huawei dynamic tariff technical solution (en20100412)

HUAWEI TECHNOLOGIES CO., LTD.

www.huawei.com

Huawei Confidential

Security Level:

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2013/10/11

Huawei Dynamic Tariff

Solution

2010-06-07

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

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DT Introduction

Huawei DT Solution

DT Prerequisites

Huawei DT Success Stories and Advantage

Agenda


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Keep improving

Wasted capacity

Poor network quality

Convert idle network capacity to

revenue

Alleviate the traffic to provide

better network quality

More subscribers & more

revenue

Customers’ satisfaction with

price and network quality

High loyalty & Low churn rate

..

Wasted capacity

Poor network quality

A shopping mall

A resident area

Look through the traffic portrait Our target


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Dynamic tariff

The admitted traffic peak

Spare capacity Utilized

Decrease congestion

The actual traffic in

traditional mode

The actual traffic in

dynamic mode

The Existing radio

network capacity

00:00 24:00

Traffic Peak decreasing

Dynamic Tariff (DT) is defined as a mechanism to charge varying prices at different times, in

various locations, according to different constraints, with the objective of better network

quality, optimal revenue, higher market share and other strategic criteria.

Time

Tra

ffic


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Benefits of DT

Reduce CAPEX of network extension for more network usage

Increase revenue by utilizing the spare network capacity

Improve the quality of service

Reducing churn, Increasing loyalty

Increase market share and improve competitive

Improve value of money;

Affordable price for low income users, to attract more new customer and let them use the mobile voice;

Improve quality of calls due to less congestion at peak time

Customer

Operator


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DT Introduction

Huawei DT Solution

DT Prerequisites


Agenda


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Main process of DT

Segment cell groups Set discount policy Calculate optimal

discount

Evaluate discount

effectiveness Depict cell features

Discount policy:

Discount range

Discount target

Discount mode

Group A:

1AM: 70%

2AM: 80%

…

8AM:30%

…

20

PM :20%

KPI

Report

Monitor

Voice

CDR

Traffic

Stat.

Cell property

model

Cell

conf

Regional features

Subscriber behavior

features

Subscriber value

features

Network traffic profile

Segmentation

Engine

Cell

features

Segmentation

Rules

Group A: Urban, high

ARPU

Group B: High price

elastic

Group C: Rural, low

MOU

…

A B

C

A B

C

Group A, non peak time

Range: 50%-90%

Target: maximize revenue

Mode: model (prediction)

Decision Model

Cell

Groups

Discount

Policy

Group B:

1AM: 80%

2AM: 90%

…

8AM:40%

…

20

PM :30%

90% 90%

90%

90% 90%

80%

80% 80%

80%

70%

70%

70%

70%

70%

Statistics and report

Cell

Groups

Discount

Policy

Evaluate the discount

effectiveness and adjust

the discount policy

Group B, peak time

Range: 20%-40%

Target: maximize revenue

Mode: Random


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Depict cell features Cell Features

Regional Properties User Properties Traffic Properties

City

Circle MOU of DT

subscriber

MOU of total

subscriber

MOU of non-DT

subscriber

Number of active

DT subscriber

Number of total

subscriber

Network Traffic

Profile

Geographical

features

ARPU of DT

subscriber

ARPU of total

subscriber

ARPU of non-DT

subscriber

Urban, Rural,

Shopping mall,

Residential area,…

These properties can be

depicted from voice CDR,

which reflect the user’s

behavior and value

within a cell

Price elasticity

Cell’s features

mainly

depend on

user’s

behavior and

value


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Segment cell groups

Why segments cells?

Simply discount policy configuration, reduce calculation work

Some cells have the same characteristics such as traffic, location and so on. So the cells can

be divided into several cell segmentations, Cells of one cell segmentation can be applied for the

same discount policy and discount, thus it brings convenience to end user, and also it can

optimize performance, because the number of cell sites is so large and the calculation of cells’

discount is a computing intensive work.

