The Value of network performance

The value ofPerformance

Performance creates new opportunities

Executive Summary presentation

#Realperformance

The value of performance | Commercial in confidence | 2014-04-28 | Page 2

Performance Creates new opportunities

Customers cando more

Operators cando more

Value is created by the actions you can take

based on better performance

• Satisfaction

• Loyalty

• Drive usage

• Create new behaviors

• New revenues

• Differentiation

• Save costs

• New offerings


Explore the value of performance

Unlock the value of video downtown

Unlock the value of stadiums

Unlock the value in existing assets

Unlock the value of demanding service retailing

Unlock the value of TV anywhere

Unlock the value of powerful devices



Video will certainly be the main attraction for consumers going forward. Already today people are consuming more and more video on their mobile devices and increasingly outside the comfort of their home.

Operators that deliver the best possible video experience to their customers will be winners in a video driven mobile world. This requires network performance fit for video delivery.



Reason Value Performance

Video makes up the largest segment of data traffic in networks and it is expected to grow around 55percent annually up until the end of 2019

Your most valuable customers spend a lot of time watching video on mobile devices, e.g. 40% of YouTube traffic is on mobile devices

The market is quickly moving from downloaded video to streaming (24% growth 2013 compared to 2,3% decrease for downloads)

Premium and superior video services make customers spend more and be more loyal

Performance is the main driver for customer loyalty and video drives majority of traffic, the way you deliver video will be the biggest driver for operator brands

Revenue: With video that really works your users buy bigger data buckets

Leverage marginal cost: Building on current assets the marginal effect of more video traffic is a profit driver

Explore new offerings: With high quality delivery in place you can explore new offerings like video packages and zero rating models as revenue drivers

Loyalty: Your users are less likely to leave and more likely to promote you

Lower cost: Fewer calls to customer service and less need for expensive marketing

Efficiency: With a strategic approach to video delivery you can also greatly reduce distribution cost and improve network efficiency

Throughput: at least 2 Mbit/s on an average for acceptable time to view and never below 1Mbit/s to avoid frame freeze

Capacity: support a large number of simultaneous users in dense areas like train stations, business areas and nightlife districts,

Indoor coverage : extend macro network seamlessly into buildings to ensure consistent experience

Adaptive streams: adapt streams to fit every screen perfectly

Network caching: store video data intelligently for cost efficient delivery



In the age of digital and mobile consumption of media the importance of live events becomes even more important for people. We love to gather, experience what can never be relived and root for our favorite team.

But we crave a different kind of live experience today. It is a live experience enhanced by our mobile devices and we expect nothing less in a stadium than in our everyday lives. Operators have a massive opportunity in making this a reality for their customers through high quality network performance.




In arenas we are at our most social, sharing videos and photos. During Super Bowl 2014, record figures of mobile traffic was measures.

Yet using a smartphone in a stadium is virtually impossible today. Up to 99% of smartphone users have experienced problems.

Coverage in stadiums will boost the customer experience and open up new revenue models

Build brand: Amplify positive perception through sponsorship & optimal user experience

Loyalty: Create unexpected experiences that was not accessible before

Redefine “live”: Be a part of redefining what live experiences are about with voting, video replays and mobile payments in real time

Opportunity: Innovative business models with stadium owners

Capacity: The networks ability to handle massive crowds in dense areas

Throughput: Managing large data streams of video

Latency: Ensuring low latency for financial transactions

Signaling: Managing large amounts of simultaneous users

Indoor coverage: Integrated macro, micro and Wifi connectivity


Unlock value in existing assets

In 2013 mobile traffic grew 80% and the need for capacity seems never ending. For operators this is an obvious challenge while subscribers take it for granted that the internet should be just as fast as it has always been.

For the operators that take advantage of the fact that the assets that they already have in place can be significantly squeezed for better performance, customer experience can be greatly improved in a very cost efficient way.



Unlock Capacity in existing assets

The continuous growth of traffic combined with the consumer demand for anywhere service is driving the need for capacity and high levels of coverage

The main driver of user satisfaction, and thus an important factor for both differentiation and business growth, is network performance

Smart and cost efficient service delivery to free up capital for investments and meet high expectations on financial return

Spectrum and sites are scarce and costly resources and are in many case show stoppers for keeping up with service demands & quality.

Customer experience: an optimized network experience decrease churn, strengthen loyalty and increase usage & ARPU

Less sites: extending coverage and capacity on existing sites to defer and also reduce the need for new sites will reduce costs and time for build-out with retained quality

Maximized use of spectrum: provides more traffic per MHz and allow space to deploy high speed technologies as HSPA and LTE

Operational efficiency: Lowered operational costs, shorter time to build-out and better quality

Network performance: Optimized systems to maximize UL/DL throughput, indoor/outdoor coverage and web page load time

Site efficiency: Maximized cell border signal strength and site capacity with retained foot print

Spectrum efficiency: Optimized radio settings in GSM, macro and small cells are coordination, and spectrum aggregation. A pro-active spectrum strategy.

