This document discusses myths about video optimization that experts are not telling operators. It summarizes 4 myths: 1) Video optimization will not fully solve capacity issues, but can help serve more users; 2) More optimization does not always mean better performance and too much can reduce revenue; 3) Optimization can help defer CAPEX but not eliminate it; 4) Video need not kill networks if properly optimized to create new revenue streams. The document advocates targeted optimization based on network, content, users and devices to improve performance without degrading quality or revenue. It also outlines new monetization models like charging plans, value-based pricing and revenue sharing with content providers.

1. What Video Optimization
Experts Are Not Telling You
Seth Greenberg
Director Corporate Marketing, Mobixell
Teresa Cottam
Chief Analyst, Telesperience
2012

2. About Mobixell
 Global leader in mobile Internet
and rich media service delivery Worldwide Offices
platforms
• USA (Americas’ HQ)
• UK (EMEA’s HQ)
 Established in 2000 • China
• India
• Switzerland
• Israel
 Unique video and rich media • Germany
optimization expertise • Italy
• Indonesia
• Japan
 Over 400 mobile operator • Singapore
deployments worldwide
 Proven track record and
excellent customer delivery
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3. About Mobixell – Product Lines
 Mobile Internet Gateway/Multiservice Platform
 Video Optimization & Congestion Management
 Web Acceleration
 Mobile Network Monetization Tools
 Mobile Video and Content Delivery Solutions
3

4. Our Commercial Deployments (Partial List)
AMERICAS EMEA & CIS APAC
Over 400 Mobile Operator Installations Worldwide
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5. Agenda
 Mobile Video: Killing the Network or Killer App?
– Teresa Cottam
 Poll: Spotting the Myths
 Busting the Myths
– Seth Greenberg
 What You Need to Know about Video Optimization
 Q&A
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6. Dark, darker, darko
• The world is ending!
• Our future is to be a bitpipe
• It’s up to us to choose the method of our
destruction…

7. Video – killer app or network killer?
• Global mobile data traffic grew again in 2011
• Mobile video traffic is an increasingly large
proportion of this
• x28 more traffic on 4G than
non-4G connections
• Scissor diagram shows
traffic
widening gap between Revenue gap
revenues and usage… revenues

8. So why aren’t we dying?
• Mobile industry revenues = $1.9 trillion in 2015
• 9.1 billion connections by 2015
• Some carriers now reporting that revenue and traffic
growth more aligned e.g., Vodafone
• Offloading, LTE, tariffing, better traffic management
• Customer centricity
• Enormous new revenue potential
• …but we need to ensure we also maintain profitability

9. A business problem, not just an operational problem
• Video has been seen purely as an operational
problem
• But…many customers like it! (Irony = killing the killer
app!)
• The real problems:
- Providing video on a commercial basis
- Providing an acceptable quality of experience
• Shift from bottom line to top line
• Quality of experience is very important to customers,
but is not an absolute (how do we measure it?)
• Not all customers are consumers

10. Video not a single application
The value proposition is different…
• YouTube v NetFlix v videoconferencing
• Under 18 v adult (value v ability to pay)
• Time of day
• Consumer v enterprise
What do they need/want? What value do they place on
it? How do we meet that need profitably?
Question: how do we turn a network killing app into a
killer app?

