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Wi-Fi New Service Models For Next Generation Networks

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In this new era of explosive mobile data growth, rapid rise in mobile broadband services and rich digital content are contributing to unprecedented level of stress on mobile networks. Operators are feeling the pinch on their business models with the arrival of smart devices, leaving them in anxiety and unable to respond to the deluge of data.

As a measure to reduce congestion on their network, several tier 1 operators have discontinued unlimited data plans and launched tiered plans to ensure network performance. At the same time, operators do not want to risk losing a significant growing market of smartphone users that are looking for value added services. It is a challenge for operators to sustain the wave of data, let alone address the dwindling ARPU as the demand of data is outstripping the rate of supply.

The following section of this paper describes the possible options that operators can embrace to overcome the capacity crunch through innovative service models, the impact of Wi-Fi on delivering the right service experience and how emerging technology is pushing further the expectations of “big data”.

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Wi-Fi New Service Models For Next Generation Networks

  1. 1. WHITEPAPERWi-Fi NEW SERVICE MODELSFOR NEXT GENERATION NETWORKS www.greenpacket.com
  2. 2. WHITEPAPERAbstractWi-Fi had its beginnings as a “good to have” technology, whereby its valuewere undermined by its range and found its place in niche markets. Theevolution of Wi-Fi from its role of connectivity to “Wi-Fi as a service” hascome a long way. Throughput speeds have leap-frog from 2Mbps to11Mbps and now at an astounding rate of up to 150Mbps. The essence oftoday’s communication is driven by the need for a networked society, whichis defined from both the consumer and operator levels, where everything thatcan benefit from a connection will be likely connected. With Wi-Fi beginningto claim its position as a mainstream technology, it has inspired many anapplication platform for developers, pipeline for operators and the boom ofsmarter gadgets and devices to pack in as many things as possible, in therealm of transmitting and sharing information in a connected society.By now, it is commonplace that data growth has exponentially outgrownrevenue growth. And an observation and pain point of all operators offeringbroadband data. In this new era of explosive mobile data growth, rapid risein mobile broadband services and rich digital content are contributing tounprecedented level of stress on mobile networks. Operators are feeling thepinch on their business models with the arrival of smart devices, leavingthem in anxiety and unable to respond to the deluge of data.As a measure to reduce congestion on their network, several tier 1operators have discontinued unlimited data plans and launched tieredplans to ensure network performance, in a similar move by AT&T in the US.At the same time, operators do not want to risk losing a significant growingmarket of smartphone users that are looking for value added services. It isa challenge for operators to sustain the wave of data, let alone address thedwindling ARPU as the demand of data is outstripping the rate of supply.One of the marginal approach of focusing on generating revenue from freeWi-Fi venues (through retailers, cafes, hubs), can create “stickiness” forusers through the appeal of zero cost access.The following section of this paper describes the possible options thatoperators can embrace to overcome the capacity crunch throughinnovative service models, the impact of Wi-Fi on delivering the right serviceexperience and how emerging technology is pushing further theexpectations of “big data”.
  3. 3. WHITEPAPERContentsOverview 01Capacity Crunch – 03How to Stay Ahead of the Game with Wi-FiMobile Optimized Small Screen ExperienceWi-Fi Investment StrategiesEnabling the Right Wi-Fi Experience 08ConvergenceStandardsGrowthLoyaltyMaximize Mobile Data – New Service Models 12Diversifying Service Models• Big Data PotentialEmerging Technology – Cloud Services, the Next FrontierConclusion 18Stay Ahead with Wi-Fi 20
  4. 4. WHITEPAPER Overview - 01OverviewWireless technology has transformed lives beyond imagination. There isgreat interest and excitement that embedded connectivity brings toeveryday devices, ranging from smartphones to tablets, to consumerelectronics (CE), automated M2M communication that leads to moreefficient energy consumption, healthcare and many more. These devicesand solutions deliver benefits to consumers, businesses, enterprises andsociety as a whole.Emerging wireless networking technologies—and the ability to embedconnectivity to these networks in virtually all types of devices—are creatinga new connected future. The growth of mobile Internet connectivitychanged dramatically with the introduction of 3G connectivity. Price cuts, allyou can eat plans further unleashed the power of Internet connectivity andwith 4G and Wi-Fi technology contributing to it. According to some industryplayers like Ericsson, the predicted connected device segment will reach upto 50 billion by year 2020.The advent of smart devices and technologies are breaking down barriers toadoption and many uncertainties arise as to where and how the dataexplosion is impacting their businesses. From the infrastructure perspective,the major pain point occurs in the RAN bottleneck and transport layer whichcarries the bulk of radio signaling, device management and detection on theaccess network. At the backend, some sophistication is required for corenetwork competencies to manage the network intelligence includingenforcement of policy control to billing and mediation.It is worth mentioning, that the explosion of data is not an overnightphenomenon and the spike patterns are reasonably predictable. There is nodoubting that the deluge of data is putting a strain on the operator’snetworks. However, the series of intermittent and voracious appetite acrosscertain high density locations are somewhat predictable and can becontrolled through effective network monitoring approach and densificationof coverage through multiple networks 3G/HSPA/Wi-Fi.