Cell Segmentation

Discount is NOT a geographic concept (cell)

Discount is a marketing concept (segment)


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Segment cell groups

How to segment cells

The end users define the segmentation rules, then DT can segment cell groups automatically

and periodically

Also the end users can move cells from one cell group into another cell group manually


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Discount Target for Different CELL

Flexible Discount Strategy to realize the

business objects and value

Different cell group can set different discount

automatically in the same period

The same cell group can set different discount

automatically at different timeslot

Support special discount setting on special date or special

events

Discount Generation based on condition

constraints

Optimization the network traffic but revenue can not

reduce a special ratio such as 5%

Improve the revenue but limit no more than peak

network traffic

Optimization traffic

5%~15% off

Increase revenue

0%~60% off, extra 5% off on Holiday

Increase network usage

5%~95% off

Constraint: Revenue decrease

should be no more than 5%

35%

5%

65%


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Set discount policy-discount target

Revenue Promotion

Call Promotion

Traffic Alleviation

To promote the revenue may cause more network usage which can lead to low network quality, it is permitted to define the network utilization threshold for this target.

Decision Model Target

To promote call may cause more network usage which can lead to low network quality, it is permitted to define the network utilization threshold for this target.

To alleviate traffic may cause low network usage which can lead to low revenue, it is permitted to define revenue threshold for this objective.

Different Cell group can be specified different target according to marketing strategy

Multiple discount targets, flexible marketing strategy


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Set discount policy-decision mode

Prediction model + Random algorithm makes discount more variable,

continuously bring surprise to user

Predictive model: curve regression algorithm

Random algorithm: Uniform random, Normal random, Intervention random


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Calculate optimal discount

Input Data + Discount Policy + Decision Model = Optimal Discount

In addition, end user can specify discount manually

In case of special event and special day,

e.g. National Day

DTE:

Self learning algorithm

Intelligent decision


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Calculate optimal discount

Real time discount decision, rapidly discount adjusting

Generally, each day DT calculates discount for tomorrow, in some case, it is possible that the network

traffic suddenly become very high or very low. End user can define some rules, DT scan the network

utilization periodically, once the currently network utilization meets certain rule, then DT will adjust the

discount immediately


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DT Effectiveness Evaluation

The revenue comparison analysis

Call Duration Analysis

Discount Analysis

Traffic

Optimization

Customer

Development

Revenue

Improvement

Network

Utilization/Traffic

Network Monitor

Network overload and

idle alert

Bottleneck analysis

Cell portrait analysis

The amount of new DT

subscribers

ARPU and MOU of

subscribers

Active Subscriber

Analysis


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Evaluate discount effectiveness

DT Monitor and Analysis

KPI Monitor Report

Monthly KPI

Daily KPI Number of

Active Subscriber

Network

Utilization/Traffic

Call Minutes/MOU/

Revenue/ARPU

MOU of Sample

Subscriber

ARPU of Sample

Subscriber

Network

Monitor

Business

Monitor

System

Monitor

Overload Alert

Network Traffic

Monitor

Idle Alert

Call Duration

Monitor

Revenue

Monitor

Active Subscriber

Monitor

Discount

Monitor

Network

Analysis

Business

Analysis

Time Bottleneck

Analysis

Cell Portrait

Analysis

Cell Bottleneck

Analysis

Call Duration

Analysis

Revenue

Analysis

Active Subscriber

Analysis

Discount

Analysis

Mean Price/

Mean Discount

Weekly KPI

Number of Offline

DT Subscriber

Number of New

DT Subscriber

Powerful analysis and monitor,

Deep insight into DT effectiveness


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Analysis Feature Samples


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System Monitor


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BSC

NMS/EMS

Cell Traffic

Traffic performance

Stat.

System Interaction Processes (Option1)

Dynamic Tariff

CDRs

Discounts

Discounts

Discounts

BTS

Discounts

Customer

USSD

USSD discount

message

Separate CBC

Discounts

Discounts

DT subscription

IN/OCS/Billing

Provisioning/CRM…

Customer

Discount query before call or

discount notification during call setup phase

① Registering

(Optional)

② Data integration

④ Discount

broadcast to

customer via NMS

③ Discount

synchronize to

IN/OCS directly

⑤ USSD notify to customer

⑤ Customer request Discount via USSD

④ Discount

broadcast to

customer via

separate CBC

Discount


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BSC

NMS

Cell Traffic

Traffic performance

Stat.

