Data Optimization Solution for Mobile Operators

For Integrated Telecommunication Solutions Vision Valley Levant

Prepared for

Itisaluna
September 15, 2008

Agenda

Introduction to Venturi Wireless Operator Challenges Venturi Solution ROI basics Network Architecture and Deployment Case Studies Next Steps Q&A

Venturi Quick Facts

Wireless broadband services optimization for mobile and wireless operators Headquartered in Sunnyvale, California CEO Tomas Isaksson (formerly Europolitan, Vodafone, Ericsson) 65 employees Investors

Successful deployments at leading mobile and wireless operators worldwide

Strategic Partnerships
Infrastructure Device/Chip/Application

Venturis Mission: Optimize All Wireless Data

Across All Networks For All Applications
WWW
Video/Audio

Using Any Device

EV-DO

P2P

GPRS/EDGE 1xRTT EVDO Rev 0/Rev A UMTS HSDPA WiMAX WiFi Mesh
5

Web Browsing Email (POP3/SMTP) Multimedia VoIP Peer-to-peer

Feature Phones Smartphones PDAs Notebook PCs UMPCs Gateway Devices

Agenda

Introduction to Venturi Wireless Operator Challenges Venturi Solution ROI basics Network Architecture and Deployment Case Studies Next Steps Q&A

Venturi Products Address Key Operator Challenges

Meeting Subscriber Expectations

Broadband speeds with mobile advantages Consistent experience in all locations, at all times Access to a wide range of media-rich services

Maximizing Network Efficiency

Lower CAPEX and OPEX per sub Efficient utilization of RAN resources and spectrum More services and broader coverage at lower cost

Optimization Benefits Both Subscribers and Operators

Superior User Experience

Faster Data Speeds

Increases up to 3X or more

Increased Reliability
Fewer session drops and connection time-outs

Consistent performance under

Service Consistency varying RF conditions

Larger effective coverage area

Improved Spectral Utilization

More subscribers and services per Hz

Compelling Economics

Lower Cost to Serve

15-30% reduction in network CAPEX together with lower customer care costs

Ideal Wireless World

HSDPA Performance
700

In an Ideal World

1 Mbps
600

The nearest cell is in your line of sight Youre the only person on the sector

Throughput (kbps) 500 400

300
200 100 0

Web pages and attachments are always 10 kB or less

All users and applications limit their bandwidth consumption to their fair share

In The Real World Subscribers Experience Variable Service Levels

User experience can be dramatically worse under poor RF conditions

RSSI = -70 dBm Ec/Io = -1dB RSSI = -100 dBm Ec/Io = -5dB

Median Time to Download Web Page (sec)

100

80

60

Degraded Signal In-building Interference Fading High Packet Loss High Load

40

20

Good RF
10

Average RF

Poor RF

TCP/IP Dramatically Underutilizes Available Network Bandwidth

Only a fraction of available bandwidth is used Bandwidth efficiency varies as quality of wireless link fluctuates Transactions abort frequently

11

TCP/IP Also Hurts Service Quality

20

Web Download Success Rate Using TCP

3% - 14% Failed

Number of Occurrences (count)

15

10

Completed
5

Web Page Download Time (seconds)

12

TCP causes wide variation in data rates, leading to variable service consistency With TCP, some transactions fail completely

Agenda

Introduction to Venturi Wireless Operator Challenges Venturi Solution ROI basics Network Architecture and Deployment Case Studies Next Steps Q&A

13

The Venturi Wireless Solution

Key Elements Of The Venturi Wireless Solution

- Transport Optimization (VTP)

- Smart Compression - Application Optimization - VClient

- Vserver
- Management - VAS
Centralized Management VCentral

Venturi Server
Value Added Services Server

TCP Session

Venturi Client
VTP and Compression 14

VTP UDP IP RLP HTTP TCP IP MAC

Internet

Value Added Services

Core Technology Adaptive Airlink Optimization

Transport Transport Optimization

Smart Compression

Venturi Transport Patented VTP Protocol Protocol (VTP) Optimization Overcomes TCP Overcomes Wireless limitations to offer: TCP Issues

