Protecting the Cloud

Presented by:
Jason Ashton
CEO
 The Cloud is growing fast

1,600,000,000,000,000,000,000, bytes

(1.6 zettabytes).
Annual Cloud IP traffic by end 2015. Cisco

That’s 3x the total internet storage

of 2009 moving across the cloud in 2012...

66% CAGR
The annual rate Cloud IP traffic is
expected to grow from 2010 to 2015
 Your organisation relies on Cloud

• POS systems, CRM, ERP, mobile

applications, Websites, data and email

• Asia Pacific and Latin America are leading

the world in cloud adoption (Tate
Consultancy 2012)

• This is due to reduced security fears,

regulation, legacy data centre systems and
the fact smaller organisations are more
aggressive adopters

• 1/3 of applications in A/P are now in the

Cloud (heading to 1/2)

• Your organisation relies on the Cloud in

some way already
 Benefits are clear

• Flexible to serve a more mobile workforce (1 Billion smart Scalability 61%

phones by 2013)
Overall Cost Savings 54%
• IT cost savings of up to 20% are not uncommon as IT staff are
deployed on more progressive projects Easier Management 53%

• Working capital is preserved with less upfront capital and Redundancy 49%
reduced power required for the client devices
Greater Flexibility 49%
• Efficiency and consistency as application updates are
centralised and automated
Elasticity / Ability to adjust 48%
• C02 foot-prints are reduced significantly (along with power bills)
to fluctuations in resource
demands

• Data is secured (800,000 laptops are lost every year) Improved Hardware 34%
Utilisation
• Patch management of on-site applications is expensive
(Microsoft alone released 261 patches in 2010)
Security 32%

• Scalable cost structures to match need (no ‘shelf-ware’)

Other 6%
 What cost when
disconnected now

Have you ever calculated the cost of losing

connection to your cloud-based services for even
one hour?
*

25%
The lost productivity for every
moment just email is out

• opportunity cost of lost orders

• opportunity cost of lost customers
• damage to reputation
• potential default on contractual and
*Ottoman Research regulatory commitments
 Primary networks do fail

• Natural Disasters such as fires, earthquakes, floods

• Construction work incidents

• System and / or hardware failures

• Terrorist / vandalism attacks

February 23 2012 -
3 Million 3 Million users and
businesses offline
down February 23 2012 due
to a routing
issue affecting Telstra
and other networks
 Outages can be lengthy

• Natural Disasters such as fires, earthquakes, floods

• Construction work incidents

• System and / or hardware failures

• Terrorist / vandalism attacks

A contractor cut through

Cables cut in multiple Telstra fibre optical
and copper cables in 2009 in
Sydney CBD the Sydney CBD and put out
thousands of businesses for
over a week.
 Key considerations

• Ensure your back-up network is completely independent

of your primary network to ensure complete redundancy

• Ideally the redundant link should be capable of fully replacing the primary
link in terms of speed and bandwidth

• Ensure carrier grade technologies and IP network backbone with multiple

upstream connections hosted in redundant Data Centre's

• In an ideal world - scalable cost with “standby” pricing and bandwidth for
non-disaster periods – ie. rapid delivery of boosted speeds when required
 Typical redundant solutions

• Common mistake is to replicate with ADSL, Ethernet-over-Copper or even 3G mobile wireless

• ADSL is too slow if your primary network is fibre-based

• All copper related faults rely on Telstra to perform restoration

• 3G and other mobile services are highly variable depending on location

• Ethernet-Over-Copper is exposed to the same terrestrial risks as Fibre and ADSL

ADSL and 3G/4G are NOT After the Brisbane CBD lost
commercial grade back-up some 2G and 3G

networks
flood mobile services due
to flooding in 2011.
 Fixed Wireless is the answer

• Independent of ground based carriers (for true redundancy)

• Scalable for cost efficiency with higher performance as required

• Symmetrical speeds for ultra-fast uploads

• High speeds and low latency for applications such as:

• IP Telephony (eg: Voice over IP or VoIP)

• Web, Email, Video Conferencing
• Latency sensitive apps (e.g. Citrix, multimedia applications)
• Large file transfers
• Corporate WAN/VPN connections
• Cloud based applications

• Point to Point architecture makes it a real alternative to Fibre

• Competitive SLA with MTTR guaranteed (vital for business

continuity)

• Speeds up to 1 Gigabit already available in most CBD and metro

areas
 Makes a great primary link too
• Point to point Fixed Wireless delivers fibre-equivalent performance

• Use ADSL or EOC as your backup network

• Also perfect for

• Rapid deployments – when fixed networks cannot be provisioned

quickly enough

• New housing developments where a cost effective fibre backhaul does

not exist

• Temporary high-speed internet for events

• Data Centre connectivity

• Very fast - speeds up to 1Gbit/s, saves time and money versus

fibre

• Scalable – most 50M-100M services are now provisioned using

Gigabit radios.
 The future of Fixed Wireless

• Manufacturing costs for Gigabit radio systems continue Wireless

to drop - 3Gbps systems already available speeds
• Expect to see 10GigE systems soon

• Ongoing cost reductions combined with fibre-optic equivalent

capacity will ensure its long-term role in communications
networks

• Advances in Point to Point Microwave technology will ensure

that it keeps pace with wired services post-NBN
 Summary

• Businesses increasingly rely on access to the Cloud and continuous connection is a business-
critical issue – disconnection cost is large

• The best protection is a full time redundant (back-up) network

• This must be scalable and high performance to maintain business operations

• It must also be delivered through an alternate pathway to your primary network

• Fixed Wireless is an elegant solution with no reliance on fixed line carriers

• Business continuity assured!

Thank you – Q & A
 FINANCIAL INSTITUTIONS
ENERGY
INFRASTRUCTURE, MINING AND COMMODITIES
TRANSPORT
TECHNOLOGY AND INNOVATION
PHARMACEUTICALS AND LIFE SCIENCES

Cloud Computing – What are

Customers Concerned About
Nick Abrahams
Partner
Norton Rose Australia
April 2012
Today
• Risk considerations and how they may be mitigated
• Banks and APRA compliance
• Government

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The risks and how they may be mitigated
The risks and how to mitigate them
1. Transparency of arrangement
2. Vendor or technology lock in
3. Practical deployment issues
4. Security and data protection
5. Regulatory compliance

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1. Transparency of arrangement
• Cloud abstracts away many of the details
– Cloud provider will deliver specified functionality and requirements
– No transparency of implementation details
• Simplifies deployment, and can allow efficiency gains
• But this lack of transparency creates risks and issues
– Especially relevant for regulated industries (eg financial institutions)

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1. Transparency of arrangement – Scenario
Perception
• The bank enters into a services agreement with Vendor Acme which provides the
bank with specified functionality delivered over the internet – ie SaaS

Agreement

Bank Acme

Owns and licenses

Access Controls

Data stores “Software Magic”

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Scenario – Reality
Agreement Acme

Equipment Data Centre Licence Services

Bank Leases Access Agreements Agreements Agreements

Software
Data Centre Operators Platform
Licensors
Equipment Lessor Providers

Access
Software
components

“Software Magic”
Platform and data
Financiers processing
components
Data centres
Network Service
Providers Data flow Other users
Data processing
in other clouds

7 14000522_1
1. Transparency of arrangement – Key practical risks
Risks to customer
• Insolvency of cloud provider
• Security breach at data centre
• Disaster or technical issues affecting systems and quality of service
• Ability to terminate and cost of transition/migration
Mitigation techniques sought by customer
• Imposing control over the contractual arrangements
• Requiring visibility and benchmarking
• Making other third party arrangements

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2. Vendor or technology lock in
• Easy to slowly migrate into a cloud, but taking it out may be painful
• Due diligence is key
– Contractual terms won’t help when it’s too late

