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Satisfaction Manageable How do you satisfy 5 000 users with 5 Mbit/sec? By AlikKalmykov,Founder & CEO
There is a problem? Our target clients – data network operators – face the ever growing demand for traffic capacityfrom their customers. To meet the challenge, they have two options: Invest in infrastructure; Find yet more elaborate ways to distribute traffic between users. 2/14
Smart Market is a better solution We use Behavioral Economy approach to manage customers’ satisfaction.  We build a new, satisfying relationship with customers, which is: Transparent; Mutual; Responsible. Instead of distributing traffic among users, we invite them to create a market of traffic, where each can (and is encouraged to) act to his own satisfaction. 3/14
Two steps to a free market 4/14 Step 1. Keep your customer well-informed.  He has rights to know, how high is the congestion right now, and what will happen in the next few hours. Step 2. Put the customer into control Let him decide: ,[object Object]
 What price he is prepared to pay. ,[object Object]
How does it help the provider? There will be more satisfied and loyal clients, because in this new relationship the provider always acts to the clients’ expectations. He actually creates these expectations.  Selling traffic through a smart-market auction increases income per MB up to 15-25%. And it can be 100% in the peak time. And there is one extra point yet… 6/14
The extra point 7/14 Smart-Market solution creates and encourages ‘delayed consumption’ phenomenon. This makes the capacity load more evenly distributed in time. So the provider sells more Megabytes within the same capacity.
How do we know all this? 8/14 The achievements: 3 years of theoretical studies and more than 100 laboratory experiments; Solution implemented and tested with the largest satellite provider in Russia – Raduga Internet (300 000 users). Right now selling to three more satellite operators in Russia and international market.  It will take us about a year to prepare and test a solution for 3G/LTE.  	Made by the Great Team: Technical Dept.: 7 programmers with more than 26 years of experience in telecom development (Yandex, Vympelcom, etc.) Research Dept.: leading American experts, young Russian scientists and relics of the Old Soviet school in math and game theory Management and marketing: you can’t have enough of them
Who else is out there? Almost all components of Evanti solution are developed and used around the world. Similar solutions were discussed (in publications) at Microsoft, Ericsson and Cisco research centers. However we are the first to apply socio-technological approach to a purely technological problem. Our studies and experiments make us ahead of whatever competition there might be, because we are sure there are currently no appropriate research carried out in behavioral economy.  9/14
Getting tothe point, finally What do we want: Advice: Member of Board well into the telecom industry to join our team; Cellular operator to test our solution on their data. Money: $1,7 – 2 mln. to develop an application for 3G/LTE networks; $	1 – 1,5mln. to market and make test implementation. How do we get your money back: We sell our solution to operators (cellular, satellite, etc.) as installation projects ($0,8 – 1 mln. average price of similar solutions) and get 20% yearly as a post-sale support.  10/14
More by Evanti 1. 	Hard Cloud Billing – hardware-software solution for outsourcing billing and OSS services to small internet providers: Supports all kinds of networks; Real-time charging, cloud-based billing and CRM. 2. 	Globax-S – client-server traffic compression solution with up to 80% user’s traffic compressed (30-35% median) – can be integrated into Smart Market solution for better efficiency.  11/14
Why-nots 12/14 ,[object Object]
Correct, but we don’t need all the customers. 5% ‘freaks’ and 10% ‘early adopters’ will make a lot of difference to the traffic distribution in the channel. They generate up to 60% traffic, anyway.
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Smart Market: satisfaction manageable

  • 1. Satisfaction Manageable How do you satisfy 5 000 users with 5 Mbit/sec? By AlikKalmykov,Founder & CEO
  • 2. There is a problem? Our target clients – data network operators – face the ever growing demand for traffic capacityfrom their customers. To meet the challenge, they have two options: Invest in infrastructure; Find yet more elaborate ways to distribute traffic between users. 2/14
  • 3. Smart Market is a better solution We use Behavioral Economy approach to manage customers’ satisfaction. We build a new, satisfying relationship with customers, which is: Transparent; Mutual; Responsible. Instead of distributing traffic among users, we invite them to create a market of traffic, where each can (and is encouraged to) act to his own satisfaction. 3/14
  • 4.
  • 5.
  • 6. How does it help the provider? There will be more satisfied and loyal clients, because in this new relationship the provider always acts to the clients’ expectations. He actually creates these expectations. Selling traffic through a smart-market auction increases income per MB up to 15-25%. And it can be 100% in the peak time. And there is one extra point yet… 6/14
  • 7. The extra point 7/14 Smart-Market solution creates and encourages ‘delayed consumption’ phenomenon. This makes the capacity load more evenly distributed in time. So the provider sells more Megabytes within the same capacity.
  • 8. How do we know all this? 8/14 The achievements: 3 years of theoretical studies and more than 100 laboratory experiments; Solution implemented and tested with the largest satellite provider in Russia – Raduga Internet (300 000 users). Right now selling to three more satellite operators in Russia and international market. It will take us about a year to prepare and test a solution for 3G/LTE. Made by the Great Team: Technical Dept.: 7 programmers with more than 26 years of experience in telecom development (Yandex, Vympelcom, etc.) Research Dept.: leading American experts, young Russian scientists and relics of the Old Soviet school in math and game theory Management and marketing: you can’t have enough of them
  • 9. Who else is out there? Almost all components of Evanti solution are developed and used around the world. Similar solutions were discussed (in publications) at Microsoft, Ericsson and Cisco research centers. However we are the first to apply socio-technological approach to a purely technological problem. Our studies and experiments make us ahead of whatever competition there might be, because we are sure there are currently no appropriate research carried out in behavioral economy. 9/14
  • 10. Getting tothe point, finally What do we want: Advice: Member of Board well into the telecom industry to join our team; Cellular operator to test our solution on their data. Money: $1,7 – 2 mln. to develop an application for 3G/LTE networks; $ 1 – 1,5mln. to market and make test implementation. How do we get your money back: We sell our solution to operators (cellular, satellite, etc.) as installation projects ($0,8 – 1 mln. average price of similar solutions) and get 20% yearly as a post-sale support. 10/14
  • 11. More by Evanti 1. Hard Cloud Billing – hardware-software solution for outsourcing billing and OSS services to small internet providers: Supports all kinds of networks; Real-time charging, cloud-based billing and CRM. 2. Globax-S – client-server traffic compression solution with up to 80% user’s traffic compressed (30-35% median) – can be integrated into Smart Market solution for better efficiency. 11/14
  • 12.
  • 13. Correct, but we don’t need all the customers. 5% ‘freaks’ and 10% ‘early adopters’ will make a lot of difference to the traffic distribution in the channel. They generate up to 60% traffic, anyway.
  • 15. It does. But a well-known operator’s brand sure helps 
  • 16.
  • 17. Never mind. Even if you have session-based billing, you still have real-time policy and priorities management. And our server will do the rest
  • 18. We have a Marketing dept. with XXX professionals making new tariffs and campaigns
  • 19.