2013/10/11

Security Level:

Huawei Dynamic Tariff Solution
2010-06-07
www.huawei.com

HUAWEI TECHNOLOGIES CO., LTD.

Huawei Confidential

Agenda
 DT Introduction
 Huawei DT Solution  DT Prerequisites

 Huawei DT Success Stories and Advantage

HUAWEI TECHNOLOGIES CO., LTD.

Huawei Confidential

Page 2

Keep improving
Look through the traffic portrait
Poor network quality

Our target
Convert idle network capacity to revenue
Wasted capacity

Alleviate the traffic to provide better network quality

A shopping mall

More subscribers & more revenue Customers’ satisfaction with price and network quality High loyalty & Low churn rate ..

Poor network quality

Wasted capacity

A resident area

HUAWEI TECHNOLOGIES CO., LTD.

Huawei Confidential

Page 3

LTD. Decrease congestion Traffic Peak decreasing The Existing radio network capacity Traffic The admitted traffic peak The actual traffic in dynamic mode Spare capacity Utilized The actual traffic in traditional mode 00:00 HUAWEI TECHNOLOGIES CO.Dynamic tariff Dynamic Tariff (DT) is defined as a mechanism to charge varying prices at different times. with the objective of better network quality. Huawei Confidential 24:00 Time Page 4 . higher market share and other strategic criteria. optimal revenue. in various locations. according to different constraints..

Improve quality of calls due to less congestion at peak time       HUAWEI TECHNOLOGIES CO. Affordable price for low income users. Huawei Confidential Page 5 . to attract more new customer and let them use the mobile voice. Increasing loyalty Increase market share and improve competitive Improve value of money. LTD..Benefits of DT Operator  Customer  Reduce CAPEX of network extension for more network usage Increase revenue by utilizing the spare network capacity Improve the quality of service Reducing churn.

. Huawei Confidential Page 6 . LTD.Agenda  DT Introduction  Huawei DT Solution  DT Prerequisites  Huawei DT Success Stories and Advantage HUAWEI TECHNOLOGIES CO.

. LTD. peak time Range: 20%-40% Target: maximize revenue Mode: Random Decision Model Statistics and report Regional features Subscriber behavior features Subscriber value features Network traffic profile Group A: Urban. Huawei Confidential Page 7 . Cell conf Segment cell groups Cell features Segmentation Rules Set discount policy Calculate optimal discount Cell Groups Discount Policy Evaluate discount effectiveness Cell Groups Discount Policy Cell property model Segmentation Engine Discount policy: Discount range Discount target Discount mode Group A. high ARPU Group B: High price elastic Group C: Rural. low MOU … A B C Group A: Group B: 1AM: 70% 1AM: 80% 2AM: 80% 2AM: 90% … … 8AM:30% 8AM:40% … … 20 20 PM :20% 90%PM :30% 70% 90% 90% 80% 70% 90% 70% 70% 90% 80% 80% 70% 80% KPI Report Monitor Evaluate the discount effectiveness and adjust the discount policy A B C HUAWEI TECHNOLOGIES CO. non peak time Range: 50%-90% Target: maximize revenue Mode: model (prediction) Group B.Main process of DT Depict cell features Voice CDR Traffic Stat.

Huawei Confidential Page 8 . LTD. Residential area. Shopping mall. Rural. which reflect the user’s behavior and value within a cell HUAWEI TECHNOLOGIES CO.… These properties can be depicted from voice CDR..Depict cell features Cell Features Regional Properties Traffic Properties User Properties Circle Network Traffic Profile MOU of total subscriber MOU of DT subscriber MOU of non-DT subscriber ARPU of total subscriber Cell’s features mainly depend on user’s behavior and value City Geographical features ARPU of DT subscriber ARPU of non-DT subscriber Number of total subscriber Number of active DT subscriber Price elasticity Urban.

LTD. Cell Segmentation Discount is NOT a geographic concept (cell) Discount is a marketing concept (segment) HUAWEI TECHNOLOGIES CO. Huawei Confidential Page 9 . reduce calculation work  be divided into several cell segmentations. because the number of cell sites is so large and the calculation of cells’ discount is a computing intensive work. and also it can optimize performance. thus it brings convenience to end user.Segment cell groups  Why segments cells? Some cells have the same characteristics such as traffic. location and so on. So the cells can Simply discount policy configuration.. Cells of one cell segmentation can be applied for the same discount policy and discount.

