Business and Deployment Issues for Carrier WiFi


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Carrier WiFi is rapidly becoming a technology to watch and possibly deploy by mobile operators, incumbents and greenfield operators. Join us at this FREE webinar to learn from a real deployment of carrier WiFi in a metropolitan area including both indoor and outdoor issues. Will WiFi be limited to mobile traffic offload or there real monetization options for stakeholders? What seamless Wi-Fi is about and WHY it is the telecoms business opportunity of the decade? The concept of seamlessness: What it means and how you implement real seamless Wi-Fi services

Pressing and practical questions arising to assess the deployment of carrier WiFi include:

* Will WiFi stay relevant with emergence of LTE and 3G/4G small cells?
* What are the challenges and guidelines to deploy a carrier WiFi network?
* Why real estate (commercial and public) are your #1 key to success?
* What key area of your business to in source versus outsource?
* Which core system to consider running with a cloud service provider?
* Unlimited or limited downloads, speed caps, content filtering do's and don'ts
* Understanding the business case for neutral host, wholesale Wi-Fi offload
* A roundup of the technology you need: Device clients, carrier Wi-Fi solutions, core network systems including EAP-SIM authentication
* and many more practical issues!

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Business and Deployment Issues for Carrier WiFi

  1. 1. WiFi Consulting Services Independent Wi-Fi Offload Network Client Confidential- Maravedis Inc copyright ALl rights reseerved 2013 1
  2. 2. Research Offering © Maravedis Inc. CLIENT CONFIDENTIAL MOSA RAN Backhaul Clearspectrum Wireless Watch Faultline Consulting
  3. 3. Client Confidential- Maravedis Inc copyright ALl rights reseerved 2013 3 • Business Modelling Tool Module 1 • Network & Vendor Selection Module 2 • Business & Deployment IssuesModule 3 WiFi Consulting Services
  4. 4. • Module 1: WiFi Business Model End-to-end techno-economic modelling framework Model services, data usage, device & network technology, revenues, network builds, CAPEX/OPEX, cash flow, KPIs, & much more Results: Precise valuation of your seamless carrier Wi-Fi business opportunity Client Confidential- Maravedis Inc copyright ALl rights reseerved 2013 4
  5. 5. Module 2: Network & Vendor Selection Preliminary Network Plan Costing and Vendor Recommendation Final end-to-end Network Plan Final Vendor selection RFP/RFQ submissions and evaluations Client Confidential- Maravedis Inc copyright ALl rights reseerved 2013 5
  6. 6. Module 3: Business & Deployment Issues • How to avoid building a network that is not flexible or scalable • Why real estate (commercial and public) are your #1 key to success? • What key area of your business to in source versus outsource? • Which core system to consider running with a cloud service provider? •Unlimited or limited downloads, speed caps, content filtering do’s and don’ts Client Confidential- Maravedis Inc copyright ALl rights reseerved 2013 6
  7. 7. Consulting Team Customer Engagement Miami Senior Analyst Video London CLIENT CONFIDENTIAL Adlane Fellah Caroline Gabriel Research Director London Robert Syputa Peter White Senior Advisor Seattle Claus Hetting WiFi Business Model Copenhagen Esteban Monturus Backhaul Analyst Barcelona Basharat Ashai Market Analyst APAC and MEA India Magnus Johansson Senior WiFi Advisor Lima © Maravedis Inc. CLIENT CONFIDENTIAL
  8. 8. Contact Information © Maravedis Inc. CLIENT CONFIDENTIALBROADBAND WIRELESS INTELLIGENCE MaravedisRethink (305) 865-1006 (514) 313-5656 Adlane Fellah Customer Engagement
  9. 9. Carrier Wi-Fi & Wi-Fi offload: New opportunities for service providers By Claus Hetting Senior consultant & analyst Maravedis-Rethink October 2013 Copyright HETTING Consulting 2013 9
  10. 10. 1 GB 3 GB Wi-Fi proportion of smartphone traffic Mobile data proportion of smartphone traffic Business opportunity Why is seamless Wi-Fi offload a mass-market business opportunity? Users prefer Wi-Fi over cellular (50%+) Today, EAP-SIM based Wi-Fi is seamless 10 Because you can now offer seamless carrier-grade Wi-Fi services to the preferred mass-market device – wholesale or otherwise
