Winning the Mobile Data Revenue Challenge

a MaRketeRs hanDbook

COnTenTs
Winning the Mobile Data Revenue Challenge a Marketers handbook Introduction Innovate to Differentiate - segmented Data Plans Data Plan Innovations Part II Meeting the needs of the Occasional User 3 4 5 6 8 10 11 12 13 14 15 16 17

ibM - The Future of Telcos in the year 2015

Promotions: Winning the Battle for the Customer stand Out from the Crowd: Make it Personal

telesperience - Put The Personal into Personalization

Trusted to Protect and serve More than Technology Brand and Revenue Protection Monetizing Video

Juniper networks - Innovation in the Mobile Packet Core

Contact Us

Copyright Openet Telecom, 2011

InTRODUCTIOn
In this e-book, Openet and our partners IBM, Juniper networks, and analyst firm Telesperience share our experiences of working with service providers on marketing and evolving data services, by leveraging the latest in technology. As service providers continue their transition to customer-centric organizations, marketing departments increasingly have a greater stake in deciding what services will drive the business and the mechanisms to take these services to market. It seems that marketers must produce a conveyor belt of improvements and ideas from data plan innovations, to customer experience, to delivering on your brands quality promises. Translating a service providers marketing vision into reality, by launching, provisioning, and monetizing those services is a formidable task for the operators IT and Marketing teams. Operators back-office systems can be a bottleneck, adding cost and slowing time-to-market when it comes to capturing the opportunities presented by mobile IP-based services. For marketers to drive this agenda, they require a deep understanding of customers, market dynamics, and competitors. It also involves an understanding of the internal capabilitiesthe art of the possible. This e-Book will show how marketing can use next generation policy and charging control (PCC) software, to transform their data marketing initiatives. PCC is the combination of Policy Management and Charging. Policy provides the intelligence, and configurability to dynamically govern what a subscriber is allowed to do, and the network resources to be allocated, or made available e.g. Quality of service. Charging governs how subscribers pay for a service, the charging models used, and management of monetary balances. Together these elements provide marketers with a fresh approach to the pricing, packaging, promotions and offers, enabling more innovativion, lowering the costs to trial new ideas, and improving the agility to respond to competitive threats. This e-book will provide insight, ideas, and inspiration into what fellow marketers are working on to improve their market position. Dont be trapped by legacy systems, or legacy mindsets. set your own rules with PCC.

Jonathan Downey Director of Marketing, Openet

Copyright Openet Telecom, 2011

InnOVATe TO DIFFeRenTIATe - seGMenTeD DATA PlAns

Marketers spend time, effort and money acquiring a deep understanding of the needs and behaviours of their customers. Translating this understanding into offerings that reflect the customer isnt easy, a web of legacy systems, deployment costs and software product changes frequently get in the way. Investing in a brand to project a unique identity provides a partial answer. However, as the marketplace becomes ever more cluttered with brands, maintaining a strong, differentiated identity is difficult. When it comes to data services, price is an important part of the marketing mix. But it is not the only part of the marketing equation. Creating a differentiated identity and experience is reinforced by how data services are positioned, packaged, and priced. Data plans can be positioned to make a connection with a customers requirementsto show that you best understand their needs, and are flexible enough to meet them. It follows that Marketers who succeed in creating a valued position will succeed in acquiring customers, and benefiting from upsell opportunities to meet their future data service needs. The same PCC capabilities used to create data allowances and speed tiers, provides other powerful opportunities. It makes it possible to choose what can be included or excluded in a data allowance, and at what times of the day or week. This creates a powerful mechanism for data plan innovation, bringing into play a wide range of variables such as device type, location, time of day, applications, and protocols, all of which can be included or excluded from a plan. Being able to create unique mixes is important, because these variables may be something that a subscriber values, and therefore may be willing to pay extra for. These not only offer subscribers the precise service they are looking for, but allows for them to do so in real-time. This gives marketers tremendous flexibility to price and promote data plans at exciting price points. As data market penetration and revenues approach critical mass, more sophistication is emerging with how subscribers can be segmented. As subscriber data needs fragment, marketers minimally need to address the needs of novice subscribers, i.e. those who are beginning their mobile data experience. Lucrative power users, i.e. those experienced customers, who know what they want, will also need tailored offerings, and then there is every customer in between. PCC creates enormous opportunities to segment, to create targeted and valued packages. Marketers can now create price points that allow them to acquire new subscribers, and provide a path to upsell more services and bigger data plans, as consumers get used to the data services.

