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Transforming Mobile Networks from 2G/3G to 4G LTE
Ian MacleanVice President, Strategy
Terry HungleChief Financial Officer
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Forward-Looking Statements
Statements in this presentation that are not historical fact are forward-looking statements. Some of theforward-looking statements contained in this presentation can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and“potential,” among others. Forward-looking statements include, but are not limited to, statementsregarding our intent, belief or current expectations with respect to matters such as future industrytrends, capital expenditures by mobile service providers, the adoption of 4G LTE technology by mobileservice providers and users, and our expected financial performance subsequent to our most recentlyreleased financial results. Forward-looking statements are based on our management’s beliefs andassumptions and on information currently available to our management. Such statements are subjectto risks and uncertainties, and actual results may differ materially from those expressed or implied inthe forward-looking statements due to various factors. Investors should review factors described in ourfilings with the U.S. Securities and Exchange Commission, including under the heading “Risk Factors”in such filings. Forward-looking statements speak only as of the date they are made, and we do notundertake any obligation to update them in light of new information or future developments or torelease publicly any revisions to these statements in order to reflect later events or circumstances or toreflect the occurrence of unanticipated events.
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Introduction to Mavenir
Mavenir Systems (NYSE: MVNR) provides software-based networking solutions that enable mobile service providers to deliver next generation services over 4G LTE networks.
We have a fully virtualized end-to-end portfolio of Voice/Video, Messaging and Mobile Core products.
Our solutions are based on the award-winning mOne® software platform and leverage NFV and SDN technologies for deployments on cloud-based infrastructure.
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Global Adoption of 4G LTE
Voice Networks Modernization
Service Innovation
Cloud Networks
IMS/EPC
VoLTE
RCS
NFV/SDN
1234
Key Drivers to Network Transformation
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Speed
up to 15xfaster
Services
more
revenue
Savings
less
cost
Spectrum
up to 10xbetter
4G LTE: Why is it a Necessity
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Phase 1 Phase 2
4G LTE
HighSpeed
Data
2G/3G
CircuitSwitched
Voice
4G LTE
Better VoiceHigh Speed DataRich, New Services
First Phase of LTE is “Data Only”… Two Networks for Voice & Data
Next Phase of LTE is “Unified”… One Network for Voice and Data
Reallocate Spectrum from 2G/3G to spectrally efficient 4G LTE
4G LTE: Phases of Network Transformation
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Launch Voice
over LTE
Launch 4G LTE
Data
Coverage Capacity
Launch New
Services
4G LTE: Network Transformation Timeline
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1. Better User Experience for Voiceo HD Audio makes voice clearer and reduces background soundo Faster call setup times are remarkableo Simultaneous voice calls and high-speed data sessions
2. More Efficient All-IP Technologyo Better spectral efficiency on LTEo Migration to VoIP technologies to increase flexibility & agility, lower costo Retire obsolete circuit-switched technology (i.e. SS7)
3. Foundational Element for Service Innovationo Staying relevant to consumers by creating value through new services (i.e. RCS)o Multi-device cloud services becomes the new normal in LTE network (i.e. OTT)
VoLTE is a catalyst and will be disruptive
The Benefits of VoLTE
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Faster Call Setup HD Voice Simultaneous Voice & Data Video Calling
Multimedia Services Multi-Device Ecosystem Service Ubiquity Contextual Communications
The Benefits of Service Innovation
VoLTEVoice over LTE
RCS Rich Communication Services
Better Voice Network Richer User Experience
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Clear conversations and reduced background noise so you feel like you’re right next to each other. Make and receive high-definition voice calls and enjoy:
• Crisp call quality• Less background
noise• Simultaneous voice
and data at 4G LTE speeds
Source: AT&T Website
VoLTE is the next major advancement in LTE; customer benefits include faster call setup times (almost twice as fast) and HD Voice.
Launching VoLTE is our first step toward a host of rich communication services and additional innovations around Wi-Fi calling.
Source: TMO News
VoLTE… opens up "many new doors for many technologies to launch on that platform." Shammo said those include HD telepresence services including "really quality telemedicine" and other services. VoLTE will enable HD video calling that can run across different devices and smartphone platforms.
Source: Fierce Wireless
EE has announced plans to launch VoLTE, with a VoWi-Fi service… both promise improvements in quality-of-service over traditional circuit-switched calls.
Both services are enabled via an IMS capability in EE’s network.