  11. 11. Why carrier Wi-Fi is the right choice 11 • The bad news: • Low growth or even declining ARPUs and revenues for MNOs • More and more data is offloaded to unmonetized Wi-Fi • Licensed spectrum is becoming increasingly scarce • Building high-capacity networks is CAPEX-intensive • The good news: • Seamless carrier Wi-Fi technology is here today • Carrier Wi-Fi network cost is less than half mobile network costs • Many venues/areas are underserved by any wireless service • Carrier Wi-Fi with offload is a real business opportunity
  12. 12. What is Wi-Fi ‘seamlessness’ and why is it important? 12 • Zero user interaction required on the Wi-Fi device (SIM or non-SIM) • No captive Wi-Fi portal, no credit cards, no logon, no passwords • “Cellular-like” user experience • Connect immediately & automatically to available Wi-Fi networks • Seamless handover to other Wi-Fi networks (Hotspot 2.0) • Seamless handover between mobile and Wi-Fi networks (ANDSF) • Pay conveniently via your cable company or mobile services bill
  13. 13. Where is the 3 GB of Wi-Fi traffic? 13 At HOME (cablecos)  Opportunity using ’homespots’ At the OFFICE (enterprise)  Future opportunity for roaming HIGH-DENSITY PLACES OF CONGREGATION Shopping, transport, many other venues  Opportunity for new carrier Wi-Fi build  Opportunity for wholesale Wi-Fi capacity sales to MNOs
  14. 14. 14 MegaSPOT
  15. 15. What do consumers really want? 15 • High-speed wireless connectivity  Solution: Carrier-grade 802.11n (802.11ac) delivers 30+ Mbps per user • Services for all wireless devices (SIM & non-SIM)  Solution: EAP-SIM for smartphones & (extended to) non-SIM devices • Seamless experience with zero device interaction  Solution: Hotspot 2.0, EAP-SIM authentication, & intelligent connectivity clients • Excellent indoor services at home, office, everywhere else  Solution: Professional carrier-grade Wi-Fi & public access ‘homespots’ • Low wireless data services cost  Solution: Carrier-grade Wi-Fi is 50% less costly to deploy than LTE • Wide service footprint  Solution: Build, aggregate, & partner with MNOs, cablecos, aggregators
  16. 16. What are the carrier Wi-Fi & Wi-Fi offload business models? 16  Direct seamless WISP services to consumers • Paid subscription or ad-hoc services on own/aggregated Wi-Fi footprint • Paid national & international Wi-Fi roaming with Hotspot 2.0 • Free service for competitive advantage & customer retention • Single or multiple Wi-Fi devices (SIM or non-SIM)  Wholesale Wi-Fi offload to MNOs, MVNOs, cable companies, WISPs • Per GB wholesale capacity where it matters (high-density areas) • Fee per connected Wi-Fi offload user per month • Seamless handover between mobile and Wi-Fi (clients, ANDSF) • Single or multiple Wi-Fi devices (SIM or non-SIM) • ‘Neutral host’ network model
  17. 17. Why mobile services alone will never be enough: Capacity & costs Airport: 1,000 smartphone users 50 MB/user in BH 100,000 m2 Peak capacity need = 110 Mbps 6 x LTE pico eNodeB (10 MHz) With DAS ≈ 120 Mbps Cost ≈ $170,000 100 x 802.11n Wi-Fi APs ≈ 100 x 50 Mbps ≈ 5,000 Mbps Cost ≈ $100,000 Wi-Fi offload: CAPEX savings ≈ 40% Capacity gain ≈ 4000% SIM Source: HETTING Consulting 17
  18. 18. So where should you begin? There’s only one way: Build a strategy & build a business case 18
  19. 19. The complete business case model: • End-to-end techno-economic modelling framework • Model services, data usage, device & network technology, revenues, network builds, CAPEX/OPEX, cash flow, KPIs, & much more Results: Precise valuation of your seamless carrier Wi-Fi business opportunity Copyright 2013 HETTING Consulting
  20. 20. .. and join the community! LinkedIn Group: ’Seamless Wi-Fi Offload’ And remember to connect to me too! 20
  21. 21. Wigo is wi-fi free of wait, complications or obsticals MAGNUS JOHANSSON COO DigitalWay SA
  22. 22. 1. Where and Why Go Wi-Fi
  23. 23. Users Have Wi-Fi Devices & Expects Free Wi-Fi “We love us some Wi-Fi…” “…because mobile data [insert complaints]”
  24. 24. 2. Wigo, the vision
  25. 25. carrier grade, operator agnostic managed wi-fi provider single managed wi-fi network multiple unmanaged wi-fi networks All wi-fi enabled devices one operators postpaid smartphones channel Interference no access control poor coverage inconsistent experience centralized access control and channel management maximized coverage consistent experience Our Market Position The Mobile Operators
  26. 26. A Great Wi-Fi Experience Changes User Behaviors • MALL A (LARGE): - A Mall that buys Internet (2Mbps) - 1AP with coverage only in the food court. - Unique users per month: 12 k - Downloads per month: 100 GB - Most visited web page: Facebook. • MALL B (SMALL): • Managed Wi-Fi model. • Coverage accross the whole mall. • Unique users per month: 1.5 k • Download per month: 1 TB (1000 GB) • Most visited page: Youtube.