  5. 5. WHITEPAPER Where is Wi-Fi - 02 OverviewThe ultimate goal is to create excellent mobile performance, brand andbetter communicate with smartphone and tablet-savvy customer base.Many innovative operators have already hired PR firms to help them withtheir social media marketing strategies and are now looking to get evencloser to their customer base, namely via their handsets. The tacticalapproach of allowing customers to take action – when and how to connect,entice free downloads, request a product sample, or some other end goalto activate a marketing ad and spend time with the operators brand, so thatit will give them a good reason to do it the first time and then a greatexperience so they’ll do it again and again.
  6. 6. WHITEPAPER Capacity Crunch - 01 Overview 03Capacity Crunch – How to StayAhead of the Game with Wi-FiTechnology itself will not thrive, but the shift of customer centric focus iscentral to operators looking for ways of serving their subscribers to createcustomer value through innovations in products, services and businessmodels to earn highest rewards. Consequently driving operators to lookfurther in the long run rather than exploiting short-term opportunities toproduce sustainability in the marketplace.The response to change will include assessment of cutting-edgetechnologies, network issues, IT challenges or operational barriers toexecute innovation. It’s an opportunity to increase customer loyalty byoffering innovative services, but revenue potential may not be immediatelyvisible. Operators need to build sustainable business models where thenetwork transforms from a cost center and becomes a profit center.Similarly, the value added service becomes a value center central to thebusiness. In recent years, OTT service players has captured the attention ofsubscribers due in large part of the relatively high quality ‘best effort’ serviceie. flat rate plans that could carry the experience, albeit falling short on somequality. As a result, it has impacted mobile operators by limiting theopportunity to sell advanced services.As traffic volumes relentlessly rise, the expectation is that the serviceprovider will continue to build out the infrastructure to support it. But unlessthe revenues associated with this incremental traffic is greater or equivalentto the ROI in the network itself, the ultimate outcome will be poor quality ofservice for most customers through the underlying under-investment innetwork infrastructure. It is therefore of interest to the whole industry for theservice provider to better monetize traffic volume in general, and OTT trafficin particular to its advantage. Smartphones are set to dominate datagrowth. Gartner1 in a recent analysis report predicts that by 2015approximately 39% of the smartphone device will be accountable forAndroid tablet sales and hence operators are aggressively addressing thecapacity crunch in its network offload over Wi-Fi, densification of the macrocells or whichever methods that fit their business needs. 1Source : Gartner April 2011 “Forecast: Media Tablets by Operating System, Worldwide, 2010-2015”
  7. 7. WHITEPAPER Capacity is Wi-Fi - 02 Where Crunch 04Mobile OptimizedSmall Screen ExperienceNowadays the value of the network, as perceived by subscribers, is straightforward and in many cases translates simply to speed, price and availability.One reason for this is the relative disconnect between the applications andthe networks over which they run. To the consumers, it is about how wellYouTube works on the network and not how sophisticated the network is.Operators must rethink how to fully leverage network capabilities such ashigher performance or to mitigate network shortfalls such as congestion,with application awareness and how they connect. There is a need fornetworks, devices and applications to talk and recognize the screen size foran optimized experience. To move away from an approach based oninferring and deriving empirical models and towards an approach based on"known states".The behavior of smartphone (small screen) is markedly different fromtraditional laptops or notebooks. It inherently requires greater processorsfor optimized power, storage and performance with dissimilar design interms of the network level resource control. Tablets deliver a richerexperience that revolves around content consumption. The richer theecosystem becomes, the stronger the “stickiness” factor on consumers asthe dependencies on applications, services and overall user experiencebecome apparent.Some smartphone or 802.11 compatible devices are designed toopportunistically connect to a network. Decisions to connect, roam ordisconnecting to a particular access points are usually unspecified andunpredictable in time and pattern due to better radio conditions orperformance2 indicators. However, the predictability of “known” surge oftraffic at certain peak times of the day, and in certain high density locations,gives light to the “known states” of behavioral pattern. 2Note : The impact of DHCP and authentication servers, backhaul links, and wireless controllers are not discussed in this paper.
