The document discusses how Chief Marketing Officers are increasingly interested in billing systems to enable new marketing offers like sponsored data. It provides examples of operators using features like real-time dashboards, flexible data entitlements, and intelligent upselling to monetize data usage and reduce time to market for new services. Sponsored data is highlighted as an opportunity for operators to partner with content providers like Netflix to guarantee quality of experience while generating new revenue streams.

1. Keeping Marketing Happy: Charging and Billing
Enabling Service Innovation
Martin Morgan, Andrew Keene, Openet
ETIS Billing and Revenue Management Workshop: Istanbul March 2014

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• CMOs boardroom challenge
• Main drivers for investment in charging
• Operator examples of new marketing offers – driven by BSS
• Dashboards / real-time notifications
• Shared data
• Data use entitlements – service passes
• Intelligent upsell – real-time context sensitive upsell
• Focus on sponsored data
• Summary
Agenda

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A Recent Quote from Billing Views
An observation on BSS sales activity at MWC 2014:
“Others, though, could not believe how many CMOs they had
entertained. CMOs who wanted to get their hands on a billing
system”!

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What’s the CMO’s Main Challenge?
Source: IQPC survey for 50 senior marketing executives from leading global mobile operators, Oct- Dec 2013

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Business Factors Driving Charging Investment
Convergent Charging Strategies and Vendor Leadership Survey Infonetics 2013
• Top 3 reasons for
investing in Evolved
Charging are:
• Reduce time to
market for new
services
• Monetize data
services
• Supporting real time
upsell of data passes

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Key building blocks for data monetization
Real-time
Dashboards
Real-time
Notifications
Shared Data
Plans
Flexible Data
Entitlements
Intelligent
Up-sell
Real-time data
balances
enabling
enhanced
visibility &
customer
control
Threshold
notifications for
all subscribers
(not just
prepay). Key
enabler for
segmented
pricing tiers &
value based up-
sell offers
Real-time data
balances allow
for more flexible
and dynamic
sharing across
subscribers
Service passes
are flexible way
to define data
entitlements
based on
volume and
time expiry
Selecting the
‘best customer
offer’ from
potential up-sell
offers using a
combination of
customer profile
data & real-time
network triggers

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• All pre-pay and post-pay data balances
will be in real-time in one system
• Self-care dashboards with enhanced
visibility and customer control
• Threshold notifications for all
subscribers (not just prepay)
• Key enabler for greater segmentation of
pricing tiers and value based up-sell to
improve yields
Real-time Dashboards & Notifications
Selfcare app with Dashboard
SMS Threshold notification

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• Integrated policy and charging solution
manages shared data plans
• All data bundles are defined through
the Offer Catalog, single GUI for quickly
defining data offers, associated
balances, notifications & policy rules
(block, throttle etc.)
• Can I add my Car?
• Audi's AT&T-powered in-car LTE
service starts at $99 for 6 months,
5 GB, March 11, 2014
“Additionally, starting this summer
Audi will become the first car maker
to offer an AT&T Mobile Share shared
data plan option to AT&T customers
who would like to add their vehicle to
their existing Mobile Share plan”
Shared Data Bundles
Family Plan
Multi-Device
(tablet)
Small
Business

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Service Passes - Application Based Offers
• Application Service Passes – sell use of
application
• Axis Indonesia - Daily, weekly and monthly
Viber packages launched Sept 2013
• Customers can buy low cost Viber only
offers
• Wataniya Kuwait – WhatsApp offer
• 100MB month dedicated to WhatsApp
• Many others – social media – Facebook
and Twitter offers
• Need real-time to enforce usage limits
• Need policy to allow only Viber, WhatsApp,
etc traffic
• Data service passes also used to encourage
data adoption – e.g. fixed cost, fixed volume
for 1 month to try out data

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Intelligent Upsell – Data Tiers and ‘Packs’
• Wataniya launched ‘My Net’ tiered data packages in
Oct 2013
• When customers reach threshold their speed is
reduced but customers can purchase additional
‘extra packs’ or ‘snacks’ to restore speeds.
• ‘Night Packs ‘with discounted data are also offered
• Integrated policy and charging solution enables:
- Definition of 100+ offers ,tracking of package
usage, with auto renewal options
- Real-time dashboards & notifications
- Redirection to portal for ‘up-sell offer’ on
threshold breech
- Subscriber profile and usage data is used to
match certain segments with ‘Special packs’
which can be customised by the user
• My Net and ‘snacks’ has lead to a 30% increase in
data revenues for Wataniya
Part of Oreddoo Group
http://10.wataniya.com/personal/mobilebroadband/mynet_en_gb.aspx

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• Each offer is a service bundle (‘s) with
balances, rules & notifications
• Offer catalog is a centralized repository
for creating & managing offers &
bundles
• Key Benefit:
• Offer definition & configuration is done
by on site by customer without vendor
assistance (no services engagement, no
new logic, no new code to be tested)
• Billing operations define new offer and it
goes straight to UAT (no SOW, resource
planning, vendor configuration, logic
updates, system testing)
Centralized offer catalog for speed to market
Openet research 2013,
80 operator respondents

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• Operators Under Pressure
• Users demand high quality access for streaming video
• Video Streaming consumes huge volumes (~1GB per hour)
• Difficult to Monetize OTT Content
• OTT Providers May Pay For Content Delivery
• To increase subscriber base
• To increase viewership
• To guarantee quality
• Netflix has had a huge impact
• Generates 30% of peak hour traffic
• 35 Million Subscribers and growing
• 2 Billion hours of content streamed in January 2014
Sponsored Data: The OTT problem

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Sponsored Data: OTT partner dream or nightmare?
• More chance of success if OTT
complements telco core business?
(e.g. Video content over
messaging?)
• Messaging revenue dead anyway?
• Analysis Mason predicted that by
2018 one third of smartphone
generated traffic would be from
OTT applications...
• Compete? Partner? Monetise?
Prioritise?

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Sponsored Data Benefits:
• Allows operators to encourage mobile data
usage while ensuring that the subscriber
does not have to worry about excessive
overage charges
• Provides operators with a new mobile data
revenue stream as customers limit their data
usage as they approach their monthly data
allowance
• Enables content providers to differentiate
their services from other OTT providers
New Business Models:
• Potential for businesses to pay for their
employees work-related data consumption
• Enable advertisers to show their ads without
eating consumers data plans
AT&T: Sponsored Data First to Market advantage
Double click the black screen (not in slide show mode)
to open video in edit mode and press play to view. Click
on this link to go direct to Youtube

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• Netflix Comcast deal – Netflix pay
for delivery charges
• AT&T Sponsored Data – Sponsor /
content provider pay for data
delivery charges
• Does this open the door to variable
delivery and monetization models
for different content /partners /
customer / device
• Standard and Hi-Def for video
Sponsored Data and Working with Content
Partners

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OTT Architecture Today
Netflix
Operator
Core
Internet
Peering
www

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• QoS Control
• Sponsored Data
• Revenue Reconciliation
Architecture Tomorrow
Netflix
Operator
Core
www
Policy &
Charging
Control
Interaction
Gateway

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• QoS Control
• Sponsored Data
• Revenue Reconciliation
• Reduced Peering Costs
• Monitored QoE
Architecture Tomorrow – Direct OTT Peering
Netflix
Operator
Core
Internet
Peering
www
Probe/DPI
Policy &
Charging
Control
Interaction
Gateway

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• Marketing requirements becoming increasingly important in charging / billing
decisions
• Need to quickly develop, configure, test and roll out new offers
• Sample offer could be sponsored data – potential to give operators greater
control of the value chain
Summing Up