New Ways to Generate Revenues from Public Wi-Fi

4,214 views
4,047 views

Published on

Carrier Wi-Fi World Summit, presented by Caroline Gabriel.
“The biggest change will be one that people won't even realize has happened - a whole new customer experience enabled by ubiquitous mobile broadband access"

Published in: Technology, Business

New Ways to Generate Revenues from Public Wi-Fi

  1. 1. June 1 CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2014 New ways to generate revenues from public WiFi June 2014 Caroline Gabriel, Research Director, Maravedis-Rethink
  2. 2. June 2014 Copyright © Maravedis Inc 2014. “The biggest change will be one that people won’t even realize has happened – a whole new customer experience enabled by ubiquitous mobile broadband access” JR Wilson, Chairman, Wireless Broadband Alliance www.maravedis-bwa.com
  3. 3. CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2013 www.maravedis-bwa.com 3 The need for multiple networks The wireless data challenge June 2014 Copyright © Maravedis Inc 2014. www.maravedis-bwa.com •Operators must invest to handle 13fold rise in mobile data •Combining WiFi with mobile and cable may make the case alone • But direct revenues increasingly needed •Justify dense networks •Non-traditional operators 0 20 40 60 80 100 120 140 160 180 200 2013 2014 2015 2016 2017 2018$bn Capacity investments Data revenues Operator predicted capacity capex vs revenue Source: Maravedis-Rethink RAN Service
  4. 4. CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2013 www.maravedis-bwa.com 4 The business case is changing From capacity to revenue June 2014 Copyright © Maravedis Inc 2014. www.maravedis-bwa.com • WiFi becomes part of ‘densification’, with other networks or alone • At first, affordable capacity is enough • MNOs can lower cost of delivering data by over 40% in dense areas • MSOs can lower fees to MNOs and increase loyalty • Increased access and offload revenues for pure-plays • But improved capacity and TCO are becoming table stakes • In a survey of c120 WiFi providers, 76% were looking for additional business benefits • New revenue streams would be essential to justify significant density or upgrade, said 54%
  5. 5. CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2013 www.maravedis-bwa.com 5 From offload to the full HetNet Revenue strategies and trends - MNOs June 2014 Copyright © Maravedis Inc 2014 www.maravedis-bwa.com • 22% of new capacity comes from WiFi in 2013 • Down to 20% in 2018 as carriers integrate WiFi in their own networks • 75% of MNO small cells to integrate WiFi by 2018 • Key MNO uses • Data offload • Differentiated QoS levels • First step to small cell layer (eg O2) • Location and presence % of new mobile data capacity MNOs expect to gain from various techniques in 2013 and 2018 Source Maravedis-Rethink operator survey 0 5 10 15 20 25 30 35 New spectrum LTE upgrades Wi-Fi offload Small cells inc Wi-Fi Flexible networks CoMP %ofnewcapacity 2013 2018
  6. 6. CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2013 www.maravedis-bwa.com 6 Dense edge-based networking drives revenue Revenue strategies and trends - MNOs June 2014 Copyright © Maravedis Inc 2014 www.maravedis-bwa.com • Key opportunities for MNOs to harness Carrier WiFi and integrated WiFi/small cells • To date, focus has been on advertising and location awareness • By 2018, context aware business services are leading • Key is to make WiFi a tool for added value services • Alternative route – use WiFi-first for access, keep LTE for premium services • In all cases, processing and intelligence moves to the edge Source Maravedis-Rethink operator survey 0 5 10 15 20 25 30 %ofadditionalrevenue 2012 2017
  7. 7. CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2013 www.maravedis-bwa.com 7 Advances during 2013 make WiFi more viable in the carrier network Enablers June 2014 Copyright © Maravedis Inc 2014. www.maravedis-bwa.com • Standards • NGH • Passpoint • Interoperability • Work with 3GPP and CableLabs • Multimode devices proliferate • Common core platforms • Development of integrated WiFi/cellular small cells • Evolution of device ecosystem • New WiFi standards Deployment of small cells with integrated WiFi Source:: Maravedis-Rethink RAN Service 142 557 1,718 4,588 9,912 16,095 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2013 2014 2015 2016 2017 2018 ,000units Wi-Fi/cellular Cellular only Total
  8. 8. CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2013 www.maravedis-bwa.com 8 More radical thinking needed Revenue strategies and trends - MSOs June 2014 Copyright © Maravedis Inc 2014 www.maravedis-bwa.com Source: RealWireless/Amdocs 65 55 20 15 10 10 Small cell backhaul to third parties Add public WiFi Encourage onload Provide SCaaS Add mobile services for subscribers Undecided • Like MNOs, MSOs have started with conservative thinking • Leverage cables for backhauling urban WiFi • Adding WiFi as added value for cable subscribers • However, WiFi becoming strategic • Huge build-outs eg Liberty, Cable WiFi • Homespots • WiFi-first • Business hotspots • New relationship with customers and MNOs
  9. 9. CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2013 www.maravedis-bwa.com 9 It’s not all about cellular – but Google lurks WiFi pure play networks June 2014 Copyright © Maravedis Inc 2014. www.maravedis-bwa.com •WiFi-only operators remain significant deployers • Beyond offload and access ... •Location •Targeted services •How to work with OTT Source: Maravedis-Rethink RAN Service 0 2000 4000 6000 8000 10000 12000 2012 2013 2014 2015 2016 2017 WiSP/wholesaler Fixed line MNO Other (eg muni)
  10. 10. CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2013 www.maravedis-bwa.com 10 Move to ‘aas’ platforms, or their own consumer services? Revenue strategies and trends - Pureplay June 2014 Copyright © Maravedis Inc 2014 www.maravedis-bwa.com Source: Maravedis-Rethink Two key routes: Wholesale: • Aggregators increasingly important as MNOs and MSOs limit own build • Big opportunity in hotspot ‘as a service’ • Evolving platforms to support large numbers of service providers flexibly • BandwidthX, Google Retail: • Key to providing direct services is to move beyond access • In survey, WISPs said consumers drawn primarily to spend more by: •Context awareness •Well targeted promotions •Broad roaming •Exclusive applications or content 28 2320 17 12 Personalized promotions Relevant information on location Wide roaming Exclusive apps and content Trusted security or interface
  11. 11. CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2013 www.maravedis-bwa.com 11 Power lies in big data The Google era June 2014 Copyright © Maravedis Inc 2014. www.maravedis-bwa.com • WiFi-only operators remain significant deployers • Biggest asset is huge base of hotspots • Opportunities with OTT players to provide alternative quad play • Power lies with the data • Context awareness • Big data analytics • Predictive offers and search • New web experiences • Will Google be friend or foe?
  12. 12. 12 www.maravedis-bwa.com Copyright © Maravedis Inc 2013. CLIENT CONFIDENTIAL Contact Information https://www.linkedin.com/company/maravedis www.twitter.com/maravedis MaravedisRethink info@maravedis-bwa.com http://www.maravedis-bwa.com +1 305-865-1006 Adlane Fellah, Customer Engagement

×