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Digital Lifestyle Services and Oracle’s Strategy Dan Bantukul Senior Member of Technical Staff CTO office Oracle Communications April 2014

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Digital Lifestyle Services and Oracle’s Strategy

Dan Bantukul

Senior Member of Technical Staff

CTO office

Oracle Communications

April 2014

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 2

Safe Harbor Statement

The following is intended to outline our general product direction. It is intended

for information purposes only, and may not be incorporated into any contract.

It is not a commitment to deliver any material, code, or functionality, and should not be relied

upon in making purchasing decisions. The development, release, and timing of any features

or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 3

Table of Contents

Market trends

Evolution of mobile data monetization

Evolving to a Digital Lifestyle Provider

ThinkingNetwork

Oracle PCRF System

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 4

Market Trends

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 5

What is the next wave N

et R

evenue

Subscriber Penetration

Voice Messaging Data

Access

Based From Chetan Sharma Consulting 2012

Digital Lifestyle

Services

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 6

Access Based Revenue Model

Net R

evenue

Subscriber Penetration

Access

Digital Lifestyle

Services

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 7

Majority of mobile operator

Relatively low number of PCRF use cases

Most operator focus on

- Fair Usage

- Network Protection

- Subscriber tiering

For the Initial LTE roll-outs

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 8

Relative low requirements for PCRF

PCRF

PCEF

- Fair Usage

- Network

Protection

- Subscriber

tiering

Gx

Policies are

fairly static and

does not

change much OCS

Gy

Low TPS

requirements on

Gx

TPS = f(subscriber)

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 9

Early mobile data services

Personalized Service Tiers

Creative Packaging

Shared Data Plans

Subscriber usage controls

Wi-Fi @

Cafe

3G in the Car

LTE, 3G, Wi-Fi @

Airport

Wi-Fi and

Ethernet

@ Work

Multi-access/Roaming Usage

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 11

Enabling Technology

PGW

BSS/OSS Retail

Oracle SPR

Oracle

PCRF

Web

Portal

DPI

Sophisticated Subscriber

Profile and entitlement

DPI in an early attempt to

identify and segregated

media

OCS

Gy Gx

Gx

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 12 12

• Family sharing 5 GB of data

• Same policy applied for all member

• Devices: any – phone, tablet, PC, TV etc.

Sarah Sam Sandy

Francis

Basic Shared Data Plan

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 13

Drawback of Basic Family Plan

• Can not set quota limit for

individual member

• Usually can not be augmented

with other “add-on” such as

passes.

• All member shared the same

policies – difficult to offer

personalized services such as

parental control.

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 14

Enabling Technology

PGW

Oracle SPR

DPI

OCS

Gy

Gx Gx

Coordinating Gx and Gy

sessions via PGW/DPI

becomes very complicated

with many charging_keys

and rating_groups

Oracle

PCRF

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 15

Early Monetization

Net R

evenue

Subscriber Penetration

Access

Digital Lifestyle

Services

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 16

Increase number of policy use cases

More

complex use

cases

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 17

Higher demands for PCRF

PCRF

PCEF

Gx

OCS

Gy

Sy

DPI/TDF

P-CSCF Rx

SDP/GW Rx

Notification SMTP/SMPP

XML

BBERF

Gxx

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 18

Complex Shared Data Plan

Benefits: • Shared data plan across multiple devices

• Policies based on multiple parameters

• Integration with charging systems and

enforcement points

Applying different service

to different devices

Allocating global quotas

per family or subscriber

Definition: Flexible policy management platform

supporting complex shared data plan where

individual members can have different quota

and policy profiles, services and enforcements.

Value Proposition Leverages family global subscription with capture of new subscribers

Targets customers instead of mobile devices, simplifies billing, improve loyalty

Improve loyalty and reduce churn through global offer

Family plans and Enterprise-wide plans will push families to have higher value service level

Personal choice of applications, guaranteed application performance

Challenges: Generating revenues from

casual users

Deliver low cost offers for

teens, lower income users

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 19 19

Personalize,

control & share

3 GB

Month 2 GB

Month

Variable

QoS

Fixed

QoS

Set policies &

parental control

Top-up

External Top-up

All

Gifting

No Gifting

Yes

$

MB

Minutes

Etc.

Rewards

Monetizing the Mobile Data Service Policy-driven Data Charging

ANY device, time &

context

Real-time

interactivity & view

Notification:

Quota reached

Usage charge of

$0.10 per MB will

apply.

Work, play &

socialize

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 20

Casual Usage, Loyalty Programs

Provider trends

Roles of Policy

Service providers looking to offer “add-on” to their basic

subscription based service

Service providers would like to attract casual users and travelers

with day passes

Service providers is looking for a way to expose their service to

corporate via sponsorship of data usage

Coordinate charging information between IP-CAN and charging

sessions

Performs gating function for pass type quota

Assists OCS in tracking usages

Source: Tekelec, Signals Research Group (SRG)

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 22

Enabling Technology

PGW

Oracle SPR

Oracle

PCRF

DPI

OCS

BRM ECE

Gy

Gx Gx Tight integration between

QoS enforcement and

Quota Management over

Sy ease implementation

Sy

BSS/OSS Retail Web

Portal

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 23

Optimizing Real-Time Sessions with QoS

Benefits: • Optimize video and voice traffic during peak hours of

congestion using policy rules.

• Implement Quota management to differentiate

premium and limited video and Voice over IP (VoIP)

Optimizing video traffic while

ensuring customer loyalty.