System Interaction Processes (Option2)

Dynamic Tariff

CDRs

Discounts

Discounts

Discounts

BTS

Discounts

Customer

USSD

USSD discount

message

MSC

Discount delivery during call setup phase

Discounts

Separate CBC

Discounts

Discounts

DT subscription

IN/OCS/Billing

Provisioning/CRM…

Customer

discount notification during call setup phase

① Registering

② Data integration

④ Discount

broadcast to

customer via NMS

③ Discount

synchronize to

IN/OCS via MSC

⑤ USSD notify to customer

⑤ Customer request Discount via USSD

④ Discount

broadcast to

customer via

separate CBC

Discount query


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BSC

NMS/EMS

Cell Traffic

Traffic performance

Stat.

DT System Interaction Processes (Option3)

Dynamic Tariff Center

CDR

BTS

Discounts

Customer

CBC

Discounts

Discounts

DT Subscription

Existing IN/Billing

HLR

Existing CRM/Provision

Change O-CSI

(SCPaddr.=Huawei SCP)

①Registering

②Data Collection

③Discount info

sent to Huawei

SCP

⑤Customer query

Discount via USSD

④Discount

broadcast to

customer via

separate CBC

Discount Info

Huawei SCP

Discount Info Query

via USSD

Customer

Discount Info


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DT Call Procedure (Option3) ① When the DT subscriber originates a call, the call is

triggered to Huawei SCP via standard CAP interface.

② SCP checks the discount information and hands

over the call to the existing IN carrying the discount

information in the CAP interface with extension.

Legacy IN applies discount info on the rating and

handles the call accordingly.

If “discount query” is provided via IVR, the same

procedure is followed. Legacy IN gets discount info from

IDP, and announce it in IVR.

Non-DT calls directly go to Legacy IN from MSC.

User A

User B

BSC

BSC

MSC

Existing IN

DT Subscriber

Non-DT Subscriber

Huawei SCP

11 22

Standard CAP

CAP with

extension

IDP handover

MSC HuaweiSCP IN

MOIDP

Call continue

Rating and

session control

Call end

.

.

.

.

Check discount

information

The typical signaling flow:

Note:

1) Carrier needs to provide the interface protocol used between

Huawei SCP and existing IN. Huawei can follow the interface with

customization.

2) MSC’s cooperation is required.

3) To get the subscriber’s current location information (Cell

Information), MSC needs to report the location information of the

subscriber in the IDP message or HLR needs to support ATI

operation of MAP protocol.


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Customer Experience – Register to DT service

• As a competitive service, DT needs the

customers to know how to order the service

in an easy way.

• Subscribers can register or cancel DT service

via a specified USSD code.

• Alternatively carriers can provides others

channels, e.g., SMS code, IVR, dealers for

subscribers to consult or register the DT

service.

• Once successfully subscribed to DT services,

subscribers can query current discount via

USSD code or IVR.

CRM/Provisioning…

Billing/HLR…

Call Center (FAQ)


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Customer Experience – Discount Broadcast to

subscribers

DT IMC

BSC

NMS/EMS CBC

Via NMS/EMS

In General, the discount is transferred to

NMS via private MML and then broadcast

to customer by BSC, which have a simple

CBC module.

Via independent CBC

In case a simple CBC is not available in

any of BSC, an independent is needed;

Discount display in mobile phones

and the discount will be updated per

half hour;


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DT system Architecture

Huawei

SCP

DT IMC ( Inter Media Center )

FTP

Cell

Segmentation

Discount

Decision Model

Model

Schedule

Discount

Range Model

DT Engine

Discount

Generator

Engine

Monitor

Portal

Discount Policy

Mgmt

Discount Mgmt

Cell Group Mgmt Overload &Idle

Alert

Network Traffic

Monitor

DT Management DT Analysis

Syste

m M

gm

t

Network Traffic

Analysis

DT Business

Analysis

Cell Portrait

Analysis

DT Business

Monitor

DT KPI Analysis

Network Bottleneck

Analysis

Discount Analysis

CDR

Integration

Subscription

Integration

Discount

Delivery

NW Configuration

Integration

NW Performance

Integration

Discount

Broadcast

Open, standard,

modularized platform

Support secondary

development

Rapidly integration to

external system

NMS/EMS IN/

OCS…

CRM/

Provisioning MSC CBC

FTP

FTP

FTP

FTP

USSD

MML

MML SOAP HTTP

Option1, IN based

solution

Option2, MSC based

solution

Option3, SCP based

solution


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Logical Networking

Fabric

Legend

Line

Storage

Fabric Switch Fabric Switch

DB server

Switch Switch

Web server DT IMC

MSC/SCP USSD Server

NMS/EMS

IN/OCS/Billing

DT Engine

Provisioning/CRM

Dynamic Tariff

CBC

Each module has

1+1 backup, no

single Node fault


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DT Introduction

Huawei DT Solution

DT Prerequisites


Agenda


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Prerequisites

IN/OCS/Billing

Can provide voice CDR to DT via flat file interface on a hourly basis.

