AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 2 – Sensitive© 2011 – Proprietary and Confidential Information of Amdocs 1 Yield Management December 2011 Tomer Oster & Segev Cohen

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 2 – Sensitive© 2010 – Proprietary and Confidential Information of Amdocs 2 The threat: non-profitable price models

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 2 – Sensitive© 2011 – Proprietary and Confidential Information of Amdocs 3 Connected devices passed 5 Billion in 2010 – IMS, 2010 Trend #1: Increase in the number of devices 3M iPads sold in 3 months 8M Kinect Xbox units shipped in 2 months 27M Connected TVs shipped in 2010

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 2 – Sensitive© 2011 – Proprietary and Confidential Information of Amdocs 4 Core Services 5 minutes of video 1 hour of browsing 1 MP31 with picture 100 s New Applications characters SMS 1 minute of voice Capacity Required MB Gross margins on voice are ~90% Trend #2: Bandwidth-intensive services

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 2 – Sensitive© 2011 – Proprietary and Confidential Information of Amdocs 5 The outcome: non-profitable price models 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000, ,000,000 0 Video On Demand Streaming Audio VoIP Anti-virus On-line Service Consumer Price Bandwidth Requirements Number of bits sent for $1 revenue Video On Demand $10 per movie 4 Mb/second * 1.5 hours = Mb 2.16*10 9 (1) Voice over IP $0.05 per minute 16Kb/sec * 1 minute call = 960 Kb 1.9*10 7 (2800) Anti-virus On-line $1 per month 100Kb * 2 updates = 200Kb 2*10 5 (10,800)

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 2 – Sensitive© 2010 – Proprietary and Confidential Information of Amdocs 6 Optional Solution: Yield Management

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 2 – Sensitive© 2011 – Proprietary and Confidential Information of Amdocs 7 Toll Roads >The Service: >Charging pricing method for toll roads >Pricing method: >Tolls are continually adjusted according to traffic condition - adjusting the price to the time when tolled lanes get relatively busy >Key takeaways: >Price will differ based on congestion >Identified as the most viable approach to reduce traffic congestion and generating revenues for highway agencies

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 2 – Sensitive© 2011 – Proprietary and Confidential Information of Amdocs 8 Transportation Alternatives >The Service: >Reduce unnecessary driving, promote environmentally sound transportation >Pricing method: >Use price to signal when drivers should consider taking mass transit, reschedule their trip or pay a higher fee for driving. >Use reduced prices for car pools >Give tax relieves for companies enabling/enforcing working from home >Key takeaways: >Real effect on congestion results – maximize the use of the existing traffic roads >Suggesting an alternative attractive offering 08:00 11:00

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 2 – Sensitive© 2011 – Proprietary and Confidential Information of Amdocs 9 Looking for a Better Place

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 2 – Sensitive© 2011 – Proprietary and Confidential Information of Amdocs 10 Concert Seats >The Service: >Popular Concert seats tickets >Pricing method: >No printed price on the ticket >Changing prices at regular intervals based on actual consumer demand >Sensitive to changes in demand over the lifecycle of the product >If the seats are selling well, the price of the ticket will go up… and up – kind of stock market >Key takeaways: >Perishable product based on product lifecycle >Prices are not limited for popular concerts seats

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 2 – Sensitive© 2011 – Proprietary and Confidential Information of Amdocs 11 The Airline Industry >The Service: >Airline tickets >Pricing method: >Dynamically modulate prices over time by adjusting the number of seats available in each pre-defined fare class >Adding new type of seats like: >Original: creating new classes like Business which gets 1.5 more space then regular seat but cost 2 times the price >Preferred Couch (taking extra money for seats before emergency exists due to more leg room) >Options on Business class – paying extra money for option to upgrade to business class in case room is available

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 2 – Sensitive© 2011 – Proprietary and Confidential Information of Amdocs 12 >The Cellular Company is the owner of the network that subscribers are using to consume services >The demand for capacity is rising but the revenue per bit is dropping so simply investing in enlarging the network is not a profitable solution >Propose the cellular company other solutions to maximize profit and management of the network assets Mission Statement