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3. Practical deployment issues
Cost modelling and return on investment
Service Levels
Availability
• Even the best clouds can go down
– Amazon S3 – Multiple incidents in 2008 – several hours at a time
– Google AppEngine – Incidents in 2008, plus regular scheduled downtime
– Google Gmail – Feb 2011 loss of user account and old emails due to internal software
update
• Large overseas providers and standard legal terms – often not responsive to
enterprise customers’ potential concerns
• Multiple clouds as a solution?
Performance
• Unpredictable – beyond control of cloud provider and the bank
Scalability / Agility

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4. Security and data protection
Benefits
• Cloud storage may provide inherent security by its distribution model
• Most clouds claim to be “secure” and “encrypted”
Risks
• Lack of control and transparency – How do you know?
• Duplicity of data – How to delete from the cloud?
• Federated data centres – Security is as strong as the weakest link
• Cross jurisdictional issues – eg US Patriot Act and other “long arm” statutes
• Ability to audit
• One customer can be affected by bad behaviour of other customers
• More risky than keeping data offline

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US PATRIOT Act
US PATRIOT Act
• USA PATRIOT
– Uniting (and) Strengthening America (by) Providing Appropriate Tools Required (to)
Intercept (and) Obstruct Terrorism Act of 2001
• Intent
– Targeted legislation to combat terrorism
– Improves ability to investigate terrorist activities and other clandestine activities
– Not intended to grant unfettered right to access date
– Amends a myriad of existing laws
• Australian Cloud Providers
– Very vocal in objections to the Act
– Australia / US have a close relationship – cooperation is in any event likely
• Government
– Recent legislation seems against the use of cloud
– APPs
– Electronic Health Records Bill
• Security not geography

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APRA compliance
APRA’s views
November 2010 letter to institutions
• Institutions do not always recognise the significance of cloud computing initiatives
and fail to acknowledge the outsourcing and/or offshoring elements in them
• Key prudential concerns relate to the potential compromise of:
– ability to continue operations following loss of cloud services
– confidentiality and integrity of sensitive (eg customer) data
– compliance with legislative and prudential requirements
• Must consult with APRA before any offshoring agreement involving a material
business activity
• Expected to provide a comprehensive risk assessment, including specific
services arrangements, service provider, service location and criticality and
sensitivity of IT assets involved
• Necessitates detailed understanding of business processes, technology
architecture and sensitive information impacted
• To date, assessments of cloud computing proposals typically lack sufficient
consideration of these factors

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APRA’s views
September 2011 comments by APRA Head of IT Risk at FST Media Cloud
Computing Conference
• Urged institutions to establish data classification regimes before taking up cloud
or outsourcing services
– “The data management issue is very important if anyone is looking to put any data in the
cloud. The number one step is to understand and to be able to classify your data in order
to understand what data is going out and what level of sensitivity has to do with that
data.”
– “The other thing is that possibly security methodology is going to have to alter if this is the
future for us. At the moment, the security that we implement these days is not keeping
pace with the hybrid and varied cloud offerings that are occurring.”
• Cloud deployments should be approved by an institution’s board or executive
management and by data architecture managers
• Urged institutions to “think strategically and hasten slowly” into cloud computing

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Government
Government
Australia - DSD Paper and then AGIMO
• Vic Human Services using Oracle cloud for Black Saturday victims
• Numerous universities use cloud email
USA – “Cloud First”
• Homeland Security (private & public) Depts of Defence, Agriculture & Energy
• LA & Pittsburgh City councils
UK – “G-cloud”
• Internal, on-shore govt cloud over 10 yrs to 2020
France
• Internal, on-shore govt cloud built by Accenture
Spain
• Catalan govt uses public cloud (inc Microsoft) for email etc.
Japan – Kasumigaseki Cloud
• By 2015 an on-shore private cloud
Singapore
• Called for tenders for internal cloud – by 2015
India
• Federal government investing $270M in cloud infrastructure
South Korea
• $500M investment into private on-shore cloud by 2014
China
• $150M investment into on-shore private cloud
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Summary
Summary
• Commoditisation of IT infrastructure inherently introduces risks by hiding details
and limiting flexibility
– Ideal for SMEs, less useful for larger enterprise
• Understand and mitigate against risks
– First identify business requirements
– Due diligence is key, especially type of data suitable for cloud
• For sensitive data – private cloud
• For non-sensitive data, public or hybrid cloud may be possible
• Liaise with cloud providers and APRA to formulate bespoke solutions for APRA-
compliant institutions
• Ask if this data should be allowed to leave the premises and if so – what security
requirements

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Our international practice

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Disclaimer
The purpose of this presentation is to provide information as to
developments in the law. It does not contain a full analysis of the law nor
does it constitute an opinion of Norton Rose Australia on the points of law
discussed.

No individual who is a member, partner, shareholder, director, employee or

consultant of, in or to any constituent part of Norton Rose Group (whether
or not such individual is described as a “partner”) accepts or assumes
responsibility, or has any liability, to any person in respect of this
presentation. Any reference to a partner or director is to a member,
employee or consultant with equivalent standing and qualifications of, as
the case may be, Norton Rose LLP or Norton Rose Australia or Norton
Rose Canada LLP or Norton Rose South Africa (incorporated as Deneys
Reitz Inc) or of one of their respective affiliates.

22 14000522_1
 EMBRACING Digital
For The Next Era Of Growth
Australian’s love connected devices
Insert Screen Grab
 Content Services

Harnessing Digital for the

Cloud-Based Services

Next Era of Growth

e-Convenience Tools

e-Commerce & Payments

Austin R. Bryan
Integrated Partnerships
Head of Australia, Group Digital Life
 51% of Australians own a Smartphone
> 16 years old

>10 hours per week Australians spend on

Smart Devices

300,000 Australian households use IPTV

Hyperlocal services for the best in local
food, shopping and events
Publisher Advertiser Operator

Partnering to create the worlds largest

global digital advertising company
Time shifting, multi channel
viewing

Include Gartner slide with advertising

revenues
“If you believe humans wants and
needs are infinite, then there are
infinite industries to be created,
and infinite jobs to be done, and
the only limiting factor is human
imagination”

Marc Andreessen
 EMBRACING Digital
For The Next Era Of Growth
COMMUNICATIONS ALLIANCE
Telecommunications Consumer
Protections (TCP) Code

The Final Countdown

17April 2012

John Stanton,
Communications Alliance
Happy Birthday TCP & RTC

ACMA Priority Issues – May 2010


TCP Code 2012 incorporates 19 of the 22 ACMA recommendations from the

initial review stage of the process, including:

• ACCC Enforceable Undertaking on Advertising (industry-wide application)

• Telecommunications Product Statement
• Complaint Handling rules for:
- Recording details of undertakings made to customers
- Providing a unique reference number
- Resolving a complaint and notifying a customer in 15 days (cf 30 days
proposed by ACMA)
- Maintain ingrecords of complaint resolution
- Providing advice on external avenues of recourse (including the TIO)
RTC Report June 2011


Proposal 1 - Improved advertising practices. Industry agreed to:

• Effective unit pricing for each component within the included value of a post-paid
included value mobile plan
• Stronger prohibitions on potentially misleading terms
• Stronger controls on network coverage/speed claims
• But: Industry raised legal and customer-related concerns re Volumetrics

Proposal 2 - Improved product disclosure. Industry agreed to:

• Summary of offer document for pre-sale comparison
• Make summary of offer available for different products & includes non-product specific
information
• But: Industry resisted making this a fully-standardised “PDS” document – for reasons of
effectiveness

