Post on 06-Apr-2018
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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8/3/2019 Jay Klein - Allot Communications
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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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8/3/2019 Jay Klein - Allot Communications
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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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8/3/2019 Jay Klein - Allot Communications
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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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8/3/2019 Jay Klein - Allot Communications
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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)
8/3/2019 Jay Klein - Allot Communications
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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
, ,
8/3/2019 Jay Klein - Allot Communications
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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
Initial QoSDowngraded QoS
500kbps128kbps
Control over network utilization
for operator to preventing
saturation and service
Post-Paid1Mbps
Initial QoSDowngraded QoS
1Mbps128kbps
degradation for subscriber
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8/3/2019 Jay Klein - Allot Communications
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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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8/3/2019 Jay Klein - Allot Communications
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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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