11. What we need is a hero…
Who ya gonna call?

12. What are your video optimization goals?
 Compress video to free up bandwidth
 Give users noticeably improved video performance
…But not a change in quality
 Accelerate browsing performance
 Consistent, high quality user experience
 Control CAPEX investment
Good start…
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13. Video Optimization Myths Busted
Myth #1
Video optimization will solve the capacity crunch
 Is there actually a capacity crunch or a congestion crunch?
 Will LTE solve network capacity and speed problems?
 Serve more sessions to more concurrent users
 Differentiate with performance and quality
 Shift from bottom line maintenance model
to top line revenue generation model
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14. Listen to your customers – Video as a differentiator
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15. Listen to your customers – Video as a differentiator
74% of mobile users see operators as
responsible for poor video experience*
Up to 69% of mobile users would like
their video optimized to achieve
smoother viewing experience*
*According to a user survey conducted Nov 2011 by independent research company On Device Research for Mobixell
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16. Video Optimization Myths Busted
Myth #2
More video optimization means better video performance
 Too much optimization can reduce revenue
 Do you target optimization at the right video?
At the right time? For the right users?
 Video performance  Perception of Network quality
 Rate of Churn  Revenue
 Accelerated browsing performance, too
 Better video optimization means better video performance
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17. How Do You Define Visible Performance Degradation?
Example:
 A 3G cell site has a total throughput of 10 Mbps
 Standard 360p YouTube Video requires 1 Mbps
Users per cell Available Bandwidth Best Video Quality
1 10 Mbps/User No buffering
5 2 Mbps/User No buffering
10 1 Mbps/User No buffering
20 500 Kbps/User Requires buffering for 360p
Visible Performance Degradation
When Users Experience Buffering or Slow Page Loading
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18. Will LTE Improve Video Performance?
Example:
 An average LTE site has a total throughput of 40 Mbps
 HD 1080p YouTube Video requires 8 Mbps
Users per cell Available Bandwidth Best Video Quality
5 8 Mbps/User No buffering
6 6.3 Mbps/User Requires buffering for 1080p
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19. Targeted Optimization
 Device-aware video optimization Policy-driven
Video Optimization
 User-aware video optimization
 Content-aware video optimization Congestion
 Network-aware video optimization Management
 Congestion Management
Network–aware
 Policy-driven video optimization Video Optimization
Content–aware
Video Optimization
Device –aware User–aware
Video Optimization Video Optimization
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20. Device-Aware Optimization
 One (video) size does NOT fit all (devices)
 Different screen resolutions – OR NOT
 Different capabilities and limitations
 E.g., OS, CPU, Protocols, Formats, Codecs
 Automatic Mobile device detection
 Optimization profile based on device
capabilities and limitations
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21. User-Aware Optimization
 Optimize only frequently accessed video
 Statistical Optimization
 Applied only as a supplemental filter
1x 4x
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22. Content-Aware Optimization
 Set target quality level
 Apply more compression to low-motion scenes
vs. high-motion scenes
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23. Network-Aware Optimization: Smooth DBRA
 Identifies congestion: Senses bandwidth available per device
 Continuously optimizes output bitrate vs. pre-defined stream
 Also effective for insufficient cell coverage and physical barriers
 Smooth DBRA
 Fast response to bandwidth fluctuations (1-2 sec vs. 3 sec)
 Multiple possible bitrate levels
120000
100000
80000
60000
40000
Network available Bitrate
20000
Output Bitrate
0
0 50 100 150 200 250
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24. Policy-Driven Optimization
 Tight integration of optimization platform with PCRF
 Only optimize what is necessary
 Time of day
 Type of customer – pre/post-paid
 Status: E.g., In-network/Roaming
 By content type – Live streaming, HD, by application…
 Network conditions – 3G/LTE, congestion threshold
 By device type – Handset, Tablet, Laptop
 Create personalized optimization options
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25. Video Optimization Myths Busted
Myth #3
Video optimization reduces CAPEX
 Can defer CAPEX investment
 Targeted optimization means:
 Intelligent, effective CAPEX investment
 Better control of expenses
 Less waste
 More budget available for innovation
 Improved customer experience
 Critical component in creating new revenue from data services
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26. Video Optimization Myths Busted
Myth #4
Video will kill your network. Optimize it, or else!
 Video optimization helps to control CAPEX
 Differentiation through better Quality of Experience
 Improved quality means more data consumption
 Control of quality creates new data monetization opportunities
 Video can save your network – It’s up to you
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27. Mobile Monetization – The Obvious
 Advertising
Extensive subscriber data is an ad targeting value multiplier
 Services
Virus protection, data security, spam filter, interactive parental
control
 Mobile Payment
Revenue sharing with merchants
Cross-selling content and services
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28. The Less Obvious – Family Charging Plans
 Family charging plans
 Data sharing – Bucket plans
 User-controlled resource allocation
 Dashboard view for account owners
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29. The Less Obvious – Value-based Charging
 Family charging plans
 Value-based Charging
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30. The Less Obvious – Service-based Charging
 Family charging plans
 Value-based Charging
 Service-based Charging – Flat rates
for specific services
 Consumers
 Enterprise
Video Conferencing
VPN
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31. The Less Obvious – Customer Engagement Tools
 Family charging plans
 Value-based Charging
 Service-based Charging – Flat rates
for specific services
 Customer Engagement Tools
 Clientless Browser Overlay
 Server-side - No download needed
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32. The Less Obvious – Video Stretch
 Family charging plans
 Value-based Charging
 Service-based Charging – Flat rates
for specific services
 Customer Engagement Tools
 Video Stretch – User control of optimization levels
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33. The Less Obvious – Dynamic Charging Packages
 On-the-Spot Tier Shifting
 Based on perceived value of content
 HD movie
 Video conferencing
 Catch up on episodes during lunch
 Variable pricing based on current, local
congestion conditions
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34. What’s Next in Data Monetization?
 Revenue sharing with CDNs
 Premium quality content
 Reduced latency
 Smooth video playback
 Congestion Reporting to CDN for dynamic content delivery
 Premium VOD
 Targeted Ad-supported TV
 Original content
All demand video optimization
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35. What you NEED TO KNOW about Video Optimization
Myth #1
Video optimization will solve the capacity crunch
 It’s a congestion crunch
 LTE will not solve capacity/congestion problems
 Video optimization helps you serve more high-performance sessions to
more concurrent users
Myth #2
More video optimization means better video performance
 Subscribers hold operators responsible for video performance
 Targeted video optimization means better video performance
 Too much video optimization can harm user experience
and even revenue
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36. What you NEED TO KNOW about Video Optimization
Myth #3
Video optimization reduces CAPEX
 Video optimization can defer CAPEX
 Targeted optimization helps to control expenses and reduce waste
 Video optimization does not have to be expensive
Myth #4
Video will kill your network. Optimize it, or else!
 Video Optimization is critical for creating new data service revenues
 Mobile customers like video – Video can save your network
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37. Q&A

38. Thank you
Seth Greenberg
Director, Corporate Marketing, Mobixell
seth.greenberg@mobixell.com
Teresa Cottam
Chief Analyst, Telesperience
pod.telesperience.com/index.php/category/contact www.mobixell.com