Application Optimization

Leverages best of breed compression algorithms Significantly reduces traffic on the network Application layer Greatest impact on low speed networks (2G/2.5G)

performance High Latency High Packet Loss Enhanced coverage and availability TCP Slow Start Higher network efficiency Network Characteristic Bandwidth estimation Changes
Transport layer Greatest impact on high speed networks (3G/4G)

Improved

Application-specific optimization techniques Email, Web, Streaming video Application layer Benefits low speed and high speed networks equally Caching & Pre-fetching

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Compression Types
Lossless Compression
Compressor Name PPM (Prediction by Partial Matching) zlib (a.k.a DEFLATE) File Types Compressed
Javascript and Excel Upload: Any Download: Text

Supported Applications
E-mail, Browsing

E-mail, FTP, Browsing

AirZip GIFPNG

GIF GIF

Browsing Browsing

Lossy Compression
Compressor Name JPEG GIF Color Reduction Lossy HTML (Removes Comments) File Types Compressed JPEG GIF Supported Applications Browsing Browsing

HTML

Browsing

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Compression Value
Loss Less Compression

Loss less compression applies to all file types except certain non compressible file formats
Significantly reduces the file sizes being transported over the air Intelligently and selectively applies to different protocol types
Word/Excel/Powerpoint Text PDF/Binary

Protocol
FTP POP SMTP HTTP RTSP SSL

Compression
YES YES YES YES NO NO

Up to 80 % compression Up to 95% compression Up to 20% compression

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Wireless Transport Optimization Venturi Transport Protocol (VTP)

TCP is designed for Wired line networks Latency < 50ms Packet Loss < 1% TCP does not perform well under typical wireless network characteristics Latency 100ms to 4000ms High amounts of jitter Packet Loss 3% to 10% TCP has performance issues Treats every cases of packet loss as congestion Slow response to network characteristic changes Expensive restart after temporary loss of link

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VTP Improves Network Efficiency Yields More Available Capacity Traffic Flow Diagram
TCP traffic
Traffic Volume

Time

Venturi-optimized traffic
Traffic Volume Extra Capacity

Faster delivery frees up slots

Time

Faster Transaction Delivery Time with Venturi = More Available Capacity

19

Adaptive Airlink Optimization Improves Service Consistency

25

Number of Occurrences (count)

20

15

Venturi OFF Venturi ON

10

Web Page Download Time (seconds)

Faster download time = user experience of speed Lower variability = user experience of consistency
20

VTP Impact on Performance

T compression
400000

TVTP

350000

300000

Byte Sequence Number

V compression

VTP benefit Compression benefit

VTP 50-75% of performance gains

Without compression Some data volume

250000

200000

Compression benefits
Data volume reduction Transmit time savings File size & type

150000

100000

50000

0 0 1 2 3

Time (Seconds)

21

Caching Value
Venturi Wireless Caching and Prefetch

VServer

Internet

Examines top-level HTML pages and prefetches all referenced images and frames Typical hit rate is 30%+ on active networks

HS21

CD

cache

Caches GIF, JPG, TIFF, PNG, HTML, TXT, PDF, DOC

22

Venturi Pre-Fetching and Caching

Web requests are parsed and all objects are pre-fetched to the server VClient multiplexes connections avoiding gaps in transfer of HTTP Pre-fetched objects avoid effects of request/reply protocol on high latency network Cache compressed objects
Multiplex Connections
GET pbskidslogo_off.gif GET pbs_top.gif GET bemoreanimation.gif GET pbslogo.gif >>>DATA 2 packets >>> DATA 1 packet >>> DATA 4 packets >>> DATA 6 packets GET halfdiscsnow0516.gif .
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Pre-fetch the entire content

Speed Increases For All TCP-Based Applications

Venturi speed-up vs. TCP by application/protocol

Web

POP3

SMTP

FTP Download

FTP Upload

1x

2x Most likely improvement

3x

4x Peak improvement

5x

24

Agenda

Introduction to Venturi Wireless Operator Challenges Venturi Solution ROI basics Network Architecture and Deployment Case Studies Next Steps Q&A