Proposal 3 – Performance reporting and customer service charters. Industry agreed to:
• Develop Metrics and a Supplier Performance Reporting framework – CA and
Communications Compliance to work together. (Issues also to be addressed within
ACMA/CC MoU)
• Include non-mandatory customer service charters as per RTC recommendation
RTC Report June 2011


Proposal 4 – Expenditure management tools: Industry agreed to:

• Equivalent platform-based notifications for included value plan customers covering
data (plus voice and SMS - new)
• But: Slight disagreement over notification points (50/80/100 vs 50/80/95); and
• Disagreement (based on cost-benefit) re making fixed line services subject to
notifications; and
• Disagreement on complexity of expenditure/usage info mandated on bills

Proposal 5 – Internal complaints handling: Industry agreed to:

• Further changes to definition of “complaint” in consultation with ACMA and other
stakeholders
• Development of metrics/benchmarks that will include complaint-handling metrics
Feb 2012 - ACMA additional proposals


• 11 of the 14 issues raised by the ACMA in February 2012, were addressed in

the Code, including:

- Exit or termination fees included in Critical Information Summary

- Contact details of TIO in Critical Information Summary
- “Or equivalent term” used to restrict use of “cap”, “unlimited” & “no
exceptions” in advertising
- Increased period (24 months) of availability of free billing information.
- Amended definition of “urgent complaint”
March 2012 – Latest ACMA & ACCC
Proposals


• Industry has agreed to incorporate ACCC proposals for:

- more rigorous requirements on Communications Compliance;
- stronger ‘name and shame’ provision;
- stronger link between TIO info & Compliance Monitoring Requests; and
- amendment to make the Code more consistent with the ACL.

• And to incorporate additional ACMA proposals for:

• Unit pricing in broadband plan ads
• ‘Prominent display’ of unit pricing
• Substantiation of claims
• Adoption of “Critical Information Summary” name and standardised
format & content

• Some elements might need further, limited scope review 12 months after
Code introduction
Next Steps


• Incorporate final refinements in TCP Code & re-submit to

ACMA for registration (targeting date-of-effect, 1 August
2012)

• Establish Communications Compliance – stakeholder

liaison

• Conduct further round of Industry compliance training

• Create compliance tools for Carriage Service Providers

 The ACOMM AWARDS 2012


• Award Nominations Open: Monday 19 March 2012

• Award Nominations Close: Monday 30 April 2012
• Shortlisted Finalists Announced: Tuesday 19 June 2012
• ACOMMS Awards Dinner & Winners Announced: Thursday 26 July 2012
 Data Centers –
At the Intersection of Cloud, Networks & Content

Andrew Oon
Business Development Director, Asia
Networks & Content
Presented at Commsday Summit (AU)
17 April, 2012
• Trajectory – the Network

• The Rise of Cloud & Content in Asia

• Challenges

• The Ecosystem Effect & Data Centers as Revenue Centers

• Implications for Service Providers & Australia

2
 APAC Growth Exceeds Video and Video
Other Regions Communications Show
Market Trends - Network Highest Growth

Data centers – epicenter for

network growth

Increasing demand from video,

mobile data, cloud services

3
Market Trends - Mobility

4
 Technology Waves – Driving Traffic Demand
Global Internet Traffic
50
40

Exabytes / Month
30
20
10
0
2008 2009 2010 2011 2012 2013

Source: Vertical Systems Group - ENS

Global Mobile Data Global Cloud Services Revenue

2500 200
Petabytes / Month

Revenue in $B USD
2000
150
1500
100
1000

500 50

0 0
2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013

Source: Cisco Visual Networking Index – Forecast and Methodology, 2008–2013. Source: Gartner (2009).

5
 Carriers
Market Trends –
Content & Cloud

Cloud / CDN (Emerging) Market de-

deployments regulation

Content migration to Low penetrations 

Asia
Market huge IP and mobile
Trends data growth

Increased cable Impact of social media

capacity  easier and video
access / lower IP
transit prices

6
 Are You Focused on Your End-users? CXOs want
A new business model
for consuming IT
resources
Your Application Performance High end-user
satisfaction and
Drives Your Revenue adoption

The cloud takes the pressure off
server and storage
resources….but it places it
squarely on the shoulders of
network infrastructure.
IT Business Edge, 26 Apr 11
End-users expect
• Rich applications services
• Speed, higher reliability
• Anytime/anywhere access
• Ease of use
• Greater innovation
• High-quality experience

Poor Performance
• Slows adoption
• Reduces user satisfaction
• Decreases market share
• Negative brand image

7
 AOL – 1991
Race to the 1st Million 1st million subscribers – 9 years

Facebook
1st million users – 9 months

Draw Something
1st million downloads – 9 days

8
Network Usage Growing 15x Faster
Than Network CAPEX
“The recovery of operator post-
2009 CAPEX spending cannot
mask the secular trend of
declining investments in
developed countries.”

Insight Research Group, 2011

“Surging Internet and mobile

traffic is leading to capacity
shortages and putting pressure
on providers to invest in their
backbone and wireless
infrastructures.”

66x Mobile Growth 5x Video 4x IP 3x Cloud 0.3x CAPEX Telecom Industry Association,
2011
Growth rates for data traffic and network capital spending, 2009-2014

Networks are looking for the best return on more disciplined CAPEX spending
9
Proximity is Key
Market Challenge

Critical/Real-time
applications drive
distributed architecture

Impact

Defend critical revenue

streams

Optimize reliability and

redundancy

Improve end-user
experience
LEGEND:
REAL-TIME <50MS
PRIORITY <100MS
BEST EFFORT >100MS
10
Reach Customers Around the World

LEGEND:
EQUINIX METRO

11
A Platform for Growth

Ecosystems
• Collaborate to accelerate
growth

38 markets
13 countries Global Reach
4,000+ businesses • Reach your customers
6.5M square feet around the world
690+ carriers strategic ecosystems

Data Centers
• Ample room for growth in
reliable, well-connected
sites

12
Increasing the Addressable Market
Ecosystems, Partners, Channels

Cloud & IT

Enterprise
Content

Financial
Partners, Ecosystems & Channels Extend
Market
Share
Internet Exchange Cross Connect Ethernet Exchange

Networks
Networks are the foundation for Ecosystems, Partners & Channels to extend
vertical reach, connecting with and to each other 13
 The New World
Reliability and Availability
Flexibility

Revenue Generation
Market Reach

Enabler for the largest Network, Financial, Cloud & Enterprise Customers
How Can You Become Part
of a Services Value Chain?
Partner to Deliver
10 of the top 10
Web Properties Partner best-in-class
providers for each
component of the
solution stack
200+
900+ Cloud Offer end-to-end
Enterprises Data Center
Providers solutions to meet
enterprise preferences
Applications
Systems
Integrator
Sell to existing footprint
of MNCs, content
providers, financial firms,
and cloud/IT providers.
Security Networks
“If all enterprises want to build their own
300+ cloud, it’s going to be expensive”
550+ – Bill Fathers, CEO of Savvis
Cloud IT Service
Financial
Providers

15
A Vibrant Ecosystem

ENTERPRISE FINANCIAL SERVICES

CLOUD/IT SERVICES

CONTENT/DIGITAL MEDIA NETWORK

16
Vertical View of Connectivity Growth

Trends
Network Growth Service Growth
Overall Growth @ 27%
Y/Y Y/Y
Growth % Growth %
Number of CCs Number of CCs Top Verticals Trends
(A&Z combination) (A&Z combination) • Content
• access to CDNs
• self-CDNs

Network & Cloud 7% Cloud & Cloud 35% • Financial

• hub-hub latency
• direct distribution
Network & Content 33% Cloud & Content 7%
Accelerating Trends

