Building an Independent , Intelligent Control Layer to Monetize LTE Networks

2. Building an Independent, Intelligent Control Layer to Monetize LTE Networks Jason Emery Senior Director Signaling Product Management John Lenns Senior Director Policy Product Management

3. 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.

4. Program Agenda • The New Diameter Network • Network Resiliency • Monetizing LTE Networks

5. The New Diameter Network

6. Standard Diameter Interfaces MAP-Diam IWF Gr Foreign GPRS Domain Foreign LTE Domain vMME OCS OFCS RF ABMF vPCRF vSGSN • Industry Standards • 3GPP Evolved Packet Core and IP Multimedia Subsystem (IMS) define Diameter interfaces for policy, charging, authentication and mobility. • 3GPP and ETSI standards define Diameter for Authentication, Authorization and Accounting functions in the NGN • Standards continue to add new Diameter interfaces S6d S6a S9 vS4-SGSN Sh SPR SLF SLh S6a EIR IP-SM-GW Sp Cx S13 Rx Gx Sy I/S-CSCF P-CSCF PCRF MME AF Rf Sd Gz SGmb Gxx PGW BBERF BMSC MBMS-GW TDF GMLC Gy Ro Rc Re Home LTE/IMS Domain

7. Multiple Challenges for Diameter Networks Simplification Scalability Performance Reliability Robustness Security Flexibility Traffic Management Mobility Management Load Balancing Interworking IOT CSCF Policy Control PCRF CSCF PCRF PCRF CSCF Charging EIR IMS DPI Video Optimization Gateway Traffic Optimization EPC Partner Networks Subscriber Data MME Inter-Carrier Roaming Cloud/OTT SBC PGW

8. The Value of Diameter Routing Secure Interconnection for OTT Apps Congestion and Traffic management Scale Diameter Transactions Interworking and Interoperability Network Visibility Load Balancing Secure interconnection for Cloud services • Grow • Revenues • Manage • Signaling • Growth Steer Roamers to Preferred Partners Reduce Revenue Leakage Secure Interconnection for M2M services

9. New Business Models Drive Diameter Signaling Quality of Service • Guarantee quality of service for a video application • Provide subscriber profile, preferences or usage data to a mobile advertiser • Provide customized and dynamic service offerings for subscribers • Policy Control Drives Signaling Personal Ads Service Tier Location Preferences Usage

10. The Value of Policy Fair Use & Congestion Management Service Tiers Cloud Services Bill Shock Mobile Video Optimize Cost Grow Revenue Social Networks Over-the-Top Apps Parental Controls Machine to Machine Services Bandwidth on Demand

11. Digital Lifestyle Services Depend On Subscriber Data Management Major Trends Affecting Operators’ SDM Strategy • Scale while maintaining low-latency, high-throughput DB access • Optimize for read-intensive and write intensive applications • Efficiently handle structured and unstructured data • Cope with growing profile sizes • Curb the data replication cost • Carrier-grade robustness & resiliency • SDM Challenges

12. The Value of Subscriber Data Management Personal Service Tiers Scale Subscriber Databases Manage structured/ unstructured data Personal Cloud Services Personal mobile Ads Consolidate databases Grow Revenue Optimize Cost Manage dynamic and static data Over-the-Top apps Identity and location Services Machine to machine services

13. Rapid Diameter Signaling Growth Diameter traffic worldwide will increase to more than 98 million MPS by 2017 (140% CAGR) • NA has the largest volumes overall • Other regions showing signs of traffic growth • LTE Penetration still projected at only 13% worldwide by 2017* *InformaTelecoms & Media

14. Diameter Signaling Growth by Use Case Policy is the top contributor to Diameter signaling • Online Charging (OCS) is the fastest growing use case • More complex policy rules adding to Diameter growth (i.e., Policy on the Device) • Mobility and Offline Charging other contributors • Future drivers include Service Delivery Applications CAGR 163% 179% 75% 102%

15. The New Diameter Network

16. Network Resiliency

17. Signaling Storms and Outages • LTE EPC elements do not implement sufficiently robust Diameter congestion and control • IOT efforts between vendors just starting to happen – need mediation • LTE Operators require robust and scalable Diameter signaling infrastructure to minimize the risk of network outages • LTE/EPC Challenges

18. Unchecked Diameter Traffic Example of S6a traffic HSS Cannot tell MME to stop sending Diameter traffic - Congestion likely to cause failure HSS failure: MME has to implement failure handling - not MME strong point • Prevent failure in the first place • Avoid a network outage after failure • Assure recovery from failure • Maintain high quality of service for the subscriber • A robust Diameter signaling and control architecture must MME MME MME RAN Diameter Signaling Controller Policy on the Device MMEs may implement failure handling in different ways – causes less effective traffic management RAN congestion prevents connection

