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Strategies for Success:Preparing for the Zetabyte1021 270 Era!!

Rabih Dabboussi Rabih.Dabboussi@cisco.com

Director, Systems Engineering – Emerging Markets

Director, Service Provider Segment – Emerging Markets

General Manager, UAE May, 2012

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Pervasive Communications is the REAL new paradigm

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Rapid Productivity Gains Can Raise the Standard of

Living for People Around the World. +++

Why Connectivity Matters

10% increase in BB 1.3% increase in GDP!

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The Beginning of a Major Shift

2000 2005 2010

Adoption CurveCloud ComputingPublic or Private

TraditionalData Centers

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Cisco Visual Networking Index (VNI) Expanding the Scope of Cisco’s IP Thought Leadership

Cisco® VNI Forecast research is an ongoing initiative to predict global traffic growth. This study focuses on consumer and

business mobile data traffic and its key drivers.

Source: Cisco VNI Global Mobile Data Traffic Forecast, 2011–2016

Global Mobile Speed Data

Global Forecast Data

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By 2016, nearly three-fourth’s (71%) of the world’s mobile data traffic will be video. Mobile video traffic will double every year between 2011 and 2016.

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, 2011–2016

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Email+Web +Facebook +Pandora +Netflix0

50

100

150

200

250

300

350

400

Email 60

Email 60

Email 60

Email 60

Web89

Web89

Web89

Web89

Facebook 40

Facebook 40

Facebook 40

Pandora55

Pandora55

Netflix109

Me

ga

by

tes

pe

r M

on

th

Traffic for Smartphone Apps (US)Users Adopting Pandora, Facebook, Netflix Generate 2X More Traffic

149 MB

Source: Arbitron Mobile, 2012

353 MB

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By 2016, 60 percent of mobile users (3 billion people) will belong to the Gigabyte Club, generating more than one gigabyte of mobile data traffic per month.

In 2011, 0.5 percent of mobile users belonged to the Gigabyte Club.

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9

Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, 2011–2016

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By 2016, there will be 1.4 mobile connections (devices and M2M) per capita.

There will be more than 10B mobile connections (devices & M2M nodes) and 7.3B people.*

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10

Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, 2011–2016

* United Nations 2016 Global Population Estimate

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North America

22.3 EB/Month by 201526% CAGR, 3X Growth

Western Europe

18.9 EB/Month by 201532% CAGR, 4X Growth

Central/Eastern Europe

3.7 EB/Month by 201539% CAGR, 5X Growth

Latin America

4.7 EB/Month by 201548% CAGR, 7X Growth

Asia Pacific

24.1 EB/Month by 201535% CAGR, 4X Growth

Japan

4.8 EB/Month by 201527% CAGR, 3X Growth

Source: Cisco Visual Networking Index (VNI) Global IP Traffic Forecast, 2010–2015

Global IP Traffic Growth, 2010–2015Regional contributions to the Zettabyte journey

Middle East & Africa

2.0 EB/Month by 201552% CAGR, 8X Growth

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Middle East and AfricaIP Traffic by Access Technology

In Middle East and Africa, fixed/wired traffic will reach 541 petabytes/month in 2015, up from 150 petabytes per month in 2010.

In Middle East and Africa, wi-fi traffic will grow 11-fold from 2010 to 2015, a 62% CAGR.

In Middle East and Africa, mobile data traffic will grow 63-fold from 2010 to 2015, an 129% CAGR.

Source: Cisco Visual Networking Index (VNI) Global IP Traffic Forecast, 2010–2015

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Mobile Network Speeds to Increase 9-fold by 2016 The Average Mobile Connection Speed (315 kbps in 2011) will Grow at a 56% CAGR, Exceeding 2.8 Mbps in 2016

(kbps) 2011 2012 2013 2014 2015 2016 CAGR 2011-2016

Global

Global Speed – Avg. Mobile Connection 315 504 792 1,236 1,908 2,873 56%

Global Speed – Avg. Smartphone Connection 1,344 1,829 2,425 3,166 4,102 5,244 31%

By Region

Middle East & Africa 89 206 434 850 1,555 2,618 97%

Central & Eastern Europe 205 396 739 1,316 2,228 3,476 76%

Latin America 125 227 396 673 1,082 1,627 67%

Western Europe 667 1,196 1,967 2,960 4,163 5,549 53%

Asia-Pacific 337 497 732 1,101 1,697 2,608 51%

North America 1,138 1,712 2,485 3,531 4,923 6,785 43%

Source: Cisco Global Internet Speed Test (GIST) results and other independent speed test findings

14C97-645084-00 | © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14

VIDEOEXPERIENCE

ARPU per Bit

Data Traffic (Cost) Coming

Profitability Gap

Mobile Operator’s Three-Fold Challenge

Enable Premium Services and business modelsTiered pricing, Turbo Boost, Family Plans, Mobile Advertising, Cloud Services, M2M

Reduce Costs

Increase Revenue

Improve Customer Experience

Manage “over the top” videoMaximize spectrum and radio assets

Unique Fusion of Network and Data Center Design and Functionality

Integrated Intelligence for Transrating, Transcoding, Traffic Packet Optimization

Deliver highest quality, personalized video, voice, and data experiences

Innovate to delight customers (three-screen experience, session shifting, etc.)

MONETIZE

OPTIMIZE

Radio and Network Off-Load

Intelligent bandwidth management of peak usage; reduce power and cooling costs

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Customers Require More!

© 2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialC97-622044-00 NDA Presentation

More Services• Consumer, intelligent, flexible• Business/Enterprise: Mobility!

Higher Bandwidth• Media Rich: Video, Voice and Data• Any Device, Any G

Lower Cost• Lower Tarifs, Better Services• Better packages

$$

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Technology: Network, Radio, Device

Applications: Mobile, Portable, Rich

Behaviours: Social, Visual, Collaborative

Innovations Driving the Paradigm Shift!

© 2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialC97-622044-00 NDA Presentation

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ServiceProviders

ContentBroadcasters

Advertisers

ContentAggregators

ApplicationProviders

E-Tailers

Capitalizing on Two-Sided Markets Business to Business to Consumer (B2B2C)

Animated slide

Ubiquitous AccessHet-Net

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Key Strategies for the Mobile BB Era!

Convergence: Fixed-Mobile, 2G-3G-4G &BBIP: End-to-End, Multi-Core Packet Net

Core Network

© 2010 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Optical—IP: IntegrationRAN Backhaul, key for OPEX!

Transport

Evolved Packet Core -- ArchitectureFlexibility, Scalability, Collapsed

Mobile Packet Core

Network based servicesDynamic, Elastic, Abstract

Datacenter/Cloud

Voice/Video/SMS ExperienceVideo: OTT, Monitization

Applications/Services

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your

is wherever you need to interact.

community

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Thank you.