Network & Enterprise 10% Cloud & Enterprise 11% • Cloud – private access
• Cloud – mash-ups
• Enterprise – WAN hubs
Network & Financial 23% Cloud & Financial 54% • Enterprise – hybrid clouds

17
Implications –
Service Providers • Market conditions are ideal - demand creation
& Australia • NBN: objectives and goals
• New submarine cable capacity

• Lower costs
• Influx of content & cloud
• Growth trajectory

18
 Thank You

Contact: +852-66219176
E-mail: andrew.oon@ap.equinix.com
Customer Recommendations –
A New Way of Working

Chris Lowther
Sydney, 17th April 2012

COMMSDAY SUMMIT 2012

Research
• Loudhouse
– Customer Insight Report, 2010/12
• 135 call centre managers (UK and USA)

• Pitney Bowes Software

– Disconnected Customer Channels – Research Report, 2012/01
• 250 CMOs (UK, Germany, France)
• Telecoms, FSI and Utilities

• BusinessWeek
– CMOs have the shortest tenure of any c-level execs
– 55% of c-level execs unconvinced that marketing helps achieve
strategic goals
– 0nly 43% of c-level execs satisfied with level of customer loyalty
– Only 34% of c-level execs satisfied with rate of new business
acquisition

Reports available on request!

Research Key Findings

• Channel Integration
• 90% want integrated communication channels, but <31% achieve it

• Channel Growth
• 53% using social networks, only 8% provide integrated cross channel
communications based on choice

• Loss of Customers
– 32% lose customers during on-boarding
– 26% lose customers due to mass targeting

• Failure to Maximise Opportunities

– Only 9% model customer behaviour and make ‘appropriate’
recommendations
– 27% are not capitalising at all on in-bound marketing opportunities
Why Inbound Marketing?

• The customer is actively engaged – by choice

• Customer needs are more transparent

• Every interaction is an opportunity to reinforce the brand

• The “right time” might be right now

• Access to both marketing-reachables AND marketing-unreachables

• Making the Switch

– Cost Centers  Profit Centers
Mindsets Have Shifted

“My business increasingly looks to the call

center to deliver revenues”
31% No
Cost
Center

69% Yes
Potential Revenue-
generating Profit Center

*2010 Loudhouse Research Report

Capitalizing upon Real-time Interactions:
The Role of Enabling Technology

“good at identifying customers who can “able to make use of customer insight to
be persuaded to consider new offers” retain customers we might otherwise lose”

*2010 Loudhouse Research Report

A Comparison of Real-time Sophistication

Mass Offers Offer A Offer A Offer A Offer A Offer A

Segment based
Offers Offer A Offer A Offer B Offer B Offer B

Individualized Offers
(Analytical) Offer A Offer C Offer B Offer D Offer E

“Next Best” Action

Collect Data Offer C Retention A Offer E
(Analytical)
Offer D
Churn Risk

“Best Next” Action Thank you Offer G

with Uplift
Collect Data Offer C Offer D
Sleeping Dog! Sure Thing!
Case Study - TeliaSonera

• World’s 7th largest mobile network services provider ( 170m subscribers)

• 2010: CEO defined vision of becoming a ”world-class” service organization

We aim to be seen as the most attractive brand in our industry in each market,
providing the best customer experience. The unified brand gives the experience of
TeliaSonera’s operators as smart, leading and local, wherever we operate.

• Creating a ”fused” environment for Inbound (CC/WEB/Retail) and Outbound

(email, SMS, print etc) communications

• Rolling out operations in 5 countries (Sweden, Norway, Denmark, Finland and

Lithuania) over next 3 years

• Breaking down ”silos” – creating a centralized unit for coordination, sharing of

knowledge and common way of working across functions, divisions and
countries
Business Need

• Increasing life time value of every customer relationship

• Reducing customer churn

• Increasing Average Revenue Per User (ARPU)

• Searching for economies of scale across borders

• 80% shared processes across all country operations

• Consistent Customer Experience
Business Benefits

• Chess – subsidiary of Telia Sonera

• Churn decreased by 37.5% in first quarter alone

• Overall churn reduced by 15.8% year-on-year
• Additional data captured on 25% of customers
• Improved proficiency of marketing staff
• ROI in three months
“We moved from time consuming manual tasks to automated, structured and
measurable campaign management..... we are now able to communicate
regularly with more of our customers and focus our expensive telemarketing
efforts on our top 5% of customers”
Mr Ernest Fredrik Nygaad, CRM Manager,
Chess Communications
Customer Experience

 They value me!

 They make things

easier for me

 They know what I

want

 They know what

I can afford
Infusing Customer Centricity into Interactions

The applications
you use today

Made intelligent

Using your own data

 Who can you influence?
If we target, customer will:
Buy

If we do nothing,
customer will:
Not Buy Buy

Not Buy
“Uplift analysis is a must-consider
concept for every organization
with significant campaign
management activities”.
Gareth Herschel, Gartner, “Predictive Modeling Now more than Ever”,
Gartner Customer 360, March 2011
Customer Case Study

Business Challenge:
Increase customer lifetime value and provide ideal customer
experience by optimizing every contact with mass-affluent customers
Real-time Recommendation Engine Benefits
implemented within Merrill Lynch  35% increase in revenues ($$ millions weekly)
Wealth Management CRM (across 4  55% improvement in client satisfaction
call centers used by more than 700  14% improvement in agent productivity
financial advisors, IVR and web site).  26% increase in customer retention
 16 week implementation
 Start where you can…BUT start!

MATURITY LEVEL 1 MATURITY LEVEL 2 MATURITY LEVEL 3 MATURITY LEVEL 4

Mass Segment Customer 1:1

Marketing Marketing Marketing Marketing

Segmentations
Advanced Segmentation
No segmentation
Smaller target audience
Predictive Modelling

Typical
Response 1-2% 8 - 10 % 15 - 25 % > 40 %
Rate

Typical
Conversion < 3% > 35%
Rate
of of offers
responses made
Revenue Preservation in the face of ‘Bill Shock’

Breakfast Seminar
Wednesday 18th April, 2012
Westin Hotel

07:45 registration

08:00 start

Contact: Hein Lourens hein.lourens@pb.com

or me!
Chris Lowther,
General Manager, Enterprise Solutions Group, APAC
Email: chris.lowther@pb.com
Phone: +61 430 721 703
Skype: chrislowther
Twitter: @lowtherc
Inbound & Outbound CCM

Interaction Analytic
Fulfillment Insight
Best Next Action
Un pl u g !
f ir s t w h er e it
m a t t er s
Håkan Eriksson
CEO Ericsson Australia & New Zealand
 Fir s t w h er e it m at t er s

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 2

 Fir s t w h er e it m at t er s

1876 FIRST TELECOM SUPPLIER TO

INITIATE ITS BUSINESS ON THE
MARKET

FIRST WITH MAJOR TELECOM CONTRACTS

1881 IN NORWAY, RUSSIA AND SWEDEN

1950 SUPPORTS WORLD’S FIRST

INTERNATIONAL CALL

1977 INSTALL WORLD’S FIRST DIGITAL

TELEPHONE EXCHANGE

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 3

 Fir s t w h er e it m at t er s

FIRST WITH MOBILE SYSTEM, NMT,

1981 INAUGURATED IN SAUDI ARABIA

1988 DELIVERS FIRST GSM SYSTEM

FIRST WITH GSM PHONES

1991 IN OPERATIONS

CONDUCTS FIRST 3G CALL

2001 TOGETHER WITH VODAFONE UK

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 4

 Fir s t w h er e it m at t er s

WINS BIGGEST CONTRACTS TO

2005 DATE TO MANAGE OPERATOR 3’S
NETWORKS IN ITALY AND THE UK

2005 FIRST COMMERICIAL HSPA NETWORK

2007 FIRST HSPA UL LIVE NETWORK

LAUNCHES THE WORLD’S FIRST LTE

2009 NETWORK IN STOCKHOLM, SWEDEN

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 5

 Fir s t w h er e it m at t er s

CARRIES OUT FIRST DATA CALL

2009 ON 4G TOGETHER WITH VERIZON

2011 FIRST SINGLE-CARRIER 42 MBPS

FIRST MULTI-CARRIER 168 MBPS DL

2011 / 24 MBPS UL

DEMONSTRATIONS OF OVER-THE-AIR
UPLINK THROUGHPUT FOR SIMULTANEOUSLY
2012 ACTIVE DEVICES IN A CELL INCREASE
FROM 4MBPS TO MORE THAN 12MBPS

