AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 1 The Integrated Charging and Policy Control Route to Data Monetization Shahar Yaacobi, Amdocs

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 2 The Data Explosion increase in mobile data traffic from * > 5B devices + M2M More Connected Devices Personalization Network Granularity More Smartphone traffic up 42x More Content/Apps OTT Revenue models *Cisco Visual Networking Index (VNI) Global Mobile Data Forecast, 2009–2014 3,900%

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2011 – Proprietary and Confidential Information of Amdocs 3 The Mobile Data Surge Mobile data traffic will double every year through 2014 >Video will contribute two-thirds of the traffic > 70% of traffic will be generated by laptops and other portable devices > By 2014, non-smart phones will contribute only 4% of the total traffic Source: Cisco Visual Networking Index (VNI) 2010 forecast

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 4 First there was the unlimited data

Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 5 The US fight- Cap, Charge or Throttle?

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 6 And Don’t Forget The Customer Experience

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 7

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2011 – Proprietary and Confidential Information of Amdocs 8 Users are in transition

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 9 From Unlimited to tiered pricing schemes Volume Broadband on Mobile Data PlansYouth1Mbps2Mbps7.2Mbps14.4Mbps21Mbps Monthly Subscription $29$22.42$37$69$83 $99 Download Speed Up to 1.5Mbps1Mbps2Mbps7.2Mbps14.4Mbps 21Mbps Upload Speed Up to 384Kbps 512Kbps1.5Mbps5.76Mbps Upload Speed Up to Monthly Free Local Bundled Usage 50GB30GB50GB Excess Charges $0.001 / 2KB (min. of $0.005 / session) Speed Combined Volume & Speed

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 10 Most operators are planning to launch tiered pricing plans in the next 6-12 months The majority of respondents from all three regions are planning to offer tiered pricing in the next 6-12 months Is tiered pricing being planned for launch in the next 6-12 months?

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 11 Are you being requested by marketing to enable innovative data plans? The majority of service providers from APAC, Europe and North America say that commercialization of data plans are driven by their marketing departments N=30 Are you being requested by marketing to enable innovative data plans?

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2011 – Proprietary and Confidential Information of Amdocs 12 Existing Solutions The Evolution of Data Services 50GB for $65 Split between family members Individual Quotas: Parents: 30GB, 2 Kids: 10 GB each Bandwidth QOS: Parents: up to 4Mbit/s Kids: 2 Mbps Move to Pre-Pay if exceeded Block P2P services Family Account 2GB for $20 Bandwidth: up to 2 Mbps 2GB for $20 For iPad Up to 7.1 Mbps

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2011 – Proprietary and Confidential Information of Amdocs 13 Family Account The Future of Data ServicesExisting Solutions The Evolution of Data Services 5GB for 20$ Bandwidth: up to 2 Mbps 5GB for 20$ Across Multiple Devices Wireless Wireline IPTV BB 4G / LTE 3G WiFi PSTN

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 14 Operators demand for integrated policy and charging solution is overwhelming Do you see a need for policy and charging integration? N=30  Globally the need for integrated policy and charging by operators is overwhelming

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 15 Amdocs & Bridgewater Redefining the Data Experience BSS Self Service Packet Core DPIData GW Radio Access NWUser Equipment Customer Management Provisioning PCRF SPR Subscriber Data & Policies SPR Bridgewater  10+ years pedigree in real-time, ‘non-stop’ network databases  150 Customers  Largest installation – 100M subscribers, 14K transactions/sec.  Open, Standards-based Product Strategy  Multi-Vendor Neutrality  Extensive Interoperability with all major DPI and Gateway vendors  First worldwide LTE implementation of HSS and PCRF  Seamless 3G and 4G LTE Support Amdocs  25+ years experience and expertise in BSS  BSS Market Leader with 27% Market Share  Over 80 tier 1-2 reference  Carrier grade performance and scalability – benchmarked for 150M subscribers  Over 200M convergent charging subscribers Holistic customer view across  Multiple devices per user  Multiple users per account  Multiple lines of business  All SP’s network types Amdocs & Bridgewater Bridging the Network and BSS to Deliver a Superior Data Experience  Uniquely couple granular network information and subscriber policies with state-of-the-art real-time charging capabilities  Offer a complete solution enabling service providers to achieve market differentiation through personalized, advanced data monetization business models  Achieve faster time to market by streamlining BSS processes and eliminating data inconsistencies

