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Managing the Challenge: How Ready Are You? (Cont'd)


The service provider may not know future capacity requirements, but it can respond dynamically to them. This is accomplished by defining policies to automate resource allocation on a per-subscriber and per-application basis. Only then can the provider ensure service availability and QoS both in the aggregate and for each subscriber.

Monetized Resources
Such granular control of subscribers, applications, and resources enables the service provider to monetize the true value of its network. In effect, the provider can enjoy a mechanism to “right-size” both resource allocation and pricing of each service based not on hypothesis, but on the subscriber’s direct expression of how much they use, and therefore value, each service.

Indeed subscriber-centric policy management empowers service providers to create innovative business models that allow subscribers not only on the network, but also tune the provisioning of network resources to the subscriber’s willingness to pay.
These innovative business models can be built around both revenue-generating and overhead-reducing goals, such as:
o Creating and managing tiered services with guaranteed QoS levels for each package
o Enhancing the ability to offer innovative service packages (e.g. Xbox only)
o Creating incremental revenues via bandwidth-on-demand allocation to subscribers when they want it
o Enhancing opportunities to partner and share revenues with content providers by providing an improved quality of service to subscribers when they visit the partner site
o Controlling costs and ensuring consistent service levels through policies that enforce fair use of bandwidth by application (e.g. peer-to-peer traffic)
o Controlling costs by enabling portals that allow subscribers to self-manage their accounts (e.g., upgrading service from bronze to gold).

The common denominator underlying these mechanisms is the power to set policies and enforce them dynamically. For example, a policy might set limits on a specific subscriber’s bandwidth usage based on their subscribed service tier, such as permission to view on-demand movies, but not high definition television (HDTV) movies. Given availability of some irresistible HDTV programs, however, subscribers must be allowed to upgrade their service tier at any time.

Through such subscriber-centric policies, the service provider can reconcile the goal of individualizing and enhancing subscriber experience with the goal of retaining control of the underlying network. Premium HDTV applications that require premium bandwidth, application server ports, VoIP switch ports or other precious resources yield greater revenue, while a less demanding file transfer application yields less revenue. Similarly, a bandwidth-intensive video-telephony data session is allocated more resources and yields commensurately more revenue than a standard VoIP call.

Based on policies and profiles, the provisioning process may automatically adjust itself in real time to subscriber needs. For example, a user who decides to watch an on-demand movie will have their QoS and bandwidth changed for the duration. This allows service providers to manage scarce resources and match network growth to revenue.

Shared Control
Subscriber-centric policy also paves the way for offering control of application access and network provisioning to the subscriber.

As noted earlier, IP convergence affords the opportunity to develop Web-based self-management for subscribers. This capability gives the subscriber an unprecedented sense of control over services.



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