  8. 8. WHITEPAPER Capacity is Wi-Fi - 02 Where Crunch 05Roaming algorithms are closely tied to the configuration of the connection 3Note : Handheld device will bemanager and some smartphones depend on native device capability. Some referred as smartphone andhandheld3 devices minimize roaming to prevent frequent service interruption, tablet throughout this paper, for clarity of description, unlessand preservation of the battery life of the device. On the contrary, some otherwise specified.handheld devices rigorously try to achieve improved connection causingmomentary interruptions during handoffs. Data services benefit from this,since the data traffic streams are asymmetrical. But, it causes interruptionsto real-time service which are jitter and latency sensitive (eg : voice, video).With the ability to recognize the device context, opportunities arise for newservice models in which upstream and/or downstream customers canbenefit from accessing the network’s intelligence. Screen Size Connection Processing Power Speed Connections Adoption Usage KB per Minute = TrafficSource : Cisco VNI, 2010Wi-Fi Investment StrategiesIt is well recognized that mobile data traffic is growing at a faster rate thanmobile data revenues. The imbalance will become more pressing as moresophisticated mobile internet devices and more media-rich mobileapplications come on the market.While operators are rigorously testing and planning next generation LTEnetworks, many believes that the increased spectral efficiency promise willnot be the silver bullet to keep up with tomorrow’s mobile internet usage.Operators turning to the use of Wi-Fi hotspots have much to gain in thisfiercely competitive market. Market foresight and leadership is leading tier 1operators to gain a strong foothold as evidenced China Mobile whichalready has about 60,0004 Wi-Fi hotspots and has aggressive plans to 4Source : WBA Industry Report 2011deploy up to 1 million in the next three years across China.
  9. 9. WHITEPAPER Capacity Crunch - 01 Overview 06 Wi-Fi Access Data revenue offloading Customer Value-added Enhanced user acquisition tool service platform experience Churn reduction Improve indoor tool coverageSource : Informa Telecom & MediaAccording to a study by Informa Telecom & Media, the potential of Wi-Fi isfar greater than the commonly perceived benefit of alleviating congestion. Inthe longer term, it can affect the industry and operators mobile internetstrategies to stay relevant and competitive.The biggest inhibitor in Wi-Fi strategies comes down to the investmentreturns. A lean and efficient network should ideally be a profit center.Studies have indicated that the long term postpaid service contracts are theones helping pay off the investments for expanding the data networks.However, the proportion of pre-paid lower ARPU customer base is catchingup fast on mobile data trend with the price of smartphones becoming moreaffordable and operator race to sign-up more data customers as means toaccess a new segment of the market.The trade-off of device subsidies in postpaid models versus the prepaidmodel can be studied from the cost per byte acquisition. According to astudy by consulting firm Bain & Company5, it is 6 times more cost to acquirea new subscriber, than retain an existing one. The innate behaviors ofprepaid users exhibit a higher tendency to churn, that reflect patterns thatare still driven by price promotions. In contrast, graduating the postpaidusers to a different type of plan at a time when renewals, cross selling andupgrading plans at contract point can in the mid to longer term reducechurn and convert these subscribers into higher ARPU potentials by 5Source : Can communications service providers earneffective marketing i.e. earn the customers love for their service. Several their customers’ love? -components come into play to ensure a right fit of service mix is delivered; Domenico Azzarello and Mark Kovac; Bain & Company