Provide the interface protocol used between Huawei DT and existing IN.

Discount was delivered to IN/OCS/Billing by FTP.

NMS

Can provide cell performance statistics to DT via flat file interface on a

hourly basis.

Can provide BSC, BTS, Cell configuration data

Can provide one month’s historical cell performance data during delivery

phase

CBC

Can broadcast discount message.

Provide MML document to Huawei.


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DT Introduction

Huawei DT Solution

DT Prerequisites


Agenda


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Pakistan Telenor

Project Implementation：

Began implementation in

Jan., 2010

launched in April 2010

Pakistan Telenor：

Total Subscriber is about

22,000,000

Total Cells for DT service:

over 2000 in first phase.

Telenor DT Service：

No need to register.

Discount delivery to IN by

Nokia and Siemens Network.

Discount broadcast by Nokia

and Siemens Network

Management.

Nokia Network

Siemens Network

CDR data integration

Discount broadcasting

Delivers discount to MSC

Legend

MSC BSC BTS Subscribers

Data WareHouse IN

MSC BSC BTS Subscribers

Dynamic Tariffing

FTP

MML

MML

MML

MMLFTP

Cell performance data integration

Optima

Netact

RCs


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Uninor India Case

DT Service：

DT integrated with Telecodia IN

directly by COBRA.

5 BSC vendors, Ericsson,

Alcatel, Huawei, NSN and ZTE

Discount broadcast by

integration with TeleDNA CBC.

(FTP)

(FTP)

(FTP)

(FTP)

(FTP)

(HTTP&XML API)

(FTP) ( COBRA/SII)

(HTTP/XML/SMPP)

(HTTP)

(FTP)

Uninor India：

Telenor Group’s Indian mobile

operation, Uninor, launched its

mobile services in Dec. 2009

Total Subscriber is about

6,000,000



Jan., 2010

launched in April 2010


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Zain Congo Case

DT Service：

IN/MSC are from Ericsson.

Discount delivered by Huawei SCP.

Integrated with Ericsson, NSN,

Astllia Network Management

system.

ZAIN Congo：

Total Subscriber is about 1,400,000

Total Cells: over 1500



March, 2010

launched in April, 2010 for

Ericsson MSC by pass solution

in phase 1.

Huawei SCP bypass solution in

Phase 2

Integrated with Ericsson IN/MSC by Huawei SCP.


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Tailored, flexible and fast customization and

maintenance let your daily operation easier

R&D in Shenzhen

and Nanjing HQ

R&D at Location Implementation

Project Team

Implements a

software product

on site, and collect

and analyze

customization

requirements.

Customizes the base

version development

of a software product

on site.

Developing the basic and unified version of the software

product


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Implementation Phases

1st months 2nd months

Equipment transport

and installation

Software installation

Debug & system test

External interface

development and test

Historical data acquire

DT Preparation Pilot Phase Commercial Phase

Data quality analysis of

CDR and network

performance data

Customer behavior analysis

and cell segmentation

Algorithms optimization

Trail based on a special

location or customer group

DT service planning,

campaign popularization

and promotion

A large scope to market

the DT service

Continuously algorithms

optimization

> 3 months


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Huawei Solution Highlights

Business

Value

Adaptability &

Implement

DT

E-2-E Solution

• DT is offered as a service

need to operation,

Huawei provides not only

DT platform, but also DT

marketing plan, design,

evaluation, customer

services and other

operational consulting Flexible Discount

Strategy and multi- target

decision

Discount Generation

based on condition

constraint

Multiple interfaces with

MSC, IN, NMS, Billing

system are reserved;

Fast interface and

implementation with all

kinds of network

equipments,

Thank You

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huawei dynamic tariff technical solution (en20100412)

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