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 6

 Fir s t w h er e it m at t er s

2012 WORLD’S FIRST 150MBPS LTE

CONNECTION ON A LIVE NETWORK

WORLD’S FIRST MICROWAVE

2012 CONNECTION BETWEEN LTE MAIN
AND REMOTE RADIO UNITS

WORLD’S FIRST VOICE HANDOVER

2012 BETWEEN LTE AND WCDMA

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 7

SHAPING THE FUTURE

GAINING DRIVING
INSIGHTS STANDARDS

INNOVATION
DRIVEN R&D

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 8

 M o b il e t r a f f ic , v o ic e a n d d at a

Subscriber traffic in mobile access networks

5 000

4 000
Monthy Petabytes (1015)

3 000
Mobile PC &
Tablets
2 000
Mobile handheld
1 000
Voice
0
2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: Internal Ericsson
Definitions: see note pages.
DVB-H, Mobile WiMax, M2M and WiFi traffic not included
This slide contains forward looking statements

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 9

 OPERATOR ROLES
60 of which Google 24

Internet advertising Networked Service

115 enterprises providers

Operator 15 Payment Position

roles ENABLER Device mgmt QoS
PROVIDER Identity
Communication
Connectivity
25

20
IP TV
Music
VALUE-ADD SERVICE
Manage the Home PROVIDER
70

1100
Enriched
Communication
COMMUNICATION
Telephony/SMS PROVIDER
1090

395
IP-VPN
Fixed BB
CONNECTIVITY
Mobile BB PROVIDER
810

BUSD
2009
Consumers Devices 2015
& Enterprises & Premises

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 10

Br o a d b a n d o f f er in g s

Bes t -ef f o r t b r o a d b a n d Ser v ic e-b a s ed b r o a d b a n d

Price
Price

Multiple targeted
Lost revenue
services with QoS
opportunity
and policy control

Sin g l e
Fl at r at e
Of f er

Penetration Penetration

Fl at r at e –> Vo l u m e b a s ed –> Va l u e b a s ed
CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 11
THE NETWORK f o r
THE NETWORKED SOCIETY

MOBILE BROADBAND MONETIZING CLOUDS VIDEO GROWTH 50 BILLION

NEW NETWORK REQUIREMENTS

SMART SCALABLE SIMPLE SUPERIOR

PERFORMANCE

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 12

Un pl u G! l et ’s r et h in k m o b il e
br o a d ba n d

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 13

SM ART
USER
(OUTSIDE-
IN)

Location, Behaviour, Attractive, Personal

Devices & Apps, And Contextual
Account Offerings

GAIN ACT ACT ON

AWARENESS SMART AWARENESS

Efficient
Traffic Load, Delivery and
Disturbance Resource Utilization

NETWORK
(INSIDE-
CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 14 OUT)
 SCALABLE
INTELLIGENCE/ANALYTICS

BANDWIDTH/ HANDLE
HANDLE DEVICES
DATA SCALE
SCALE

SIGNALING/PROCESSING

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 15

 SIM PLE
DRIVING
STANDARIZATION

COLLAPSING CONSOLIDATING
LAYERS PLATFORMS

HANDLE
COMPLEXITY

SIMPLIFYING SMART
TOPOLOGY AUTOMATION

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 16

SUPERIOR PERFORM ANCE

THEORETICAL SECURE INFIELD IN

(R&D) PERFORMANCE FIELD

CUTTING EDGE
PRODCUTS

EXPERIENCED
DESIGN

CONTINUOUS
TUNING

SERVICE
ASSURANCE

Source: Operator benchmarking study, uplink performance

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 17
Tw o c o m pl im en t a r y
m o n et izat io n m et h o d s
em er g in g
APPS En t er pr is e
Pr o v id er s v er t ic a l s
Cl o u d
Ho s t ed
SAS
Apps

Net w o r k o per at o r s
A. Differentiated Pricing B. Two Sided Model
Tel c o
s y s t em s Ser v ic e Aw a r e
n et w o r k

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 18

Br in g in g it a l l t o g et h er :
Ser v ic e Aw a r e Net w o r k s
Devices
Users Service Aware Network Applications

EXPERIENCE CONTROL ENABLEMENT Ho s t ed APPS

Personalization Rating/Billing Developer Programs

Res id en t ia l Context Service Control Mobile Advertising

Battery Life Security Business Models

Analytics APPS Pr o v id er s
Response Time Performance

Cost control Traffic Mgmt. Resource usage

En t er pr is e Content
Content compression
Policy Mgmt.
optimization
En t er pr is e Ver t ic a l s
NETWORK EFFICIENCY & CAPACITY
Network Signalling
Co m m er c ia l Network Bandwidth Efficiency
Cl o u d SAS

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 19

UNPLUG!

CommsDay Summit 2012 | © Ericsson AB 2012 | April 2012 | Page 20

 More than Broadcast
More than just
Australia

Brett Savill
Strategy and Corporate Development

SITE SHARING & SERVICES

Telecoms, TV, Radio

SITE SHARING & SERVICES

Online
Emergency
Services
Subway/confined space
Benefits to All Stakeholders

• Resilient

• Shared

• Safe

• Smart
SITE SHARING & SERVICES
SITE SHARING & SERVICES
SITE SHARING & SERVICES
Application Based Routing in an
Access Independent Environment
Mike O’Malley
Director
Market Strategy

1
 Operator Challenges –
“Why do we need a simpler, smarter network?”
Common
Services Across
Smart Mobile multiple screens
Devices in & networks OTT
billions, moving Dominance
across networks

Massive
Cloud Hosted
Scalability in
Services &
multiple
virtualization
dimensions

Need a New
Multimedia
dominant
New monetization
models
traffic mix Class of needed
Network

A massively scalable content routing platform for the future

2
Service Evolution

Consumer services - boundaries blurring between paid services,

OTT, social media, crowdsourcing

Enterprise services - moving toward fiber/Ethernet/IP; accelerating

shift toward cloud computing (Iaas/PaaS/SaaS)

Wholesale services - drivers are scale economies and lowered

capital exposure

3
 Intelligent Networks to address shifting
communications landscape

Mobile and
Service Layer Fixed Internet IP/Ethernet & Backhaul
Integration

Fixed Mobile
Smart Networks
Convergence
Integrated Network Visibility
Flatter Networks Transport
Routing
Cloud Content
Content-
Connectivity Aware Awareness
routing

Security New Revenue

Future services are not always predictable; the key is to implement

a network that can adapt to changing user demands
4
Content-Aware Routing Platforms for
cost effective QoE
The SmartCard Architecture:
 High scalability for growth
 Less rack, shelf, power and
fabric resources
 No lost slots for server cards
 Fewer spares (a card is a card)
 Lower latency
 Consistent reliability model

Assumptions:
100 Gbps router slots
20 Gbps Apps server blades
vs.