  10. 10. WHITEPAPER Capacity is Wi-Fi - 02 Where Crunch 07type of device, policy, profiles, user preferences/behavioral patterns. Keepthe users engaged, happy and reward them to build loyalty. The payoff canbe dramatic, if done correctly into defining the customer experience.Given that Wi-Fi coverage can be offered at a fraction of the cost of a newcellular network site, Wi-Fi is becoming a strategic option for mobileoperators to reduce the cost per byte of data traffic transported. Someoperators are aggressively deploying extensive Wi-Fi networks, whereasothers choose to develop partnerships with Wi-Fi aggregators (e.g. Boingo)and independent networks (e.g. Starbucks). Either way, operators are nowseeing their strategies to pragmatic practice to strengthen its marketposition.Some of the potential returns are indirectly reaped from brand building. Apositive customer experience can create positive effect on customeracquisition (loyal customers are more likely to recommend a product orservice to friends).Wi-Fi investment is not without its shortfalls. Changingbusiness operational modes will require careful assessment of security,integration, roaming, authentication and mobility frameworks.
  11. 11. WHITEPAPER Enabling the Right Wi-Fi Experience - 08Enabling the RightWi-Fi ExperienceWhere should we be focusing in Wi-Fi in relation to your business? Thequantifiable measure that is explicitly worthwhile experimenting is theincremental Wi-Fi access revenue through introduction of new servicemodels. The intensity of data consumption in smartphones is much moreaggressive in comparison to legacy mobile device. The transformationalvalue of smartphones is multiplied by the capability to perform considerably.The obvious reasons for adopting Wi-Fi presents itself in several areas suchas maximizing the use of available spectrum to deliver the best serviceexperience. It is common for operators today to bundle Wi-Fi with existingsubscription to give additional value on top of the mobile or broadbandpackage, while serving as a retention tool to increase operator’s perceivedservice value which forms part of the operator’s mobile broadbandstrategies. – on demand capacity, build-as-you-go model, letting operatorsserve pockets of users as needed and where needed, incrementally.The combination of the “right” devices to the alignment of how Wi-Fi is usedto the best advantage of network capabilities is unbelievable in the way itshifts social preferences. The arrival of the iconic iPad has impacted people’slives in more than one way or another. From the service provider’sperspective, various areas including app development, platforms and ITwould require organization shift to enable simpler operation and delivery.Likewise, users experience have transformed tremendously and changedtheir views on services that are delivered through intuitive interface andaccess to wide range of apps. Most importantly, the usability factor is higheven for the non-tech savvy consumer; a three year old can easily navigateand perform computing tasks that were previously performed on monolithicmachines i.e. large and clunky desktops that were not Wi-Fi capable.