Delivering high quality Voice

over IP (VoIP) services

Definition: Policy and Subscriber Data Management (SDM)

combined to enable video and Voice over IP (VoIP)

usage quotas based on subscriber entitlements, time

of day, roaming status, and location.

Value Proposition Increase revenues by up-selling and personalizing video and Voice over IP (VoIP) services.

Manage costs by applying video limits to subscribers during congestion and introducing video limited services for

select subscribers.

Charge Over The Top (OTT) video and Voice over IP (VoIP) service providers for guaranteed quality of service.

Challenges: Video is 50% of all

mobile data traffic -

traffic costs

significantly greater

than revenues.

Operator

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 24

Example: Bandwidth on demand – Turbo button

› Push turbo button and

receive high quality video for

2 hour at 1 Euros

› Increases data usage by

lower tier subscribers

› Generate revenues from OTT

video services

› Charge YouTube for

increased video quality of

service

Tier 3 subscriber

Low Level BW Settings

Fair Use Policy Setting-

1Gig

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 25

Enabling Technology

PGW

PCRF

DPI

Gy

Gx Gx

Sy

Rx

P-CSCF

IMS

Web API

Bandwidth

On

Demand

Oracle

Communications

Services Gateway

OCS

BRM ECE

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 26

Over-The-Top (OTT) Services

Benefits: • Policy, subscriber data management and APIs

to securely expose network assets

• Policy analytics to evolve services

• Diameter routing for security

Higher costs/lower

revenues

Maintaining customer

relationship

Definition: Policy management use case allowing service

providers the ability to apply QoS to

applications from content providers

Value • Optimize quality of experience for customers’ preferred applications

Increase Over-The-Top (OTT) revenues by adding incremental value - subscriber data, analytics,

guaranteed QoS, data usage, mobile advertising

Comply with net neutrality regulations and ensure network security

Challenges: Addressing net

neutrality requirements

Adding value to Over-

The-Top (OTT) apps

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 27

Sponsored Data

PCRF Multimedia

Policy Engine (MPE)

OCS

BRM ECE Sy

Gx Gy

Online

Charging

Controller

SPR

PGW / PCEF

Oracle

Communications

Services Gateway

Web API

Rx

Francis initiates a video

streaming session to

watch the game.

OTT provider informs

the operator that the

subscriber has

initiated a sponsored

data session

Ro

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 28

IOT Signaling Flow (Initial setup – Volume base)

PGW MPE SPR OCSG AF

CCR-I– framed-IP, MSISDN

UDR (MSISDN)

UDA (MSISDN) CCA-I– PCC Rule-block

Gx session is up

Enable Subscription

AAR (MSISDN or IP, sponsored-connectivity-data (gsu))

Bind to existing Gx session

using MSISDN?

RAR (PCC-Rule w GSU)

RAA (result = success)

AAA (Success) Enable Subscription

Ack

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 29

IOT Signaling Flow (Usage Report)

PGW MPE SPR OCSG AF

CCR-U– Usage Report (USU)

CCA-U

Usage

RAA

Gx session is up from page

4 – GSU is being consumed

Event_Ack

GSU exhaused

RAR (Specific Action: Usage Report

Sponsored-connectivity-data: usu = accumulated usage

)

This may trigger AF

to terminate

session (next page)

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 30

IOT Signaling Flow (AF Session Termination)

PGW MPE SPR OCSG AF

RAR (install Block rule)

RAA (USU)

Session termination

Gx session is up from page 4

Usage report

STR

STA

Sponsored-connectivity-data: usu = accumulated usage

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 31

IOT Signaling Flow (User terminates session) PGW

Simulator MPE SPR OCSG

AF

Simulator

CCR-T– USU

CCA-T

Event Terminates

ASA

Gx session is up from page 4

ASR (Abort reason)

Event_Ack

User terminate data session

Session termination

STR

STA

Sponsored-connectivity-data: usu = accumulated usage

Event_Ack

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 32

Enabling Technologies

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 33

Digital Lifestyle

Net R

evenue

Subscriber Penetration

Access

Digital Lifestyle

Services

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 34

Market Positioning N

et R

evenue

Subscriber Penetration

Voice Messaging Data

Access

Based From Chetan Sharma Consulting 2012

Digital Lifestyle

Services

“To offer best-in-class infrastructure solution framework for a mobile service

provider to evolve from an access provider to a Digital Lifestyle Provider”

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 35

Digital Lifestyle Provider

It is not what is being delivered but rather how it is being delivered

Focuses on content delivery

– Personalized, any time, any place, any where

– Reliable, Secure and excellent usage experience

Subscriber comes to you for all services

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 36

Paradigm Shift

SELLING

Limited choice

Inconvenient to buy

‘Me too’ product

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 37

Paradigm Shift

Maximum choice

Easy to buy

Personalized

Emotionally Connect

BUYING

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 38

How well do you know this person and her personas?

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 39

Are you in your Customer’s Inner Circle?

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 40

Popular Consumer Lifestyle Services

Source: Ovum, 2013

Most frequently used applications – its all about lifestyle

Lifestyle service plan design needs to reflect major demographic differences

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 42

Opportunity: “Freemium” is the Dominant Model

CSPs can make it work: Zero-rating, open APIs, expose policy, Ad-sponsored

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 43

Opportunity: ‘Game-ify’ your Services

Apply game design thinking to your applications – points, credits,

contests, customized rewards for loyalty

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 63