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Cisco Mobile Internet The Intelligent Network

Thierry Maupil NGMN June 3, 2010

Mobility BDM_0110

2010 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

NDA Presentation

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Whats new Whats unique

Completes the Cisco end-to-end mobile multimedia technology architecture Combines complementary expertise (IP, Video, Multimedia Core)

Radio agnostic, world-class plug-and-play network from cell site to data center

Why is this important


The IP core network is the engine for network optimization and monetization having the greatest impact on operator revenue and profits
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Mobility BDM_0110

2010 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

NDA Presentation

Mobile Internet is Changing Everything

New Devices

High-speed Broadband

New Business Models

More Applications

The Network is the Platform


Mobility BDM_0110 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential NDA Presentation

Cisco VNI Mobile Forecast Update


Key Takeaways
Annual mobile data traffic for 2014 (40 exabytes) will be 133X greater than the total global mobile data traffic from 1980-2010. Global mobile data traffic is growing 2.4 times faster than fixed data traffic. Mobile video will be 66 % of global mobile data traffic by 2014 By 2014, there will be over 5 billion personal devices connected to the mobile network and billions more machine-to-machine nodes. The average mobile broadband-connected laptop will generate 5X more mobile data traffic in 2014 (7 gigabytes/mo) than 2009 (1.3 gigabytes/mo). Today, smartphones are only 10% of all handsets in use, but generate over 50% of global mobile data handset traffic. By 2014, over 400 million of the worlds Internet users will access the network solely through a mobile connection.

Source: Cisco Visual Networking Index (VNI) Global Mobile Data Forecast, 20092014
Mobility BDM_0110 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential NDA Presentation

The Mobility Challenge


Mobility requires unique technology

Service Enabling

Services
Video downloading/uploading On-demand Messaging/Location/Presence Audio / Video Conferencing Enhanced Charging

Data Traffic
Millions of bits 2G Billions of bits 3G LTE 4G 2.5G

Network
Thousands

Multi-millions

Connections

Billions

Mobility BDM_0110

2010 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

NDA Presentation

The Packet Core


The Brain of the Network
Packets Devices

Intelligence
Messaging Packet inspection & manipulation Subscriber profile, policy enforcement Enhanced charging Quality of service

Voice

Cell phones
Video

Smartphones Packet Core Laptops Tablets Cameras M2M

Music

Peer-to-peer

Performance
High-speed data throughput Rapid call set-up and termination High availability Low Latency

Web page

Mobility BDM_0110

2010 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

NDA Presentation

Network Transformation
Investment in Intelligence
Current CapEx Spend Traditional Services Mobile Internet

80-90%

10-20%

RNC
Radio / Microwave

Voice & Messaging

IP RAN Aggregation/ Backhaul

Edge / Evolved Packet Core

IP Core

Data Center/ Cloud

Mobile Internet Investment will Drive Future Profitability


Mobility BDM_0110 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential NDA Presentation

Service Provider Challenge: Future Profitability


Making profit beyond basic subscriptions Increase service velocity Service quality and security

Profitability =

Revenue = Monetization CapEx + OpEx = Optimization


Reduce operational complexity Increase traffic efficiency

Manage the bandwidth explosion from video Simplify network architecture Maximize return from infrastructure

Mobility BDM_0110

2010 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

NDA Presentation

Optimization
Leveraging the Intelligent EPC

Profitability =

CAPEX + OPEX

Functions Integration (in-Line DPI)

Intelligent IP Network

Traffic Optimization
Protocol Data/Video

DC

IP Core

DC

ASR 5K

Internet Offload WIFI / Femto

DC

Edge

DC

IP RAN

Policy Rules & Enforcement

End-to-End QOS/QOE

Mobility BDM_0110

2010 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

NDA Presentation

Optimize: US Tier 1 Operator


Enhanced Charging for Revenue Leakage
Problem
Seeing lost billing data due to lower reliable offline systems and external DPI Charging records were being generated by offline billing system
Transactional Mediation Rating
Pre-paid Post-paid