  12. 12. WHITEPAPER Enabling the Right Wi-Fi Experience - 09Smartphone = x 24*Handheld Gaming = x 60*ConsoleTablet = x 122*Mobile phone = x 300*ProjectorLaptop = x 515**Monthly basic mobile phone data trafficFigure 1 : Data Traffic Generation of Smart DevicesSource : Cisco VNI Mobile 2011ConvergenceEmerging technology of cellular and Wi-Fi integration help makeconnections more streamlined and is common among operators that aremulti-play service providers that want to converge the fixed-mobileexperiences across multiple devices, multiple networks and multipleenvironments. The amount of mobile data is expected to reach a whopping6.3 exabytes per month by 2015 which will result in CAGR of 92%6 from2010-2015. The stunning figures will require considerable investments fromoperators in all aspects of network and infrastructure upgrades toovercome capacity constraints.Increasingly, users have been turning to Wi-Fi hotspot services, in part,because modern day Wi-Fi can deliver carrier grade quality throughimproved security features and reliability. Users enjoy flexibility withoutusage cap on Wi-Fi and it is often bundled with 3G service plans. Moreimportantly, Wi-Fi offers faster connection speeds and the hotspot userexperience had been greatly improved with automatic sign-on capability 6Source : Cisco VNI 2011built into multi-mode devices. The main elements of service that customers
  13. 13. WHITEPAPER Enabling the Right Wi-Fi Experience - 10are looking for, includes good value, service reliability, integrity (no bill shock,excessive roaming charges), to be offered what they want, when they wantit, for a predictable price, with the choices presented in a simple fashionwith painless activation.StandardsThe success of Wi-Fi is acknowledged by the industry ecosystem and isreinforced through large-scale production of Wi-Fi chipsets into virtually allconsumer products ranging from smartphones, tablets, scanner, modems,CE like cameras, set-top box, embedded telematics and automationsystems, smart metering and so forth. Compliance to a standard set oftechnical specification and framework makes Wi-Fi widely accepted andeasily scalable. Wi-Fi being IEEE802.11 specification, has been ratified andevolved by leaps and bounds breaking the barrier to adoption significantly.Standardization bodies like WBA and Wi-Fi Alliance are committed tosimplify workflows, authentication, roaming and network selectionprocesses to make Wi-Fi realize untapped opportunities for carrying moredata and growing beyond the traditional domain of hotels, airport andcafes. The second wave of Wi-Fi will come with even greater expectation inthe Next Generation Hotspot initiative which is already creating interest inoperators’ broadband strategies.GrowthShaping subscriber experience is imperative to extend revenues or createnew growth opportunities. Operators need to understand their customersand markets to make the right choice for them. In short, their main criteriaare profitability, customer satisfaction and loyalty, the best use of resourcesand the rapid, efficient introduction of new services. If operators aredetermined to achieve reasonable returns to their stakeholders, they needto drive incremental revenues and profits, hold onto their customers anddevelop their relationships. Wi-Fi is a vehicle to create these services and istouted as the “killer technology” to take a share in the next billion dollarwireless industry growth.
  14. 14. WHITEPAPER Enabling the Right Wi-Fi Experience - 11To tap market dynamics, operators must act quickly to transform theirtraditional role of a “dumb pipe” to service centric provider that spells“value”, so that customers get excited about. The user paradigm hastransformed into a new phase and demands more than connectivity. Wi-Fiis made part of the user experience, whether directly or indirectly. Foroperators, Wi-Fi is now viewed as a platform for service innovation andrevenue growth, giving rise to heterogeneous networks and it is the way toevolve. Multi-modal content delivery over multiple devices with a singlesubscription is favorable. According to a Strategy Analytics report, up to60% of smartphone owners favor the flexibility of a shared data plan acrossmultiple devices (tablets, smartphone, laptop). Operators can leverage onthe underlying cellular network and fixed network to converge thatexperience across Wi-Fi as Wi-Fi is well-suited to the demands ofapplications that use data in bursts and for functions such as video andmusic streaming (e.g Cable operators in the US have bundled data, voice,content, Wi-Fi into their broadband internet plans, with nationwidecoverage over to cellular network or Wi-Fi hotpots. The same cableexperience is extended with newfound mobility to create ubiquitousconnectivity to multiple devices).LoyaltyThe importance of customer experience differentiation is no less importantthan the performance. Loyalty goes beyond price and product promotions.Operators must learn from maturing and best practices to generate the“wow” effect; make the service as easy as possible in a single touch andlook for ways to maximize the lifetime value. The convenience andaccessibility to a variety of content is crucial in delivering the ultimatecustomer experience. The essence of multi-touch, new user interfaces areengaging users more than ever to try new things. A tactical approach canbe modeled on solid loyalty program that rewards its customers for using itsservices. These rewards can be in the form of free downloads, equivalent tolimit of 3G that can be partially funded through content partners, advertisingand so forth. Simply put, delight them, win them and keep them. Create avalue proposition to satisfy the subscribers and use effective processes todrive the best customer experience programs.
