The Value of network performance
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The Value of network performance

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A recent study demonstrates that investments in network quality do translate into better financial returns for operators, not only from cost savings but also from increased revenue

A recent study demonstrates that investments in network quality do translate into better financial returns for operators, not only from cost savings but also from increased revenue

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  • Investing strategically in performance makes it possible for customer to do more on the network and for operators to do more with the network. Value is created when those opportunities are translated into actual actions and when new offerings and services become unlocked thanks to network performance. <br /> This is a short form presentation of a more extensive presentation aiming to look at some of the opportunities that operators can pursue as they invest in better network performance, opportunities that create value for the operator and the customers alike. <br />
  • We have taken these insights into account and looked at a number of valuable areas that can be unlocked thanks to performance. <br /> Unlock the value of video downtown - Video will certainly be the main attraction for consumers going forward. Already today people are consuming more and more video on their mobile devices and increasingly outside the comfort of their home. Operators that deliver the best possible video experience to their customers will be winners in a video driven mobile world. This requires network performance fit for video delivery. <br /> Unlock the value of stadiums – In the age of digital and mobile consumption of media the importance of live events becomes even more important for people. We love to gather, experience what can never be relived and root for our favorite team. But we crave a different kind of live experience today. It is a live experience enhanced by our mobile devices and we expect nothing less in a stadium than in our everyday lives. Operators have a massive opportunity in making this a reality for their customers through high quality network performance. <br /> Unlock the value in existing assets – In 2013 mobile traffic grew 80% and the need for capacity seems never ending. For operators this is an obvious challenge while subscribers take it for granted that the internet should be just as fast as it has always been. For the operators that take advantage of the fact that the assets that they already have in place can be significantly squeezed for better performance, customer experience can be greatly improved in a very cost efficient way. <br /> . <br /> Unlock the value of demanding service retailing – With diminishing revenues from traditional telco services such as voice and text operators need to look to the monetization of data as the big vehicle for growth. Collaborations with OTT services, leveraging the operator’s extensive assets, such as sales channels and network awareness, to push services dependent on data has proven to be a great way to monetize network performance. In this example we will focus on retailing of video and music services. <br /> Unlock the value of powerful devices - The smart phone experience is dependent on three things; device capabilities, app functionality and network performance. Getting all of these to work in conjunction is key to achieving satisfied and happy customers that are willing to pay and more likely to stay. So, there are great opportunities for operators that tweak and tune their networks to unlock the power of devices <br /> Unlock the value of TV anywhere - The battle for the future TV consumer will not be fought in the comfort of their couches, it will be done on the streets with TV anywhere offerings as the main weapon. To deliver a TV experience worth paying for operators need to give customers the tools to watch TV on the go and a network fit for the task, shuffling high quality content without dropping a single bit. <br />

The Value of network performance The Value of network performance Presentation Transcript