Create Targeted Packages

- Create competitively priced, tiered service plans - Sell application-specific plans - Charge extra for usage of Peer-to-Peer protocols

- Create an upgrade path to monetize data growth

To date, the emphasis on data plan innovation has centred on metering of data allowances, how many MB or GB are allowed per plan. Often with the express goal of addressing network issues, associated with the heaviest users. However, marketers are starting to look with fresh eyes at those same metering capabilities, using them as a variable in the segmentation of their customers.

Copyright Openet Telecom, 2011

DATA PlAn InnOVATIOns PART II

More and more, people are living a connected life: wishing to experience their services anywhere, anytime and more frequently on any device. The approach marketers choose to meet these needs provides scope for opportunity and differentiation. To date, many operators are seeking to differentiate based on exclusivity of their devices. However, if history tells us anything, it is that the advantages conferred by hardware are temporary. eventually, the cool form factor, the fastest processor, even the User Interface becomes mainstream, and software, and services assume a preeminent role. Data plan innovation should not be limited to what gets metered, and speed tiers. As customer relationships with their devices evolve and morph, there is an opportunity for marketers to do something interesting and different, to create a sustainable point of differentiation. Crucially, it does so flexibly. And this flexibility is essential, as it enables marketers to save on costs, reduce time to market, and quickly trial ideas. This means some subscribers can be offered the possibility to share a data allowance between their smartphone and tablet device. While for example, a parent can share their mobile internet allowance, by associating their childrens devices with their account.

Subscriber Focused Bundle

- Subscriber centric balance: sharing a data balance among a number of devices e.g. between an iPad and iPhone

- Family data plans: allowing a data balance to be shared among a defined subset of subscribers - Bolt-on: enabling a tethering option to be purchased for an extra charge
This flexibility also pays dividends when it comes to managing the customer experience associated with these options, especially when integrated with subscriber portals. subscribers can choose to dynamically add a new service, which can be purchased on a recurring or non-recurring basis. Additionally, realtime threshold notifications can be sent, with subscribers being redirected to landing pages to view their balances or to purchase additional services. Offering flexibility to subscribers with how they use their data services creates an opportunity to build loyalty. Cutting prices and offering more data allowances is not the only choice for operators. Providing value extends beyond low price.

PCC gives marketers the flexibility to adopt different strategic approaches to the proliferation of subscriber devices and demand for data access. PCC provides flexibility with how operators and subscribers can manage their balances, accounts, and services. This includes being able to create data plans specific to a device, or one shared by multiple devices, or by multiple subscribers.

Copyright Openet Telecom, 2011

MeeTInG THe neeDs OF THe OCCAsIOnAl UseR

The era of the occasional mobile internet and broadband user is now with us. In this case, occasional refers to the contract status of the subscriber. savvy new users have 3G or 4G enabled devices, such as tablet devices, but often prefer to connect via WiFi. Or subscribers when they are travelling abroad require temporary access, and want greater control over their roaming costs. However, the attractiveness of having an option to connect to a 3G or 4G network, as needed, is undeniable. For these subscribers, a prepaid approach offers the maximum amount of flexibility and convenience. Targeted at the needs of the occasional user, these data plans offer the ideal mix of convenience with real-time control of costs and usage. Service Passes create substantial cost and revenue benefits. They include the absence of device subsidization costs, and substantially lower revenue collection costs. More importantly it expands the customer base for data plans beyond those interested in contracts. It also presents a challenge, as subscriber commitment cannot be taken for granted. PCC makes it easier to create Service Passes, enabling marketers to extend their product portfolio to create highly segmented offers. This means new service plans can be rolled out to meet needs for data segmented by volume, speed, applications, and price. For maximum customer convenience, Service Passes should support multiple payment types including credit card, prepaid recharges, billed to post-paid accounts, and even Paypal. service Passes based on a PCC infrastructure, enable operators to rapidly deploy a variety of plans to meet customers diverse needs and turn them into revenue. It minimizes the impact on the network and billing systems, providing a dynamic control and monetization layer between network devices and backend systems. This reduces integration overheads, and time to market. Meaning changes such as discounts, changing of quotas,or the addition of promotional offers, can be made in hours instead of weeks. When deployed in an integrated fashion with provisioning systems, and customer self-subscription capabilities, it provides an end-to-end solution providing a rapid deployment environment. The services Pass is service and device agnostic capability makes it easy to support new mobile devices, monetize popular applications, and other service opportunities.

