smart market: satisfaction manageable

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Satisfaction Manageable How do you satisfy 5 000 users with 5 Mbit/sec? By Alik Kalmykov, Founder & CEO

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Satisfaction Manageable

How do you satisfy 5 000 users with 5 Mbit/sec?

By Alik Kalmykov,Founder & CEO

• Our target clients – data network operators – face the ever growing demand for traffic capacity from their customers.

• To meet the challenge, they have two options:

1. Invest in infrastructure;

2. Find yet more elaborate ways to distribute traffic between users.

There is a problem?

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1. We use Behavioral Economy approach to manage customers’ satisfaction.

2. We build a new, satisfying relationship with customers, which is:

– Transparent;

– Mutual;

– Responsible.

Instead of distributing traffic among users, we invite them to create a market of traffic, where each can (and is encouraged to) act to his own satisfaction.

Smart Market is a better solution

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Two steps to a free market

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Step 1. Keep your customer well-informed.

He has rights to know, how high is the congestion right now, and what will happen in the next few hours.

Step 2. Put the customer into control

Let him decide:

• What speed he is getting, and

• What price he is prepared to pay.

The technology behind it

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Evanti server

DPI at the operator

PCRF server at the operator

Differential QoS policy

QoS-based pricing policy

Evanti User App

Smart-auction logic

OSS/BSSat the operator

The core of the technology is to find a perfect balance between all the users’ requests and the capacity available, and to come back with a reasonable price for each user. This is a ‘smart-market’ auction, in terms of experimental economy.

1. There will be more satisfied and loyal clients, because in this new relationship the provider always acts to the clients’ expectations. He actually creates these expectations.

2. Selling traffic through a smart-market auction increases income per MB up to 15-25%. And it can be 100% in the peak time.

3. And there is one extra point yet…

How does it help the provider?

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The extra point

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Smart-Market solution creates and encourages ‘delayed consumption’ phenomenon. This makes the capacity load more evenly distributed in time. So the provider sells more Megabytes within the same capacity.

How do we know all this?

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The achievements:

• 3 years of theoretical studies and more than 100 laboratory experiments;

• Solution implemented and tested with the largest satellite provider in Russia – Raduga Internet (300 000 users). Right now selling to three more satellite operators in Russia and international market.

• It will take us about a year to prepare and test a solution for 3G/LTE.

Made by the Great Team:

• Technical Dept.: 7 programmers with more than 26 years of experience in telecom development (Yandex, Vympelcom, etc.)

• Research Dept.: leading American experts, young Russian scientists and relics of the Old Soviet school in math and game theory

• Management and marketing: you can’t have enough of them

• Almost all components of Evanti solution are developed and used around the world.

• Similar solutions were discussed (in publications) at Microsoft, Ericsson and Cisco research centers.

• However we are the first to apply socio-technological approach to a purely technological problem.

• Our studies and experiments make us ahead of whatever competition there might be, because we are sure there are currently no appropriate research carried out in behavioral economy.

Who else is out there?

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What do we want:

1. Advice:

– Member of Board well into the telecom industry to join our team;

– Cellular operator to test our solution on their data.

2. Money:

– $1,7 – 2 mln. to develop an application for 3G/LTE networks;

– $1 – 1,5 mln. to market and make test implementation.

How do we get your money back:

We sell our solution to operators (cellular, satellite, etc.) as installation projects ($0,8 – 1 mln. average price of similar solutions) and get 20% yearly as a post-sale support.

Getting to the point, finally

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1. Hard Cloud Billing – hardware-software solution for outsourcing billing and OSS services to small internet providers:

– Supports all kinds of networks;

– Real-time charging, cloud-based billing and CRM.

2. Globax-S – client-server traffic compression solution with up to 80% user’s traffic compressed (30-35% median) –can be integrated into Smart Market solution for better efficiency.

More by Evanti

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Why-nots

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Customers won’t use it, cause it’s too complicated

! Correct, but we don’t need all the customers. 5% ‘freaks’ and 10% ‘early adopters’ will make a lot of difference to the traffic distribution in the channel. They generate up to 60% traffic, anyway.

Resident software looks suspicious

! It does. But a well-known operator’s brand sure helps

Why-nots

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Real-time charging takes a lot of resources

! Never mind. Even if you have session-based billing, you still have real-time policy and priorities management. And our server will do the rest

We have a Marketing dept. with XXX professionals making new tariffs and campaigns

! Traffic supply is a communal service, like water or electricity. Why don’t they market VAS instead?

We can prove it:

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SmartMarketWorks.com