AutoQoS Technical

Presentation, 1/03 © 2002, Cisco Systems, Inc. All rights reserved. 1

 Increasing Monetization for
Cisco’s Service Providers
Presenters:
Damaris Sardenberg / James Morrissey/ David Nettemeyer
Support:

AutoQoS Technical
Kelly Shen, George Lam, Stephen
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 Agenda

• Situation Overview
• Executive Summary
• Recommendation Overview
• Marketing Strategy
• Demographics & SWOT analysis
• Segments
• Pricing
• Revenue
• Q&A’s
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Presentation, 1/03 © 2002, Cisco Systems, Inc. All rights reserved. 3
 Situation Overview

Gartner forecast to reach

over 50% by 2015

As more and more consumers

use smart phones, how can
service providers make the
most of this channel?

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 Executive Summary

• Constant high • Focus on • Faster network • Companies

demand for development of creating a that investment
faster speeds Long Term seamless user in better
Evolution “LTE” experience networks will
• Greater data 4G to meet see continued
consumption demand • Vast storage strong customer
and storage solutions and base
• Cloud better market
•Service computing position for the
providers find it partnerships mobile cloud
hard to fulfill
these needs

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 Recommendations Overview
• Cloud storage included in tiered
packages.
• A standardized and familiar
interface when accessing from
different devices.
• Subscribe and you’re in the
cloud; reach all of your
resources from all of your
devices.
• Increased speeds and access to
heavier SaaS applications on
mobile devices.

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 Recommendations Cont.

• Faster bandwidth
• Data is the primary source of traffic

• A single portal, rather than sales applications

• Cloud resources, SaaS applications, and rich
media.

• Leverage existing applications and services

designed for the cloud.

• Avoiding the app store model

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 Recommendations Cont.
Access Independent Platform
• Seamless experience for users,
a familiar interface on every
device.
• The appearance to the user is
of a single system, accessible
from all of their devices.

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 Strategic Partners

Cloud Storage  Mobile Device Hardware & Software

• Amazon • HTC (EVO, myTouch,

Droid Incredible

• Motorola (Xoom, Atrix, Droid 2)

• DropBox.com

• HP (TouchPad 3, Pre 3)

• Intuit (GoPayment, TurboTax,

• EMC2 Quicken)

• Concur (Spending Mgmt

for all business sizes)

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 Marketing Strategy: Demographic focus
North America

• In the USA, over 84 billion text messages

are sent each month, over 2 trillion in 2010.

• Cell phone penetration in the US has

surpassed cable TV, web access and
home PC’s

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 Marketing Strategy: Demographic focus
North America

• AT&T projects wireless data sent

over its networks to increase 8 to
10 times in next 5 years.

• Continual investment in higher

technologies will have to continue
to meet the demand of customers

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 SWOT Analysis: North America

Strengths Weaknesses

• High demand for high-valued • Over 90% market penetration

faster mobile services • High investment costs
• Demand for smarter and easier • Privacy and security concerns
access to content over content
• Continuing demand for video
streaming

Opportunities Threats
• High growth opportunities in LTE • Investment from competing
• Potential high growth in the mobile cloud companies
• Partnerships • Slow adoption of mobile cloud
• Development may not return immediate results
• Services
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 Marketing Strategy: Demographic focus
Latin America
• Nearly 300 billion mobile messages sent in
2010

• 68% of wireless subscribers in Latin America

use their SMS functionality 3 times a week

•Currently local carriers that are not familiar with

software
Mobile subscriptions and mobile Web in BRIC countries

Mobile Mobile Web

Population in
subscriptions users
Country 2009
per 100 per 100 mobile
(in millions)
population subscribers

China 1,335 57% 30%

India 1,166 41% 2%
Indonesia 240 66% 5%
Brazil 194 86% 6%

Source: BCG

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 Marketing Strategy: Demographic focus
Global Mobile •Latin America commands 10.37% of global mobile
Vs subscribers
Latin America
•10.18% of mobile revenues comes from Latin America

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 SWOT Analysis: Latin America

Strengths Weaknesses

• Market demand for higher speeds

• High investment costs
• High demand for valued
mobile services • More prepaid vs. postpaid users

•Young emerging market

Opportunities Threats
• Partnerships in LTE development • Market relies on private investment
and service providing for continual growth

• Growing demand for content and • Market controlled by three major

better means of media access telecom providers
• Telfónica
•No Significant competition • América Móvil
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 Marketing Strategy: Segments

Consumer Business
• Begin by Targeting Consumers, adapt to Business

Consumer Segment Business Segment

•Monumental market
•Improve experience through •Mobility of information
customization •High level customization
•Customer Retention •Business intelligence resulting in
•Services combined provide increased productivity and decision
convenience making
•Varied market will drive •Mobile CRM
innovation and diversification

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 The Cloud

Everything, Everywhere, All the Time Media Sharing

• Advertising
• Mobile Shopping Cloud

• Streaming Media

Location Sharing Communication

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 Advertising & Shopping in The Cloud
Mobile Advertising Mobile Commerce
• It is estimated that by • Virtual Mall
2014 half of Americans’ • Virtual Wallet
web browsing will be
done on mobile devices

• Mobile Advertising Works

• Location Based
Advertising

Estimates on Global Expenditure

on Mobile Marketing and Advertising

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Streaming Media In The Cloud

• Media Store Media

• Partner with Major Networks Store
• Partner with Major Studios
• Access to free Programming with
commercials/Advertisements

What does it mean to Cloud

consumers ??

 No need to configure or manage the

software
 No need to have to pay for the extra
bandwidth that comes with streaming

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 Pricing Strategy
Tiered Pricing

• Offer Unlimited
call/Text Standard
with all DATA Plans

• Offer Tiered DATA

plans

• Additional Revenue
from Value Added
services

* DATA Speed Limited After 500MB

** Off Peak M-F 8AM-6PM, Weekends All Day.
DATA Speeds Limited During Peak Hours.
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 Revenue Estimation
Juniper Research is forecasting the whopping
$200 billion total of LTE-generated revenue in
the next three years

LTE Revenue ($16bn) split by 8 Key Region 2009-2014 considering Recommendeded

Pricing Model

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 Q & A’s

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