jonathan morgan- starent networks- service differentiation

7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation

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Cisco Confidential 1NDA Presentation

2010 Cisco Systems, Inc. All rights reserved.Mobility BDM_0110

LTE World Summit:

How UserExperience andDifferentiated

Services will Drivethe Adoption of LTE

Jonathan A. MorganMay 19, 2010


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2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 2NDA Presentation

More

Broadband

New Pricing

New Devices

NewApplications

Mobile Internet is Changing Everything

Video will be 66% of Mobile Traffic by 2013


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Visual Networking Devices

Driving Mobile Data Growth 2010 Mobile Device Comparisons

=

=

=

Smartphone

Laptop

E-reader

DigitalPhoto

Frame

VideoCamera

Mobile

PhoneProjector

10 X (monthly basic mobile phone data traffic)

2 X (monthly basic mobile phone data traffic)

= 10 X (monthly basic mobile phone data traffic)



1,300 X (monthly basic mobile phone data traffic)

Source: Cisco Visual Networking Index (VNI) Global Mobile Data Forecast, 20092014


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The average mobile broadband-connectedlaptop will generate 7 GB of mobile data trafficper month by 2014 (versus 1.3 GB today).


2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialCisco VNI Mobile Data Forecast_2010 4


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Today, smartphones are only 10% of allhandsets in use, but generate over 50% ofglobal mobile data handset traffic.




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Global Mobile Data Traffic Growth / Content

Mobile video will be 66% of mobile data traffic by 2014

66%66%

8%8%

4%4%

108% CAGR 20092014


5%5%

17%17%


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Evolving Market Landscape

2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 7

Traffic

Revenues

MobileOperators


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Service Provider Challenge:

Making Profit

Profitability =Profitability = CapEx + OpExCapEx + OpExRevenueRevenueManage the bandwidthManage the bandwidth

explosion from videoexplosion from videoReduce operationalReduce operational

complexitycomplexity

Simplify networkSimplify network

architecturearchitectureIncrease trafficIncrease traffic

efficiencyefficiency

Making profit beyondMaking profit beyond

basic subscriptionsbasic subscriptions

Increase serviceIncrease service

velocityvelocity

Service quality andService quality and

securitysecurity

Maximize return fromMaximize return from

infrastructureinfrastructure

2009 Cisco Systems, Inc. All rights reserved.

= Monetization= Optimization


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Business Opportunity

Investment in Intelligence

IP RANAggregation/

BackhaulIP Core

Edge / EvolvedPacket Core

Radio /

Microwave

Voice &MessagingRNC

Data Center/Cloud

10-20%80-90%

Traditional Services Mobile Internet

Current CapEx Spend

Mobile Internet Investment will Drive Future Profitability


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Business Challenge:

Operators Advantages in the Mobile Internet Battle

Mobile Operator has Unique Differentiation

versus Over the Top Players

Service Usage

Time

RoamingLocation,Presence

DeviceApplication

P2P

Filtering,

Caching, &Ad Insertion

PolicyControl

Cloud Services

Roaming/Handover

Bandwidth,QoS, Security

Service/Application Delivery

P2P

MultimediaMobile Network

Customer Intelligence Network Intelligence

SessionInfo


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B2CBusiness to Consumer

$$

ServiceProviders

NextGen Business Architecture:

Mobile Internet B2B2C

B2B2C

ApplicationProviders

ApplicationProviders

ContentOwners

ContentOwners

AdvertisersAdvertisers

ContentAggregators &Broadcasters

ContentAggregators &Broadcasters

E-tailersE-tailers


SPs Must Expand from Todays One-Sided toa Two-Sided Business Model


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All roads lead to LTE to address thechallenges, however.


CDMA2000CDMA2000

1X1XcdmaOnecdmaOne

CDMA2000 1xCDMA2000 1x

EVEV--DODO

eHRPDeHRPD

LTELTEEPCEPC

GSMGSM

EDGEEDGE

HSPAHSPAWCDMAWCDMA


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2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 13NDA PresentationEvolved Packet Core is the Engine that Drives Profitability

Evolved Packet Core:

Next Generation Core Drives Profitability

WiFi,Femto

2.5G,3G

4G

Evolved PacketEvolved PacketCoreCore


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Future Profitability

Profitability =Profitability = CapEx + OpExCapEx + OpExRevenueManage the bandwidthManage the bandwidth

explosion from videoexplosion from videoReduce operationalReduce operational

complexitycomplexity

Simplify networkSimplify network

architecturearchitectureIncrease trafficIncrease traffic

efficiencyefficiency

Making profit beyondbasic subscriptions

Increase service

velocity

Service quality andsecurity

Maximize return fromMaximize return from

infrastructureinfrastructure




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Improved Total Cost of Ownership

Radio Costs

EV-DO HSPA+ LTE

Data Usage Per User Per Month

TotalCostofOwnership


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Intelligent Optimization

2G/3G,4G/LTE,

WiFi, Femto

Function Integration Traffic optimization

Protocol

Data / Video

QoS/QOE

Policy

Internet offload

IP Core

IP RAN

Edge

EPC

DCDC

DCDC

CorporateCorporateInternetInternet


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Future Profitability

Profitability =Profitability = CapEx + OpExRevenueRevenueManage the bandwidth

explosion from videoReduce operationalcomplexity

Simplify networkarchitecture

Increase trafficefficiency

Making profit beyondMaking profit beyond

basic subscriptionsbasic subscriptions

Increase serviceIncrease service

velocityvelocity

Service quality andService quality and

securitysecurity

Maximize return frominfrastructure




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Profits thru Monetization

Mobile Internet B2B2C

MultimediaNetwork

SP Core Services

11 Protect, Controland Grow

SP Content /

Services Base

RevenueShare with New

Third-PartyServices

22

DeliverSP and Third-Party

Services to AnyDevice / Screen

33

SP


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Policy, In-line Services, Intelligent Management

The Baseline to Monetization

Automated usage notifications

Parental controls

Roaming management

Traffic optimization

Time based charging

Fair usage

New Revenue CreationResource ManagementPersonalization Services Tiered services

Turbo service

Location or On Net charging

Freemium

Gx

Ga /Gy

Cisco ASR 5000SGSN / MME / SGW

AAA

SPR PCRF

OCSOFCS

MAP/Diameter

Cisco ASR 5000GGSN / PCEF / PGWIn-Line Services

Radius/Diameter

IMS

CiscoASR 5000CSCF

Rx

MobilityUnifiedReporting

2G/3G, LTE,WiFi, Femto

Internet

Corporate


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Mobile MonetizationHarnessing Subscriber and Network Intelligence

Protect

and GrowSP Content/Services Base

RevenueShare with NewThird-PartyServices

Deliver SP andThird-PartyServices to

Any Device/Screen

Use Case: Tiered Services

Service plans personalized to usage patterns Bronze/Silver/Gold, with usage cap and QoS throughput Results: Revenue increase of $22.9M/month, subscribers

up from 1.5M to 2.2M, ARPU increase of $6.85/month

Use Case: Mobile TV Revenue share with content providers for all you can eat

Sports or News Zero rate the application Results: Increase in ARPU and stickiness from Mobile TV

Use Case: Social Networking with Content APAC Providerspace for sharing views, photos,

videos; create personal chat rooms; unlimiited video streaming

Results: Price per upload = $1, price per download$.25; creating chat rooms is free = revenue increase


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Cisco Mobile Internet Momentum

200+ Operators in 75+ Countries


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More on Cisco SP Mobility @http://www.cisco.com/go/mobile

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