Network automation: Automate repetitive, time consuming or complex tasks regarding optimization, provisioning and network operation


Unlock the value of demanding services retailingWith diminishing revenues from traditional telco services such as voice and text operators need to look to the monetization of data as the big vehicle for growth.

Collaborations with OTT services, leveraging the operator’s extensive assets, such as sales channels and network awareness, to push services dependent on data has proven to be a great way to monetize network performance.

In this example we will refer to the retailing of video and music services.



Unlock Demanding services retailing

Your customers have an undying appetite for new OTT services and will use them no matter if you sell them or not

OTT services have become increasingly demanding on the network (video, music, real time communication, etc) and the network takes the load but it is hard to monetize for operators

You have unparalleled access to customers in your market, something that most OTT players do not have, which is something that you can take advantage from

Customer acquisition/growth: Retailing the most popular & demanding OTT services will make your offering more in demand

Distribution fee: Depending on strength of the OTT player, charge a sales/distribution fee on each subscription sold

Loyalty: Connecting personal and valuable services to your subscriptions will increase customer loyalty

Increased data consumption: Increased ARPU is likely due to higher value as well as increased data consumption

Throughput: at least 2 Mbit/s on average and never below 1Mbit to ensure a superior customer experience

Indoor coverage : Extend macro network seamlessly into buildings

QoS: Enable QoS capabilities to improve quality of retailed OTT service to differentiate offering

Adaptive streams: Adapt streams to fit every screen perfectly

Network caching: Store video data intelligently for cost efficient delivery

Billing and sales: Use OSS/BSS solutions to integrate third party solutions and sell them in all channels


unlock the value of powerful devices

The smart phone experience is dependent on three things; device capabilities, app functionality and network performance.

Getting all of these to work in conjunction is key to achieving satisfied and happy customers that are willing to pay and more likely to stay. So, there are great opportunities for operators that tweak and tune their networks to unlock the power of devices



Unlock the value of powerful devices

In creating a great user experience, operators need to have network, device and app evolution in mind and make them work in conjunction.

To meet the expectations from users with next generation devices the network features need to match device features for performance

By the end of 2014 we expect global smartphone penetration to be around 50%

The number of different kinds of devices are exploding (smartphones, phablets, tablets, M2M,…) and the network need to support them all

Migrating users to faster, more modern devices increases user experience and also greatly improves the speed and efficiency of your network

User experience: By aligning the network with the device portfolio and move subscribers to faster devices, we significantly increase user experience of everyone.

Build brand: Having access and a network that supports new devices with great performance builds strong brand preferences

ARPU: By creating supreme user experiences on new devices operators are able to command premium prices.

Increase network efficiency: By moving consumers to next gen devices with corresponding network features, efficiency and performance will increase in the networks.

Smartphone features unleashed: Latest network software release for smartphones to efficiently handle of data by exploiting new features in the devices

HSPA 21 coverage everywhere: There are smartphones everywhere, ensure that your network is HSPA21 enabled everywhere.

Network optimized for each device type: Ensure that all devices are on the correct network according to the subscription to minimize degradation of quality of service

Uplink performance: Remove the uplink bottleneck to unlock capabilities that are dependent on uplink such as cloud, file sharing etc.

Aligned spectrum: Ensure that your spectrum capabilities are aligned with the your device portfolio.


unlock the value of TV anywhere

The battle for the future TV consumer will not be fought in the comfort of their couches, it will be done on the streets with TV anywhere offerings as the main weapon.

To deliver a TV experience worth paying for operators need to give customers the tools to watch TV on the go and a network fit for the task, shuffling high quality content without dropping a single bit.



Unlock the value of TV anywhere

Strong change in how we consume TV, from linear scheduled TV to on demand and on all devices, TV anywhere

Instead of the couch, consumer prefer watching TV where ever they are and whenever

Operators with TV services should rethink their TV bundles and provide access through mobile devices to satisfy consumer desires

Differentiation: Compete with multi screen TV solution that actually works due to great network performance to reduce churn and defend ARPU

Loyalty: Create loyalty through outstanding TV experiences

New revenue streams: Use multiscreen TV to create new revenue streams (advertising, connectivity bundling, etc) on top of TV subscription

Adaptive throughput: Ensure to optimize throughput and content size to screen used for consumption

Capacity: Support at least XYZ simultaneous users in small areas

Indoor coverage : Extend macro network seamlessly into buildings

Network caching: Store video data intelligently for cost efficient delivery

TV anywhere platform: coherent platform to handle content and device clients

MDN: Optimized network for video delivery


The Value of network performance

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