  • The value of Performance Performance creates new opportunities Executive Summary presentation #Realperformance
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 2 Performance Creates new opportunities Customers can do more Operators can do more Value is created by the actions you can take based on better performance • Satisfaction • Loyalty • Drive usage • Create new behaviors • New revenues • Differentiation • Save costs • New offerings
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 3 Explore the value of performance Unlock the value of video downtown Unlock the value of stadiums Unlock the value in existing assets Unlock the value of demanding service retailing Unlock the value of TV anywhere Unlock the value of powerful devices
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 4 Unlock the value of video downtown Video will certainly be the main attraction for consumers going forward. Already today people are consuming more and more video on their mobile devices and increasingly outside the comfort of their home. Operators that deliver the best possible video experience to their customers will be winners in a video driven mobile world. This requires network performance fit for video delivery.
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 5 Unlock the value of video downtown Reason Value Performance Video makes up the largest segment of data traffic in networks and it is expected to grow around 55percent annually up until the end of 2019 Your most valuable customers spend a lot of time watching video on mobile devices, e.g. 40% of YouTube traffic is on mobile devices The market is quickly moving from downloaded video to streaming (24% growth 2013 compared to 2,3% decrease for downloads) Premium and superior video services make customers spend more and be more loyal Performance is the main driver for customer loyalty and video drives majority of traffic, the way you deliver video will be the biggest driver for operator brands Revenue: With video that really works your users buy bigger data buckets Leverage marginal cost: Building on current assets the marginal effect of more video traffic is a profit driver Explore new offerings: With high quality delivery in place you can explore new offerings like video packages and zero rating models as revenue drivers Loyalty: Your users are less likely to leave and more likely to promote you Lower cost: Fewer calls to customer service and less need for expensive marketing Efficiency: With a strategic approach to video delivery you can also greatly reduce distribution cost and improve network efficiency Throughput: at least 2 Mbit/s on an average for acceptable time to view and never below 1Mbit/s to avoid frame freeze Capacity: support a large number of simultaneous users in dense areas like train stations, business areas and nightlife districts, Indoor coverage : extend macro network seamlessly into buildings to ensure consistent experience Adaptive streams: adapt streams to fit every screen perfectly Network caching: store video data intelligently for cost efficient delivery
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 6 Unlock the value of stadiums In the age of digital and mobile consumption of media the importance of live events becomes even more important for people. We love to gather, experience what can never be relived and root for our favorite team. But we crave a different kind of live experience today. It is a live experience enhanced by our mobile devices and we expect nothing less in a stadium than in our everyday lives. Operators have a massive opportunity in making this a reality for their customers through high quality network performance.
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 7 Reason Value Performance Unlock the value of stadiums In arenas we are at our most social, sharing videos and photos. During Super Bowl 2014, record figures of mobile traffic was measures. Yet using a smartphone in a stadium is virtually impossible today. Up to 99% of smartphone users have experienced problems. Coverage in stadiums will boost the customer experience and open up new revenue models Build brand: Amplify positive perception through sponsorship & optimal user experience Loyalty: Create unexpected experiences that was not accessible before Redefine “live”: Be a part of redefining what live experiences are about with voting, video replays and mobile payments in real time Opportunity: Innovative business models with stadium owners Capacity: The networks ability to handle massive crowds in dense areas Throughput: Managing large data streams of video Latency: Ensuring low latency for financial transactions Signaling: Managing large amounts of simultaneous users Indoor coverage: Integrated macro, micro and Wifi connectivity
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 8 Unlock value in existing assets In 2013 mobile traffic grew 80% and the need for capacity seems never ending. For operators this is an obvious challenge while subscribers take it for granted that the internet should be just as fast as it has always been. For the operators that take advantage of the fact that the assets that they already have in place can be significantly squeezed for better performance, customer experience can be greatly improved in a very cost efficient way.
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 9 Reason Value Performance Unlock Capacity in existing assets The continuous growth of traffic combined with the consumer demand for anywhere service is driving the need for capacity and high levels of coverage The main driver of user satisfaction, and thus an important factor for both differentiation and business growth, is network performance Smart and cost efficient service delivery to free up capital for investments and meet high expectations on financial return Spectrum and sites are scarce and costly resources and are in many case show stoppers for keeping up with service demands & quality. Customer experience: an optimized network experience decrease churn, strengthen loyalty and increase usage & ARPU Less sites: extending coverage and capacity on existing sites to defer and also reduce the need for new sites will reduce costs and time for build-out with retained quality Maximized use of spectrum: provides more traffic per MHz and allow space to deploy high speed technologies as HSPA and LTE Operational efficiency: Lowered operational costs, shorter time to build- out and better quality Network performance: Optimized systems to maximize UL/DL throughput, indoor/outdoor coverage and web page load time Site efficiency: Maximized cell border signal strength and site capacity with retained foot print Spectrum efficiency: Optimized radio settings in GSM, macro and small cells are coordination, and spectrum aggregation. A pro-active spectrum strategy. Network automation: Automate repetitive, time consuming or complex tasks regarding optimization, provisioning and network operation
