Jay Klein - Allot Communications

8/3/2019 Jay Klein - Allot Communications

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Moving From Flat-Rate to Tiered PricingModels

Jay Klein, CTO


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Outline

Broadband data revolution and ivin a different

meaning to a Byte

tiered schemes

o u on oo s opu ar se ases Insights, tips & Market Education

Net Neutrality Dangers and Potential Innovation

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Users spending more time on Data

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Subscriber Behavior Shift

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Unlimited Invites Over Topping

Source: Morgan Stanley The Mobile Internet Report 12/09

T-Mobile

Subscribers (Millions )

America MovilTelenor

Vodafone

Telefonica Moviles / O2

Skype

!

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All animals are created equal but some

an ma s are more equa t an ot ers

George Orwell Animal Farm

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How much is a Byte?

1.5 cents per MB (HSPA), 0.5 cents per MB (LTE) 1 SMS (100 Bytes) = 5 cents of revenue

1 MB re resentin 10 000 SMSs = 500 Euro

1 minute of a voice call (100 KB) = 10 cents of

1 MB (representing about 10 min.) = 1 Euro

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Over the top, losing twice

erv ce yp calength

(min)

perMinute Revenue

(Euro)

os oDeliver,

LTE (Euro)VoIP OTT 3 1 0.15 to 1.50 0.015

MP3 Song 4 1 1.00 0.02

. .

TV Episode 30 8 3.00 1 .00

t s e t er a revenue potent a or t e cost to e ver

Charging model doesnt have to be dumb quota (MB)

Charging model doesnt have to be per item, could be also

by enabling the capability

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Is All-you-can-eat a good approach? Only ifTraffic managed effectively

Consumers are willing to pay $25 to $30 more per month

for plans that offer unlimited usage over 2GB/month usage cap

o yp ca w re essbroadband purchasedecision is based on:a service rice

b) monthly usage caps

its better to offer

manage traffic via real-time, network

intelli ence-basedsolutions like DPI andpolicy enforcement

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You can buy it in any color you

c oose as ong as s ac

Henry Ford (Statement regarding the T Model)


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Mobile Broadband Drivers & Necessities

Growth in number ofBroadbandsubscribers Online policy

managementGrowth in percentageof active users

enabler for

New applications withbroadbandrevenues

quality demand

Network Intelligence with

, ,


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Mobile Networks weren't designed with theInternet Era/Generation in mind

Most a lications which interest users are Over-the-to OTT

Need to transform dumb pipes into smart pipes

UnmanagedUnmanaged

Before

Visible & ManagedVisible & Managed

After

P2P UploadP2P Download

VoIPWebTVVideo Conferencing

Gamingemail

Allot provides traffic and policy control solutions

that transform the internet user experience

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The Challenges & Allot Value

Market Challenge

Mobile Broadband

Growth Usage Graphs

ren na ys s

Congested Network Network AwarenessFair Usage Policy

Over the Top ContentLost Revenues

Online ChargingDevice Awareness

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Intelligent Policy Control and Charging

Policy and Charging Network ServicesAccess

Networks

PCRFOCS

Mobile

Fixed

ServicesPCEF

InternetCable

.2. Superior Policy Control and Charging3. Services Gateway

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Policy and ChargingMobile Architecture

Charging & PCRF (Partner)

SPR

PCRFMediationWeb Portal

GxGyAAA

RADIUS SOAP

UMTS

Services

PSCore

RNC SGSN GGSNSMP

SGNodeB

IMS

NX

Internet

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PCEF Solution Components:Allot Service Gatewa Si ma

Enforcement

Leadin Performance

Over 60Gbps throughput

Up to 40 million connections

Up to 2 million subscribers

Up to 800,000 PDP sessions

Industry-Leading Core DPI

Value-Added Services Topology Awareness

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Industry-Leading Core DPI Services:Network Visibility

Extensive si nature librar

State of the Art DPI behavioral

recognition Identification of over 800 Protocols

Seamless build-in automatedro oco p a es

Dedicated hardware offers

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Popular Mobile Use Cases

Tiered & Quota Services OTT VoIP Control & Reports

Cell Con estion Mana ement

Fair Use Polic

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Web Analytics


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Mobile Broadband Use CasesExam le #1: Fair Use Polic

