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Mobile SP Technologies and Service Creation

Bernd Eule, Director SP

May 9th, 2012

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3

4

In 2011, global mobile

data traffic more than

doubled (2.3X growth) for

the fourth year in a row,

despite economic

uncertainty, continued

traffic offload, and the

broader adoption of

tiered pricing.

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4

Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, 2011–2016

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By 2016, 60 percent of mobile users (3 billion people) will belong to the Gigabyte Club, generating more than one gigabyte of mobile data traffic per month.

In 2011, 0.5 percent of mobile users belonged to the Gigabyte Club.

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5

Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, 2011–2016

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2016

1.2 GB Traffic/month

2011

92 MB Traffic/month

3 Video Clips

1 Video call

5 Audio tracks

5 App Downloads

10 Video Clips

5 Videos

3 Video calls

50 Audio tracks

10 App Downloads

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Email60

Email60

Email60

Email60

Web89

Web89

Web89

Web89

Facebook40

Facebook40

Facebook40

Pandora55

Pandora55

Netflix109

0

50

100

150

200

250

300

350

400

Email+Web +Facebook +Pandora +Netflix

Meg

ab

yte

s p

er

Mo

nth

149 MB

Source: Arbitron Mobile, 2012

353 MB

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0,0

0,5

1,0

1,5

2,0

2011 2012 2013 2014 2015 2016

Nu

mb

er

of

Devic

es (

B)

280M

1.62B

Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, 2011–2016

42% CAGR 2011–2016

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1010

“We’re entering the

post-macrocell era where

radio type no longer defines

the network architecture—

and small cells are critical in

delivering the mobile

Internet.”

John ChambersChairman and CEO, Cisco Systems

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RADIO TRANSPORT CORE VOICE PCC

MSC / R4

Virtualization (Cloud)

IP RAN

LTE EPC

PGW, SGW, MME,

SGSN, GGSN

VoLTE & IMS

2G /3G MPC

GGSN/SGSN

Network Management (Cisco Prime)

System Integration (Cisco Services)

Macro

2G/3G coverage

SP WiFi / Small Cell

HSPA+ > LTE

IP CoreMove to all Ethernet

OpticalSDH to DWDM

Policy & Charging

Control (PCRF, SPR)

Monetization

12C97-645084-00 | © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12

VIDEO

EXPERIENCE

ARPU per Bit

Data

Traffic

(Cost) Coming

Profitability

Gap

Enable Premium Services and business modelsTiered pricing, Turbo Boost, Family

Plans, Mobile Advertising, Cloud

Services, M2M

Reduce Costs

Increase Revenue

Improve Customer Experience

Manage “over the top” videoMaximize spectrum and radio assets

Unique Fusion of Network and Data Center Design and Functionality

Integrated Intelligence for Transrating, Transcoding, Traffic Packet Optimization

Deliver highest quality, personalized video, voice, and data experiences

Innovate to delight customers (three-screen experience, session shifting, etc.)

MONETIZE

OPTIMIZE

Radio and Network Off-Load

Intelligent bandwidth management of peak usage; reduce power and cooling costs

13C97-645084-00 | © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13

Cisco Mobile Internet: Built to M.O.VE

Access

Unified RAN

Backhaul

Aggregation

Virtualized Cisco Prime™ Network Management

Cisco ® Advanced Serv ices

Edge and Core

IP Edge

and Core

Evolved

Packet

Core

Mobile

Packet

Core

Data Center

Mobile

Cloud

Cisco

Videoscape

Stadium

Business

On the go

Cisco

VideoScapeTM

Video to go

home

Small Cell

Cisco Femto-

cell

Cisco®

ServiceProvider

Wi-Fi

Any-G

Radio

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Addressing

Spectrum

Scarcity

Managing

Traffic

Growth

Monetizing

and

Differentiating

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Cisco Prime Management

SP WiFi and

Femto

Residential,

Multidwelling,

Hotspot/SMB,

Enterprise, HD

WiFi, and Metro

“Cisco is by far the leading vendor of service provider

Wi-Fi technology, with the broadest product portfolio and

greatest breadth of integration experience…”

Control

and Policy

Seamless

Service

Experience

Source: Heavy Reading: Vol. 9, No. 10, November 2011

Access

Intelligent

Services

Cloud

Mobile

Packet

Core

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Commercially Deployed NG HS and Femto Solutions

Standards Implementation (Clients/Network)

Integrated w/ Purpose Built Packet Core

Available to Software Upgrade Majority of >12 Million deployed Cisco

Access Points

Seamless Roaming and Secure Authentication Between Operators

NGH Validated as 1st Hotspot 2.0 Solution in Market By WBA

17C97-645084-00 | © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17

Largest Residential Femto

Deployment in the World

Best, Most Mobile Super Bowl XLVI Ever

Cisco Connected Stadium Wi-FiEnd-to-end M.O.V.E.