CSE: Content & Security Engine

New routing architectures can deliver 40-50% savings vs. alternatives

5
Integrated Content & Inspection Engine
Granular QoS Per flow content Per packet inspection
Traffic Management inspection (Analytics) (Virus detection)

Non-app aware sessions

Enforce Routing
and QoS on Flows

Content
awareness

App aware sessions

SmartCards

Architecture that Enables Service Providers to

Match the Application with the Right Hardware
6
Open Platform to leverage rapid Innovation

Content Caching Network Analytics

BW/Delivery Virtual and

Optimization Security and
Scalable NG platforms Clean Pipes

DPI Signatures Policy creation

and enforcement

7
Ubiquitous Differentiated Services
Multi-Personality Platform Delivering Differentiated Services
Analytics Probe Services: Build & use real time
data of subscriber preferences and network behaviors to
plan & invest better

Premium Services: Offer ASP ability to deliver

premium services with guaranteed end to end QoS.

HSI Apps Services: Offer applications based tiered

bundles with billing discounts to add/retain customers

IPSec Services : Offer LTE backhaul, defense and

corporate packet level IPSec Enforcement

Video Aware Network Optimization: Managing

video traffic by throttling, compression and adaptation

8
Ubiquitous ASP Premium Services
Improved Access ASP QoE QoS Setup &
BW Confirm
Congestion
Monitor Comm.
In-Flow Comm. ASPs
HD-TV 1
2

CPE
Aggregation /
Hub Congestion
Enterprise
Content Cloud
iPad engine

P2P


1 In-Flow Communicator: Communication channels between partner ASPs &
Node for QoS and BW setup for their service using HTTP

2 Congestion Monitor : Compile access aggregation congestion status in real
time to improve ASP service delivery & QoE

Rolling out unique ASP support and Content services

Ubiquitous Analytic Probe Services

Analytics  Knowledge base

Probes Insight services to ASPs/ISPs
Wireless REAN Analytics
/ EAN Program  Input to Cell-site and
Traffic backhaul planning
LSPs
 Input to ASPs and
Content planning

Wireline

Building knowledge asset to build revenues and margins

10
Ubiquitous Tiered-Apps ISP Services

Smart-
TV ISP1
ISPs

CPE

Enterprise
Cloud
iPad Aggregation /
Hub Congestion

P2P Content
Engine

 Apps signature lists Consumer App Tiers Enterprise Apps Prioritization

 Interfaces to back
office
 Policy enforcement
 Subscriber awareness
IPSec Gateway Service For Wireless Traffic
RAN Aggregation, Backhaul Mobile Packet Core
Access and Transport Network
SGSN GGSN
RNC
3G
S4
3G Core /EPC MME
NB
S5
UTRAN/
EUTRAN P-GW
S-GW

Gx+
PCRF
LTE eNB Security
IPSec between Engine
handset and eNB
per 3GPP

IPSec tunnels

Extend IPSec from cell-site to core for network security:

router acts as IPSec termination point and security gateway 12
12
The All-IP Intelligent Network for the Zettabyte Era

 Bandwidth for growth

 Intelligence for network optimization
 Scalability for services and sessions
 Adaptability for network transformation

Building smarter, simpler networks to enhance user Quality

of Experience and Service Provider Profitability

13
14
 Mobile Offload
vWLAN: Bringing the Power of
Virtualization to Wireless

Mads Lillelund
April 2012
® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 1
 Global Communications Market Trends

Communications Network Traffic

Broadband

Mobility

In 2015, the Exabyte equivalent of

all movies ever made
will cross the global IP network
every 5 minutes.
Cloud

® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 2

 Strategic Drivers for Wi-Fi

 Right Now
– Access method of choice
– Device proliferation
 Emerging
– Mobile data offload
– Gigabit wireless with 802.11ac

® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 3

 Wireless: Access of convenience
becoming the access of choice

® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 4

 Mobility Demand is Exploding

 5B Mobile Phones Globally

 Smart phones are
Pervasive
 True Mobility is no Longer
a Convenience
– Voice over Wi-Fi, Facetime
 New Devices Rely on
Wireless Connectivity
– iPads
 Mobile Data Traffic is
Growing Exponentially
 Wi-Fi Data Offload to Fixed
Network is Necessary

Source: FCC
® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 5
 Scaling in the Wireless LAN Network

Users
More Devices

Four Applications
Coverage
More Access Points Dimensions Higher Bandwidth

of Scaling

Mobility Domains
Persistent IP Session Across Wider Area

® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 6

 WLAN Generations: Public Companies

1st Generation 2nd Generation 3rd Generation 4th Generation

Migration toward Distributed Data Virtual Control

Distributed Data Plane
Plane

Autonomous
Access Points
Controller-based Single Channel

Controller-based Controller-less

® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 7

 What is Virtualization

Virtualization fundamentally changed the

rules of scaling the data center

® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 8

 What is WLAN Virtualization?

Traditional Controller-Based Virtual Controller Architecture

Architecture

Hypervisor
WLAN Controller Access Points Access Points

Management Plane
Management Plane
Control Plane
Control Plane
Data Plane
Data Plane
Physical / MAC Layer
Physical / MAC Layer

 Three planes exist at the centralized

controller • Eliminates the controller hardware
 Not a scalable solution for 11n • Moves control and mgmt to hypervisor
deployments because the controller
limits the data throughput • Moves the data plane to the AP

® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 9

 Move To Wireless and Tablets

Mobile Data Traffic Forecast Mobile Data Traffic by Type

Tablets Change the Game

• Wireless only devices – no wired
capability
• Heavily video oriented –
exponential traffic increase
• Impact in both public (mobile) and
enterprise (private) networks
® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 10
 Increasing Mobile Broadband Capacity

Methods to Increase Broadband Capacity

– Growth in small cells: decrease cell radius 
increase bandwidth per subscriber
– Centralized baseband processing  increase
in fiber connectivity to remote radio heads
– Spectral efficiency improvements in LTE
– Increases in spectrum availability
– Use of non-license spectrum (i.e. Wi-Fi) for
Cisco VNI: “39% of mobile
data offload data will be offloaded by 2015”

FCC Spectrum
® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 11
 Mobile Data Offload

This is a lot more expensive than this

This was designed for voice and this

was designed for data

So, carriers are devising ways to keep

voice on the current cellular
infrastructure and move all data
sessions to available Wi-Fi
infrastructure

® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 12

 Typical Mobile Offload Application

Data Center
Indoor/
Outdoor AP
AAA
vWLAN Proxy
Controller

Broadband Access
Internet
(Local Network Internet
Breakout) (Best Effort)

AAA,
Billing, TTG/
Mobile Core/ etc. PDG
Internet Data
Dual-mode
Handset
Mobile Core
3G/4G Voice
Mobile Backhaul Network
(SLA-Based)
AAA HLR

Subscriber
Information

Mobile Offload via Wi-Fi Addresses Two Key Areas of Mobile Broadband
Congestion: RAN Congestion and Backhaul Congestion

® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 13

 vWLAN: Addresses All Service Models
• Recurring management fee
• Control and management at service provider NOC

• Recurring management fee

• Control on end-user premises
• Management on at service provider NOC

• Simple transfer of title

• Service provider acts as a VAR
• Control and management on end-user premises
® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 14
 Key Development: Hotspot 2.0

 Hotspot 2.0 Overview

– Hotspot 2.0 allows for seamless and secure roaming between 3G/4G and Wi-Fi
networks: simple and secure as roaming between cell towers
– Phase 1: Discovery (covered by 802.11u) and Security (Covered by WPA2
Enterprise (includes EAP-SIM)
– Phase 2: Registration (account creation) and Provisioning (subscriber
credentials and policy assignment)
 Hotspot 2.0 Device Registration Steps
1. 802.11u-capable AP beacons HS 2.0 support
2. Device Probes with HS 2.0 support
3. Device compares provisioned profile information against HS 2.0 data from APs and
associates to the best SSID
4. AP responds to ANQP query with requested information
5. Device selects AP and performs ANQP request to determine what providers are supported
capabilities of AP, etc.
Provider
SSIDs RADIUS
Proxy
Roaming
Service Provider
Hubs
Network
802.11u
HS 2.0 AP

