light reading radio show - deusm

HUAWEI TECHNOLOGIES CO., LTD.

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www.huawei.com

Necessity of analytics in Policy Control domain

- A real-time closed-loop approach

Light Reading Radio Show


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Today’s Speakers

Jiang Tao, Principal Solution Architect, Core Network, Huawei

Technologies Co., Ltd.

Ari Banerjee, Senior Analyst, Heavy Reading


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High End Smartphone Users Drive Need for Speed and

Decouple Traffic from Revenues

•Data usage per smartphone user projected to grow from 700MB to 2.5GB per month

•Video and Web browsing are the top traffic generating applications

•Improvements in processors (1GHz+) and screens (up to 720i) will drive consumption


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Key catalyst for advanced monetization plans will be 4G/LTE

CSPs BSS/OSS systems need to be ready to handle those complexities

Effect of LTE on smart monetization

31.82%

43.18%

18.18%

6.82%

0% 10% 20% 30% 40% 50%

LTE will be essential to introducing advanced/smart monetization schemes

LTE will be very important to introducing advanced/smart monetization schemes

LTE will be only slightly important to introducing advanced/smart monetization schemes

LTE is not important at all to introducing advanced/smart monetization schemes

What effect will LTE have on your company's introduction of advanced/smart monetization schemes?

Source: Heavy Reading, 2012, (N=50)


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Shortcomings of current legacy BSS infrastructure that inhibits innovative

charging for advanced data services?

For wireless operators lack of integration and synchronization between policy management and

billing systems and siloed BSS systems are identified as key shortcomings that is preventing

operators from innovative charging for advanced data services

71.05%

55.26%

47.37%

42.11%

34.21%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Lack of integration and synchronization between policy management and billing systems

Siloed BSS systems resulting in redundancy and complexity

Difficulty in enforcing network policies associated with data packages

Post-paid systems are not real-time

Very difficult to configure and launch new offers

What are the shortcomings of your current legacy BSS infrastructure that inhibit innovative charging for advanced data services. (Cut by Wireless operators)

Source: Heavy Reading, 2012, (N=50)


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Monetizing Mobile Broadband – What

Are CSPs Saying?

• CSPs understand that continued reliance on

solely subscriber-based, flat-rate revenue is an

admission of dumb pipe status

•Agents of change will be bandwidth constraints

and consumer quality expectations reaching a

degree where best-effort service truly collapses

•Regards to mobile broadband preferences are

for packages with clear or immediate revenue

streams

•Policy management need to be closely aligned

with advanced analytics for innovation in data

monetization

If you believe that a flat-rate business model for mobile broadband is unsustainable, how do you

plan to further monetize mobile data services?

25.0%

20%

44.0%

52%

29%

36.0%

43.3%

46.7%

25.0%

0% 10% 20% 30% 40% 50% 60%

Advertising-based subsidized service offering

Revenue from a third-party advertiser in exchange fortargeted ad-insertion

Premium priority based charging

Tiered usage packages, i.e., pricing based on allottedbandwidth amounts for various applications

Protected-tiers, i.e., premium QoS for own on-portalapplications

Customer controlled bandwidth boost capabilities

Shared-tiers, i.e., allowing third-party content provider topurchase guaranteed QoS for delivery of services over

network

One-time casual usage data packages - such as daypass, month pass, etc

Standard prepaid data packages – either time-based or volume-based

Percent of respondents


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Real-time application usage

behavior & promotion

Dynamic congestion

mitigation

VIP(E2E QoS)

User notification

Bill shock prevention

Parental control

…

Area revenue analysis

Heavy user analysis and

control

Tethering analysis and control

Optimized FUP

Low value content

suppression

Peak/off-peak hour

…

Up-selling analysis and promotion

Valuable application analysis &

promotion

Group quota sharing

Roaming revenue boost

Home zone analysis and

promotion

…

Targeted offering

optimization

Real time experience

enhancement

Maximal NW efficiency

improvement

More than 50 use cases with intelligence are already identify & design

Most successful use cases of intelligent MBB traffic operations


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Coupling standard policy control and data pricing is not enough

Traditional PCC

Network

PCC

Execute

policy

PCEF

Evaluation

Analysis

Main Challenges of traditional PCC

Analysis is missing: cause decision delay & slow response to marketing requirements.

Lack of customer/service insight, and the evaluation process is inaccurate.