25

Current Situation Market Growth = High Costs

More Traffic

More Investment

Network Infrastructure Backhaul

Spectrum
Customer Support

26

Return on Investment CAPEX and OPEX

Backhaul /OPEX

RAN Utilization / Coverage

Reduce bytes traveling over the network by 2x or more

Less infrastructure means lower maintenance and recurring costs

Accommodate more users / data on existing infrastructure Expand usable data services footprint; reduce BTS data coverage requirement

Churn (Cost)

Customer Care

Better experience drives subscriber loyalty

Reduced churn means lower subscriber acquisition costs to meet same objectives

Better, more consistent performance translates into fewer customer care calls US$6 - $20 per customer care call it adds up!

27

Return on Investment CAPEX / OPEX Reduction

Faster transactions increase throughput / capacity
GGSN SGSN RNC

GSM Core Network Architecture

Venturi Optimization Engine

Reduced backhaul requirement due to fewer bytes being transmitted over the network

Internet
Load Balancer

BTS

Reduced or deferred requirement for carrier addition

VClients 28

Reduced or deferred requirement for carrier addition at neighbor / handover sites

Node B

Fundamental Basis for OPEX/CAPEX Savings

Venturi bytes saved vs. TCP by link direction (client/server)

Received

Sent

1x

2x Most likely improvement

3x

4x Peak improvement

5x

29

Venturi Impact Faster Video Streaming

With Venturi Without Venturi

30

Agenda

Introduction to Venturi Wireless Operator Challenges Venturi Solution ROI basics Network Architecture and Deployment Case Studies Next Steps Q&A

31

Mobile Operator Solution

Cliented Terminals
Optimization Servers

VTP

Wireless Network

VClient Laptop

or

V5000 Appliance

ATCA Chassis Load Balancer

(3rd party)

VClient SmartPhone

VClient Handset

Layer 2 Switch
(3rd party)

Clientless Terminals

wTCP
32

VCentral Element Manager (EMS)

Basic Architecture

Carrier Edge Network

TCP stream

VTP stream

Internet
Router

PDSN or GGSN

Inbound IP Packets

Venturi Server

Outbound IP Packets

33

Centralized Deployment
VClient uses reverse DNS to identify server IP addresses and routes to the fastest responding server VClient insertion is transparent Capable of server bypass mode

34

In-Network Deployment
NOC

Mobilys Network
IPSEC Tunnel To NOC Point to Point E1 to NOC

ATM Router

GGSN Load Balancer

LI NK ACT LI NK ACT

NETWORKS

ServerIron 4G
1F BP OUT IN ACT ACT ACT ACT L I NK 1C 2F L I NK 2C 3F L I NK 3C 4F L I NK 4C PWR P S1 P S2

NETWORKS

ServerIron 4G
1F BP OUT IN ACT ACT ACT ACT L I NK 1C 2F L I NK 2C 3F L I NK 3C 4F L I NK 4C

Co n s o l e PWR P S1 P S2

Co n s o l e

S/N LABEL

S/N LABEL

Internet 3750 Switch

Catalyst 3750 SERIES
1 SYST RPS MASTR STAT DUPLX SPEED STACK MODE 1X 2 3 4 5 6 7 8 9 10 11 12 11X 13X 13 14 15 16 17 18 19 20 21 22 23 24 23X 1 2 3 4 2X 12X 14X 24X

Private Mgmt Network 3750 Switch

Catalyst 3750 SERIES Catalyst 3750 SERIES
1 SYST RPS MASTR STAT DUPLX SPEED STACK MODE 1X 2 3 4 5 6 7 8 9 10 11 12 11X 13X 13 14 15 16 17 18 19 20 21 22 23 24 23X 1 2 3 4 SYST RPS MASTR STAT DUPLX SPEED STACK MODE 1X 1 2 3 4 5 6 7 8 9 10 11 12 11X 13X 13 14 15 16 17 18 19 20 21 22 23 24 23X 1 2 3 4 2X 12X 14X 24X 2X 12X 14X 24X

Vservers (n+1 redundant mode) FW/VPN

Internet Router Internet Router VPN Backup Access Live Data Network Mgmt Network Internet

