3© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Marketing PresentationSpeaker NameDesignationDate: 00/00/0000
Marketing PresentationSpeaker NameDesignationDate: 00/00/0000
Defining Virtual Mobile ServicesBusiness Drivers and Technology EnablersDirk WolterManaging Director, Mobile Architecture, APAC
28 May 2015
4© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Introduction: Business Transitions
Strategic Options: 1. Smart Utility 2. Platform provider/enabler 3. Diversified player
NewBusiness Models
• Flexible, usage-based pricing
• Direct, In-direct and Pass through
• IoT/IoE
NewFinancials
• Faster RoI• Predictable OpEx• Start-up innovation• Agile Dev-ops
NewCompetitors
• Global market reach over the top (OTT)
• Reduced barriers to entry• Accelerating pace of
innovation
5© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Top-line ChallengeManage Value Migration and Capture New Opportunities
Erosion of Traditional Services
VoWiFi exceeds VoLTE by 2018
5B MoU, +220%
On-line Video$10B, +49%
Cloud Services$43B, +27%
Sources: ABI, IDC, In-Stat, Insight, Ovum, Parks, Screen Digest, Strategy Analytics, Cisco
New Services
OTT VoIP Users
>1Billion
WhatsApp Users April 15800M, +75%
Apps added to Android every day
1,000
Lost SMS revenue to OTT in 2014
-$40B
Connected Devices by 2020
50 Billion
Service Innovation needs Network Agility
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2007 2008 2009 2010 2011 2012 2013 20140%
20%
40%
60%
80%
100%
Bottom-line ChallengeOperating Costs Reducing Margins
Network complexities contributing to OPEX growth:
Legacy technologies Multiple-vendors, multi-OS Purpose-built hardware hardwired Multiple points of failure
Increasing provisioning and management costs
Slow to introduce: New capacity and services
Indian MNO CAPEX & OPEX as % of Revenue
Source: GSMA Intelligence, 2015
CAPEX
OPEX
Need to reduce Operational expenditure
EBITDA
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India: Mobile Device Growth by TypeBy 2019, Smartphones Will Attain Largest Share to Reach Nearly 54%
2014 2015 2016 2017 2018 20190
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000Other Portables (0%,0%) Wearables (0%,0%)Laptops (0%,1%) Tablets (0%,2%)Smartphones (15%,54%) Featurephones (83%,40%) 6% CAGR 2014–2019
Source: Cisco VNI Global Mobile Data Traffic Forecast, 2014–2019
Millions of Devices
* Figures (n) refer to 2014, 2019 device share
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2014 2015 2016 2017 2018 20190
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000M2M (%,1%)P2P (2%,3%)Audio (11%,8%)Video (36%,66%)Web (51%,23%)
India: Mobile Data Traffic Growth / AppsVideo to Account for 66% of Mobile Data Traffic by 2019
13x (67% CAGR) 2014–2019
Source: Cisco VNI Global Mobile Data Traffic Forecast, 2014–2019
Petabytes per Month
* Figures (n) refer to 2014, 2019 mobile data traffic share
10© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
2014 2015 2016 2017 2018 20190
200000000
400000000
600000000
800000000
1000000000
1200000000
4G (3% in 2014,38% in 2019)3G (51% in 2014,56% in 2019)2G (45% in 2014,6% in 2019)
India: Mobile Data Traffic GrowthIn India, 3G will still support >50% of Mobile Traffic in 2019
Source: Cisco VNI Global Mobile Data Traffic Forecast, 2014–2019
Exabytes per Month
11© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
2014 2015 2016 2017 2018 20190
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
3,000,000,000
3,500,000,000
4,000,000,000
4,500,000,000Mobile Data (67% CAGR)Fixed/Wi-Fi (35% CAGR)Fixed/Wired (18% CAGR)
India: IP Traffic by Local Access TechnologyMobile Traffic Grows 3.8x Faster than Fixed Access
Source: Cisco VNI Global Mobile Data Traffic Forecast, 2014–2019