  15. 15. WHITEPAPER Maximizing Mobile Data - 12Maximizing Mobile Data –New Service ModelsIn the long run, Wi-Fi adoption will be a business strategy as there are manykey areas in which mobile operators can derive value beyond CAPEXsavings (reduces operator expansion of cost per bit) e.g. creating new Wi-Fiaccess revenue, enhanced user experience, customer acquisition tool andcreating value added service platform in facing competition fromnon-traditional companies entering the telco space. Mobile operators mustnow get ahead and not play catch-up. Reducing time to market and smartmonetizing new service channels are high on the list of operator concerns.Transparency is necessary for a truly meaningful mobile experience. Theability to bring visibility to the user experience is game changing. Theinstitution of usage caps brings little meaning to the user, if it is notcommunicated in a language that is understood. Only through smart mobilemeasurements that operators can understand how subscribers use thenetwork. Similarly, users need to understand, where and how much data isused. The simplest form of allowing the user to correlate the service plansto the value offered is through a comparison of how many video downloadscan a 5GB limit allow or the indication of how many bytes it takes for anemail. This allows them to track their usage and know what it will cost forany overages. By having a two-way interaction operators that implementalert notification when customers have used a certain amount of data andusers having the flexibility to dynamically track usage can bridge the gapsof service expectation.At a certain point, operators will not suffice to sustain its business needs byfulfilling the user’s communication needs, but shift the user’s wallet intoother areas like entertainment and content-based plans. Henceforth, futureprice models can shift towards analytics which have intelligent data miningto reveal dependencies on which and what type of device a customer hasand inferring from business modeling, the type of behaviors behind theusers. The long term goal is to keep the subscribers with in-demandservices and stretch the dollar further in CAPEX and OPEX.
  16. 16. WHITEPAPER Maximizing Mobile Data - 13Diversifying Service ModelsDynamic Content to-goAccess to premium content is widely gaining acceptance as advancedmobile devices and associated applications proliferate in the marketplace,more and more users want content to go, high-value premium content suchas on demand movies and episodes of TV shows through partnership andextension of services with content aggregator, to create yet anotherrevenue stream. The aggregator can offer a virtual catalog of hundreds ofthousands of movie and TV titles, all of which the operator makes availablefor downloading or streaming by the user.The lock-in effect to lure customers into a service is highly dependent on thecertainty that it brings value. When users are certain that a premium serviceguarantees, they are willing to pay for it. Operators that can give the visibilityand transparency of service show it willing to delight their customers.Implementation of tiered pricing to a particular application is a way to allowusers greater control over their behavior and some level of predictability onthe pricing mechanism; users can become disenchanted with bill shock.With good practice, subscribers can then learn to adjust their usage withintheir plan limits when they understand how applications are tied to aparticular consumption pattern. Consumers generally favor price plans thatallow them to control their expenditure.Value Added ServiceConsumers clearly will continue to use mobile broadband devices foraccess to a growing array of applications and services. People want toidentify with favorites, for instance, social networking and videoapplications, which they integrate with their everyday lives. In other words,these applications and services provide value to consumers, above andbeyond access to the network. In addition to creating new revenue streamsand helping to reduce costs, value added service shifts the operator’s rolefrom just a utility provider of a dumb-pipe to an important partner in thecustomer’s lifestyle.The ability to create customized services that are content and contextaware gives insights to the customer behavior as the “value” to thesubscriber rise more new customers join the service and the customer
  17. 17. WHITEPAPER Maximizing Mobile Data - 14lock-in effect kicks in and thus, eventually gives greater chances ofincreasing profit. The other side of the equation is attributed to a heightenedsense of being able to do more with their devices. Given that serviceproviders are device, network and application agnostic, they present theright conditions to encourage content diversification and innovation fromdevelopers to be competitive. This can help create a sufficiently largemarket perspective, while service providers can concentrate on deliveringthe best service rather than creating stand-alone content platforms.Enterprise ServicesEnterprise communications are high value customers for operator modelsand often have specific and unique requirements that are different fromconsumer