Service Passes

- Sell access to data services without requiring a long term contract - Support multiple payment methods, including auto renewal options

- Slice and dice how services are sold, and charging models used - Subscriber transparency into data consumption and threshold alerts
The ad hoc nature of service pass based relationships requires operators to offer connectivity of flexible duration, make it easy to purchase, and ensure services are immediately provisioned. service Passes provide such an option, enabling operators to create a lucrative new revenue stream.

Copyright Openet Telecom, 2011

s rld 1* o r r W b e do h e m ven t u y n olic P

Transform the Customer Experience with Openet Policy and Charging Controls
*infonetics March 2011 Report:

sTRATeGIC PeRsPeCTIVe: THe FUTURe OF TelCOs In THe yeAR 2015

After a decade of unprecedented change, where the phenomenal growth of mobile telephony has given rise to an era in which anyone who wants and can afford telephony has it, the industry is at an inflection point as it postures itself for future growth . . . or survival. Unless the telecom industry is able to reinvent itself as it did with mobile telecommunications in the 1990s, the next few years could usher in a period of flat/ declining growth as opportunities for industry growth based on increasing customer penetration gradually diminish. In its Telco 2015 Five telling years, four future scenarios IBM mapped a number of scenarios for operators based on a series of decisions, and environmental issues. The following four contrasting scenarios depict what the industry could look like five years from now. Survivor Consolidation: In regions with a prolonged economic downturn, reduced consumer spending leads to revenue stagnation or decline. Service providers in developed markets have not significantly changed their voice communications/ closed-connectivity service portfolio and have not expanded horizontally or into new verticals. Investors loss of confidence in the sector produces a cash crisis and elicits industry consolidation. Market Shakeout: Alternatively, a prolonged economic downturn or a weak and inconsistent recovery, may invoke a different approach that leads to a different outcome - the Market shakeout. The industry vertical integration model is disaggregated, either on voluntary basis or forced by investors as separate businesses may attract superior/sustainable returns. Retail brands emerge to collect and package services from disaggregated units. The market is further fragmented by government, municipality and alternative providers (e.g., local housing associations or utilities) that extend ultra-fast broadband to gray areas, while private infrastructure investments are limited to densely populated areas. service providers look for growth through horizontal expansion and premium connectivity services sold to application and content providers, as well as businesses and consumers. Clash of Giants: Providers consolidate, cooperate and create alliances to compete with Over the Top (OTT) players and device/network manufacturers that are extending their communication footprints. Mega-carriers expand their markets through selective verticals (e.g., smart electricity grids and e-health) for which they provide packaged end-to-end connectivity solutions. Telcos develop a portfolio of premium network services and better-integrated digital content capabilities to deliver new experiences. Generative Bazaar: Barriers between OTT and network providers blur as regulation, technology and competition drive open access. Infrastructure providers integrate horizontally to form a limited number of network cooperatives that provide pervasive, affordable and unrestricted open connectivity to any person, device or object, including a rapidly expanding class of innovative, asset-light service providers. IBMs modeling of the four scenarios suggests Generative Bazaar as the most attractive outcome in terms of revenue, profitability and cash flow projections. However, it is also the most challenging scenario because of the dramatic degree of change it will demand from the industry. Clash of Giants may, indeed, be more a plausible and natural evolution in a recovering/slower-growing economy, even if revenue and profitability potential is less than in Generative Bazaar.