Description

unlimited data services plan

exceeds normal usage of NW

Service

Plan

Rule QoS

reducing subscriber bandwidth

in real time

Pre-PaidAll plans

Initial QoSDowngraded QoS

500kbps128kbps

Post-Paid Initial QoS 250kb s a ue

Attractive data services for

subscriber

250kbpsDowngraded QoS 128kbps

Post-Paid500kbps


500kbps128kbps

Control over network utilization

for operator to preventing

saturation and service

Post-Paid1Mbps


1Mbps128kbps

degradation for subscriber

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Mobile Broadband Use CasesExam le #2: Tiered & Quota Services

Service Plan Speed Details

Web-Simple 750kbps512kbps guaranteed for Web Surfing

128kbps limit on all other activityTailored Packagesto meet different

Web-Voice 1.5Mbpsps guaran ee or o

128kbps limit on P2P

1.5Mb s uaranteed for P2P

internet-usageprofiles

Web-Media 3.0Mbps

512kbps guaranteed for streaming media

Service Plan Speed Daily P2P Quota

Swift Basic 750kbps 5MBQuotas can be

Swift Extra 750kbps 15MB

Turbo Basic 1500kbps 5MB

monthly, globally

or per application

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Cell Awareness (CellWize with Allot)

Monitor & Control RAN

ac au

Real-time and long-termmonitoring subscribers

and protocols per cell

Automated enforcementof predefined QoS

policies in congestion

cases integration with PCRF

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Cell Awareness With PCRF

1 - Subscriber session started usageaggregated per cell \ network entity

PCRF SPR- o e ec usage a ove cethreshold and notify PCRF cell is congested

3 - PCRF update session with matching

policy.

Gx2 3** Allot PCEF updated once congestion iscleared.

PCEFRADIUSCells capacity

thresholds

1

InternetRAN

Gi

Allot ServiceGatewa

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Subscribers


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Right gear at the core enables more

Device awareness plans as device doesnt have to be a phone

eBook readers (hidden mobile charge)

Misuse detection (phone as a modem)

Charging flexibility as data doesnt mean a monthly plan

Many users are discouraged by long-term and expensive

commitments Add services Clean Pipe, Accelerate Media

Meaningful Quota as most users dont understand MB, enforce

through layman terms (movies, MP3s, etc.) or Quota-less services

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Right gear at the core enables more cont.

Meaningful Rates Surprise! most users dont understand speeds

but will understand Superior Video Package

Real time response Propose more before blocking if quota reached

Offer alternative services (e.g., off-load, VoIP)

Transparency offer & User self control Billing shock notifications (extraordinary events)

Real time billing reports

Control gear (turbo button, plan control)

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Market Education

Control, Block, Shape (throttle)

Replace words by new offerings:

Choose our lan

Personal (Im a gamer)

pt- n es, want to see some a s

Reward (Another movie download due tonetwork issues)

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Net Neutrality

Market confusion leading to service providers

paralysis solidifying the dumb pipe approach

What it is about? A lication discriminationtransparency

,

user privacy (thats a different topic)

e wor resource op m za on an new pr c ng

models arent synonymous with net neutrality violation

Regulations do depend on geography and on specific

operator licensing scheme (e.g., OTT VoIP)

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Net Neutrality cont.

,

identical regulation for all SPs within a given

Transparency will encourage more personalized

c o ces re ecte n var ous mont y p ans

The ability to react to real time user demands and

network congestion considerations will allow the

operator to adjust dynamically to any newsituation

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Summary

Its all related - Relieving the strain on network infrastructure and

increasing revenues from data services with the same tools

Mobile broadband calls for innovative considerations for pricing- orge ancy vo ce m nu es an s pac ages

To put out a fire with flammable materials - All-you-can-eat

The importance of price differentiation setting the right levels

for the ri ht services and the ri ht crowd with the ri ht devices

Market education by new offerings with less techno-lingo

- - -be creative, fair and transparent

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Jay Klein - Allot Communications

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