Source: MobileWorldLive
What Operators are Saying About VoLTE
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Software Based
Building Software Networks
2G/3G 4G LTE
Hardware Based
INTEGRATED SOFTWARE ONSPECIALIZED HARDWARE
VIRTUALIZED SOFTWARE ONGENERAL PURPOSE HARDWARE
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Key Elements of Software Networks
NFV is Network Functions
Virtualization
SDN is Software Defined
Networking
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The Scale and Impact of Software Networks
SDN, NFV market will account for nearly $4 Billion in 2014. Estimates further growth at a CAGR of nearly 60% over the next 6 years
60%CAGR
SDN and NFV can enable service providers (both wireline/wireless) to save up to $32 Billion in annual CapEx investments by 2020
Significant price and gross margin erosion for traditional hardware-based network switching equipment by 2017
$32BSavings
Source: SNS Research
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SDN Explained
SDN Revolutionizes the Data Network
SDN makes the data network smarter and easier to manage
Creates Efficiency by Separating Control and Data Forwarding Planes
Standards Driven Technology creates multi-vendor, open ecosystem
SDN does to data networks what R4 did to voice networks 15 years agoSND Controller
Application Logic
Control Logic
SDN Datapath
Forwarding Plane
SDN Datapath
Forwarding Plane
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NFV Explained
NFV Revolutionizes the Data Center
NFV is based on the same network topology as exists today
NFV changes the cost equation for building next generation networks
Standards Driven Technology creates multi-vendor, open ecosystem
NFV leverages virtualization technology proven in the IT world
NFV Services
VNF 1
NFV Infrastructure
Virtualization Layer
OrchestrationVNF n…
Hardware Layer
Management
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SDN vs NFV
Split control & data forwarding planesStrategy
Replace hardware boxes with software functions
OpenStackOpenFlowProtocol
Data NetworksFocus Data Centers
SDN NFV
Industry-standard serversIndustry-standard servers or switchesApplications
Lower cost and complexity, increased agilityBenefit Lower cost, increase
flexibility & agility
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NFV Timeline
2013 2014 2015 2016+
Proof of ConceptOperators & vendors
learn in the lab
ProductizationVendors productize
SDN & NFV SW
Operators begin a few field trials
Commercial Introduction
Limited commercial deployments
Operators deploy 1 or 2 use cases
Commercial Rollout
Wider spread commercial deployments
Operators deploy several use cases
Virtualized RCS launched March 2013
Start Now with Virtualization
NFV Innovation of the Year
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How NFV is Changing the Game
“Virtualization allows IT systems to function with fewer pieces of hardware…of a less-specialized and cheaper variety. These
capabilities lead to a 70% reduction in costs,” Marian Croak, AT&T’s SVP for Domain 2.0, told CIO Journal, re the cost of provisioning services.
Deployment Flexibility enables new deployments models such as multi-tenancy
Elasticity enables optimal utilization of computing resources across applications
Service Agility enables the rapid introduction of new services into the network
Scalability (up or down) enables “one size fits all” approach for SW solutions
Source: CIO Journal May2014
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The Network of the Future has to be…
faster.better.
cheaper.smarter.
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…Because Mobile Data Traffic is Exploding
Source: Cisco VNI June 2014
Over 50%of all IP traffic will originate with non-PC devices by 2018.
Traffic from wireless and mobile devices will exceed traffic from wired devices by
2018.
Globally, mobile data traffic will increase
11x between 2013 and 2018
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…as is the Mobile Ecosystem by 2020
Annual revenue growth of 16% from the broader ecosystem (from applications, content and advertising) isexpected to total US$ 576 billion by 2020
The number of 4G mobile connections (including handsets, tablets and machine-to-machine devices), is forecast to reach 11 billion by 2020
The number of mobile connections is forecast to reach 4.3 billion, or 56% of the world’s populationby 2020
Source: GSMA Mobile Economy 2014
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Network of the Future
A Software Network…
…removes the boundaries/barriers of devices
…removes the boundaries of geography
…enables service innovation and launches quickly and easily
…enables scale to support exploding data traffic and devices
…enables Global Carriers
…enables personalization
faster. better. cheaper. smarter.
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The Network of the Future
Ubiquitous Access to Cloud ServicesProviding a broad range of next generation mobile communication servicesA single converged networkService delivery to multiple devices and device typesAcross different access domainsScalable
2G/3G Web
WiFi4G LTE
WAN
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The Changing Mobile Environment…
Requires the Software Network of the Future
IoTInternet of ThingsM2M
Machine to Machine
FMC Fixed Mobile Convergence
RFID Radio Frequency
Identification
Big Data
Massive volumes difficult to process