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 16 Integration of Policy and Charging- Enables new monetization models Multi dimensional characteristics Device Type iPhone, iPad, Laptop, eReader… Service Location Home \ Office Zone, Roaming… Network Status Congestion Traffic \ service type Video, VOIP, Tethering, P2P, Facebook… Customer Info setting hierarchies and priorities Business, VIP, Family, Gov… Tiered packages parameters Qos Speed, Latency Quota \ Usage Time, Credit, Volume Complementary add-ons Customer experience Real time notifications Redirect to choose additional / new packages Monetization adds-on QoS Step up, step down Bandwidth on demand Multi dimensional characteristics Device Type iPhone, iPad, Laptop, eReader… Service Location Home \ Office Zone, Roaming… Network Status Congestion Traffic \ service type Video, VOIP, Tethering, P2P, Facebook… Customer Info setting hierarchies and priorities Business, VIP, Family, Gov… Tiered packages parameters Qos Speed, Latency Quota \ Usage Time, Credit, Volume Complementary add-ons Customer experience Real time notifications Redirect to choose additional / new packages Monetization adds-on QoS Step up, step down Bandwidth on demand Simple and clear

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 17 Service Monetization Examples 5GB for $30 Pay as you go if exceeded Overall Cap  3G Network usage - 1GB  4G Network usage - 4GB 5GB for $30 Get lower priority on network if exceed Split between networks  Video- 2GB limit  P2P – 1GB limit 5GB for $30 Block data type usage if exceed Data Type Limitation  Unlimited Facebook,  Limit 1GB –YouTube etc. 5GB for $30 Compress videos if exceed Content Limitation  8am-5pm count usage, other hours do not count 5GB for $30 Reduce bandwidth if exceed Peak / Off-Peak hours 5GB for $30 Move to Pre-Pay if exceed Split between family members  Parents: 3GB  2 kids: 1GB each

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 18 Revenue share agreement Monetization Models Partner Agreements – Revenue Share Multi dimensional characteristics Device Type iPhone, iPad, Laptop, eReader… Service Location Home \ Office Zone, Roaming… Network Status Congestion Traffic \ service type Video, VOIP, Tethering, P2P, Facebook… Customer Info setting hierarchies and priorities Business, VIP, Family, Gov… Tiered packages parameters Qos Speed, Latency Quota \ Usage Time, Credit, Volume Complementary add-ons Monetization adds-on QoS Step up, step down Bandwidth on demand

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 19 Premium QoS for OTT Providers “HD Button” HD Video Streaming Offer the customer to view a piece of content in a higher quality guaranteed “HD” bottom, price can be determined dynamically upon: 1. Network congestion 2. Demand for the content Price for reservation Define your reservation Current Price Tag Submit

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 20 Questions… How many HD movies can you view with a 5GB / month package? What minimum bandwidth shall you subscribe to for your FaceTime video calls?

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 21 The Next Step - Value Based Pricing Unlimited Plans (e.g. $30 all you can eat) Tiered Pricing Based on Quota (e.g. 1GB / 5GB / 10GB) Advanced Tiered Pricing Based on Value (e.g. Movie / games package) Small % users consume the most bandwidth MB/GB is not intuitive to customers Base package with content add-ons Value Based Pricing

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 22 From Data Access to Data Experience Advanced monetization schemes require integrated charging and policy capabilities Data monetization strategies are slowly shifting from providing simple access to data to providing the best user experience and enhanced capabilities Unlimited Tiered pricing Smart capping Bundled Quality of Service Value based

AMDOCS > CUSTOMER EXPERIENCE SYSTEMS INNOVATION Information Security Level 1 – Confidential© 2010 – Proprietary and Confidential Information of Amdocs 23 Shahar Yaacobi Thank you