sTRATeGIC PeRsPeCTIVe: THe FUTURe OF TelCOs In THe yeAR 2015

- COnTInUeD
Clash of Giants is triggered by the determination of telecom providers to take on Internet communication providers, identified by 76 percent of telecom executives as the greatest competitive threat to their businesses over the next five to ten years well ahead of traditional cable and content providers. In an industry essentially fragmented by geography and national regulations, the ability of Telcos to engage global OTT providers that are relatively unencumbered in their reach will require global alliances, cooperation and standardization. They can begin to accomplish this through greater global industry cooperation on common capabilities and platforms to improve competitiveness with global OTT providers. The role of service providers can be enhanced in adjacent vertical markets, enabling new business models in health, smart grids, transport, retail, banking and more. Further growth can be achieved through pervasive, open connectivity for any person, object and a multitude of connected devices by stimulating third-party innovation and leveraging customer and network insights to deliver new experiences that help to accelerate the evolving digital economy. Operators will need platforms to improve competitiveness, to provide the means to monetize innovation, improve competitiveness with global OTT providers and leverage customer and network insights to deliver new experiences. Policy and Charging Control can be one such transformational platform: supporting convergent fixed-mobile, prepaid-postpaid, voice, data and video services.

This article is an abridged version of original text, approved by IBM, from an IBM Institute for Business Value Executive Report called Telco 2015 -Five telling years, four future scenarios.

The full report can be downloaded from:www.ibm.com/iibv

PROMOTIOns: WInnInG THe BATTle FOR THe CUsTOMeR

While much is rightly made of the intense competition operators face in their business, the fact remains that with global penetration of 3G data at only just over 20%, marketers have a great opportunity to acquire new data service customers. While the use of data services is strong in certain customer categories, marketers are continually challenged to convert voice and messaging subscribers to regular data users, and acquire new data subscribers. Increasingly, marketers are adopting the tactics of retailers, using promotional methods that involve trial periods, discounting, bundling and more. Winning the battle for the customer will depend on increasing each customers mobile phone usage, selling additional services to each user, and increasing the length of each customer relationship to generate maximum customer lifetime revenues. thresholds, time-of-day, location etc. What this can translate into, in terms of telecommunication services, are the zero-rating of certain applications from payment and metering e.g. Free Facebook Friday, Happy Hour promotions, and bundling of social application with certain voice plans. These promotional capabilities provide a risk-free approach for subscribers to try out new services. With PCC, marketers can now trial different tactics to entice those who have never used data, encouraging the cost conscious with special offers, attracting occasional subscribers to make a longer commitment, or providing a high-value customer with that something extra.

Provide risk-free trials to improve services adoption - Lower the costs of subscriber acquisition - Encourage first time smartphone users to try data - Happy Hour promotions to drive traffic - Bundle applications with voice and text plans - Support advertising/sponsor funded access

PCC (Policy and Charging Controls) enables operators to be more responsive and granular in their approach with promotional offers. It makes it easier to quickly turnaround promotions, as it moves the decision point away from backend Business support systems, such as Billing, and closer to the customer. When combined with the visibility it provides of applications on the network, it enhances marketings ability to take action. It provides a highly configurable decision point, for marketers to trigger realtime promotions based on subscriber data plan, current activity, usage profile,

Whats more this can be done quickly and at low cost. Marketers can launch new promotions fast, and use a subscribers profile to deliver tightly targeted promotions. subscribers can be directed to the promotion with redirects to a landing page, or via sMs, or through IVR. Importantly, customers can accept these promotions in real-time, to buy and use new services immediately. Everyone loves a surprise. Delighting the customer is the experience that many operators strive towards. However, a one-size fits all approach wont work; personalize your promotions with PCC.

