Utilizing Policy Management To Support New Business Models June 10 2010
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Utilizing Policy Management To Support New Business Models June 10 2010

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Presentation delivered at B/OSS World Washington DC June 2010

Presentation delivered at B/OSS World Washington DC June 2010

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    Utilizing Policy Management To Support New Business Models June 10 2010 Utilizing Policy Management To Support New Business Models June 10 2010 Presentation Transcript

    • Utilizing Policy Management to Support New Business Models Patrick Kelly Research Director Analysys Mason June 10, 2010
    • 2 Panel Members  Allan Jerrett, Director Product Management Network and Service Management IP Division Alcatel-Lucent  Nigel Upton, General Manager of BSS products in HP‟s Communications, Media and Entertainment group at HP  Parham Momtahan, Vice President, Advanced Technologies, Bridgewater Systems  Marc Price, Vice President of Technology – CTO for the Americas, Openet NBED ref no Confidential
    • 3 Agenda Mobile media and consumer behavior trends Network traffic growth and impact on mobile network Policy management evolution Use case studies Points of view Q&A NBED ref no Confidential
    • Mobile consumer survey: the mobile Internet and application usage Executive summary 4 We conducted a recent survey on the use of mobile media and the services consumed based on a sample size of more than 4,000 users  Of the 4178 respondents to our survey, 1251 Figure 1: Usage of mobile media services1 [Source: Analysys stated that they were „regular‟ users of mobile Mason, 2010] media services: slightly less than 30% of all 4500 4000 Number of respondents survey respondents. 3500 3000  At this level of penetration, it is clear that mobile 2500 media services, the mobile Internet and 2000 1500 application usage are mainstream activities. 1000 500  In particular, our survey included the responses 0 of between 184 and 640 users of specific mobile Total respondents Mobile media service users media services, which provides insight into the consumption patterns of those groups and Figure 2: Usage of mobile media services, by service type2 [Source: Analysys Mason, 2010] demonstrates that a range of mobile media 700 Number of respondents services are attractive to substantial market 600 segments. 500 400 300 200 100 0 TV Video clips Music Games Internet Application (VoD) access stores 1 Question: “Which of the following services do you currently use on a regular basis (at least once within the last three months)?”; all countries; all respondents; n = 4178. 2 Question: “Which of the following mobile media services have you used within the lastno NBED ref year?”; all countries; all respondents; n = 1251. Confidential
    • Mobile consumer survey: the mobile Internet and application usage Executive summary 5 The main factors that influence usage of mobile media services are: age and access to a touchscreen phone  Approaching 50% of survey respondents in the Figure 3: Usage of mobile media services, by age range1 18–24 age range indicate that they use mobile [Source: Analysys Mason, 2010] media services regularly. 50% Percentage of respondents  While survey respondents in the 55+ age group 40% are significantly less likely to use mobile media 30% services than their younger counterparts, it is 20% worth noting that a substantial 20% of respondents in this category say that they use 10% mobile media services regularly. 0% 18–24 25–34 35–44 45–54 55+  Touchscreen phone users are approximately 2.5 times as likely to use mobile media services of all Figure 4: Usage of mobile media services, by phone type1 [Source: Analysys Mason, 2010] types as non-touchscreen phone users. 60% Perhaps unsurprisingly, a greater proportion of Percentage of respondents  50% respondents in younger age groups have access to a touchscreen phone. 40% 30% 20% 10% 0% Touchscreen Non-touchscreen 1 Question: “Which of the following services do you currently use on a regular basis (at least once within the last three months)?”; all countries; all respondents; nNBED ref no = 4178. Confidential
