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Lte Lat Am 2011 Allot Presentation Making Mobile Broadband Financially Viable

E
Eyal Yaron

This document discusses making mobile broadband financially viable through LTE networks. It provides customer case studies showing how network optimization can improve speeds and reduce congestion. It also notes that while data usage is increasing, revenue growth has not kept pace. To achieve profitability, new revenue models are needed, such as charging more for premium services like high-quality video or priority business applications. The document suggests options for flexible billing, usage controls, and partnerships with third parties to generate new sources of income beyond traditional per-gigabyte pricing.

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Making Mobile Broadband Financially Viable Eyal Yaron Director Solution Marketing 1 23 April, 2011
Allot Communications Traded on NASDAQ Fixed & Mobile Broadband 450+ Service Providers under ALLT since 2006 Converged Networks 35+ Mobile Operators Enterprise/Education Networks Public Value Worldwide Company Proposition Markets Customers Sales HQs Optimize and Monetize Boston (Americas) Broadband Networks Nice (EMEA) Singapore (APAC) 2 23 April, 2011
Is LTE going to be profitable ? 3 23 April, 2011
Mobile broadband trends 4 23 April, 2011
Customer case studies 100Kpbs to 200Kpbs improvement on average download speed, due policy enforcement which limited P2P by 20%.. Saving of 1Gpbs out of 3Gbps of total traffic due to policy control enforcement: P2P Control and Fair usage enforcement 5 23 April, 2011
Less than 2% subscribers uses 800Kbps.. 6 23 April, 2011
Customer case studies Mobile Network Case study 6% of subscribers responsible for 25% of traffic 25 of each CAPEX Dollar will be consumed by 6% of subscribers 7 23 April, 2011
Total data revenues increasing Increased number of data subscribers Usage growth left revenue growth far behind Increased usage volume Price battle over Gigabyte rate Example: Mexico: 7.0 USD per GB Singapore 0.5 USD Per GB 8 23 April, 2011
Is mobile broadband in LTE profitable ? LTE Provides Higher bit-rate at RAN More traffic at low prices Additional investment required to handle congestion at CORE Subscribers use LTE as fixed access substitute Additional players join the ride and use the new capacity 9 23 April, 2011
The possibility of new revenue streams 10 23 April, 2011
Paying for added value Consuming broadband on the move Pay more for being mobile Consuming high quality video Paying for premium content Paying for enhanced video quality Business critical connectivity Paying for priority to business applications in business hours 11 23 April, 2011
Fresh Thinking about Billing, Control, and Usage Direct Opportunities Service passes Flexible Bundles Tiered Promotions services Application- Third Parties specific pricing Spending Service Limits Controls Roaming Device Controls Indirect Opportunities (upsell) Controls 12 23 April, 2011
New ideas already in place Zero rate sites Pay per site packages Social networks plan 13 23 April, 2011
Sample revenue generating use cases 14 23 April, 2011
New revenue generating use cases Zero rate for selected websites User notification Happy Hour VOIP Rating High Quality Video boost for watching your football match Fair usage policy, with quota up-sell 15 23 April, 2011
Additional Broadband business models Free internet access with Machine To Machine limited content Networks Best effort quality for premium Remote Medical care content Homeland Security Car navigation and traffic Sponsored connectivity alerts Network connectivity paid by Utilities usage metering Gas, equipment vendor Water and Electricity 16 23 April, 2011
Thank you Eyal Yaron, eyaron@allot.com 17 23 April, 2011

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Lte Lat Am 2011 Allot Presentation Making Mobile Broadband Financially Viable

  • 1. Making Mobile Broadband Financially Viable Eyal Yaron Director Solution Marketing 1 23 April, 2011
  • 2. Allot Communications Traded on NASDAQ Fixed & Mobile Broadband 450+ Service Providers under ALLT since 2006 Converged Networks 35+ Mobile Operators Enterprise/Education Networks Public Value Worldwide Company Proposition Markets Customers Sales HQs Optimize and Monetize Boston (Americas) Broadband Networks Nice (EMEA) Singapore (APAC) 2 23 April, 2011
  • 3. Is LTE going to be profitable ? 3 23 April, 2011
  • 4. Mobile broadband trends 4 23 April, 2011
  • 5. Customer case studies 100Kpbs to 200Kpbs improvement on average download speed, due policy enforcement which limited P2P by 20%.. Saving of 1Gpbs out of 3Gbps of total traffic due to policy control enforcement: P2P Control and Fair usage enforcement 5 23 April, 2011
  • 6. Less than 2% subscribers uses 800Kbps.. 6 23 April, 2011
  • 7. Customer case studies Mobile Network Case study 6% of subscribers responsible for 25% of traffic 25 of each CAPEX Dollar will be consumed by 6% of subscribers 7 23 April, 2011
  • 8. Total data revenues increasing Increased number of data subscribers Usage growth left revenue growth far behind Increased usage volume Price battle over Gigabyte rate Example: Mexico: 7.0 USD per GB Singapore 0.5 USD Per GB 8 23 April, 2011
  • 9. Is mobile broadband in LTE profitable ? LTE Provides Higher bit-rate at RAN More traffic at low prices Additional investment required to handle congestion at CORE Subscribers use LTE as fixed access substitute Additional players join the ride and use the new capacity 9 23 April, 2011
  • 10. The possibility of new revenue streams 10 23 April, 2011
  • 11. Paying for added value Consuming broadband on the move Pay more for being mobile Consuming high quality video Paying for premium content Paying for enhanced video quality Business critical connectivity Paying for priority to business applications in business hours 11 23 April, 2011
  • 12. Fresh Thinking about Billing, Control, and Usage Direct Opportunities Service passes Flexible Bundles Tiered Promotions services Application- Third Parties specific pricing Spending Service Limits Controls Roaming Device Controls Indirect Opportunities (upsell) Controls 12 23 April, 2011
  • 13. New ideas already in place Zero rate sites Pay per site packages Social networks plan 13 23 April, 2011
  • 14. Sample revenue generating use cases 14 23 April, 2011
  • 15. New revenue generating use cases Zero rate for selected websites User notification Happy Hour VOIP Rating High Quality Video boost for watching your football match Fair usage policy, with quota up-sell 15 23 April, 2011
  • 16. Additional Broadband business models Free internet access with Machine To Machine limited content Networks Best effort quality for premium Remote Medical care content Homeland Security Car navigation and traffic Sponsored connectivity alerts Network connectivity paid by Utilities usage metering Gas, equipment vendor Water and Electricity 16 23 April, 2011
  • 17. Thank you Eyal Yaron, eyaron@allot.com 17 23 April, 2011