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Monetization: Driving Profitability for Monetization: Driving Profitability for the Next Generation Mobile Internetthe Next Generation Mobile Internet
Giuseppe Giuseppe RicagniRicagniTechnical Director | Mobility Architecture EMEARTechnical Director | Mobility Architecture EMEAR
November 20, 2012November 20, 2012
Keynote Keynote –– Plenary Report 2Plenary Report 2
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subs WW by CY16 Y/E
How Far Have We Come?
operators in
countries are investing
commercially deployed NWs in
countries
Source: GSA, Informa telecoms & media, Engadget
units sold in the 1st weekend
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450-550 MB/month
1200-1300 MB/monthAverage Monthly Data Consumption
The Impact of LTE
22--3x3x
Sources: Internal, Validas
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CoverageCoverage CapacityCapacity ServicesServices
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3000
2500
1500
1000
500
100
0
2010 2011 2012 2013 2014 20152010 2011 2012 2013 2014 2015
2X
26X
Data Revenue
Data Volume
Source: Cisco VNI, Cap Gemini, WCIS
Dat
a Vo
lum
e (P
B/m
o.)
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VIDEOVIDEOEXPERIENCE EXPERIENCE
ARPUARPU per Bit per Bit ARPUARPU per Bit per Bit
Data Data TrafficTraffic(Cost)(Cost)
Data Data TrafficTraffic(Cost)(Cost) ComingComing
Profitability Profitability GapGap
ComingComingProfitability Profitability
GapGap
EnableEnable Premium Services CreateCreate new business models
Reduce CostsReduce Costs
Increase RevenueIncrease Revenue
Improve Customer ExperienceImprove Customer Experience
Manage Manage “over the top” videoMaximizeMaximize spectrum and radio assets
CompetitiveCompetitive Quality of ExperiencePopularPopular Services and Features
MONETIZEMONETIZE
OPTIMIZEOPTIMIZE
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Traffic
Revenue
Function Function IntegrationIntegration
Video / DataVideo / Data
PolicyPolicy
OffloadOffload
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Traffic
Revenue
ConsumerConsumer
EnterpriseEnterprise
B2B2CB2B2C
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Generating Revenue on Both Sides of Transaction
Creating New Business Models
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ConsumersContent Providers
Operator network advantage is key to increasing revenues
Operators
B2B2C
¥
$€
¥$€ ¥
$€
¥$
€¥€
€
$ ¥$Operators
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NextGen Business Architecture Mobile Internet B2B2C
B2C
Application Detection and ControlApplication Detection and Control
Policy Control & EnforcementPolicy Control & Enforcement
Content Filtering, InsertionContent Filtering, Insertion
PersonalizationPersonalization
Charging ModelsCharging Models
Location, Roaming, PresenceLocation, Roaming, Presence
B2
ApplicationApplicationProvidersProviders
AdvertisersAdvertisers
Content Content Aggregators & Aggregators & BroadcastersBroadcasters
EE--tailerstailers
Content OwnersContent Owners
SPs Must Expand from Today’s OneSPs Must Expand from Today’s One--Sided to a TwoSided to a Two--Sided Business Sided Business ModelModelValue Add of the Intelligent Mobile NetworkValue Add of the Intelligent Mobile Network
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MonetizationTiered Tiered PricingPricing
Premium Mobile Premium Mobile Video GamingVideo Gaming
Mobile TVMobile TV
Internet of Internet of ThingsThings
PersonalizationPersonalizationBYODBYOD / Dual Persona/ Dual Persona
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Work Play
Small Cell Gateway
EPC: Policy, DPI, Charging, &
Content Filter
Security:ePDG & IPSec
Dual Persona BYOD
• ‘Work Persona’ managed & paid for by IT Dept.• Secure access to business apps, intranet, email• Includes corporate restrictions on data speed &
monthly data quota
• ‘Play Persona’ managed & paid for by individual• Access to all personal applications• No access to the company’s intranet• Data usage is billed to individual
Reduce IT Mobility Costs
BuildCustomer
Loyalty
IncreaseARPU
Up to 20%
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Reaching out to New Markets – Internet of Things
Vehicle & container trackingConsumer OEM telematicsConsumer Aftermarket Telematics
Automatic Metering Infrastructure
Remote Monitoring & Automation
ATM/POS
Remote Information DisplaysTelehealth
Fixed Wireless Terminals
Industrial PDAs
$$20B 20B by 2014by 2014
Telematics
Wireless Local Loop
Telemetry
* ABI ResearchSecurity
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Creates New Monetization Opportunities
Orchestration ANALYTICSANALYTICSPOLICYPOLICY
Harvest and Harvest and Correlate Correlate
DataData
Program Program the Networkthe Network
NetworkNetwork
Network IntelligenceNetwork Intelligence
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Thank you.
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