    • Mobile media and entertainment in Western Europe Executive summary 6 MME service revenue will grow to EUR6.9 billion in 2013, but will still account for only a small share of mobile revenue  Analysys Mason forecasts that mobile media and Figure 1: MME revenue by service category and as a entertainment (MME) service revenue will grow to proportion of mobile service revenue in Western Europe, 2008–2013 [Source: Analysys Mason, 2009] EUR6.9 billion in 2013, up from EUR3.2 billion in 2008, and will register a CAGR of 16.4% during 7 5% the forecast period. Revenue as a proportion of mobile service revenue 6 Revenue (EUR billion) 4%  However, MME services will continue to account 5 for a relatively small proportion of mobile service 4 3% revenue during the next five years, at 4.1% in 2013, up from from 2.2% in 2008. 3 2%  Embedded, downloadable and online 2 1% games, as well as entertainment applications 1 from application stores, will account for the 0 0% largest share of MME revenue in 2013, at 2008 2009 2010 2011 2012 2013 20.1%, when they will generate EUR1.4 billion. Paid information Personalisation  Personalisation services‟ dramatic loss of revenue share to other services – from 43.3% in Games TV 2008 to 19.1% in 2013 – can be attributed to the VoD Music maturity of the personalisation services Gambling Adult content market, the declining demand for ringtones and Social networking MME revenue as a proportion wallpapers, and downward pressure on pricing. of mobile service revenue NBED ref no Confidential
    • 7 4G will increasingly gain in importance from 2015  Given the massive importance of data in driving traffic growth there is little wonder that 3G and 4G Global Wireless Traffic by Generation networks will account for the lion‟s share of traffic growth from 2009 to 2016. 35,000 100%  From 44% of traffic in 2009, 3G and 4G networks 90% will increase their share of total wireless traffic to 30,000 80% 96% by 2016. Petabytes per annum 25,000 70% Share of traffic  4G devices in particular will gain massive 60% prominence due to their usage by high data 20,000 50% users. By 2016 their share of total traffic will grow 15,000 40% to 42%. 10,000 30%  As a result of the growing importance of 20% 4G, traffic carried on 3G networks will peak in 5,000 10% 2012 at 68% of total traffic before declining to 0 0% 54%. 09 10 11 12 13 14 15 16 20 20 20 20 20 20 20 20 2G 3G 4G % 3G % 3G+ % 4G NBED ref no Confidential
    • 8 But the data era requires control of network resources  MNOs must adjust their tariff plans and provide tiered network services to offer premium services Comparison of the network economics of legacy and LTE networks [Source: Analysys Mason, 2010]  Speed and coverage is now table steaks for MNOs in developed economies  Real-time convergent services for policy and charging will be necessary to compete in the Network cost marketplace (existing network) Traffic volume  MNOs must find effective ways to reduce their costs if they are to profitably carry the increasing Loss volumes of data traffic. Revenue Profit  Operators that do not implement a policy solution will become wholesale suppliers or go out of Cost of new network business through mergers or acquisitions. (e.g. shared network) Time Dominated by voice Dominated by data NBED ref no Confidential
    • 9 Policy is widely deployed today to implement a traffic management strategy DPI Element Mgr DPI DPI Appliance Appliance GGSN GGSN Internet NBED ref no Confidential
    • 10 A policy framework consist of the following components  Policy and Charging Rules Function (PCRF) or Policy Server that stores the individual policies, defining network, application, and subscriber rules that must be met to deliver a predetermined quality of service.  The Policy and Charging Enforcement Function (PCEF) is responsible for enforcing policies with respect to authentication of subscribers, authorization to access and services, and accounting mobility. Current deployments today make use of deep packet inspection technology.  Subscriber profile repository (SPR) – this provides information to the policy control and charging systems and is a logical entity that includes information such as entitlements, rate plans and usage caps. This may be a standalone database or integrated into an existing subscriber database such as a home subscriber server (HSS). Although charging it closely aligned with a policy management architecture, it is outside the scope of discussion in evaluating policy management solutions. The Charging Function includes Online Charging (OCS) and Offline Charging (OFCS). The OCS provides real-time credit control and quota management for subscriber data sessions. The OFCS collects call data records from network elements after the subscriber incurs network resource usage. NBED ref no Confidential
    • 11 Using data from the network and knowledge of the subscriber the policy server enables MNOs to bring new services to market and control service delivery Subscriber HLR  Market and sell services based Data HSS on tiers of service  Apply QoS or bandwidth controls per subscriber or IMS control plane application CSCF  Optimize application usage by Policy Server time of day and grant users Mobile broadband discounts in off – peak periods SGSN core network GGSN  Monitor applications and admit/deny sessions to avoid wide scale service disruption  Alert post paid subscribers when data traffic exceeds Mobile broadband service plan (regulatory) RNC radio access network RBS NBED ref no Confidential