devices that your subscribers want, and gain the missed revenue

Revenue Generation with Telefonica

“Working with Sandvine since 2008 has brought us closer to understanding and acting on the needs of our customers, while improving revenue opportunities and the cost-effectiveness of our network.”Vicente San Miguel – CTO

Actual screenshot from Sandvine/Movistar Implementation

Based on the success of these packages, similar plans have now

been rolled out to more than ten

countries across Latin America

Shared Wallet: Family Plans

Many members within a household each have their own mobile device, and families are

looking to simplify their bills by subscribing to “Family Plans” in which data and minutes are shared between members and across devices.

Key Benefits:•Gain new subscribers, through service provider consolidation•Increased revenue from new subscriptions and subscribers•Increased subscriber loyalty/stickiness•Competitive/brand differentiation

Shared Wallet:Multi-DevicePlans

“Customers don’t want individual accounts for each device, it drives them crazy, and would

raise our costs…So getting to one bill and going to account-based pricing is the way to go.”

- Lowell McAdam, President and CEO of Verizon

Key Benefits:•Gain new subscribers, through service provider consolidation•Increased revenue from new subscriptions and subscribers•Increased subscriber loyalty/stickiness•Competitive/brand differentiation

Short-Term Data Packs

Prepaid short-term data packs offer predictable pricing within known limits (units of time, units of data usage), typically at a

significantly higher revenue-per-byte than a monthly plan, and appeal to users who need

only short-term connectivity.Key Benefits:•Increased revenue from new subscriber opportunities•Brand awareness with these short-term subscribers•Competitive differentiation•Higher revenue-per-byte than monthly subscriptions

Upsell/Promotion Notification

Many subscribers aren’t aware of promotions and special offers, because they are

unreachable through traditional media. Time-sensitive promotions need to reach

subscribers on-time and in a medium they use.

Key Benefits:•Increased absolute revenue from new service subscriptions•Increased average revenue per user (ARPU)•Brand awareness and competitive differentiation•Increased subscriber loyalty

Congestion Management

Congestion management maximizes the quality of experience for the maximum

number of subscribers for the maximum amount of time for any given capital

investment. Real-time QoE measurements (QualityGuard) ensure that management policies are only applied when and where

congestion exists.Key Benefits:•Improved subscriber QoE•Extended infrastructure lifetime•Massive capital deferral savings•Increased network efficiency•Fair bandwidth allocation

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Time (Minutes)Low-Value Traffic Bandwidth High-Value Traffic Bandwidth High-Value Subscriber QoE (95-99% of Users)

Network Summary – Subscriber Analysis

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Network Summary – Regional Analysis

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Network Summary – Market Analysis

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Traffic OptimizationFairness and efficiency to optimize shared resource utilizationCapital expenditure reduction and deferralHigher subscriber satisfactionMeeting regulatory requirements for equity and fairness

Aggregate TrafficManagement

Fairshare TrafficManagement

Effective QoS management Fairshare Traffic Management

• Guarantee high value traffic prioritization without ‘starving’ low priority data• Drop low priority when ‘ceiling’ is exceeded (i.e. capacity)• Never drop low traffic beyond a certain minimum configuration• Values configurable. Example below: 155Mbps DSLAM, Minimum 50Mbps (low priority)

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155Mbps DSLAM Capacity

Minimum50Mbps

T1…T5 • Idle network capacity available• No traffic prioritization in place

T5…T9 • Capacity reached• Shapes low value traffic• High value traffic usage continues to grow to meet normal user demand

T9 …T12

• Minimum total bandwidth for low value traffic reached• High value traffic start to drop

Prioritized traffic

Idle capacityNo Shaping

Low priority drop Low priority drop

High priority drop

Operations ManagementProactive headache prevention

Simplify regulatory filtering complianceIdentify quality issues before subscribers doLimit the impact of malicious network traffic

SubscriberQuality of Experience

URLAccess Control

NetworkProtection

Business case for a CSP (Telco)

4 main money buckets:• ARPU increase -- #1 priority/value• OpEx reduction -- #2 priority/value• CapEx deferral -- #3 priority/value• Customer Experience -- #4

Product OpEx CapEx

ARPU

Traffic Management

Usage management

Network Analytics Network Security

CSP BenefitsService Fulfilment & Assurance

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CSP BenefitsCustomer Experience Management

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Network Summary – Handset Analysis

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Network Summary – Dynamic Analysis

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Available Dashboards

Five dashboards currently available•And the list is always growing

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Network Summary Dashboard

Real-Time Entertainme

nt Dashboard

Traffic Manageme

nt Dashboard

Usage Manageme

nt Dashboard

IPv6 Transition Dashboard

Deploying Business IntelligenceBusiness Intelligence: Product Suite Overview

San 36

Enabling Value-added Applications

Network Demographics

ReportingReports traffic stats,

applications, subscriber behaviourAggregate large

amounts of data

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Service Definition Manager

User-friendly GUICentralized policy

configuration and deployment toolDeploy policy individually or

network-wide

Subscriber Policy Broker and Database

Collects and stores stats and subscriber profile observed by PTS and SDESubscriber-IP mappingAPI to B/OSS to enable new

services

SRP 3000-D Portfolio

SPB and DB

Software Platform

and Application

s SDM NDS

PLUG-IN YOURSELF !!