Mobile Video Optimization and Delivery

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This presentation will discuss the mobile internet market landscape in Canada.

This presentation will discuss the mobile internet market landscape in Canada.

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  • 1. Mobile Video Optimizationand Delivery Jim O’Leary Sr. Mobile Solutions Marketing Mgr.
  • 2. Remember When ….. Landline Phone $30 MonthYour telephone was just a telephone?Phone Company – only game in townProblem – I must have misdialed, my mistake? Cable / IPTV ~ $40 per monthOur TV was just a TV?Cable / IPTV / Satellite – were the main providersProblem – Change providers TV~ $80 per monthAnd nowMy TV is my PCMy Tablet is my TVAnd my Phone is my TV Remote
  • 3. So What Do Mobile Users Want? Mobile Network Quality• 65% want consistent performance• 56% want uninterrupted service / dropped calls• 47% want consistent speed• 44% want higher speeds for browsing, downloads, movies• 36% want National Coverage• 27% want speedy network repairs• 13% want Global Coverage Mobile Video Viewers • 10 seconds: 20% of viewers abandon a What Mobile Users Expect video that doesnt hold their attention • 30 seconds into an online video as many •71% of Mobile Users expect data for websites to load as third of viewers have moved on as fast on their Mobiles as on their PC’s – Broadband • 1 minute 44% have left • 43% of Mobile Users are unlikely to return to a website • 2 minutes almost 60% have gone that loads slowly. Sources: Cisco, Heavy Reading Yankee Group, Compuware
  • 4. Mobile Operator Top Concerns Addressing Managing Monetizing and Spectrum Scarcity Traffic Growth Differentiating Ubiquitous Connectivity Service Continuity Service Innovation
  • 5. Video Exceeds 70% of Mobile Data Traffic by 2016 12,000 Exabytes per Month 10,000 78% CAGR 2011–2016 8,000 6,000 Mobile VoIP (0.3%) Mobile Gaming (1.1%) Mobile M2M (4.7%) 4,000 Mobile File Sharing (3.3%) Mobile Web/Data (20.0%) 2,000 Mobile Video (70.5%) 0 (Figures in legend refer to traffic share in 2016.) 2011 2012 2013 2014 2015 2016 Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, 2011–2016 #CiscoPlusCA
  • 6. NA Mobile Data Traffic Growth / AppsVideo to reach 71 Percent of Mobile Data Traffic in 2016 2,500 Exabytes per Month 75% CAGR 2011–2016 2,000 1,500 Mobile VoIP (0.2%) Mobile Gaming (.6%) 1,000 Mobile M2M (1.2%) Mobile File Sharing (1.5%) Mobile Web/Data (25.7%) 500 Mobile Video (71.0%) 0 (Figures in legend refer to traffic share in 2016.) 2011 2012 2013 2014 2015 2016 Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, 2011–2016 #CiscoPlusCA
  • 7. $ Margin Per GB Per Year Declines Dramatically Rate of Margin Per GB decline Slows as Traffic Growth decreases Margin Per GB Per Year $80.00 $77.31 $75.00 $70.00 $65.00 W Europe $Margin Per Gigabyte $60.00 $53.91 $55.00 C/E Europe $50.00 $36.69 $45.00 N America $40.00 $35.00 $24.07 C/L America $30.00 $25.00 $15.11 $11.87 Asia-Pacific $20.00 $15.00 $10.00 $10.54 M East/Africa $5.00 $0.00 2010 2011 2012 2013 2014 2015 2016Margins per GB decline slower as Traffic growth slows - indicating that price increases that would slow Traffic growth could significantly improve margins Source November, 2011 Strategy Analytics
  • 8. Wireless Data Growth Leads to Spectrum Deficit
  • 9. Mobile Video Ecosystem Consumer Broadcasters Business Service Behavior and Media Models Providers Fragmented Going Direct Diverging CollidingVideo = 71% of all Mobility traffic by 2016 Multiple-screen offering CE companies pursuing becoming table stakes New interactive content – IP Video 29% Sky Sport TV on iPad / 10B Mobile devices RTL on iPhone and iPad projected by 2016 3G/4G Wireless Rising CAPEX to support Netflix = 29% of US OTT Video, limited revenue downstream peak Offering wider content Building application and upside internet traffic choice on-demand content eco-systems Online Video Snacking 11.4 Hour /month Pressure to adapt content New Streaming Discrete Content on for multiple screens and Services from non- Partnerships and Discrete Devices cost-efficient delivery Traditional Players Vertical Integration Cisco Confidential 10
  • 10. Most Users Will be in the GigaByte Club2011 2016 By 2016, 60 percent of mobile users (3 billion 92 MB 1.2 GB people) will belong to Traffic/month Traffic/month the Gigabyte Club, 3 Video Clips 10 Video Clips generating more than one 5 Videos gigabyte of mobile data traffic 5 Audio tracks 50 Audio tracks per month. 1 Video call 3 Video calls In 2011, 0.5 percent of 5 App Downloads 10 App Downloads mobile users belonged to the Gigabyte Club.