® ADTRAN, Inc. 2011 All rights reserved

HLRsADTRAN
(Subscriber Info)
Company Confidential 15
 What to Look for in a Solution -

 Cloud based Solution

– Scalability
– High Availability
– Single Solution for Multiple Services
– EAP-SIM/AKA w/ Integrated AAA
Support
 Brings more to the table than the
WiFi on the ‘edge’
– Optimized AP Backhaul
– Integrated SLA Management
 Brings integrated Technology
Partners
– Cross Certification

® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 16

 Next Wi-Fi Standard

 Wireless connectivity will approach 1 Gigabit per

second
– Under 802.11n, current best case connectivity
speed is 450 Mbps
– 802.11n can go to 600 Mbps
 Standard will be finalized end of 2012
 Pre-standard APs will emerge this year for
consumer
 Device compliance will happen in 2013
 As with 802.11n, more attention will be on the
radio than the controller architecture, creating a
d’oh moment

® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 17

 ? ? ? ?
?

® ADTRAN, Inc. 2011 All rights reserved ADTRAN Company Confidential 18

Cloud Innovative Provisioning

Billing and Billing Services.

Saving you time,
Services and money.

Are you ready

Paul Dundas
for the CEO and Founder
changing Emersion Software Systems
17th April 2012
times?

1
 Who is taking
the lead to
the cloud?
Telcos, ISPs and Managed Service
Providers, globally, are clambering
to take the lead.
• What is your cloud strategy?
• How are you going to implement
and adapt to the changing
times? 2
• The Cloud has revolutionised the delivery of IT
Services, Desktop applications and Video based
Content globally.
• This must be delivered via reliable high speed
networks.
• Telco, ISP and MSP’s are clambering to get a piece of
the action.
• To deliver, you need a BSS that enables rapid
commercialisation and delivery of product, content,
applications and services in the cloud.

3
 • Take advantage of your existing
Don’t be business relationships.
left Behind • Repurpose underutilised
networking resources.
• High-availability technology.
• The proliferation of Data Centers.
• What will the NBN landscape
bring?
• Packaging and Bundling to create
differentiation.
• Complex billing structures.

4
Revenue Opportunities
in the Channel CARRIER / SUPPLIER

5
 Emersion’s Umbrella
Architecture provides class
leading technology to help
businesses create a point of
differentiation.

• Easy to use SaaS platform.

• No software to own & maintain.
• Reduces internal IT resources.
• Single billing for a mix of
products.
• Supports wholesale & retail
relationships.

6
EMERSION SOLVES SERVICE PROVIDER
KEY BUSINESS ISSUES
• Reduced time to market.
• Revenue and Cost assurance.

• Industry and product agnostic solutions.

• Bundling & single bill generation.
• Integration to external systems (CRM, Accounting, Ticketing & OSS).
• Flexible workflow driven solution.

• A cost effective, Pay As You Grow solution.

• Industry leading Service Level Agreement.
• Lower Total Cost of Ownership than multiple systems.

7
Any Product Any Market
Emersion is poised to help you
integrate and adopt cloud
computing services.

8
PUT SIMPLY.. IT’S A WIN-WIN

Emersion saves you time and

money, by providing an easy
to use, secure and scalable
billing, provisioning &
customer management
system delivered as a service
in the cloud.

This allows you to focus on

your core activities of
developing products and
attracting new customers.

9
 Questions ?

Emersion Software Systems

L7, 313 Latrobe Street, Melbourne

www.emersion.com.au
Phone: 1300 793 310 10
 Australian Mobile
Telecommunications Association

Productivity - Connectivity - Mobility

From 3G to LTE and beyond

Key Infrastructure Issues

CommsDay Summit April 2012

 Economic Contribution of Mobile
Telecommunications
2010
20.0
“There is widespread
$17.4 b recognition that
$10.7 b
18.0
mobile broadband
16.0 services are an
economic enabler
14.0
within society and the
provision of these
$ billion

12.0

10.0
services,
$6.7 b
technologies and
8.0
applications in the
6.0 wider community is
4.0
in the public
interest.”
2.0

0.0
Direct Contribution Indirect Contribution Total Contribution Source: 2011 ACMA “Towards 2020 Future
spectrum requirements for mobile
broadband”
Source: Access Economics 2010
 Estimated productivity benefit
from mobile broadband
Australia
WCDMA LTE

25
Productivity gain (AUD, billions)

20

15

10

0
2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Network Strategies – June 2010

 Mobile broadband annual traffic
projections Australia
2009 to 2014
Moderate growth Accelerated growth

1,800
1,600
Annual traffic (GB, millions)

1,400
1,200
1,000
800
600
400
200
0
2009 2010 2011 2012 2013 2014
Year ending 30 June

Source: Network Strategies

Mobile Infrastructure Pressures

Meeting customer demand for quality user

experiences with latest generation mobile
devices, apps and services depends on
industry investment in both spectrum and
network infrastructure.
 Politics in play!

• Radiofrequency Spectrum
– Global trends
– Local agenda

• Network Deployment
– Regulatory settings
– Community engagement
– Health and Safety - EME
 Spectrum -
The Global Picture

• International work at ITU’s WRC-12 and WRC-15 to identify additional spectrum

for IMT and IMT-Advanced is central to the continued growth of mobile
broadband services and the roll-out of latest generation networks incl LTE and
beyond.

• Australia’s spectrum policy needs to actively engage with international decision-

making processes for identification of additional spectrum for MBB.

• Eg - consensus reached at WRC-12 for Region 1 countries to extend their DD

and adopt Region 3’s Band-plan for 700 MHz as an alternative to Region 1’s
800 MHz Band-plan. Some African and Middle East countries already committed
to implementing the Region 3 Band-plan.
 Local Spectrum Agenda
Exisiting mobile spectrum resources
Spectrum licences in 800MHz, 1800MHz and 2100MHz expire from 2013 -17.
Re-issue process and timing critical

Digital Dividend – 700MHz

AMTA strongly supports the Government’s target digital dividend of 126 MHz of
contiguous Ultra High Frequency (UHF) spectrum in the range 694-820 MHz.

2500 – 2690 MHz

Globally identified for mobile use in 2000. Internationally harmonised band and key
partner with 700MHz in digital economy.

“ Research has shown that consumer benefits are 10 times higher than the value the actual
spectrum generates at auction. So US$30 billion of spectrum equates to US$300 billion of
consumer benefits.”
FCC Chairman Julius Genachowski – 16 March 2011
Realising the Digital Dividend
in Australia to meet demand

• A successful spectrum auction process in

Nov 2012 relies on potential bidders having
the requisite certainty to make necessary
investments.

• Certainty requires a confirmed date for

unencumbered access to 700 MHz
spectrum – the spectrum needs to be
cleared by 31 Dec 2014.