Copyright Openet Telecom, 2011

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sTAnD OUT FROM THe CROWD: MAke IT PeRsOnAl

From many perspectives, operators sit at the centre of the customer experience. While much attention is paid to devices, and OTT serviceoperators are the glue that binds the ecosystem togetherproviding bandwidth, device subsidies, customer support, payment mechanisms and much more. The customer experience is one of a few differentiators that competitors find it hard to copy. As data plan options increase to support better segmentation, this can lead to confusion. subscribers can worry if theyre on the right plan, if they really need to buy that upgrade, or are spending too much for their mobile usage. As data plan options multiply, operators need to address subscriber concern over usage allowances, costs, and appropriateness of their plans. When integrated with a subscriber portal, customers can use this visibility and knowledge to self-select the correct plan, promotion, or threshold limits. This saves on calls to customer care, reducing costs and raising subscriber satisfaction. As the portfolio of services and choices become more varied, operators can play an important role in managing this complexity on behalf of its customers. To manage the context, communication, and offers for subscribersmarketers must enable a mixture of push and pull reporting activities. For example, proactively pushing quota alerts to keep customers informed, and enabling subscribers to self-sufficiently pull and interact with their account and entitlement details. As operators offer more segmented plans, increase their portfolio of services, and attempt to use their knowledge of customers to build closer relationships, they need to deliver a cohesive, unique, and personalized experience. Putting control in the hands of subscribers will increase usage, loyalty, and customer lifetime value. Operators who master what, how, and timeliness of the information and offers, have an opportunity to add the wow factor to their brand.

The Empowered Subscriber

- Enable a friction-free sales experience

- Provide subscriber notifications of usage & thresholds - Self-manage account details, data spending limits, and content controls - Manage roaming services and bill-shock

With an increasing number of data plans, service options, and ways to pay for services, operators have to work harder to manage the experience on behalf of customers. As things become more complex, being able to provide subscribers with immediate, relevant, and personalized information, and enabling them to take action, self-sufficiently, is very powerful. PCC (Policy and Charging Controls) makes it easier for subscribers to access in real-time, threshold status, data allowance information, upgrade, and promotional information data. It introduces much needed flexibility to BSS processes to address billing inflexibility, manage dispersed subscriber information, and improve customer visibility of their data consumption. This makes it possible for marketers to cost-effectively act to improve timeliness and relevance of customer communications, e.g. redirecting a customer to a landing page who has consumed their data allowance to purchase more.

Copyright Openet Telecom, 2011

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PUT THe PeRsOnAl InTO PeRsOnAlIzATIOn

the Customer Perspective
Telesperience believes that many customers are no longer motivated solely by price. They have come to understand that value is more important to them than the cheapest possible price. However, they are confused and frustrated by over-complex offers and upset that mobile service providers seem intent on rewarding newcomers more than loyal customers. Most customers feel their service provider does not understand them or their needs, and are unhappy that they are expected to predict their usage not just for the next six months but for the next two years or even longer. What most customers desire is certainty, and this is why flat rate charges were appealing to them. If mobile service providers want to move away from flat rate charging, then they need to ensure replacements are easy to understand, clear and are perceived as being fair. Most importantly, there is no killer tariff, service or bundle. The killer offer is highly idiosyncraticthat is, it is one that meets an individuals needs. To discover what this looks like means using service usage and customer data to design more appropriate tariffs, offers, and products, and to target these at the customers who need them. Finally, mobile service providers need to get out of the habit of telling customers what they can have, and start listening more to what they need. This requires both passive listening in the form of analysing customer data and active listening in the form of having more frequent and meaningful dialogues with customers. teresa Cottam Research and Publications Director, telesperience. This article is taken from an original report, sponsored by Openet. The full report can be downloaded from : www.openet.com/personalization

Copyright Openet Telecom, 2011

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TRUsTeD TO PROTeCT AnD seRVe

Content is king. It provides some of the most compelling reasons for consumers to go online; to search out new and more convenient access to entertainment, education, information, and work. As internet usage extends to more customers, it reaches younger users, and others who are unaware of the easy access to unsavoury content on the internet. From a subscriber perspective, operators have a trusted position. To a large degree this is an untouched opportunity. As more applications go OTT, operators can use their unique position and knowledge of customers and whats going on in their network to manage the customer experience. Marketers can add value for their customers, by enabling personalized controls around content access, protecting users, to play a greater role in the digital media ecosystem. With PCC basic controls can be enhanced with a number of additional personalized options, including the addition of spending limits, individual communication service controls, application restrictions, personalized alerts, usage reporting, and location based controls. Marketers can use these additional features to form an enhanced service, to create a new offering and revenue stream from these controls.