35

VCentral - Network Management

CAPABILITIES

VCentral

Configuration Management: Configure multiple Venturi servers simultaneously

Fault Management: Monitor server state and activities throughout the network

Performance Management: View performance details in aggregate or at the individual server level
Reporting: Generate system-wide aggregate customized server health reports for historical and trending analysis. Subscriber Analysis: Module for segmentation by user profiles for targeted service offerings

36

VClient version
VClient Laptop Edition
Highly customizable, easy to manage Windows 2000/XP/Vista, Mac OS Auto-update capable Performance indicator (spinning V) Bundle with data card or download

VClient Smartphone Edition

Highly customizable, easy to manage Windows Mobile 5.0 Windows Mobile 6.0, Symbian on 07 roadmap Auto-update capable

VClient Handset Edition

Easily ported to any handset RTOS Lightweight, stack-independent APIs Samsung A900
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Venturi VClient

Full benefits of Venturi optimization

Uplink compression Adaptive Airlink OptimizationTM

Intelligent Connection Sensing

Detects connection characteristics Intelligence to optimize or go to bypass mode Interoperable with VPN

Easy to deploy and support

Integrates into communications managers (e.g., Verizons VZAccess) Automatic upgrades via Web download Transparent no user configuration required

Windows OS (Vista, 2k, XP) Mac OS X (10 v.2 and higher) Windows Mobile 5 and 6
38

Client Integration Options

Standalone Client Integrated Client

Usability Features
Image controls

Context sensitive menus

Submenu for all settings

Online help

Informative tool-tips

39

Mobile Client (Smartphone/Feature Phone)

Mobile Phone Client

Venturi client library for feature phones available Porting toolkit available Customized clients for Windows Mobile and Symbian devices available

41

Agenda

Introduction to Venturi Wireless Operator Challenges Venturi Solution ROI basics Network Architecture and Deployment Case Studies Next Steps Q&A

46

Customer Case Study

Optimizing Three Generations of Networks
Verizon Wireless Overview

Largest 3G mobile data card user base in U.S. (2+ million) Venturi customer since 1999 for CDPD, 1xRTT, and now EV-DO networks Selected Venturi because of:
Performance improvement Solution Reliability and Scalability Wireless Data Expertise

Rollout

150 Million EV-DO POP coverage Venturi VClient bundled with PC card installers and on web site 300% increase in EV-DO subscribers

47

Customer Case Study Enhancing Connection Reliability and ROI

Reliance Communications Overview

Indias largest mobile operator (25 million total subs, 0.5 million data subs) Chose Venturi after extensive evaluation of three other optimization providers Selected Venturi for:
Performance improvement Connection reliability in poor RF Fast ROI pays for itself in network savings Adaptive Airlink Optimization technology

Rollout

48

Service Launch in 3Q06 under NetConnect / NetBooster brand Venturi VClient bundled with NetConnect data cards Targeting large corporate and enterprise customers

Case Study: Unwired Australia

Enhancing Experience and ROI
Unwired Australia Overview

Largest commercial portable wireless broadband operators in the world (since 8/04) International authority in wireless broadband Selected Venturi because of:
Subscriber experience improvement Enhanced coverage footprint Fast ROI

Rollout

49

Optimized service soft launch in 4Q06 POP coverage of > 4M expected by year-end 2007 Venturi VClient bundled with all wireless data PC cards Realizing 40% reduction in data traffic with Venturi Solution

Customer Case Study Venturi Optimization Sold as VAS

Willcom (Japan) Overview

Over 1.5 million AirEDGE subscribers Venturi customer since 2002 Selected Venturi because of:
Performance improvements Enhanced service availability Ease of integration

Business Impact

Launched MEGA PLUS service in 2005 with Venturi as value-added service (additional $4.30/month) Launched worlds first Smartphone with optimization client (VClient) (additional $2.60/month) AirEDGE subscriber base increased 4X since 2001

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Agenda

Introduction to Venturi Wireless Operator Challenges Venturi Solution ROI basics Network Architecture and Deployment Results of Recent Network Testing Case Studies Next Steps Q&A

51