models demands availability without compromising security.Unified communication, common in enterprise IT needs is rapidly beingembraced. Bring Your Own Device (BYOD) is gaining popularity inorganizations through multi-dimensional approach to integrate service leveland security. With greater adoption of such practices to improveproductivity and connectivity across multiple business units, the demandfor customized services must be addressed. Together with cloud solutions,enterprise communication can diminish and reduce the fragmentation ofsiloed systems while at the same time give a reasonable level of operationalefficiency to the operators and deliver by the same token of convenienceand performance to the end-user.As more M2M solutions impact the consumer lifestyle through theconvenience it brings, such as mobile payments through NFC, smartmetering and so forth, the greater the impact it is on service providers toleverage on the benefits gained through these connectivity into competitiveadvantage over industry peers. Although the M2M value chain provides alower ARPU, but the margins are greater and thus, create a differentiatedenterprise business model from the consumer models. Most often, theseM2M solutions consume very little resources in terms of the bytes perconnection, and they are well predicted. When implemented inwell-structured deployments, it has the potential to touch and transformmultiple areas of an organization and generate sufficient businessintelligence to the core business processes. According to Yankee Groupreport, it expects enterprise M2M connections worldwide to nearly triplefrom 81.3 million in 2011 to 219.2 million in 2015, a CAGR of 22 percent. Itis still early to predict the contribution of enterprise models towards the
  18. 18. WHITEPAPER Maximizing Mobile Data - 15profitability, but it is a clear trend, that operators are experimenting andfinding ways to diversify the B2C, B2B and B2B2C models to stay on topof their game.Big Data PotentialThe potential for “big data” is encouraging content, internet applications,and consumerization of Wi-Fi. Based on Gartner’s estimates, the potentialfor digital products and services market boom is worth more than USD2trillion in 2015. One may ask where would the mobile internet’s wallet sharebe without the appropriate vehicle to drive its’ success? Wi-Fi is necessaryin today’s network than it was 10 years ago, when it was considered a goodto have technology that was a poorer cousin to cellular to provide coveragedeficiencies. As operators scramble to differentiate their services andpreparing for the unimaginable displacement of OTT players, Wi-Fi is beingpursued as a long term option. Mobile services will continue to dominatewith similar growth in the devices space as more and more sophisticatedsmart devices are introduced. The video and content segment is showingstrong signs of uptake with greater CAGR of between 8 to 10 percentdespite trailing behind mobile services in the overall spending wallet shareand possibly eclipsing the mobile services in the mid-term, when voice,SMS will become secondary. Video Services 8% Fixed Services Predicted CAGR 2010 - 2015 Content 19% 0% to <2% 10% 0% to <2% 0% to <2% 0% to <2% 0% to <2% Devices 28% Mobile Services 35%Figure 2 : 2010 Consumer Wallet Spending on Selected Digital Products and ServicesSource : Gartner
  19. 19. WHITEPAPER Maximizing Mobile Data - 16Emerging Technology –Cloud Services, the Next FrontierDifferent types of devices are turning into hybrid based communicationdevices. Tablets and smartphones, in different forms and shapes areexpected to evolve into the portals of integrated services and applications.With ubiquitous mobile broadband enabled internet access, connectivityand networking is becoming less dependent on location and time beyondthe geographical boundaries. Wi-Fi is looking very promising in the lead-upto the next generation hotspot 2.0 initiative. Standards bodies such asWi-Alliance and WBA are drafting technical specifications to expand theWi-Fi ecosystem to harmonized greater interworking with the visions of aconnected world.It is inevitable for this growing trend observed in devices such as set-topboxes, audio equipment and embedded connectivity in telematic systemssuch as car automation, healthcare and point of sales terminals used inretail. The hosted model of cloud brings promise of more efficient use of ITneeds served through cloud services. Big players like Google, Apple arealready offering cloud services for enterprise applications and cloud storagefor B2B and B2B2C. In our everyday use, we are already somehow incontact with cloud services, whether we realize it or otherwise. Take forexample, the email service like Yahoo, Gmail is already run on cloudplatform, where the mailbox “lives” in the cloud and other IT control,security and content are located on premise.Given a sample respondent study by Current Analysis, there will beoptimism that cloud-based services for enterprise applications and storagewill continue to grow. Other areas to look out for include email and unifiedcommunications. The alignment of application platforms and devicemanagement provides cohesive information access.