  • 11. Cisco Videoscape Architecture Cloud Network Client Media Suite Portals DSL/FTTH/Cable Content Entitlement & EPG Media GW Soft Client and Access Analytics Management, Linear Service Apps EPG Meta ASRManaged 9000Content Acquisition Suite Transcode, ABR, Content Distribution Preparation Suite Wi-Fi CDN Caching ASR CDN Streaming CDN Acquisition 5000 Application Suite Mobile 3G / LTEInternet Content Adaption Engine Video Time Shifted TV and Cloud DVR Gateway Conductor R1.0 Video Information Managed Video Offline OTT Video Online OTT Video Messaging/Control
  • 12. Congested RAN Sector High # ofpoor quality videos
  • 13. Congested RAN Sector High # ofpoor quality videos
  • 14. Cisco Intelligent Mobile Packet Core Cisco Policy OCS Provisioning Tool Mobility Unified Reporting OFCS AnaLytics (MURAL) HSS / Cisco SSC AAA (SPR) Cisco ASR 5000 Cisco ASR 5000 SGSN Cisco IPCF PGW MME GGSN DPI SGW PCEF DPI Messaging Voice Video IP Music CorePeer-to-Peer Web Page
  • 15. Cisco Intelligent Mobile Packet Core Cisco Policy OCS Provisioning Tool Mobility Unified Reporting OFCS AnaLytics(MURAL) HSS / Cisco SSC AAA (SPR) Cisco ASR 5000 Cisco ASR 5000 Cisco IPCF PGW SGSN GGSN DPI MME SGW PCEF DPI Messaging Voice Video IP Music CorePeer-to-Peer Web Page
  • 16. Cisco Intelligent Mobile Packet Core Cisco Policy OCS Provisioning Tool Mobility Unified Reporting OFCS Analytics (MURAL) HSS / Cisco SSC AAA (SPR) Cisco ASR 5000 Cisco Content SGSN SGW MME Adaption Engine Cisco IPCF PGW (CAE) GGSN DPI PCEF DPI Messaging Voice Video IP Music CorePeer-to-Peer Web Page
  • 17. Cisco Intelligent Mobile Packet Core Cisco Policy OCS Provisioning Tool Mobility Unified Reporting OFCS AnaLytics (MURAL) HSS / Cisco SSC AAA (SPR) Cisco ASR 5000 SGSN MME SGW Content Adaption Cisco IPCF PGW Engine (CAE ) GGSN DPI PCEF DPI Messaging Voice Video IP Music CorePeer-to-Peer Web Page
  • 18. + Platinum+ Video Service- Gold Voice Services Level 1 Overuse Social Media • Cap Social Media 3Gbps Non-carrier VoIP Streaming Level 2 Overuse Gaming email • Cap Gaming Web • Adjust Video Transcoding Tunnel • Apply Level 1+ Silver Emergency Services PriorityPreview Profiles Schedule Immediate • Block P2P All Save as New Profile
  • 19. + Platinum+ Video Service- Gold Voice Services Level 1 Overuse Social Media • Cap Social Media 3Gbps Non-carrier VoIP Streaming Level 2 Overuse Gaming email • Cap Gaming Web • Adjust Video Transcoding Tunnel • Apply Level 1+ Silver Emergency Services PriorityPreview Profiles Schedule Immediate • Block P2P All Save as New Profile
  • 20. Mobile Video Optimization No One Single Solution Is A “Silver Bullet” Optimization solutions for Internet web browsing and video streaming Policy management solutions to apply policy and charging rules Content Delivery Networks (CDNs) to cache and optimize content DPI-enabled bandwidth management solutions Offloading solutions Client-based optimization solutions with software on the mobile device Network probes and software analytics for the Radio Access Network (RAN) and the core network Protocol analyzers and transport optimization hardware Data Aggregation and Analysis #CiscoPlusCA Source: ABI Research 2011