• Any delay beyond 1 Jan 2015 will have an

impact on the estimated $62 billion worth of
cumulative economic productivity benefits
(2013-2020) that will flow from Australia’s
transition to LTE.
 Mobile Telecommunications
Infrastructure Deployment
• 18,000 radio sites, 3,000 in feasibility, planning or
acquisition stage at any given time

• Deployment activity raises level of community

concern, intensified by demand driven expansions

• Concerns exist in relation to:

– Visual amenity
– EME
– Deployment consultation

• Low ACMA complaints measure success of

industry’s deployment code of practice
 Falling ACMA complaints

Year No. of Related No. of No. of Sites

Complaints Sites Deployed
02 - 03 137 31 Not known
03 - 04 48 28 1300
04 - 05 42 25 1100
05 - 06 27 20 3639
06 - 07 31 21 1292
07 - 08 6 5 2587
08 - 09 8 6 1159
09 - 10 11 8 1580
10 - 11 7 5 4432

Source: ACMA Annual Reports 02/03-10/11

Brown & Wilkie Private Members Bills

• Main aims
– Expand consultation for installation of telecommunications
facilities
– Further implementation of the precautionary principle
– Removes exemptions from state and territory laws (‘low impact’)
– Brown also provides for a 5 yearly review of the radiofrequency
exposure standards

• Deloitte Access Economics analysis* of Bills

– DAE estimate $2.2b p.a. cost to industry as well as dramatically
increasing burden on local planning authorities
– Inhibit investment in new generation technologies, reduced
service to customers, loss of productivity benefits to economy
– Reduce government spectrum revenues, especially upcoming
auctions
* commissioned by AMTA
 Communication and
Operational Challenges
• Key Issues
– Recognising and understanding community
concerns
– Outlining the links between spectrum resources,
networks, demand growth and quality of service
– Getting the right balance between reasonable
consultation and efficient infrastructure
deployment and maintenance
– Describing current state of health and safety
research and standards
– Providing comprehensive EME information
resources
 What’s Next?
Heterogeneous Networks aka HetNets

• HetNets – a strategy to
expand cellular capacity
and coverage in order
to efficiently meet
demands of increased
data traffic

• Macro cells are

improved and densified
and micro cells (pico, Source – Ericsson
wif-fi, femto) are added Feb 27,2012 White Papers

for indoor coverage

 Mobile broadband annual traffic
projections Australia
2009 to 2014
Moderate growth Accelerated growth

1,800
1,600
Annual traffic (GB, millions)

1,400
1,200
1,000
800
600
400
200
0
2009 2010 2011 2012 2013 2014
Year ending 30 June

Source: Network Strategies

 Australian Mobile
Telecommunications Association

Thank you
Industry Consolidation,
The NBN Puzzle
and
Some Broken Bits

CommsDay Sydney
Simon Hackett
MD, Internode
17 April 2012
Main Drivers of Industry Consolidation

Internode
State of the Nation - May 2011
Internode
State of the Nation - May 2011

(1)
Broadband Market Saturation
Internode
State of the Nation - May 2011

(2)
NBNCo pricing structure
Internode
State of the Nation - May 2011
Internode
State of the Nation - May 2011
Internode & iiNet Clear Leaders in Customer Satisfaction

Internode
State of the Nation - May 2011

Source: Roy Morgan Research Jan 2012

 And So...

Internode
State of the Nation - May 2011
Internode
State of the Nation - May 2011

December 2012
Internode
State of the Nation - May 2011

“And Now There Are Four”

 Internode
The four majors are 88% of (saturated) broadband market
State of the Nation - May 2011

Source: iiNet Investor Presentation Feb 2012

 Internode
The four majors are 88% of (saturated) broadband market
State of the Nation - May 2011
The fixed line broadband industry is already ‘post consolidation’

Source: iiNet Investor Presentation Feb 2012

Internode
Current NBNCo pricing model ensures these four
State of the Nation - May 2011
players will be the winners in the NBN retail market

Source: iiNet Investor Presentation Feb 2012

 The NBN Puzzle

Internode
State of the Nation - May 2011
Internode
State of the Nation - May 2011

Many NBN Puzzle Pieces

 NBNCo Business Deals

Telstra/NBNCo Deal
Optus/NBNCo Deal
Internode (more to come?)

State of the Nation - May 2011

 New Regulatory Instruments

Telstra SSU
NBN SAU
Wholesale ADSL Declaration
Internode (more to come?)
State of the Nation - May 2011
 New Laws

Competition and Consumer Act 2010

Internode
‘SuperFast Network’ Anti Cherry-Picking Laws

(more to come?)
State of the Nation - May 2011
Internode
State of the Nation - May 2011

Complex interactions between these pieces!

May yield unexpected or unintended results
 NBNCo Internal Challenges

Internode
State of the Nation - May 2011
Internode
“Don’t Mention The War” (Part 1)
State of the Nation - May 2011
NBNCo are way behind

Three year plan to start to build stuff

Four year plan to finish building stuff
Internode
“Don’t Mention The War” (part 2)
State of the Nation - May 2011
What does happen after the next federal election?
 Internode
State of the Nation - May 2011

Retail Ambiguity: Who benefits from this advertising?

 Some Broken Bits

Internode
State of the Nation - May 2011
 Internode “Cherry Picking” Laws

Most major players networks are now exempted

State of the Nation - May 2011

... and/or have done commercial deals with NBNCo

 Internode “Cherry Picking” Laws

Residual effect is to prohibit other

State of the Nation - May 2011
wired service providers from innovating ahead of NBN
(while inconsistently leaving wireless un-constrained)
 Internode
Coalition NBN will likely include FTTN

Telstra retain ownership of their copper!

State of the Nation - May 2011

Hence may own a large chunk of the resulting FTTN NBN

That is not the future we were promised.

 Summary

Consolidation has already happened

Four majors hold almost 90% of the fixed market

Internode
State of the Nation - May 2011
 Summary

Consolidation has already happened

Four majors hold almost 90% of the fixed market

NBN retail market likely to wind up very much the same

Internode
State of the Nation - May 2011
 Summary

Consolidation has already happened

Four majors hold almost 90% of the fixed market

NBN retail market likely to wind up very much the same

Internode
NBN puzzle has many disjoint parts
Is anyone in control of the completed puzzle picture?
State of the Nation - May 2011
Tom Mazerski
17/4/2012
 Residential SMB Corporate Wholesale

Range of fixed line,
Comprehensive range
Full suite of managed
Wholesale supply to
data and mobile of telecommunications services offerings telecommunications
services services for businesses delivered via next and internet service
generation network providers

Targeted marketing
National Dealer encompassing metro
approach to leverage Network, large Inside fibre rings and data
Portfolio of mobile,
strength in on-net Sales Team and centres voice and data
areas superior customer products in addition to
service a full range of advisory

NBN Accredited services
provider
 3
CONFIDENTIAL
CONFIDENTIAL 3 3
 Working with NBNco

NBN Accreditations
4
CONFIDENTIAL
CONFIDENTIAL 4 4
 5
CONFIDENTIAL
CONFIDENTIAL 5 5
 iPrimus FTTH Growth

NBN First
Release

Places Victoria
Launch of
iPrimus Fibre

June 2010 June 2011 March 2012

6
CONFIDENTIAL
CONFIDENTIAL 6 6
 Product Differentiation

• No Worries™ Mobile >18% Growth

• No Worries™ Broadband
Copper:

No Change In Price
Top
End
Fibre:

7
CONFIDENTIAL
CONFIDENTIAL 7 7
 Product Differentiation

• True Fibre Voice™

– Use Of Voice Port
– All Phones In Home Lit
– Equal Or Better Than Copper

• Primus MetroFibre® Rings/OTN

• Data Centre/Cloud Services

8
CONFIDENTIAL
CONFIDENTIAL 8 8
 Service Differentiation

• First Call Resolution

• Minutes/Seconds Versus Hours/Days
• Real Time Provisioning
• Network That Never Fails

9
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CONFIDENTIAL 9 9
 Our Vision

“Best In Class Fibre Provider”

Possibilities
• HD Video Calling
• E-Health
• Tele-Working
• iPrimusTV
• The Future?

10
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