Segment cell groups  How to segment cells  The end users define the segmentation rules. then DT can segment cell groups automatically Also the end users can move cells from one cell group into another cell group manually and periodically  HUAWEI TECHNOLOGIES CO. LTD. Huawei Confidential Page 10 ..

extra 5% off on Holiday Optimization traffic 5%~15% off Different cell group can set different discount automatically in the same period The same cell group can set different discount automatically at different timeslot Support special discount setting on special date or special   events  5% 35% Discount Generation based on condition constraints  Optimization the network traffic but revenue can not reduce a special ratio such as 5%  Improve the revenue but limit no more than peak network traffic 65% Increase network usage 5%~95% off Constraint: Revenue decrease should be no more than 5% HUAWEI TECHNOLOGIES CO. LTD. Huawei Confidential Page 11 .Discount Target for Different CELL  Flexible Discount Strategy to realize the business objects and value  Increase revenue 0%~60% off..

it is permitted to define the network utilization threshold for this target. To alleviate traffic may cause low network usage which can lead to low revenue. To promote call may cause more network usage which can lead to low network quality. flexible marketing strategy Different Cell group can be specified different target according to marketing strategy To promote the revenue may cause more network usage which can lead to low network quality. LTD.Set discount policy-discount target Multiple discount targets. it is permitted to define the network utilization threshold for this target.. Page 12 . it is permitted to define revenue threshold for this objective. Huawei Confidential Revenue Promotion Decision Model Target Call Promotion Traffic Alleviation HUAWEI TECHNOLOGIES CO.

Huawei Confidential Page 13 .Set discount policy-decision mode Prediction model + Random algorithm makes discount more variable. continuously bring surprise to user   Predictive model: curve regression algorithm Random algorithm: Uniform random. LTD. Normal random.. Intervention random HUAWEI TECHNOLOGIES CO.

Calculate optimal discount Input Data + Discount Policy + Decision Model = Optimal Discount DTE: Self learning algorithm Intelligent decision In addition. National Day HUAWEI TECHNOLOGIES CO. end user can specify discount manually In case of special event and special day. LTD.g.. Huawei Confidential Page 14 . e.

LTD. each day DT calculates discount for tomorrow. Huawei Confidential Page 15 . it is possible that the network traffic suddenly become very high or very low. then DT will adjust the discount immediately HUAWEI TECHNOLOGIES CO..Calculate optimal discount Real time discount decision. in some case. End user can define some rules. once the currently network utilization meets certain rule. DT scan the network utilization periodically. rapidly discount adjusting Generally.

DT Effectiveness Evaluation Network  Utilization/Traffic      Network Monitor Network overload and idle alert Bottleneck analysis Cell portrait analysis Traffic Optimization  The amount of new DT subscribers ARPU and MOU of subscribers Active Subscriber Analysis  Revenue Improvement Customer Development    The revenue comparison analysis Call Duration Analysis Discount Analysis HUAWEI TECHNOLOGIES CO. Huawei Confidential Page 16 . LTD..

. Huawei Confidential Page 17 . Deep insight into DT effectiveness KPI Network Utilization/Traffic Daily KPI Number of Active Subscriber Call Minutes/MOU/ Revenue/ARPU Mean Price/ Mean Discount Number of New DT Subscriber Number of Offline DT Subscriber ARPU of Sample Subscriber Monthly KPI MOU of Sample Subscriber DT Monitor and Analysis Report Cell Portrait Analysis Network Analysis Time Bottleneck Analysis Cell Bottleneck Analysis Revenue Analysis Call Duration Analysis Active Subscriber Analysis Discount Analysis Monitor Network Traffic Monitor Network Monitor Overload Alert Idle Alert Revenue Monitor Call Duration Monitor Active Subscriber Monitor Discount Monitor System Monitor Weekly KPI Business Analysis Business Monitor HUAWEI TECHNOLOGIES CO. LTD.Evaluate discount effectiveness Powerful analysis and monitor.

LTD.. Huawei Confidential Page 18 .Analysis Feature Samples HUAWEI TECHNOLOGIES CO.

Huawei Confidential Page 19 .System Monitor HUAWEI TECHNOLOGIES CO.. LTD.

System Interaction Processes (Option1) USSD Customer Provisioning/CRM… Discount query before call or discount notification during call setup phase USSD discount message ① Registering (Optional) ② Data integration ③ Discount synchronize to IN/OCS directly DT subscription IN/OCS/Billing CDRs Discount Customer ④ Discount broadcast to customer via NMS Discounts Discounts ④ Discount broadcast to customer via separate CBC Dynamic Tariff Discounts Discounts Traffic performance Stat. Discounts Separate CBC Huawei Confidential Page 20 . LTD.. Cell Traffic NMS/EMS BSC Discounts BTS ⑤ USSD notify to customer ⑤ Customer request Discount via USSD HUAWEI TECHNOLOGIES CO.