34% CAGR 2014–2019
Petabytes per Month
12© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
VirtualisationInternet of Things
RAN Diversity
Lower TCOIncrease Agility
“5 Bars” ServiceBy the most cost effective access,
Scaling traffic by 16x (5 years)
Capture BusinessOpportunity of the
Internet of Everything
Network Evolution Enablers
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Business Evolution Depends on VirtualisationVirtualization enables: It affects many aspects of your business: Faster TTM: Agility and flexibility Lower TCO
Resources optimization Common platforms/data center
New Revenue Opportunities: New XaaS use cases
Just in time procurement – on-demand scaling DevOps innovation – start-up culture Cloud services value chain – revenue share Operational automation
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Considerations for Virtualization
Macrocell RadioBusiness CPE
Appliances, GiLAN (L4-L7)
Backbone, Metro and DC switching
Wire-line GWs
Smallcell RadioHome CPE
Mobility GWs
CPUReqs
0 10Mbps 100Mbps 1Gbps 10Gbps 100Gbps 1Tbps 10Tbps 100Tbps 1Pbps
High
Low
Distributed: CPUs + Lots of NPUs
Distributed: Lots CPUs + NPUs
Centralized: CPU + NPU
CPU
Distributed: SoC
Variable CPU / FPGA / NPU
OSS/BSS, IMS & Policy control
MobilityManagement
(MME)Small Cell
GWs
Current Scope for Virtualisation
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Voice & Messaging Enterprise M2M
Cisco Mobile Internet Architecture
Macro CellsAny G / Any Vendor
Universal Small Cells
ASR5000 Series Packet Core2G, 3G, LTE, WiFi, Femto, inline Services
ASR900 & 9000 Series Unified Mobile BackhaulTDM, ATM, IP, GE, 10 GE, L3VPN, etc
Wi-Fi APs, Femto, dSON
Universal Monetization ArchitecturePolicy (PCRF), Orchestration (NFV), Abstraction
vIMS Hosted Collaboration Suite (HCS) IoT Cloud Connect
Access
Services
Network
Heterogeneous
Intelligent
Telco Cloud
Uni
fied
Dat
a C
ente
rIP
/MP
LSB
ackb
one
Universal RAN OrchestrationWi-Fi SON ANDSF 3G, LTE cSON
Het
Net
Virtual Packet Core(VPC)
Mobility IQAnalytics
NEW
NEW
NEW
NEW
NEW
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Cisco USC 5000 Series for Aironet 3600/3700
USC8000 Series Large Enterprise Small Cells
Cisco UniversalSmall Cells
Cisco Aironet Wi-Fi Indoor &
Outdoor
Cisco
Cisco Prime
Policy Suite SON Suite
Provisioning Management
Mobility Services Engine
Wireless ControllerCisco 8510
Small Cell Gateway
3G/4GCore
Wireless Access Gateway Cisco ASR 1000
Cisco ASR Seriesor vHetNet Core
Internet
Cisco 8000 Series USC Controller
Physical or Virtualised
Cisco Universal HetNet ArchitectureMobility IQ
AnalyticsNEW
NEW
NEW
NEW
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Started with US Cable Operators, but now MNOs
• T-Mobile, USA offers VoWiFihttp://newsroom.t-mobile.com/issues-insights-blog/welcome-to-wi-fi-calling.htm
• iOS 8 brings Wi-Fi calling for iPhones on T-Mobile
• 3, UK launches VoWiFi apphttp://www.mobileworldlive.com/three-uk-adds-vowifi-momentum-app-launch
• EE, UK plans VoWiFi to boast indoor coverage“The aim of VoWiFi is to improve in-building coverage. Calls will be automatically routed via WiFi, for instance in a user’s home or office, where there is an absence of cellular coverage.”
http://www.mobileworldlive.com/ee-launch-volte-2015-polishes-voice-credentials
http://www.telegraph.co.uk/technology/news/11519179/EE-launches-WiFi-Calling-to-combat-poor-reception.html
• Sprint prioritizes voice-over-Wi-Fi over VoLTEFour Sprint devices with the client pre-loaded. When the user connects to a WiFi hotspot, calls are automatically routed to the Wi-Fi network until the user leaves the area.
http://www.rcrwireless.com/article/20140328/carriers/sprint-prioritizes-voice-over-wifi/
.