Slow

Recovery &

Response Network

Insight is

not just

Inaccurate

Evaluation

Process

Analysis is

missing

Decision

Delay

Lack of

Customer

Insight Need

Service

Insight


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1

Network efficiency

improvement

Experience

guarantee

Offering

optimization

At the right time, to the right people, push the right offering, and guarantee Experience

Business

cases with

intelligence Timing/Target

of Promotion

NW resource

allocation

Personalized

offering

Experience

Guaranty

Analytics is the answer to key challenges

Data

collection

Policy

Implement

Components in Intelligent

Policy Control

PCRF Analytics

Engine

Internet Radio Network PS/EPC

Network

NetProbe NetProbe

OSS

BSS/CRM

Business

Intelligence


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Optimize offering

Find target user

Shorter TTM to 2 weeks with one

stop closed loop

Detect user behaviors

Detect and solve

network congestion Execute

Design

Evaluate

Analyze

Guarantee user experience

Promote offering

User behavior Application

TTM: Time to Market

Network efficiency improvement Offering optimization User experience guarantee

Closed-loop Per Service Per User Real Time

Highlights

Personalized offering

Timing/Target of promotion

NW resource allocation

User experience guaranty

Intelligent Policy Control

Business cases

Allocate resource

Key success factors and value proposition of Intelligent Policy Control


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Per User insights

Congestion Status

Handset Type

Usage Time

Content Type

Usage Status

Category

Payment info

Location Roaming Status

Per Service insights

Application Visits

Application accessibility

Application QoS

Application Traffic Application

Contents

Application usage

Duration

PSPU Real Time Closed Loop

Insight of “Who”, “When”, “Where”, “What” content , “How” is the experience.

FMS(FBB-MBB Substitution)

F&M

bundle1 5GB

• Both FBB and MBB

• FBB traffic discount

off 80% 20$/month

• Unified experience across FBB and MBB

• Access internet only in home-zone*

• identify user’s home zone

• Limit user’s BB usage in his home-zone

*Home zone usually comprises cell and neighboring cells where user become active at first time

home

zone

×

×

×

×

×

×

Home-Zone Offer example

Key success factor#1: PSPU – Per Service Per User Users behaviors and usages analysis for precise promotion


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Acceptance ratio of operators mobile reading

increased 790%

1%

8.9%

Without realtime promotion With realtime promotion

16% 14%

7%

No congestion control 30 minutes 5 minutes

Up 790%

Detect user

behavior

5 Seconds •UN set to vote on DPRK sanctions •2n

User location

User terminal

Application visits

Service preference

NW: Network


Precise

Promotion

5 Minutes

VIP Experience

enhancement

Market promotion

Package

recommendation

Number of users who complain about congestion

reduced 50%

Down 50%

Key success factor#2: Real-time

Usage & NW status query in real-time @ experience enhancement

http://english.sina.com/world/2013/0306/568769.html





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One stop closed-loop with all needed info and functions to improve MBB network utilization

2. Design (3G/LTE packages) 1. Analyze (2G Users)

4. Evaluate (Feedback/Response) 3. Execute (Up-sell promotion)

Promote

New: 3G Package

Current: 2G GPRS Users

Potential users

19%

P2P, Video,

Streaming

heavy users

from 2G

GPRS/

EDGE

Identify potential users and promote

Intelligent PCC SMS / Web

promotions acceptation

Acceptation ratio

1.9 1.8 1.7

23% 30% 42%

10k

Closed

loop

• 2G is congested

• 3G/LTE is idle

• 2G heavy users

• High bandwidth

consuming apps users

New: 3G Package

+Smartphone

Key success factor#3: Closed-loop Boost 3G/LTE subscription and network usage


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Challenge

Leading Operator in Europe,

have 25 M subscribers,

include GSM, WCDMA and LTE

Offering personalization in one Tier 1 operator in Europe

Lowest data ARPU in one Country in Europe

(4.4€/month, other OP’s average is 6.6€)

Similar offerings, not differentiated from other operators

Solution

The intelligent PCC analyzes user’s behavior

Deploy and promote biz use cases: up-selling, multi

device sharing, Facebook unlimited with Intelligent PCC

Customer Benefits

Data ARPU increases 5% percent in 3 month

10% users adopt multi device package

20% users adopt Facebook unlimited package

Business use cases

Up-selling multi device

sharing

Facebook

unlimited …

Targeted

promotion

Intelligent

Policy Control

Radio Network Internet PS/EPC

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