Brian G Herbert

Data Monetization Examples and Insights Global Evolution of Data Plans Deep Packet Inspection Trends Mobile Data Workshop May 2012 Information Security Level 2 – Sensitive © 2012 – Proprietary and Confidential Information of Amdocs Operators in Global Regions Vary as to Evolution Stage Lifestyle-oriented. Location-aware Brand-reinforcing Affinity-based Mobile Data Plans 4.0 QoS by plan, app, or time. App wallets. Pre-loaded devices Value-based Mobile Data Plans 3.0 Volume-based Mobile Data Plans 2.0 Examples: Volume or time cap. Pay-as-you-go Unlimited Mobile Data Plans 1.0 2 Information Security Level 2 – Sensitive © 2012 – Proprietary and Confidential Information of Amdocs Globally, Plans Aligning to Cost and Subscriber Value Market/Business Drivers: Data ExplosionCongestion Relief Sync Charging Models with Customer Values and Service Costs Drive Loyalty via the Customer Affinities Tighter Partner & OTT Profit Management Global Examples MTN- dynamic, real-time discounts for voice or data based on localized network load Orange- caps and tiers for data volume, surfing time Globe– 12 Million subscribers using app micro-wallets XL Axiata, ThreeUK– Service customization with QoS CALA Operator- free mother’s day SMS leads to subscriber notifications for free usage on birthday Giffgaff (O2 MVNO)- loyalty points program, community-developed apps, co-op discounts FranceTelecom, TeliaSonera- plan exclusions or surcharge by protocol, such as e-mail P2P, or Skype In the Following Examples: • Subscribers given option to spend on just what has value to them (Globe) • Plans being used to promote the 4G vision- launch excitement (Singtel) • Operators making offers that connect with customer affinities (Maxis) Emerging Challenge: Identify patterns/thresholds…without encroaching privacy rights 3 Information Security Level 2 – Sensitive © 2012 – Proprietary and Confidential Information of Amdocs Common, Critical Challenges for Improved Monetization Understanding of Content Value versus Delivery Cost • Pricing dynamics that include market, competitors, and network costs • Analytics to drive revenue and cost models with partners Customer Experience Improvement • Actual opportunities for incremental revenue and/or churn reduction • Pricing, policy, and experience creation aligned with understanding of customer price elasticity and affinity Operator’s Business Model • Relationships with content providers to shift operator’s current burden • Building on customer “must-haves” and exclusivity opportunities • Many plan innovations will require evolution of operator’s privacy model Orchestrating the Infrastructure • Ability to identify data types, usage, and controls in support of various offers • Integration and dynamic use of policy, charging, and service control capabilities 4 Information Security Level 2 – Sensitive © 2012 – Proprietary and Confidential Information of Amdocs Developed Regions Launching Tiered Plans Asia Europe North America “Tiered” defined to include time, QoS, content, and other tiering distinctions 5 Information Security Level 2 – Sensitive © 2012 – Proprietary and Confidential Information of Amdocs Charging & Policy Integration Becoming Essential • Congestion relief dominates existing policy implementations • Emerging plans (wallets, app packages and discounts, plan exclusions) demand integration of policy and charging From Global Amdocs Customer Survey- 3rd Quarter, 2011 6 Information Security Level 2 – Sensitive © 2012 – Proprietary and Confidential Information of Amdocs Market and Regulatory Differences by Region APAC EMEA CALA NA 7 • ~50% of users globally. Younger, data-intensive demographic • De-centralized regulatory environment, less privacy activism • • Business-oriented marketing, cross-border mobility, high penetration of smartphones in Western Europe Centralized (EU) regulatory, active w/bill shock & some privacy • First & primary Internet access is via mobile for many users, network build lags other regions and is limiting factor • De-centralized and less active regulatory environment • Mobile penetration reaching saturation, smartphones dominating new device sales • Personal privacy and net neutrality- regulatory and from activism Information Security Level 2 – Sensitive © 2012 – Proprietary and Confidential Information of Amdocs Deep Packet Inspection Trends Deep Packet Inspection Trends Trend Insight: Vendor Insight: Allot: shift from traffic shaping/ throttling to experience enhancement (ex. mobile video optimization) Velocent: privacy workarounds w/packet header and no packet payload storage Facebook generation: under 35 focus on connected experience, privacy a non-issue Beyond traffic shaping: requirements shift from managing threat to capturing opportunities Modeling to Offers: DPI a growing data source for analytics to identify behavior patterns for offers DPI’s killer app?: DPI-enabled mobile video optimization fast growing revenue source NA: privacy and net neutrality has delayed DPI growth. EMEA: growth in offers, offer exclusions also driving DPI needs EU avoided restricting DPI use, just requires disclosure CALA: network build lags, but mobile web is first & primary access method for majority 9 APAC: largest DPI base. Consumers: OK with +experience vs. -privacy tradeoff Regional Insights: Information Security Level 2 – Sensitive © 2012 – Proprietary and Confidential Information of Amdocs DPI – What are the Takeaways? Majority of emerging monetization plans require DPI technology ● Some DPI workarounds emerging to address privacy issues ● ● Examples: using packet header and port, avoiding payload storage Plan exclusions drive DPI need as much as plan inclusions (ex. prohibit or surcharge on P2P or Skype) ● Evolving toward use for use of rich dpi behavioral data to model patterns of use and customer affinity groups ● 10 Information Security Level 2 – Sensitive © 2012 – Proprietary and Confidential Information of Amdocs Mobile Data Plan Workshop Recommended Workshop Topics Analysis and Feedback Loops Workshop with AT&T Marketing : DPI: How its Being Used and Why Systems Capability Analytics for Segmenting & Pricing • Market and Competitive Business Analysis Readiness • Monetization Analytics Technical Readiness • Product, Systems, & Environment Alignment • Offer Creation • Business Rules and Policy Integration • Revenue Actualization Use Case Evolution Global Use Case Analysis…Drivers and Implications Planning Insight Process Effectiveness • • Amdocs tailors thought leadership workshops to clients’ interests and lifecycle stage needs Building on AT&T’s request, real-world examples- drivers, results, and implications 12 Information Security Level 2 – Sensitive © 2012 – Proprietary and Confidential Information of Amdocs Thank you