Voice over WiFiAddressing indoor coverage holes Requires Device
(Client App or OS)
Network
Secure Connectivity
iWAN(Interworking Wireless LAN, IPsec)
ePDG(Evolved Packet Data Gateway: Terminate IPsec to connect UE to EPC)
VoIP Call Management
IMS/SIP IMS/SIP
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Cisco WiFi Calling Telco Cloud SolutionNFV Based VoX Solution
PGW
vIMS
IMS
MGCFMGWePDGWiFi/
Internet
VoIP SIP Client
SWu Client
Smartphone
S2bIPSec
SIP – Control plane
VoIP – User plane
HCS
Enterprise collaboration and PABX
ISC
3GPP AAA
SWm
HSS
SWx
VoLTE Core
PSTNPCRF
Cisco VoWiFi Solutions
ePDG: Base on proven StarOS multi-service platform (ASR5000 series / Virtual)
VoX TAS/IMS: Cisco Telco Cloud and UC/HCS Solutions
3GPP AAA: Cisco Prime Access Register Carrier-grade Wi-Fi Access: Field proven for HD Voice experience
MobileTelcoCloud
VNFVNF
VNFVNF
Gx
Rx
VNF VNF
19© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
VPNVPN
Cisco IoT Cloud Connect
Resolving Operators’ Challenges in Internet of Things
Enterprise M2M Applications
2G/3G/LTE/CDMA Network
Data AbstractionAPIs
BillingPortal
Built from ground up with M2M-tuned features
Complete stack of M2M management platform functions
Consumption based commercial models
Virtual Packet Core
Flexible deployment models to suit various environments
Speed to Market: Launch in 6 months
Framework to expand revenues beyond connectivity
COLD
IoT Cloud Connect
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Business drivers require Agility and Operational optimisation
In India, Smartphones and Video drive growth in connections and traffic
Network requirements have 3 interrelated themes:
1. RAN Diversity
2. Virtualisation
3. Internet of Everything
Cisco is transforming networks today with:
1. Universal HetNet -> Lowers TCO and improves speed to market
2. Virtualised platforms for new services including VoWi-Fi and IoT/M2M
Summary
© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
Q&A
22© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Introduction: The Evolution of Mobile Technology
1980 1990 2000 2010 2020 2030
Voice
Digital
Data
IP
IoE
4G – WiMAX. LTE/LTE Advanced
3G – WCDMA/HSPA. CDMA1x/EVDO
2G – GSM/GPRS/EDGE. DAMPS/CDMA
1G – TACS. AMPS
5G – …
R&D
R&D
R&D
R&D
R&D ?
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2014 2015 2016 2017 2018 20190
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000Offload Traffic from Mobile Devices (21% in 2014,31% in 2019)
Cellular Traffic from Mobile Devices (79% in 2014,69% in 2019)
India: Mobile Data Traffic Offload*31% of Mobile Traffic to be Offloaded by 2019
Source: Cisco VNI Global Mobile Data Traffic Forecast, 2014–2019
Petabytes per Month
*Offload includes traffic from dual-mode devices (i.e., supports cell & Wi-Fi, excl. laptops) over Wi-Fi/small cell networks
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Introducing Cisco Mobility IQ Unlocking the Power of Visual Network Knowledge
Network Operations ExperienceNetwork IQ
Marketing ExperienceUser IQ
Managed Services ExperienceBusiness IQ
Mobility IQ on Cisco Cloud Services
Aironet/MerakiConnect Analytics
MSE/WLC/PI
HetNet CoreSON
SP Wi-Fi 3G, LTEOn Premises
ISV3rd Party Apps
Data SourcesEMSP Connectors
NEW
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Virtualized Network Functions
Cisco Telco Cloud for Mobility
Operational ModelProvides Agility
Operational EfficiencyLeverages NFV/SDN
Accelerate TTMServices (VoLTE, M2M, etc.)