Discounts Separate CBC Huawei Confidential Page 21 . Cell Traffic NMS BSC Discounts BTS ⑤ USSD notify to customer ⑤ Customer request Discount via USSD HUAWEI TECHNOLOGIES CO.System Interaction Processes (Option2) USSD Customer Provisioning/CRM… discount notification during call setup phase Discount delivery during call setup phase USSD discount message ① Registering ② Data integration ③ Discount DT subscription CDRs IN/OCS/Billing synchronize to IN/OCS via MSC Customer MSC Discounts ④ Discount broadcast to customer via NMS Discount query Discounts ④ Discount broadcast to customer via separate CBC Dynamic Tariff Discounts Discounts Discounts Traffic performance Stat. LTD..

LTD.=Huawei SCP) Customer Existing CRM/Provision Discount Info HLR ①Registering ②Data Collection Existing IN/Billing DT Subscription CDR Discount Info Discount Info Query via USSD Huawei SCP ③Discount info sent to Huawei SCP Customer Discounts ④Discount broadcast to customer via separate CBC Traffic performance Stat..DT System Interaction Processes (Option3) Change O-CSI (SCPaddr. Cell Traffic Dynamic Tariff Center NMS/EMS BSC Discounts BTS ⑤Customer query Discount via USSD Discounts CBC HUAWEI TECHNOLOGIES CO. Huawei Confidential Page 22 .

 Non-DT calls directly go to Legacy IN from MSC. IDP handover Call continue . . Call end 2) 3) MSC’s cooperation is required. To get the subscriber’s current location information (Cell Information).  If “discount query” is provided via IVR.DT Call Procedure (Option3) ① Huawei SCP Standard CAP 1 2 When the DT subscriber originates a call. the call is triggered to Huawei SCP via standard CAP interface. ② Existing IN User A BSC CAP with extension MSC DT Subscriber Non-DT Subscriber User B BSC The typical signaling flow: MSC MO IDP HuaweiSCP Check discount information IN Note: 1) Rating and session control Carrier needs to provide the interface protocol used between Huawei SCP and existing IN. SCP checks the discount information and hands over the call to the existing IN carrying the discount information in the CAP interface with extension. Legacy IN gets discount info from IDP. Legacy IN applies discount info on the rating and handles the call accordingly. the same procedure is followed. Huawei can follow the interface with customization. . . and announce it in IVR. HUAWEI TECHNOLOGIES CO.. LTD. Huawei Confidential Page 23 . MSC needs to report the location information of the subscriber in the IDP message or HLR needs to support ATI operation of MAP protocol.

SMS code. DT needs the customers to know how to order the service in an easy way. IVR. • Subscribers can register or cancel DT service via a specified USSD code. • Once successfully subscribed to DT services. e. Huawei Confidential Page 24 . dealers for subscribers to consult or register the DT service. Call Center (FAQ) CRM/Provisioning… Billing/HLR… HUAWEI TECHNOLOGIES CO... subscribers can query current discount via USSD code or IVR.g. LTD. • Alternatively carriers can provides others channels.Customer Experience – Register to DT service • As a competitive service.

 Discount display in mobile phones and the discount will be updated per half hour. which have a simple CBC module. LTD. DT IMC NMS/EMS CBC  Via independent CBC  In case a simple CBC is not available in any of BSC. Huawei Confidential Page 25 . an independent is needed. the discount is transferred to NMS via private MML and then broadcast to customer by BSC..Customer Experience – Discount Broadcast to subscribers  Via NMS/EMS  In General. BSC HUAWEI TECHNOLOGIES CO.

DT system Architecture Portal DT Management DT Analysis Network Traffic Monitor Overload &Idle Alert Network Traffic Analysis DT Engine Cell Segmentation Discount Decision Model Discount Range Model Discount Generator Model Schedule Engine Monitor Cell Portrait Analysis DT Business Analysis DT Business Monitor Network Bottleneck Analysis   Open. standard. IN based solution Option2. LTD. modularized platform Support secondary development Rapidly integration to external system Discount Policy Mgmt Cell Group Mgmt Discount Mgmt Subscription NW Configuration NW Performance CDR Integration Integration Integration Integration FTP CRM/ Provisioning FTP MML FTP FTP MML MSC System Mgmt DT KPI Analysis Discount Analysis  DT IMC ( Inter Media Center ) Discount Delivery FTP Huawei SCP Discount Broadcast SOAP HTTP Option1.. MSC based solution Option3. Huawei Confidential Page 26 . SCP based solution NMS/EMS IN/ OCS… CBC USSD HUAWEI TECHNOLOGIES CO.

no single Node fault DB server DT IMC DT Engine Web server Fabric Switch Fabric Switch Fabric Legend Line Storage Dynamic Tariff Huawei Confidential HUAWEI TECHNOLOGIES CO.. Page 27 . LTD.Logical Networking NMS/EMS IN/OCS/Billing MSC/SCP USSD Server CBC Provisioning/CRM Switch Switch Each module has 1+1 backup.