Architecture from Cisco

First Global Next Gen Hotspot

Commercial DeploymentFirst Next Gen Hotspot

Operator in Asia

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Addressing

Spectrum

Scarcity

Managing

Traffic

Growth

Monetizing

and

Differentiating

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Seamless User Exp

through Femto Gateway

and Secure WiFi Access

Common Core Independent of Access Technologies

WiFi,Femto

2.5G, 3G

4G

2G SGSN

3G SGSN

MME

SGW

ePDG/TTG/PDIF/HNB

-GWPGW

GGSNPCEF

PCEF

ECSStatefulFirewall

ContentFiltering

P2PDetection

2G/3G/4GSGSN

MME/SGSN

GGSN/PGW/SGW

Integration of SGSN

& MME Reduces Control

Messages/Cost 30%

The Only High

Performance Integrated

2G/3G/4G SGSN

Flexibility to provide

Seamless Evolution

to LTE/4G

Integrated DPI and PCEF

lowers TCO (40% OpEx),

simplifies the network,

and ensures accuracy

Intelligence enables

In-line services directly

on the platform

Cisco EPC

Unified

RAN

Data

Center

InternetIP Core

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270+ Operators in More Than 75 Countries

30 LTE Wins; 13 Live Deployments

Customer momentum: Bell Canada,

Vodafone Hungary, Magyar, Du, LG U+

800+ Million Subscribers Across Mobile Packet Cores

800K Femto Cells Deployed

12M Wi-Fi Access Points

21C97-645084-00 | © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21

Intelligence, Scalability, Reliability, and Low TCO

100 Times the Capacity for a Fraction of Current Cost

• Flexible scalability: Any multi-vendor radio on any media (2=>3=>4G)

• Proven performance and reliability: Superior voice & video quality with service assurance

• Operational excellence: Unified management, lower OpEx, and lower power consumption

OPTIMIZE

Cell Router Aggregation IP CoreMobile Edge

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Addressing

Spectrum

Scarcity

Managing

Traffic

Growth

Monetizing

and

Differentiating

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Revenue

Shift

• Subscriber centric

• Flat Pricing

• Basic connectivity

• Few Value-Added

Features

• New Services

• Subscriber Tiering

• On Demand/

Personalized

• Value-add to OTT

Use Your Network Advantage to Increase Revenue

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Control

B2C

• Tiered Pricing

• Family Plans

• Turbo Boost

• On Demand

• Parental & Corporate Controls

• Work/Play Plans

• Freemium

• Multi-Device Plans

Collaborate

B2B2C

• Premium Mobile Video

• Mobile TV

• Ad Insertion

• Mobile Cloud Partnerships

• Toll-Free Mobile Broadband

• M2M by Verticals

• Messaging/RCS

• Location/Presence

• Social Networking

• Voice/Video over LTE

• M2M by Verticals

Create

B2B2C

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Shape the

Subscriber

Experience

Mobility Control

• Application-basedmobility control

Location Awareness

• Roaming

• Presence

• Reachability

Session-State Awareness

• Service manipulation

• Service control andtime of day

Access Technology Awareness

• Access-based on applications

• Access based on roaming partner

Device Awareness

• Adaptation

• Translation

• Battery life

Usage Visibility

• QoS management

• Innovative serviceofferings

MONETIZE OPTIMIZEVIDEO

EXPERIENCE

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Cloud

Client

Network

Harvest

Network

Intelligence

Optimal

Customer

Experience

Increase

Service

Velocity

Operator

Applications

3rd Party

Applications

Radio Efficiency

Network Efficiency

Reduced RAN Costs

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Legacy IN LocationeNB/NB/BTS RNCVDI/VxI Policy

Support Multiple Use Cases

• Subscriber, Application and Network aware

• Re-architect the network using southbound abstraction based

on use case

• Through all IP Environment and Cloud based infrastructure

Increase Service Velocity

• Reduce integration time for new/modified cases with

standard web Interfaces & network abstraction

• Rapid and Dynamic Provisioning based on Subscriber and

Application requirements

• All IP Environment reduces operational costs increasing

network efficiency

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Network Monetization, Optimization, and Service Velocity

ApplicationDevelopers

Broadcasters

Advertisers

Content Aggregators

Retailers

Cloud Services

Networks

HTML, XML, IMS, XMPP, etc.

Open Standards

IETF, IEEE, GSMA and Others

ClientDevices

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Thank you.

Blagodaram.