Personalized Controls and Subscriber Protection - Enable customers to set personalized options - Enforce decisions according to users profile - Restrict access by type of service, or categorized content - Filter URLs based on content categories or black lists

- Set Time-of-Day, or Day-of-Week access restrictions

PCC can be used to ensure the correct actions are taken for each subscriber. This means that for subscribers who have content filtering controls, operators can determine in real-time if a subscribers request is authorized to access the content. Many operators offer basic URL filtering as a free service. This protects subscribers from many of the unpleasant aspects of OTT services. For example, parents can use this service to control their childrens access to inappropriate content.
Copyright Openet Telecom, 2011

Operators can use their position in the network to personalize subscriber experience, to protect subscribers, and participate more fully in the content delivery process. This applies to families, but equally to corporations, and educational establishments, who increasingly rely on Internet enabled devices to distribute content and for productivity gains.

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MORe THAn TeCHnOlOGy BRAnD & ReVenUe PROTeCTIOn

After years of operators being forced to compete for customers on price, there are signs that mobile internet and broadband users care as much about network quality as price. Operators who can ensure a quality experience, have an opportunity to claw back some pricing power. Ironically though, as more usage and more demands are placed on network bandwidth, for many operators service is becoming increasingly unreliable, networks are becoming overloaded, and capacity is being crunched. From a marketing perspective, being able to reliably assure subscriber Quality of Service, delivers not just a better customer experience, but can be an important aspect to protecting the perceived quality of the brand. With 10 percent of subscribers generating approximately 70 percent of total network traffic**, pressure on capacity is affecting the experience of all subscribers. PCC can be used to align data plans with subscriber usage, to influence subscriber behaviour. It can reduce stress during peak congestion periods and where necessary, manage bandwidth-intensive applications and services during periods of network strain. It does this by dynamically controlling network resources to deliver the best possible user experience, given network conditions and congestion patterns at any point in time. Policy management enables carriers to become more congestion and application specific in how they manage the flow of data traffic on their networks, implementing true, dynamic, real-time subscriber management controls to optimize the mobile experience, minimize congestion in the network, and reduce augmentation costs.

Protecting and Assuring Quality of Service

- Control unauthorized or excessive subscriber usage - Protect network resources ensuring better QoE - Ensure that high value services are protected

- Reduce the impact of bandwidth hogging applications

Its clearly a critical issue, with forecasts showing demand for data due to accelerate. The widely quoted Cisco VnI Mobile forecast* from February 2010, estimates that worldwide mobile data traffic will double every year through 2014, increasing by a factor of 39 times between 2009 and 2014. Investments in network capacity alone will not ensure operators can sustainably deliver a highperformance broadband experience.

*Cisco Visual Networking Index: Global Mobile Data, Traffic Forecast Update, 20102015 **Federal Communications Commission, Obi Technical Report, 2010

Copyright Openet Telecom, 2011

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MOneTIzInG VIDeO
Video and media services have emerged as the primary driver of data traffic, and their popularity is forecast to grow. The data traffic driven by these services threatens to wipe out data traffic profits. Operators are putting in place remedies to take the strain off their networks, and increase yields. However, these activities only address the cost side of the profitability equation. As more powerful devices become available, online video services such as YouTube, Netflix, iTunes, and TV Everywhere are becoming ever more popular. Video accounts for an average of 40 percent of the total volume in wireless networks worldwide, Bytemobiles Mobile Minute Metrics reports. This traffic surge threatens to wipe out data traffic profits. However, video also represents an opportunity to win more revenues and provide a differentiated service. Taking advantage of new content, applications, and devices; subscribers will consume all available bandwidth and still expect the same quality of service that came with their original service plansif not better. This trend will continue as live streaming video broadcasts and video-on demand go mainstream.

Managing Video Traffic and Making Money

- Create new revenue streams from video & other media - Use Quality of Service to differentiate offerings, by video type & plan

- Add subscriber intelligence to data offload strategies

Using PCC, operators can offer new, segmented services based on different subscribers, and video services needs. Optimization technology can manage traffic more efficiently, but it does not link growth to revenues. Increased demand on capacity requires greater control of networks and the ability to manage the quality of subscribers mobile video experience. Marketers can increase profitability by serving content more efficiently, to more subscribers and delivering a superior user experience to reduce churn. Mediabased policy enforcement capabilities enable operators to plan and implement tiered service plans to monetize traffic by subscriber usage.

