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
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VALUEBASED OFFERINGS
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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
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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
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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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