Enable New Biz ModelsHosting, MVNO, SaaS
Cisco Telco Cloud
Cisco Validated Design - Virtualized/Orchestrated Architecture/Solutions
Single Operational Model - Integrates IT and Telco Operations Models
Simplified Commercial Model- Evolution to SaaS (Own, Lease, PAYU, Hosted)
vIMS vPCRF vMPC vEPC
Evolved Programmable Network
Evolved Services Platform
MVNO
Open Multi-vendor Capability- 3rd Party VNF and Manager, OpenStack/VMware, ETSI MANO
ServiceProfile
Orchestration Engine
VNF Manager
Cross-Domain Network Services OrchestratorTail-f based
vGiLAN vDPI3rd Party
VNFsvWLC HeNB
GW ePDG Media Optimize NAT/FW SON
VoLTE VoWiFi HetNet PMB M2M
Compute(UCS) Storage Network
Virtualized Infrastructure / Manager
InterCloudPrivate Public
Open APIs
Open APIs
Open APIs
PhysicalNetwork
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Use Case: Virtualized IaaS for M2M
SON
Policy
Packet Core
Cisco Evolved Programmable Network
Storage ComputeNetwork
Mobile Service Portal
43% TCOSavings
Up to 84% OPEX
Cisco VirtualPacket Core (VPC)
Cisco Evolved Services Platform
Workflow Catalog
Open Daylight
ManagementResource
Orchestration
5 Year TCO to provision & maintain a new M2M service (5M growing to 16M devices)
• Cisco VPC with Orchestration, vs
• Traditional Packet Core and mgmt processes.
Cisco Virtual Network Functions
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VoWiFi Launches & Business Case DriversMNO Launch/
PlannedUse Case/Adoption
International Roaming Allowed?
Pricing Business Case Driver
Grow Subs Retention Revenue Cost to serve
Freedompop, USA Jan-15 WiFi first, LTE MVNO. Indoor/Outdoor. $5/month unlimited VoWiFi Republic Wireless, USA Jan-15 WiFi first, LTE MVNO. Indoor/Outdoor. $5/month unlimited VoWiFi Cablevision, USA Feb-15 ISP. Indoor/Outdoor Wi-Fi only voice. Roaming. Y $10/month VoWiFi Plans T-Mobile, USA Sep-14 Indoor coverage, VoLTE/WiFi mobility. Roaming.
6.6M calls per day.Y Unlimited voice bundles (3G/LTE/WiFi)
Scratch Wireless, USA Nov-14 WiFi first, LTE MVNO. Indoor/Outdoor. Roaming Y WiFi Free, $2 24h cellular pass Sprint, USA Apr-15 Indoor coverage and Roaming voice. Y Zero rated in minute bundles Verizon, USA Q3-15 Indoor coverage, voice & video TBD AT&T, USA Q3-15 Indoor coverage, voice. VoLTE/Wi-Fi mobility TBD Google Project fi, USA Q3-15 WiFi first, LTE MVNO. Indoor/Outdoor. Roaming. Y $20/month Rogers Wireless, Canada Q3-15 Indoor coverage. N Counted in minute bundle Bell Mobility, Canada Q3-15 Indoor coverage. N Counted in minute bundle H3, UK Jul-14 Indoor coverage and Roaming voice. Y Counted in minute bundle EE, UK Apr-15 Indoor coverage, voice N Counted in minute bundle Orange, France Q3-15 Indoor coverage. VoLTE/WiFi mobility. N Counted in minute bundle SwissCom Q3-15 Indoor coverage. Counted in minute bundle Smartone, Hong Kong Feb-15 Roaming. Coverage/quality. Y Prem plans free. Others US$1/ day Tier 1, Thailand Aug-15 Indoor coverage. TBD Telstra, Australia Q4-15 Indoor coverage. VoLTE/Wifi mobility. TBD Singtel, Singapore Jun-15 PoC Indoor coverage. VoLTE/Wifi mobility. TBD Tier 1, India Q4-15 Indoor coverage. Counted in minute bundle Asi
a
Eur
ope
Nor
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mer
ica