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Policy control and business revenue cases
- 1. Business & Network Policy Control Presentation to XYZ Sep 6th, 2012
- 2. Today’s Market Forces Sandvine Confidential2
- 4. Powering the Living Room Sandvine Confidential4 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |2024 | 2025 | 2026| 2027 | 2028| 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 | 2039 | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 | 2047 | 2048 | 2049 | 2050 | 2051 | 2052 | 2053 | 2054| 2055 | 2056 | 2057 | 2058 | 2059 | 2060 | 2061 | 2062 | 2063 | 2064 | 2065 | 2066 | 2067 | 2068 | 2069 | 2070… 1949 | 1950 | 1951| 1952 | 1953 | 1954 | 1955| 1956 | 1957 | 1958 | 1959 | 1960 | 1961| 1962 | 1963 | 1964 | 1965| 1966 | 1967 | 1968 | 1969 | 1970 | 1971| 1972 | 1973 | 1974 | 1975| 1976 | 1977 | 1978 | 1979 | 1980 | 1981| 1982 | 1983 | 1984 | 1985| 1986 | 1987 | 1988 | 1989 | 1990 | 1991| 1992 | 1993 | 1994 | 1995| 1996 | 1997 | 1998 | 1999 | 2000 | 2001| 2002 | 2003 | 2004 | 2005| 2006 | 2007 | 2008 | 2009 | 2010 | By data volume more video is now watched on devices other than a PC The Post-PC era
- 5. Monthly Mobile Usage Sandvine Confidential5
- 6. CSP Business & Digital Economy 6 CSPs to balance out this scenario as efficient conduit among all these players
- 7. CSPs as CDNs & Content Providers Content Provider (e.g. Netflix) Service Provider CDN (e.g. Akamai) Consumers $0.18/GB $7.99 / Video or Month $0.0/GB $0.08/GB New Content Provider / Service Provider Relationship
- 8. The Rapid Evolution of Internet Traffic 8
- 9. Network Policy control – big picture 9
- 10. Why Network Policy Control Network Policy Control is the key to maximizing business performance and profitability • Business Intelligence • Operations Management • Traffic Optimization • Next gen Service Creation & Revenues 10
- 11. Traffic Classification- Key to Policy Control Traffic Classification: Technology Overview Traffic classification is generation beyond traffic identification 11 “Netflix generates 3.5 Gbps on our network” “Netflix generates 3.5 Gbps, 27% of our users subscribe and contribute $50 million annually to Netflix’ revenue, the median duration is 42 minutes and increasing, the top device is the PS3, users watch 33 videos/month, the average quality is 3.4/5 and is lowest in our East region…”
- 12. Overall Bandwidth by Protocol 12
- 13. Top websites by Bandwidth 13
- 14. Missing Revenues? Identify new apps? Whatsapp undercutting SMS revenues of CSPs 14
- 15. Utilizing Analytics Social Media & Skype Differentiated Charging @ Telefonica Business Intelligence products was fundamental to identify data consumption behaviours and application patterns (‘subscriber persona’) Content based data plans in line with specific subscriber personas Accurate application identification was paramount for the success Project rolled out on multiple phases End to end implementation of packages: 4 weeks 15
- 17. Zero-Rating of Device Traffic As a condition of carrying their devices, some mobile phone manufacturers are imposing requirements that particular device traffic be zero-rated. As a condition of carrying their devices, some mobile phone manufacturers are imposing requirements that particular device traffic be zero-rated. Key Benefits: •Carry the hot new devices that your subscribers want, and gain the missed revenue Key Benefits: •Carry the hot new devices that your subscribers want, and gain the missed revenue
- 18. Revenue Generation with Telefonica “Working with Sandvine since 2008 has brought us closer to understanding and acting on the needs of our customers, while improving revenue opportunities and the cost- effectiveness of our network.” Vicente San Miguel – CTO Actual screenshot from Sandvine/Movistar Implementation Based on the success of these packages, similar plans have now been rolled out to more than ten countries across Latin America
- 19. Shared Wallet: Family Plans Many members within a household each have their own mobile device, and families are looking to simplify their bills by subscribing to “Family Plans” in which data and minutes are shared between members and across devices. Many members within a household each have their own mobile device, and families are looking to simplify their bills by subscribing to “Family Plans” in which data and minutes are shared between members and across devices. Key Benefits: •Gain new subscribers, through service provider consolidation •Increased revenue from new subscriptions and subscribers •Increased subscriber loyalty/stickiness •Competitive/brand differentiation Key Benefits: •Gain new subscribers, through service provider consolidation •Increased revenue from new subscriptions and subscribers •Increased subscriber loyalty/stickiness •Competitive/brand differentiation
- 20. Shared Wallet:Multi-DevicePlans “Customers don’t want individual accounts for each device, it drives them crazy, and would raise our costs…So getting to one bill and going to account- based pricing is the way to go.” - Lowell McAdam, President and CEO of Verizon “Customers don’t want individual accounts for each device, it drives them crazy, and would raise our costs…So getting to one bill and going to account- based pricing is the way to go.” - Lowell McAdam, President and CEO of Verizon Key Benefits: •Gain new subscribers, through service provider consolidation •Increased revenue from new subscriptions and subscribers •Increased subscriber loyalty/stickiness •Competitive/brand differentiation Key Benefits: •Gain new subscribers, through service provider consolidation •Increased revenue from new subscriptions and subscribers •Increased subscriber loyalty/stickiness •Competitive/brand differentiation