  • 21. Mobile Video ServicesNew Revenues from Video Content Partnerships Video Content Provider What’s the Opportunity? e.g., Netflix, Hulu,  Forge partnerships with video Blockbuster, Sky TV, etc. content providers for high quality Cisco Videoscape internet video streaming experience What are the Benefits?  Sell premium video services with partners’ video content services  Upsell higher Data Tiers to support increased video consumption  Manage video bandwidth impact Leverage popularity of select OTT video content for win-win new services revenues
  • 22. So Which Would You Prefer?
  • 23. Mobile Policy“The policy engine is the brains of how you want the Policy network to treat different things at different times. Its essential. “ Triangle Of Intelligence Tony Melone Network Service CTO of Verizon Communications Intelligence Enablement March 16, 2011Source: Fierce Wireless, March 16, 2011 Cisco Confidential 26
  • 24. Tiered PlansGain New Subscribers & Optimize Bandwidth What’s the Opportunity?  Offer plans at varying usage quotas and speed tiers What are the Benefits?  Drive ARPU with new pricing  Attract wider range of users  Up-sell higher tiers to top users Subscriber conditioning important in shift to Usage-Based Pricing Users are becoming more data quota aware Source: 2012 Mobile Life Survey, Light Reading
  • 25. Tiered Services: Speed Tiers with Video Gold Tier (Policy) Up to 1 MBPS $25/Month The Sports Fan Silver Tier (Policy) Up to 512 KBPS $20/MonthThe Business User Original Video 1.5 MBPS Bronze Tier (Policy) Up to 256 KBPS $15/Month The Casual User
  • 26. It’s not Just About Offload: Transforming Experience& Growing Revenues Wi-Fi as a hotspot Wi-Fi as a mobile technology: a wireline offload technology: a service cellular network optimization tool 2009 2010 2011 2012 Wi-Fi as a platform for: • Service innovation • Revenue growth • Experience transformation
  • 27. Mobile Offload & Service BundlingGenerate Significant Internal Value • Bundled Wi-Fi • Bundling Wi-Fi service to another service • Example: mobile data package, broadband • Typically free of charge • Reduced customer churn • Increased market share for core services through differentiation • Offload mobile data traffic using Wi-Fi • Serve huge growth in mobile data traffic • Reduce 3G/4G CapEx and operating costs • Estimated savings: $3 - $5 /GB
  • 28. Wi-Fi is an Important User-Driven Trend80% of the time users 19 out of 20 smartphonesare within Wi-Fi coverage support Wi-FiMostly nomadic use 50% of smartphone usage is already on Wi-Fi 100% 50% 50% 23% 0% 2010 2011Sources: Cisco Visual Networking Index, 2011; Bango Inc., February 2011; North Carolina State Univesity, Cisco IBSG 2011
  • 29. Ad Supported Video Promotions withCisco SP Wi-Fi Solution What’s the Opportunity? LBS and Ad Supported Video 20% Off What are the Benefits? Reduced traffic on 3G / 4G RAN Create LBS & Advertising Models Secure Wi-Fi Network Users are becoming Discovery more data quota aware: supply reduce cost options
  • 30. Medium Sized Operator • Subscribers • Network dimensions – Total: 15M growing to – Models 3G and 4G radios 18M+ – 2000 cell sites (5% growth) – Data: 5M growing to 14M – 400 pre-aggregation sites – Video: 1.8M growing to 5.3M – 25 aggregation sites – “Urban” cell sites (20%) • Traffic carry 40% traffic with GE backhaul – Total: 1.3M to over 35M – “Non-urban” cell sites TB/mo carry 60% traffic with T1 – Video: 0.6M to over 24M backhaul TB/mo (67% of data) – Network transport variable – 150 MB/month per sub – All packet core elements modeled
  • 31. $400 $60Cost Saving ($M) $ Payback for $1 $350 $50 $300 Invested $250 $40 $200 $30 $150 $20 $100 $50 $10 $0 $0 5% 10% 15% 20% 25% Percentage Traffic Reduction from Video Pacing Savings Payback