  20. 20. WHITEPAPER Maximizing Mobile Data - 17 Hosted Virtual Desktop 7% 15% Infrastructure a Service 21% 12% E-mail Service 26% 13% Vertical Applications 16% 19% Desktop Applications 15% 23% Security as a Service 15% 12% Enterprise Applications 48% 17% Online Storage, Backup 35% 15% Unified Communications 17% 18% 0% 20% 40% 60%N = 1000 Currently There ExpectedSource : Current Analysis Analysis Enterprise Cloud Service, 2011Vendor partnerships will get more involved. Operators have alreadyembraced network and IT outsourcing as one area for transformation intheir business model and processes. As innovations are made in networkarchitectures, partnership models with vendors will get more integrated. Forexample, some operators in APAC with plans to bring cloud RAN solutionwhere a vendor provides equipment and the fiber connectivity between thecentrally hosted equipment and tower sites. Examples like this show thatvendors are demonstrating greater willingness for deeper relationships,though operators are careful about being committed to single vendors notonly for equipment, but also for connectivity.
  21. 21. WHITEPAPER Conclusion - 18ConclusionIntegration of multiple technologies is the norm in today’s networks. Mobileand social interactions have gone beyond geographical boundaries. Thegranular study of context specific interactions is becoming more important.Harness the data and make sense and use of it. Segmentation of data is apowerful tool to identify the right fit for business processes to work to itsbest advantage and facilitate quicker monetization of new services. Themore information operators have about its customers, the more customizedthe services should be. Operators are feeling the heat from the increasinglytech savvy consumers.The embedded mobile opportunities are plentiful in the areas of M2Mapplications. The mobile space has evolved from connecting billions ofpeople to billions of devices. The shift of mobile dynamics is pushing forgreater need for efficiency, convenience and accessibility to information,multimedia, marketing and business intelligence. Currently in themarketplace, operators are recognizing the incremental value in productinformation, engaging videos, exclusive deals, upgrades, or other purchaseincentive to drive revenues.Integrating mobile services in the fundamental user experience is important.The evolution of technology has fast-forwarded beyond the connectivity itcreates, optimized access and services.Interactions and user interface compose of multi-touch points. It’s nowmore about understanding the behavior and needs of customers and howmuch value they derive from the service experience regardless of thedevice, network and conditions they work in. The process of buying,consuming and accessing information from smartphones and tablets isrevolutionizing the communications value chain. Companies of every sizeand in every perspective have to start thinking about their customers in thisway and plan accordingly.
  22. 22. WHITEPAPER Conclusion - 19Mobile operators’ once dominant at the center of the mobile experience isbeing challenged by the increasing OTT players and other disruptive forcesthat is influencing how consumers interact with their devices, products andservices; forcing them to look at new and innovative ways to drive long-termgrowth. Whichever the motivation for deploying Wi-Fi, be it valueproposition in terms of price sensitivity, market leadership, interoperability orscalability, operators are quick to embrace faster time to market solutions togrow its business model. Similarly, consumers benefit from a connectedsociety that brings them closer to families, enriching their lives and makingit more efficient.
  23. 23. WHITEPAPER Stay Ahead with Wi-Fi - 20Stay Ahead with Wi-FiGreenpacket welcomes you to embark on Wi-Fi solutions for optimizing yournetwork operations and drive revenue. At Greenpacket, we understand thedemands placed on Operators like you. Our solutions are designed to giveyou the flexibility to constantly deliver cutting-edge offerings withoutexhausting your capital and operating expenditures.With Greenpacket, limitless freedom begins now!Free ConsultationIf you would like a free consultation on how you can apply Wi-Fi solutions,feel free to contact us at marketing.gp@greenpacket.com. Kindly quote thereference code, SWPS1211-B when you contact us.
  24. 24. For more information on Greenpacket’s products and solutions, Associateplease contact us at marketing.gp@greenpacket.com MemberSan Francisco · Kuala Lumpur · Singapore · Shanghai · Taiwan · Sydney · Bahrain · Bangkok · Hong Kong ©Copyright 2001-2012 Green Packet Berhad. All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language, in anyform by any means, without the written permission of Green Packet Berhad. Green Packet Berhad reserves the right to modify or discontinue any product or piece of literature at anytime without prior notice.

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