- 21. Short-Term Data Packs Prepaid short-term data packs offer predictable pricing within known limits (units of time, units of data usage), typically at a significantly higher revenue-per-byte than a monthly plan, and appeal to users who need only short-term connectivity. Prepaid short-term data packs offer predictable pricing within known limits (units of time, units of data usage), typically at a significantly higher revenue-per-byte than a monthly plan, and appeal to users who need only short-term connectivity. Key Benefits: •Increased revenue from new subscriber opportunities •Brand awareness with these short- term subscribers •Competitive differentiation •Higher revenue-per-byte than monthly subscriptions Key Benefits: •Increased revenue from new subscriber opportunities •Brand awareness with these short- term subscribers •Competitive differentiation •Higher revenue-per-byte than monthly subscriptions
- 22. Upsell/Promotion Notification Many subscribers aren’t aware of promotions and special offers, because they are unreachable through traditional media. Time-sensitive promotions need to reach subscribers on-time and in a medium they use. Many subscribers aren’t aware of promotions and special offers, because they are unreachable through traditional media. Time-sensitive promotions need to reach subscribers on-time and in a medium they use. Key Benefits: •Increased absolute revenue from new service subscriptions •Increased average revenue per user (ARPU) •Brand awareness and competitive differentiation •Increased subscriber loyalty Key Benefits: •Increased absolute revenue from new service subscriptions •Increased average revenue per user (ARPU) •Brand awareness and competitive differentiation •Increased subscriber loyalty
- 23. Congestion Management Congestion management maximizes the quality of experience for the maximum number of subscribers for the maximum amount of time for any given capital investment. Real-time QoE measurements (QualityGuard) ensure that management policies are only applied when and where congestion exists. Congestion management maximizes the quality of experience for the maximum number of subscribers for the maximum amount of time for any given capital investment. Real-time QoE measurements (QualityGuard) ensure that management policies are only applied when and where congestion exists. Key Benefits: •Improved subscriber QoE •Extended infrastructure lifetime •Massive capital deferral savings •Increased network efficiency •Fair bandwidth allocation Key Benefits: •Improved subscriber QoE •Extended infrastructure lifetime •Massive capital deferral savings •Increased network efficiency •Fair bandwidth allocation 0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 QualityofExperience Capacity Time (Minutes) Low-Value Traffic Bandwidth High-Value Traffic Bandwidth High-Value Subscriber QoE (95-99% of Users) 0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 QualityofExperience Capacity Time (Minutes) Low-Value Traffic Bandwidth High-Value Traffic Bandwidth High-Value Subscriber QoE (95-99% of Users)
- 24. Network Summary – Subscriber Analysis 24
- 25. Network Summary – Regional Analysis 25
- 26. Network Summary – Market Analysis 26
- 27. Traffic Optimization Fairness and efficiency to optimize shared resource utilization Capital expenditure reduction and deferral Higher subscriber satisfaction Meeting regulatory requirements for equity and fairness Aggregate Traffic Management Fairshare Traffic Management
- 28. Effective QoS management Fairshare Traffic Management • Guarantee high value traffic prioritization without ‘starving’ low priority data • Drop low priority when ‘ceiling’ is exceeded (i.e. capacity) • Never drop low traffic beyond a certain minimum configuration • Values configurable. Example below: 155Mbps DSLAM, Minimum 50Mbps (low priority) 28 155Mbps DSLAM Capacity Minimum 50Mbps T1…T5 • Idle network capacity available • No traffic prioritization in place T5…T9 • Capacity reached • Shapes low value traffic • High value traffic usage continues to grow to meet normal user demand T9 …T12 • Minimum total bandwidth for low value traffic reached • High value traffic start to drop Prioritized traffic Idle capacity No Shaping Low priority drop Low priority drop High priority drop
- 29. Operations Management Proactive headache prevention Simplify regulatory filtering compliance Identify quality issues before subscribers do Limit the impact of malicious network traffic Subscriber Quality of Experience URL Access Control Network Protection
- 30. Business case for a CSP (Telco) 4 main money buckets: • ARPU increase -- #1 priority/value • OpEx reduction -- #2 priority/value • CapEx deferral -- #3 priority/value • Customer Experience -- #4 Product OpEx CapEx ARPU Traffic Management Usage management Network Analytics Network Security
- 31. CSP Benefits Service Fulfilment & Assurance 31
- 32. CSP Benefits Customer Experience Management 32
- 33. Network Summary – Handset Analysis 33
- 34. Network Summary – Dynamic Analysis 34
