Monetizing WiFi


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Special Talk - How to Monetize WiFi with an Example

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Monetizing WiFi

  1. 1. Monetizing WiFi Dr. Mazlan Abbas MIMOS Berhad
  2. 2. Wi-Fi Strategy for Content Players Building an Educational Eco-System Business Models for Enterprise Connectivity Physical & Digital Advertising Avenues Summary
  3. 3. The Commercial Wi-Fi Ecosystem
  4. 4. - Superior indoor connectivity International Roaming - Cheap & convenient internet access for foreign nationals (Digital/Physical) - Popular hangout joints are attractive avenue for advertisers - A combination of physical/ digital advertising is more impactful Device Partners - Wi-Fi provides superior video/browsingexperience over smart devices - Most appropriatechannel to push in-house content/apps Content Partners - Touch-points for accessing content eco- systems - Promoting specific apps/content - Attracts users by THE COMMERCIAL WI-FI ECOSYSTEM Data Offloading - Freeing up 2G/3G airwaves - High-speed connectivity compared to 2G/3G
  5. 5. Commercial Models For Telecom Operators
  6. 6. • Operators can effectively offload mobile traffic onto Wi-Fi networks, thereby freeing up capacity in their strained 3G/LTE networks • Combines Wi-Fi hotspot plans with home broadband subscriptions enables consumers to experience smooth internet connectivity while on the go • Enables users to roam seamlessly & enjoy high speed Wi-Fi connectivity as they travel from one country to another Model 1: Data Offloading Model 2: Home & Away Model 3: International Roaming Telecom operators can therefore provide premium services to customers without worrying about regulatory or cost limitations. COMMERCIAL MODELS FOR TELECOM OPERATORS Due to spectrum constraints for 3G & lack of 4G enabled devices, telecom operators are gearing up for big Wi-Fi play through:
  7. 7. Example: The O-Zone & Aircel Partnership Aircel, a leading telecom operator with 65 million subscribers, partnered with O-Zone in 2011 to promote Aircel Wi-Fi hotspots The objective of the partnership was to enable seamless 3G/Wi-Fi offloading, thereby creating a flawless customer experience
  8. 8. Example: The O-Zone & Airtel Partnership Airtel, India’s biggest telecom operator tied up with O-Zone to enable its customers to access home & public hotspot Wi-Fi in a reliable & convenient way
  9. 9. Wi-Fi Strategy for Device Players
  10. 10. Problems Identified • High demandfor databut no properchannelto supportit • Competitionfrom Operator content& apps • Low cost device players intensifycompetition Desired Result • EnhancedCustomer Experience • Long term Customer Relationship • IncreasedSales & MarketShare Proposed Solution • Cheaper,faster , betterin- building connectivity channel which compliments3G • Extensive Wi-Fi network in areasof high adoption& high contentusage WI-FI STRATEGY FOR DEVICE PLAYERS Device Players can leverage Apps & Content ecosystem through the public Wi-Fi network with bundled in Wi-Fi plans, thus creating a customer engagement platform
  11. 11. Wi-Fi vouchers bundled with LG Optimus phones Purchases smartphone LG Wi-Fi Cycle Voucher branding enables recall & customer retention: completes the loop Visits O-Zone hotspots, accesses free Wi-Fi Word of mouth creates awareness Example: O-Zone & LG Bundled In Wi-Fi Plans
  12. 12. Wi-Fi Strategy For Content Players
  13. 13. By reaching out to innumerable users across O-Zone’s extensive Wi-Fi network, content companies can directly increase subscribers, content usage & stickiness Problems Identified • Low Usage • Lack of CustomerRetention • Mass Players Desired Result •IncreasedSubscriber Base •IncreasedUsage •Increased Stickiness Proposed Solution • Additionaldistribution networkwhich compliments 3G WI-FI STRATEGY FOR CONTENT PLAYERS
  14. 14. Customer visits O-Zone hotspot with Google Takes, edits & uploads photos to share with friends on Google Plus. Is re-directed to page below above to get free access to G+ Example: O-Zone & Google Wi-Fi Campaign displays The 3 month campaign resulted in approx. 1.1 million log ins on the network Clicks on ad
  15. 15. Building an Educational Ecosystem
  16. 16. Proposition University Public Wi-Fi Cafeteria Common Room Dorms Building an Educational Ecosystem Wi-Fi deployment across the campus Classrooms O-Zone’s Value Educational tablet devices to access Wi-Fi Revenue earned through mandatory per student fee
  17. 17. Commercial Models for Enterprise Connectivity
  18. 18. Model 1: Creating Private Networks •Multiple Private networks are created for commercial buildings • The builder may lease out these networks to tenant companies for their enterprise needs. •Revenue Opportunities: •System integration fee for building the network •Maintenance fee for managing it Model 2: Guest Wi-Fi Solution •Guests/visitors can access Wi-Fi while waiting for meetings in reception areas. •Separate Guest Wi-Fi SSIDs are created for guests/visitors. •Revenue Opportunities: •Management fee for creating & managing Guest network •Voucher Sale Model 3: Public Wi-Fi Hotspot •Public Wi-Fi hotspots created in common areas like lobby areas, coffee shops •Roaming in hotspots within building & public hotspots • Revenue Opportunities: • Mandatory Subscriber Fee per employee • Ad Revenue COMMERCIAL MODELS FOR ENTERPRISE CONNECTIVITY
  19. 19. Physical & Digital Advertising Avenues
  20. 20. PHYSICAL ADVERTISING AVENUES O-Zone has secured exclusive physical Wi-Fi marketing rights across its hotspots Example: During Google’s Wi-Fi campaign, revenue generated through advertising was shared equally with hotspot owners TentCardsPosters
  21. 21. DIGITAL ADVERTISING AVENUES Potential advertisers may also advertise on O-Zone’s landing page, displayed across all our hotspots Example: Revenue generated through Google’s digital ad campaign was shared equally with hotspot owners
  22. 22. SUMMARY Revenue Models based solely on ad-hoc users walking into a hotspotdo not exist Operator Driven Standalone Wi-Fi retail business is also complex to Sustain long term However, Lucrative Business Opportunities do arise when a WISP builds the ecosystem of operators,devices, content, advertising etc. Worldwide Tsunami of Data & Video can generate huge revenues for a neutral WISP charging per megabit, enabling it to ride the wave!
  23. 23. References • “Creating a Continuous Monetized Wi-Fi Network”, Bobby Sarin, WiFi World Summit 2012
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