Monetizing Mobile 3G/4G Broadband Networks


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With 3G networks, we are entering the world of true mobile broadband experience. This presentation covers some of the ways new Video Value-Added Services (VAS) will both benefit consumers and help derive added revenue for service providers. Among the ways to monetize include usage based plans, tiered pricing, mobile advertising, QoE, VAS and bandwidth optimization.

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  • Finally, if you think about the mobile network as a mobile broadband network, then some cues from the internet regarding monetization can come into play. Monetization of the internet is via advertising – that is, the portal, say Google, can charge for advertising depending on how many people are seeing the portal. This was the similar model for TV as well. So for the mobile internet, it stands to reason that advertising can help monetize the mobile network. Advertising on SMS/MMS, advertising on the mobile video streams, and location based advertising, say for Starbucks. In fact, Starbucks was named the Mobile Marketer of the year in 2010. And one of Dialogic’s customers in Rome helped Dunkin’ Donuts increase sales by 20% via an SMS location based advertising campaign.Starbucks was named 2010 Mobile Marketer of the year, because of location based ads to your mobile phone.Location is critical with advertising – can do contextual / location based ads based on where you are.And remember when you access the internet today that you see ads. Why not from your mobile phone? This will help monetize the network.Also, Rich Media ads will likely command a 4-5x premium over static banner ads since people will read them, so they can command more money.
  • Monetizing Mobile 3G/4G Broadband Networks

    1. 1. Monetizing Mobile 3G/4G Broadband Networks May 2011
    2. 2. Monetize Your Network Monetize: “To Utilize as a Source of Profit” Translation: “I Spent Much Money on my 3G and 4G License(s) and I Need to Make Money off of it” How: – Increase Revenue – Lower Operating Costs of the Network SLIDE 2 © Copyright 2010 Dialogic Inc. All rights reserved.
    3. 3. Ways to Monetize Usage Tiered Pricing Advertising OptimizeQuality of Experience ServicesSLIDE 3 © Copyright 2010 Dialogic Inc. All rights reserved.
    4. 4. Usage Is Not Going to be a Problem 7,000,000 Expected Growth of Mobile Data Traffic Data 6,000,000 M2M ( >100% CAGR) Terabytes / Month File sharing 5,000,000 Video ( >100% CAGR) VoIP 4,000,000 3,000,000 2,000,000 1,000,000 0 2010 (E) 2011 (E) 2012 (E) 2013 (E) 2014 (E) 2015 (E)Source: Cisco Visual Networking Index (VNI); Global Mobile Data Traffic Forecast Update, 2010-2105, February 1, 2011 SLIDE 4 © Copyright 2010 Dialogic Inc. All rights reserved.
    5. 5. Tiered Pricing 12000000 Additional revenue from “encouragement” deals - “pay per minute” or “weekend deals” 10000000 8000000 Theoretical Demand CurveSubscribers Se 6000000 Se Additional revenue from “Consumption” or 4000000 “Access Speed” pricing Revenue from typical plans 2000000 0 1 2 3 ARPU5 Month 4 / 6 7 8 9 10 11 SLIDE 5 © Copyright 2010 Dialogic Inc. All rights reserved.
    6. 6. Explosion in Mobile Data Traffic Impacts Networks CELLS BSC Other TDM / IP Backhaul Network Mobile Congestion limited by Congestion limited by capacity or bandwidth MGW Core capacity or bandwidth Network SGSN Backhaul Other TDM / IP Network RNC Congestion limited by spectrumSLIDE 6 © Copyright 2010 Dialogic Inc. All rights reserved.
    7. 7. Optimize Existing Network Offload – WiFi – New Networks Packet Optimization – Quickest way to “add” capacity • Utilizing same bandwidth, optimization adds capacity • Improved customer satisfaction – More bandwidth available per subscriber – Ability to add subscribers with same bandwidth costs – OPEX reduction • Consolidation and bandwidth optimization of traffic – CAPEX reduction • As traffic grows, less CAPEX will be required SLIDE 7 © Copyright 2010 Dialogic Inc. All rights reserved.
    8. 8. Mobile Value Added Services Value Added Service (VAS) Providers Build a VAS Application CRBT SMS Voice Mail Prepaid LBS Mobile Radio Conferencing Voice IVR Commerce These services are being video-enabled….and new video-only services are emerging System Integrators Mobile Operators Consumer Using an Interactive Mobile VAS applicationSLIDE 8 © Copyright 2010 Dialogic Inc. All rights reserved.
    9. 9. Video Value-Added Services Mobile Commerce Entertainment Video Portal Mobile Advertising Messaging Video Ring Tone Mobile PaymentsNetwork Services Video Chat SMS / MMS Mobile Banking Social Networking Calls / Video Calls Voice and Video SMS Games Voice Mail / Location Based Video Mail Services Video Conferencing SLIDE 9 © Copyright 2010 Dialogic Inc. All rights reserved.
    10. 10. Mobile Video Services Circuit Switched Video Video Telephony Video IP Streaming  Traditional Mobile VAS Services  Manipulation of video accessed through become video enabled browser on your mobile phone User Generated Video Call IVVR Content Video Ring Tones Completion Professional Content Mobile Video Video Movies TV Entertainment SMS ConferencingSLIDE 10 © Copyright 2010 Dialogic Inc. All rights reserved.
    11. 11. Quality of Experience Monetization OpportunityOriginal Content Context-Aware: Content-Aware: Network-Aware: • Type of End-Point • Type of Video • Capacity • Subscriber • QoS • Analytics Resulting in Industry Leading Quality of Experience • Irrespective of Device Any Device Great Quality of Experience SLIDE 11 © Copyright 2010 Dialogic Inc. All rights reserved.
    12. 12. Monetization Via Video Mobile Advertising • Mobile Video Advertising offers a rich user experience • Tremendous increase is due to user acceptance to help reduce data costs and also to the monetization offered to the service providers Mobile Video Advertising Revenue (Millions) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2009 2010 2011 2012 2013 2014Source: Mobile Messaging and Advertising, 2010, ABIresearch SLIDE 12 © Copyright 2010 Dialogic Inc. All rights reserved.
    13. 13. Summary Mobile Broadband Presents Unprecedented Opportunity Monetization of 3G – Multiple Ways to Monetize, Including Video The Traffic Increase Will Strain the Networks – Bandwidth Optimization Solutions Will Play a Role in Reducing this Problem SLIDE 13 © Copyright 2010 Dialogic Inc. All rights reserved.
    14. 14. Dialogic Highlights Dialogic Corporation was privately held since 2000 Merger with Veraz Networks completed October 1, 2010 Listed on NASDAQ (DLGC) Global customers “Build On” Dialogic – Industry Leading portfolio of multimedia processing and call control enabling technologies and products Dialogic’s Technology is Widely Deployed: – In High-Value Solutions that are in use by over 2 Billion Mobile Subscribers A leading enabler for – In Network Infrastructure that carries over 15 Billion unleashing profit from minutes of traffic per month video, voice and data for advanced networks – In 80% of Fortune 2000 companies SLIDE 14 © Copyright 2010 Dialogic Inc. All rights reserved.
    15. 15. Dialogic, Veraz, Brooktrout among others as well as related logos, are either registered trademarks or trademarks of Dialogic Inc. and all companies controlling, controlled by, or under common control with Dialogic Inc. (“Dialogic”). The names of actual companies and products mentioned herein are the trademarks of their respective owners. 5/11 SLIDE 15 © Copyright 2010 Dialogic Inc. All rights reserved.