  27. 27. The preferred access network away from home Our Vision making free unmanaged wi-fi irrelevant
  28. 28. creating our own “blue ocean…” …and a temporary monopoly Semi exclusive access to Luz del Sur and Edenor lamp posts exclusivity to provide managed outdoor wi-fi for key municipalities exclusivity to provide managed wi-fi inside key commercial venues Our Competitive Advantage
  29. 29. 3. A network to support multiple business models
  30. 30. freemium premium wholesale Prepaid service Seamless access to en re network unlimited Unlimited Premium service sponsred by adver ser one click to register and connect me limit Internet Freemium service integrated with operators sim authen ca on unlimited Wholesale Premium Our Business Model
  31. 31. 4. How do we do it?
  32. 32. Phased Approach Location, Location, Location Customer Acquisition Monetize Value added services Deploy where you have highest concentration of target audience Simple registration process for FREE ACCESS Design the network to support multiple business models Location based services & Customer insights
  33. 33. Coverage or Capacity? No its Concurrency • Ability to support high concurrency within your coverage area is more important than capacity • Wi-Fi’s advantage is the capacity m2 it supports and the cost per Mbps to deploy • Optimize the Network to Support Video Effectively Mbps/10m2
  34. 34. Monetize and Value Added Services FREEMIUM • Social Media Integration to collect and aggregate user information + • Location aware APs + • Integrated with advertising platform = • Ability to offer targeted hyper local call to action advertising and other location based services WHOLESALE/OFFLOAD • Flexible platform with ability to integrate into mobile operators core and allow for seamless secure sim authentication SIM authentication Server
  35. 35. Insource versus outsource considerations Insource Out source Design and Site selection Design and site selection Design and site selection NOC, Monitoring 1st & 2nd level support Installation and site hunting Installation, site hunting, co- location Installation and site hunting Design, configuration & optimization, 3rd level support Tier 1 providers Advertising platform, social media platform, systems dependent on demand
  36. 36. Outdoor Root AP Outdoor Mesh AP Indoor Mesh AP 5.XMhz Mesh Link 5.XMhz Mesh Link Outdoor Mesh AP Dark Fiber Data Center/Aggregation Node • IP Core • Aggregation Router • Border Routers • Core Switches • DNS • AP Control • Billing Control • Access Control (Captive Portal) • Policy Control • Deep Packet Inspection (DPI) • Unified Threat Management (Firewall, Filtering Virus Control) • 24/7 monitoring (NOC) 5.XMhz Mesh Link • Each Outdoor Root AP supports via mesh • Two additional outdoor APs • One additional indoor AP • Each Root AP has a 50Mbps point to multi point (P2MP) radio link • Each P2MP rooftop base station (BTS) supports four P2MP links (200Mbps) • Each P2MP BTS has four sectors (800Mbps) • Each P2MP BTS is back hauled by microwave (800Mbps) • Total of 64 APs supported by each P2MP four sector rooftop BTS • Each Aggregation supports 10 backhaul links • Each Aggregation Node connected to Internet via different routes Aggregation Node A (10Gbps) Data Center A Aggregation Node B (10Gbps) Data Center B A B 60m 60m 360m Our Flexible Network Design
  37. 37. 5. Simple Access Process
  38. 38. The Mall
  39. 39. AP installation examples
  40. 40. Registration Process Continuar Bienvenido a WIGO Te invitamos a registrarte para que vivas la experiencia WIGO, wi-fi libre.
  41. 41. Social Media Integration Regístrate para disfrutar de WIGO
  42. 42. watch one 15 second geo contextual video advert… El video cambia dependiendo del lugar gracias a la opción 82 Por favor, no cierres esta ventana, de lo contrario, no podremos crear tu cuenta. ¡WIGO es libre gracias a nuestros auspiciadores!
  43. 43. Redirected to location specific landing page Tu cuenta ha sido creada. Serás redirigido a
  44. 44. Call to action venue specific advert portal
  45. 45. *fast food chains, coffee shops, restaurants etc. Malls 9.5 million visitors/month Municipalities 3 million visitors/month Hang Outs* 2 million visitors/month TOTAL 14.5 million visitors/month **25% carries a smartphone | 50% connects to Wi-Fi | Average 2 connections/month 3.6 million potential ad views** The Advert Market Opportunity
  46. 46. Thank you! Magnus Johansson COO Digital Way S.A.