Monetizing the Experience: Subscriber Usage Evolution

Eyal Yaron, Director Product Solutions

March 25, 2014

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

3March 27, 2014 Confidential

VALUEBASED OFFERINGS

4March 27, 2014

Application Based ChargingThe next big thing

Application Based Charging –The Service Bundle of “free” OTT usage

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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 time\volume plans

Application Based Charging –The Service Bundle of “free” OTT usage

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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

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

\

Parental Control Example

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Pre-defined Profiles (eg. Teenager)

Full PersonalizationPer Category Filtering

Time of Day Policies

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

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

The Digital Lifestyle Profile Details

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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

Thank You

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