  • 32. Traffic Packet & Video OptimizationOffload, Video Pacing, Optimization Optimized Video reduction potentially 20 - 40% Un-optimized Video reduction up to 75% Why Cisco Optimization? Optimize45%26%12% Potential reduction of up to 26% in video traffic Lower radio costs Video Video Pacing Data and Tsunami Downlink data reduction potentially 10 – 30 % Increase network capacity Offload Internet Enhance customer experience ASR5k Indoor Hotspot Mobile Backhaul IP CoreUE 7600 Increase network efficiency App OS App OS ASR9k CRS-1 ASR9k (e)NB MWR2941 Reduced latency Mobile Videoscape Potentials savings of 10% to 50+%*
  • 33. Verizon Introduces New Version of VoD Appfor Mobile Phones• VzW Mobile Video – On – Demand• Customers access more than 250 current, full- episode TV shows from all the major broadcast networks• Premium video content• Requires a USD $10 monthly subscription• A data package is required, and the download and use of Verizon Video incurs data usage and will be billed according to the customers data package. MONETIZE Source: 23 August 2011 Telecompaper Americas, Verizon Wireless Sources
  • 34. MONETIZEVodafone Germany Plans Triple Play TV with LTE Challenge/Opportunity• Current mkt dynamics: EUR500 mill./year in unbundled DSL costs Unbundled costs paid• Mkt Opportunity: Migrate DSL customers to LTE, incl. TV• SP Strategic fit: Challenge DT on triple play with new bus. model out to DT every year Experience Innovation EUR 500 million• Service description: LTE-enabled set top box for triple play• Drivers for end-user adoption: Low cost via cellular• Risks and sensitivity for service adoption: Availability, experience Monetization• Monetization: No unbundled costs improves 3-play bus. model• Market size: Unknown• Revenue sensitivity: NA• Cost analysis: LTE bandwidth mgt. for TV packet prioritisation Strategic Partnership/Alliance Migrate 4 mill. DSL• Ecosystem: None customers to LTE, with TV• B2C• Risk assessment 4I’s: • Innovation, Internal, Interdependency: Low • Integration: High
  • 35. The Mobile Network of TomorrowUnified Access - Macro, Pico, Femto, WiFi Complexity Opportunity 3G/4G Optimal usage of network resource under Macro Site dynamic conditions for best user experience • Real time access selection decisions based Femto Cell on location, network load, available connectivity, User service level Stadium/ • Application and service driven traffic routing Hotspot residential • Inter-access load balancingAccess selected by end • Real time feedback for up to date network conditionsuser or the device itself
  • 36. Leveraging the Device for Network Optimization 3G/4G AAA OCS Service Macro Site HSS PCRF Delivery SPR Analytics Femto Cell S14 IP ANDSF Stadium/ Backhaul Hotspot Mobile Packet CoreANDSF (Access Network Discovery and Selection Function) SP Internet Services• Provides dynamic policy updates and receives data from UE• Can constructs policies based on user profile, session status and dynamic network updates• Dynamically pushes policy updates based on network triggers• Receives data from the device and distributes it accordingly
  • 37. Cisco Mobile Internet Market Leadership270+ Operators in More Than 75 Countries 34 LTE Wins; 13 Live Deployments 800+ Million Subscribers Across Mobile Packet Cores 800K Femto Cells Deployed 12M Wi-Fi Access Points
  • 38. Q&A #CiscoPlusCA
  • 39. Thank YouMore information www.cisco.com/go/mobile