- 35. Available Dashboards Five dashboards currently available • And the list is always growing 35 Network Summary Dashboard Real-Time Entertainment Dashboard Traffic Management Dashboard Usage Management Dashboard IPv6 Transition Dashboard
- 36. Deploying Business Intelligence Business Intelligence: Product Suite Overview San 36
- 37. Enabling Value-added Applications Network Demographics Reporting Reports traffic stats, applications, subscriber behaviour Aggregate large amounts of data Network Demographics Reporting Reports traffic stats, applications, subscriber behaviour Aggregate large amounts of data 37 Service Definition Manager User-friendly GUI Centralized policy configuration and deployment tool Deploy policy individually or network-wide Subscriber Policy Broker and Database Collects and stores stats and subscriber profile observed by PTS and SDE Subscriber-IP mapping API to B/OSS to enable new services SRP 3000-D Portfolio SPB and DB Software Platform and Applications SDM NDS
Editor's Notes
- Applying A New Template 1 - Open your presentation 2 - Under the file menu go to FORMAT then SLIDE DESIGN 3 - On the right side you will see “Apply a design template”, select BROWSE (at the bottom) 4 - Browse to marketing/presentations/sandvine_master.pot and select APPLY 5 - Go through the presentation just to ensure all formatting is suitable You are Good To Go! The "Sandvine Confidential" footer is a standard part of our corporate template. If your presentation does not contain anything confidential you are authorized to remove this footer however if in doubt you should ask your manager. If you build any new slides that need graphical clean up, creative inspiration or you feel they would be of benefit for broader use amongst employees, please email them to the Marcom distribution list in Outlook.
- CDNs provide paths for operators to be both the ‘Best Bit Pipe’ for OTT services and the provider of value added traffic and service-aware CDN services. In the current model, content providers pay CDNs approximately $0.18/GB of traffic that flows through the network for OTT services like Netflix. Since consumers pay Netflix directly for access to this content, the service provider does not recognize any level of revenue during this transaction. By establishing a direct agreement with content providers, service providers can not only recognize revenue on a per-GB basis from this model, they can also push the content closer to the subscriber. The closer the content is the edge equipment, the greater the customer experience and cost savings from transit links.
- On-demand is in demand, the theme of latest Sandvine’s Internet Phenomena report. Massive shift from P2P/Web as dominant to Youtube/Netflix/BBC iPlayer. Mobile traffic is rapidly assuming a fixed-type of profile, driven by apps and more capable smartphones. Next public report to be issued within a few weeks will likely indicate the solidification of these trends and provide some additional insight into the profile of Real Time Entertainment. It is not only about netflix or facebook – regional differences matter and local competitors are gearing up to compete for market share, particularly in the OTT space as we see in Latin America.
- What is Network Policy Control? The mechanism by which network elements implement the coordinated service policies that comprise today’s innovative network management solutions. Network Policy Control is a network and service management technique that supports all access technologies, all users and all applications to: Identify convergent network conditions including subscriber, application, device, and location Evaluate in real-time business logic rules to make policy decisions locally Enforce policy actions locally and remotely that affect network conditions and subscriber experiences
- The idea here is that protocol-identification and byte-counting are interesting, but incomplete. They represent maybe 20% of the total potential of Traffic Classification, and, generally speaking, there isn’t a great deal of variation in basic capabilities between the major (traditional DPI) vendors. Where there is significant variation is in Sandvine’s ability to define and measure arbitrary “things” on the network, like quality of experience, duration of flows, duration across multiple flows, counting events, and subsequently linking these classified measurements with real-time network policy control.
- Sandvine is zero-rating Apple iTunes traffic for a number of mobile operators.
- CapEx reduction and deferral Apply Policies that alleviate congestion instead of increasing network capacity Provide visibility of which resources are attracting the most management Provide visibility of the mix of high value and low value traffic on congested resources Higher subscriber satisfaction Fair access to congested resources at times of congestion Improved subscriber quality of experience leads to reduction in churn and customer service costs Meeting regulatory requirements for equity and fairness (fair use)
- Notice that Network Demographics: Only displays Sandvine data Is predominantly used by the Network Operations and Network Engineering teams Notice that Network Analytics: Can join Sandvine data with data from third-parties Is designed to be used by many teams other than the operations and engineering (although those functions can definitely get value from Network Analytics)