19. Diameter Signaling and Control Network Resiliency Prevent Failure, Avoid Outage, Assure Recovery DiameterServer DiameterServer • Control amount of traffic to/from Clients and Servers • Detect and Route around congestion and failures • Orderly discard (based on Message Priority) of traffic from Client if needed • Facilitate Wi-Fi Offload using Analytics and other key indicators (i.e., Subscriber profile) • A robust Diameter signaling and control architecture must DSR Diameter Client Diameter Client Diameter Client RAN Diameter Client: MME, PGW, CSCF, AS, etc Diameter Server: HSS, PCRF, OCS, OFCS, etc

20. The Time for Diameter is Now • “100% of our Revenue Generating Services will run on the New Diameter Network.” –Tier 1 Operator • The New Diameter Network will manage 100% of the Diameter messages generated by devices and apps The decisions you make now will determine mobile data success

21. Monetizing LTE Networks

22. A Radical Transformation is Underway

23. A Shift in Revenue is Coming

24. Digital Lifestyle Services are the Next Wave

25. Requiring a 4-Phase Evolution Digital Lifestyle Providers New Diameter Network Network Virtualization Thinking Networks Mobile Social

26. Phase 1: New Diameter NetworkFoundation for Migrating to Digital Lifestyle • Diameter signaling router – the ‘central nervous system’ – manages signaling traffic growth • Dynamic policy - the ‘brain’ –provides the logic and rules for new services (i.e., tiered services…) • Subscriber database – the ‘memory’ - stores profile, state, behavioral and usage data for personalization of services. • NDN Components

27. To Manage Rapid Diameter Signaling Growthand Enable Usage-Based Services Roaming Low Bandwidth Required Platinum Plan • Allows Service Providers to offer many usage based services • Tiered Service Plans • Shared Data Plans • Quota top-ups • Roaming Day Passes • Personalization • New Diameter Network Fair Usage Exceeding Quota Day Pass Shared Data Plan

28. Phase 2: Virtualization and Elastic Scalability • Building a robust core network architecture is difficult to do in a cost effective manner • Oracle’s NFV solution enables flexible creation of new network function instances whenever there is a need to throttle processing capacity up (or down) • Networks do not need to be over provisioned and they can be deployed on common, commodity hardware • Network Function Virtualization

29. Phase 3: Mobile Social Subscriber Intelligence is Unleashed • Powerful mobile devices and ubiquitous wireless broadband connectivity have enabled the delivery of rich, high quality content to mobile subscribers • Mobile social enables content providers to interact with the mobile subscriber • This synergistic relationship will promote usage of data-heavy content services within cost sensitive mobile data plans • Mobile Social for a Digital Lifestyle

30. Mobile Social Requires Policy Everywhere • Policy Everywhere • Defined centrally within an intelligent control layer independent from the underlying network infrastructure • Applied globally across networks, devices and applications • Intelligently orchestrates the subscriber experience, leveraging network, subscriber, device and application awareness

31. Phase 4: Thinking Networks for End-to-End Intelligence and Control • Thinking networks employ Software Defined Networks (SDN) to ensure traffic between existing and new network functions is uninterrupted, seamless and automatic • Enables more cost effective utilization of expensive service elements allowing operators to save CAPEX costs • Eliminates the need for continuous manual reconfiguration of traffic flows thereby reducing OPEX • Network Intelligence and Flexibility

32. Drive Impressions Monetize Data Drive Commerce Service #1: Personalize Mobile Advertising Mobile Operators can… • Zero-rating of ads content prevents negative impact to subscription / rate plans • Mobile Policy Gateway–Interactive Dynamic Upsell • Network, subscriber & service intelligence • Loyalty rewards & offers • Integrated payments, identity and authentication services • Sponsored/Subsidized/3rd party pays service model • Network service APIs allow 3rd parties to differentiate their services to subscribers • Opt-in database and sharing of anonymous data

33. Service #2: Monetize ‘Mobile Social’ Data SubscriberProfile ServicePlan Anonymized Gender Streaming audio Location Shared data Ethnicity 2GB / month Life Stage Age Demographics UsagePatterns DeviceCapabilities Usage Category iOS News Hi-res screen Video Peak-hour usage Front-facing camera Segmented

34. Service #3: Offer Comprehensive Digital Lifestyle Mobile Digital Lifestyle + Targeted Advertising + Sports Package + 25% Revenues Promos & Loyalty Analytics Advertising YouTube TV Network Subscriber + Promotion