The Impact Data Traffic Explosion and LTE on Revenue Assurance

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Gadi Solotorevsky, cVidya's CTO, presented the following on the impact of data and LTE technology on telecom revenue assurance.

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The Impact Data Traffic Explosion and LTE on Revenue Assurance

  1. 1. The Impact Data TrafficExplosion and LTE on RevenueAssurance Dr. Gadi Solotorevsky CTO – cVidya Networks Ambassador, RA Team Leader – TM Forum
  2. 2. Traffic is Growing Sources: newsroom.cisco.com www.sandvine.com2
  3. 3. Global Mobile Data Traffic Drivers More Mobile Connections By 2016…. Faster Mobile Speeds More Mobile Users More Mobile Video Mobile Momentum Metrics3
  4. 4. Traffic Explosion Drivers  More content More Content  Higher resolution content  Stronger devices with Better Network Higher Resolution infrastructure content – higher resolution screens  Cheaper data plans  Better network infrastructure Higher Cheaper Resolution Data plans devices4
  5. 5. Revenues Perspective Third party OTT Revenues CSP Content and Services Revenues CSP Transportation Revenues More content Better Higher network resolution infrastruct content ure Higher Cheaper resolution data plans devices5
  6. 6. World YouTube and Streaming Data Share Source: www.techspot.com, www.sandvine.com6
  7. 7. 7
  8. 8. Mobile Data Consumption in North America Source: www.techspot.com, www.sandvine.com8
  9. 9. Mobile Data Consumption in LATAM Source: www.techspot.com, www.sandvine.com9
  10. 10. HOW much money (excluding transport) makes a typical CSP from its subscribers for the 10 applications that generates 82% of its traffic10
  11. 11. Mobile Connection Speeds Forecast11
  12. 12. U.S. Wireless Operators Price Per Unit Source: fierce wireless," Entner: What is the price of a megabyte of wireless data? http://www.fiercewireless.com/story/entner-what-price-megabyte-wireless-data/2011-04-1312
  13. 13. The Hunger Games  The ever hungry bandwidth consumer leads to − New technologies - LTE − New business Models – policy based charging, data shared family plans13
  14. 14. LTE  New Transportation Layer  New Network Elements Evolved Packet Core HSS – HLR -> HSS SGSN P-GW PCRF MME P-GW – PCRF IRAT GSM Network UMTS Network  More bandwidth eNodeB eNodeB  Requires big rollout / eNodeB transformation projects14
  15. 15. LTE Network Evolved Packet Core HSS P-GW PCRF SGSN MME P-GW IRAT GSM Network UMTS Network eNodeB eNodeB eNodeB15
  16. 16. LTE RA Rollout Challenges  Integrity of Porting and mirroring data to new network elements  Understanding and collecting data from new elements  Implications of connectivity problems16
  17. 17. Example Sprint LTE Coverage 2012 Source: http://coverage.sprint.com/IMPACT.jsp?17
  18. 18. Sprint Coverage 2012 - Example Source: http://coverage.sprint.com/IMPACT.jsp?18
  19. 19. LTE “business as usual” Challenges  Mobile networks will be a mix of 2G, 3G and 4G technologies for years to come – Subscriber data is stored in many different locations, typically defined by different access technologies – Non uniform network technology coverage – Device need to select the right technology – Devices need to “jump” between technologies in the middle of a session – Multiple Policy charging and rules function (PCRF) elements might be involved in the same session – Policy change charging implications19
  20. 20. New Business Models Drivers  The need to control the volume of traffic – LTE will not solve all network congestions issues forever – LTE deployment takes time  The need to monetize traffic  The need to differentiate from competition20
  21. 21. The Limit of Unlimited  “Like other wireless companies, were taking steps to manage exploding demand for mobile data. Many experts agree the country is facing a serious wireless spectrum crunch…  Starting October 1, smartphone customers with unlimited data plans may experience reduced speeds once their usage in a billing cycle reaches the level that puts them among the top 5 percent of heaviest data users. These customers can still use unlimited data and their speeds will be restored with the start of the next billing cycle. Before you are affected, we will provide multiple notices, including a grace period….” Source: AT&T http://www.att.com/gen/press- room?pid=20535&cdvn=news&newsarticleid=3231821
  22. 22. Verizon Share Everything Data Plan 7/2012 Source: http://www.verizonwireless.com/b2c/plan-information/?page=share-everything22
  23. 23. New Business Models Creating New RAChallenges  Do we measure usage correctly?  Are we applying the appropriate policy, and charging according to it?  Is this transparent and auditable?  Do we continue to “look for the keys under the light” or “who moved my cheese” – the need to update RA priorities according to the changing business models23
  24. 24. THANK YOU !Dr. Gadi Solotorevskygadi@cvidya.com

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