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 10 Unlock the value of demanding services retailing With diminishing revenues from traditional telco services such as voice and text operators need to look to the monetization of data as the big vehicle for growth. Collaborations with OTT services, leveraging the operator’s extensive assets, such as sales channels and network awareness, to push services dependent on data has proven to be a great way to monetize network performance. In this example we will refer to the retailing of video and music services.
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 11 Reason Value Performance Unlock Demanding services retailing Your customers have an undying appetite for new OTT services and will use them no matter if you sell them or not OTT services have become increasingly demanding on the network (video, music, real time communication, etc) and the network takes the load but it is hard to monetize for operators You have unparalleled access to customers in your market, something that most OTT players do not have, which is something that you can take advantage from Customer acquisition/growth: Retailing the most popular & demanding OTT services will make your offering more in demand Distribution fee: Depending on strength of the OTT player, charge a sales/distribution fee on each subscription sold Loyalty: Connecting personal and valuable services to your subscriptions will increase customer loyalty Increased data consumption: Increased ARPU is likely due to higher value as well as increased data consumption Throughput: at least 2 Mbit/s on average and never below 1Mbit to ensure a superior customer experience Indoor coverage : Extend macro network seamlessly into buildings QoS: Enable QoS capabilities to improve quality of retailed OTT service to differentiate offering Adaptive streams: Adapt streams to fit every screen perfectly Network caching: Store video data intelligently for cost efficient delivery Billing and sales: Use OSS/BSS solutions to integrate third party solutions and sell them in all channels
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 12 unlock the value of powerful devices The smart phone experience is dependent on three things; device capabilities, app functionality and network performance. Getting all of these to work in conjunction is key to achieving satisfied and happy customers that are willing to pay and more likely to stay. So, there are great opportunities for operators that tweak and tune their networks to unlock the power of devices
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 13 Reason Value Performance Unlock the value of powerful devices In creating a great user experience, operators need to have network, device and app evolution in mind and make them work in conjunction. To meet the expectations from users with next generation devices the network features need to match device features for performance By the end of 2014 we expect global smartphone penetration to be around 50% The number of different kinds of devices are exploding (smartphones, phablets, tablets, M2M, …) and the network need to support them all Migrating users to faster, more modern devices increases user experience and also greatly improves the speed and efficiency of your network User experience: By aligning the network with the device portfolio and move subscribers to faster devices, we significantly increase user experience of everyone. Build brand: Having access and a network that supports new devices with great performance builds strong brand preferences ARPU: By creating supreme user experiences on new devices operators are able to command premium prices. Increase network efficiency: By moving consumers to next gen devices with corresponding network features, efficiency and performance will increase in the networks. Smartphone features unleashed: Latest network software release for smartphones to efficiently handle of data by exploiting new features in the devices HSPA 21 coverage everywhere: There are smartphones everywhere, ensure that your network is HSPA21 enabled everywhere. Network optimized for each device type: Ensure that all devices are on the correct network according to the subscription to minimize degradation of quality of service Uplink performance: Remove the uplink bottleneck to unlock capabilities that are dependent on uplink such as cloud, file sharing etc. Aligned spectrum: Ensure that your spectrum capabilities are aligned with the your device portfolio.
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 14 unlock the value of TV anywhere The battle for the future TV consumer will not be fought in the comfort of their couches, it will be done on the streets with TV anywhere offerings as the main weapon. To deliver a TV experience worth paying for operators need to give customers the tools to watch TV on the go and a network fit for the task, shuffling high quality content without dropping a single bit.
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 15 Reason Value Performance Unlock the value of TV anywhere Strong change in how we consume TV, from linear scheduled TV to on demand and on all devices, TV anywhere Instead of the couch, consumer prefer watching TV where ever they are and whenever Operators with TV services should rethink their TV bundles and provide access through mobile devices to satisfy consumer desires Differentiation: Compete with multi screen TV solution that actually works due to great network performance to reduce churn and defend ARPU Loyalty: Create loyalty through outstanding TV experiences New revenue streams: Use multiscreen TV to create new revenue streams (advertising, connectivity bundling, etc) on top of TV subscription Adaptive throughput: Ensure to optimize throughput and content size to screen used for consumption Capacity: Support at least XYZ simultaneous users in small areas Indoor coverage : Extend macro network seamlessly into buildings Network caching: Store video data intelligently for cost efficient delivery TV anywhere platform: coherent platform to handle content and device clients MDN: Optimized network for video delivery
  • The value of performance | Commercial in confidence | 2014-04-28 | Page 16