Eyal Yaron, Director of Product Solutions at Allot Communications, explains how telecom operators can both optimize and monetize the subscriber experience. He describes approaches to value-based offerings, namely application based charging.

1. Monetizing the Experience:
Subscriber Usage Evolution
Eyal Yaron, Director Product Solutions
March 25, 2014

2. Telecommunication Service Evaluation
2March 27, 2014
From a functional utility to a
lifestyle gadget
Providing communication service
is all about “User Experience”
User Experience and Brand
Perception impact buying
Voice minutes, Air-time and
kilobytes evolve into service
plans, and bundles
1809 1870 1975 1995 2007 2013

3. 3March 27, 2014 Confidential
VALUE
BASED OFFERINGS

4. 4March 27, 2014
Application Based
Charging
The next big thing

5. Application Based Charging –
The Service Bundle of “free” OTT usage
5March 27, 2014
Offering
Offer bundle of data package with
premium music service from content
partner where partner traffic is not
charged
Pricing
Bundle offered to prepaid and postpaid
markets
• OTT Bundle data plan ~22$ Per Month
• OTT Service ‘market’ price ~6$ for
mobile & PC access
• MB price uplifted by 37% compared with
similar timevolume plans

6. Application Based Charging –
The Service Bundle of “free” OTT usage
6March 27, 2014
0%
20%
40%
60%
80%
100%
H2 2012 H1 2013 H2 2013
OTT Bundle Users
Postpaid Prepaid
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
H2 2012 H1 2013 H2 2013
Total Traffic (GB)
159%
Income growth from data service
227%
Data traffic growth
217%
Data users growth
25 Fold
growth in postpaid subscribers
opt-in to these plans
Results after 18 Months

7. Value Added Service
Parental Control Safe Browsing
7March 27, 2014
Offering
Pricing
• Residential mobile subscribers are
offered parental control service which
enables control over internet activity of
young family members
• Parent can control allowed web
categories and activity times
• Plan priced at USD 1.35 (€1) monthly
per subscriber

8. Parental Control Example
March 27, 2014 8
Pre-defined Profiles
(eg. Teenager)
Full Personalization
Per Category Filtering
Time of Day Policies

9. Value Added Service
Parental Control Safe Browsing
9March 27, 2014
Results
2 Million subscribers
in 9 Months from
launch
Outstanding take-up
rate, ~10% on yearly
base
More than $17M
Revenues in first
year!
5-7 Months ROI
0.0%
5.0%
10.0%
15.0%
Q1 Q2 Q3 Q4 Q5
Subscribers Opt-in Rate
Forecast Actual

10. Digital Lifestyle Impact
The Service Provider View on the Network
10March 27, 2014
What are the popular OTT
Applications and which devices were
used?
What is the impact on the network of
launching a package with a “free” OTT
application ?
Evaluate costs and risks related with
new plans
Analyze the impact on existing service
plans

11. The Digital Lifestyle Profile Details
113/27/2014 Confidential

12. 12March 27, 2014
The secrets of good ABC solutions
Accurate Identification
• Keep your application identification element updated
with frequent changes of OTT traffic
• Update your solution frequently with low operational
costs
Tight Enforcement
• Making package terms that can be enforced, there is
always someone trying to find a hole in fence..
Rich Reporting and Analytics
• Enable marketing deeper view into user and
application activity

13. Thank You
March 27, 2014 Confidential 13