Copyright Openet Telecom, 2011

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InnOVATIOn In THe MOBIle PACkeT CORe

the technology Perspective
The mobile industry is undergoing a major transformation that is being driven by the rise of the smartphone. These devices, which can best be thought of as mobile computers, are driving a tremendous amount of traffic across mobile networks. Mobile operators are seeing growth rates approaching 100% y-o-y, and the expectations are that this will continue well into the middle of the decade. We are also anticipating a move to VoIP technologies once lTe really starts to take hold. Once that happens all traffic will run through the mobile packet core. This has implications not only on network design, but also on business models. Can operators be as profitable with packet data services as they have been with traditional voice and SMS services? Profits cant simply come from data carriage. Operators must look for additional ways to monetize the packet traffic running over their network. The cash register in the mobile world is rapidly becoming the GGSN/P-GW in concert with Policy and Charging Control (PCC). The good news for operators is that they have access to information that can be used to enhance the user experience and generate additional revenues. This includes knowledge of billing zip codes, the kinds of content accessed (from packet filtering), the mobile device type, the billing plan, the subscribers location, and much more. This can be used in concert with the operators ability to effect quality of service to provide an enhanced user experience. But what kinds of services would benefit from these capabilities? The choices here would include subscriber services, content provider services, and machine-to-machine services. The latter two represent a great untapped source of revenue for mobile operators. For operators to develop innovative new services, they need innovation from all across the ecosystem. Innovation typically comes from a large open ecosystem with low barriers to entry. This is often at odds with a mobile world where there are usually a small number of very large vendors. Much of this relates to the enormous R&D investments required to develop packet core and RAn solutions. so how do we create a climate for innovation within the mobile packet core? How can we enable small agile vendors to thrive in this environment -- vendors who will bring to market compelling new services? The answer lies in an open software Development kit (sDk) running in the mobile packet core, which will unlock the service creation and service velocity potential of your networks. This approach will allow small innovative companies to develop compelling new services. These services can access information on user preferences, user location, user billing address, etc. The obvious place to position the open sDk is on the P-GW/GGSN. This device has knowledge of the subscriber, connectivity to the PCRF, and provides the PCeF function. The most interesting benefit from this approach rests with options that may allow mobile operators to extract revenue from upstream content providers. This has long been the holy grail of the mobile industry as there are limits to the amount of revenue that can be extracted from the subscriber. Content providers are looking for an enhanced user experience that will bring more subscribers to their sites. your mobile core is a rich environment for innovation that can make this a reality and create a win-win for operators and content providers.

PCeF GGsn PCRF P-GW

Policy Charging enforcement Function Gateway GPRs support node Policy Charging Rules Function Policy Gateway

Copyright Openet Telecom, 2011

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ABOUT Us
ABOUT OPeneT
Attract subscribers, provide them a great experience, maximize revenue from them, and minimize the cost to serve them. sounds simple until you try to do it with millions of subscribers supported by inflexible legacy infrastructure amidst an ever-changing set of business requirements. To succeed in this environment, you must first know your subscribers and how they use your services, be capable of deploying innovative business models that maximize revenue, and be able to control the allocation of your network resources intelligently and efficiently. This is making the most of every network and customer. And Openet can help with our service Optimization software. A global company, Openet is used by the worlds largest and most innovative service providers including AT&T, BT, Orange, Telstra, Time Warner Cable, and Verizon Wireless.

CORPORATe HeADQUARTeRs
Openet 6 Beckett Way Park West Business Park Dublin 12 Ireland Tel: +353 1 620 4600 Fax: +353 1 620 4990 email: info@openet.com

nORTH AMeRICAn HeADQUARTeRs

Openet 11465 sunset Hills Road suite 310 Reston, VA 20190 UsA Tel: +1 703 480 1820 Fax: +1 703 435 0730

w ww.op e n et . c o m

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