LTD..Agenda  DT Introduction  Huawei DT Solution  DT Prerequisites  Huawei DT Success Stories and Advantage HUAWEI TECHNOLOGIES CO. Huawei Confidential Page 28 .

LTD. Provide MML document to Huawei. BTS. HUAWEI TECHNOLOGIES CO. Can provide cell performance statistics to DT via flat file interface on a hourly basis. Cell configuration data Can provide one month’s historical cell performance data during delivery phase  CBC   Can broadcast discount message.  NMS    Can provide BSC. Provide the interface protocol used between Huawei DT and existing IN..Prerequisites  IN/OCS/Billing    Can provide voice CDR to DT via flat file interface on a hourly basis. Discount was delivered to IN/OCS/Billing by FTP. Huawei Confidential Page 29 .

Agenda  DT Introduction  Huawei DT Solution  DT Prerequisites  Huawei DT Success Stories and Advantage HUAWEI TECHNOLOGIES CO.. LTD. Huawei Confidential Page 30 .

Began implementation in Jan.. Huawei Confidential Page 31 . No need to register..Pakistan Telenor  Legend CDR data integration Cell performance data integration Delivers discount to MSC Discount broadcasting MML Netact Pakistan Telenor:  Total Subscriber is about 22. Discount delivery to IN by Nokia and Siemens Network. 2010 launched in April 2010  FTP MML MSC BSC BTS Subscribers Project Implementation:  Siemens Network Optima RCs  HUAWEI TECHNOLOGIES CO.000 Total Cells for DT service: over 2000 in first phase. LTD.000. Nokia Network   Telenor DT Service:   MML MSC BSC BTS Subscribers FTP Data WareHouse IN  Dynamic Tariffing MML Discount broadcast by Nokia and Siemens Network Management.

Huawei Confidential . Uninor. launched its mobile services in Dec. 2009 Total Subscriber is about 6. Alcatel.. Ericsson. 2010 launched in April 2010 Page 32 (FTP)  HUAWEI TECHNOLOGIES CO. LTD.000  (HTTP/XML/SMPP) (FTP) (FTP) (FTP)  ( COBRA/SII) (HTTP&XML API)  DT Service:  DT integrated with Telecodia IN directly by COBRA. Huawei. NSN and ZTE (FTP)  (FTP) Discount broadcast by integration with TeleDNA CBC.000..Uninor India Case  Uninor India:  Telenor Group’s Indian mobile operation. Project Implementation:  Began implementation in Jan. (HTTP) (FTP)  5 BSC vendors.

2010 launched in April. Discount delivered by Huawei SCP..400. Huawei Confidential . Integrated with Ericsson. 2010 for Ericsson MSC by pass solution in phase 1. Astllia Network Management system.  HUAWEI TECHNOLOGIES CO. Huawei SCP bypass solution in Phase 2 Page 33  Project Implementation:   Integrated with Ericsson IN/MSC by Huawei SCP. LTD.Zain Congo Case  ZAIN Congo:   Total Subscriber is about 1. NSN. Began implementation in March.000 Total Cells: over 1500  DT Service:    IN/MSC are from Ericsson.

Huawei Confidential Page 34 . Customizes the base version development of a software product on site.Tailored.. Implementation Project Team R&D at Location HUAWEI TECHNOLOGIES CO. flexible and fast customization and maintenance let your daily operation easier Developing the basic and unified version of the software product R&D in Shenzhen and Nanjing HQ Implements a software product on site. LTD. and collect and analyze customization requirements.

. and installation    CDR and network performance data  campaign popularization and promotion  Customer behavior analysis Algorithms optimization Trail based on a special A large scope to market Continuously algorithms External interface Historical data acquire and cell segmentation   the DT service  development and test  optimization location or customer group 1st months 2nd months Huawei Confidential > 3 months HUAWEI TECHNOLOGIES CO. Page 35 . LTD.Implementation Phases DT Preparation Pilot Phase Commercial Phase  Equipment transport Software installation Debug & system test  Data quality analysis of  DT service planning.

target decision Discount Generation based on condition constraint   DT HUAWEI TECHNOLOGIES CO. Huawei provides not only DT platform. Huawei Confidential Page 36 . IN. Fast interface and implementation with all kinds of network equipments.. LTD.  Flexible Discount Strategy and multi. evaluation. design. customer services and other operational consulting  Business Value Adaptability & Implement Multiple interfaces with MSC.Huawei Solution Highlights E-2-E Solution • DT is offered as a service need to operation. but also DT marketing plan. NMS. Billing system are reserved.

huawei.com .Thank You www.