RADIUS, DIAMETER

Solution
Starent DPI with enhanced charging service tiered/differentiated billing application

Chargeable traffic

Category 1 (e.g. URL1 traffic) Category 2 (e.g. e-mail traffic)

Non-chargeable traffic Data Session Traffic

Results
Translated into $1000s per day in recovered revenue and no lost billing data
Mobility BDM_0110 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential

NDA Presentation

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Service Provider Challenge: Future Profitability


Making profit beyond basic subscriptions Increase service velocity Service quality and security

Profitability =

Revenue = Monetization CapEx + OpEx = Optimization


Reduce operational complexity Increase traffic efficiency

Manage the bandwidth explosion from video Simplify network architecture Maximize return from infrastructure

Mobility BDM_0110

2010 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

NDA Presentation

11

Monetization
Leveraging the Intelligent EPC
Tiered Subscriptions

Revenues

Profitability =

Intelligent IP Network

QoS Controls
Turbo Service

B2C
Business to Consumer IP Core DC DC $ 5K ASR
DC
Service Providers

Unified Mobile Office


Any location, Any device

Preferential Charging
Freemium, Off-peak

M2M and M2H


Smart Grid, Home Security, Sensor Monitor

Edge

DC

mCommerce
Mobile Money, Key/ID, Credit Card

IP RAN

Service Controls
Parental Controls, Data Roaming

Preferred Access
Paid by producer

1. Protect, Control, and Grow Services Base 2. Revenue Share with Third-Party Services 3. Deliver Operator Services to Any Device, Any Screen
Cisco Confidential

eBooks, Gaming, Sports, Personal Assistant App Store


Revenue Share, SP Applications, Social Ntwk

Mobility BDM_0110

2010 Cisco Systems, Inc. All rights reserved.

NDA Presentation

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Policy, In-line Services, Intelligent Management The Baseline to Monetization


Personalization Services
Automated usage notifications Parental controls Roaming management

Resource Management
Traffic optimization Time based charging Fair usage

New Revenue Creation


Tiered services Turbo service Location or On Net charging Freemium
Cisco ASR 5000 CSCF

Mobility Unified Reporting

AAA SPR

OCS OFCS
Ga / Gy Radius/ Diameter

PCRF Rx

IMS

MAP/Diameter

Gx

2G/3G, LTE, WiFi, Femto

Internet

Cisco ASR 5000


SGSN / MME / SGW

Cisco ASR 5000


GGSN / PCEF / PGW In-Line Services

Corporate

Mobility BDM_0110

2010 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

NDA Presentation

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Mobile Monetization
Harnessing Subscriber and Network Intelligence
Use Case: Social Networking with Content APAC Providerspace for sharing views, photos, videos; create personal chat rooms; unlimiited video streaming Results: Price per upload = $1, price per download $.25; creating chat rooms is free = revenue increase Use Case: Mobile TV Revenue share with content providers for all you can eat Sports or News Zero rate the application Results: Increase in ARPU and stickiness from Mobile TV
Deliver SP and Third-Party Services to Any Device/ Screen

Revenue Share with New Third-Party Services

Use Case: Tiered Services Service plans personalized to usage patterns Bronze/Silver/Gold, with usage cap and QoS throughput Results: Revenue increase of $22.9M/month, subscribers up from 1.5M to 2.2M, ARPU increase of $6.85/month

Protect and Grow SP Content/ Services Base

Mobility BDM_0110

2010 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

NDA Presentation

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Cisco Technology Architecture


Distributing The Intelligence
Content

National Data Center/

IP Core

National Data Center

Regional Data Center

ASR 5K

Regional Data Center

Edge

IP RAN

Business
Mobility BDM_0110 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential NDA Presentation

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Mobility BDM_0110

2010 Cisco Systems, Inc. All rights reserved.

Cisco Confidential

NDA Presentation

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