Wifi hotspot offload_monetization


Published on

Published in: Technology, Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Wifi hotspot offload_monetization

  1. 1. • What’s Inside Key Drivers for Mobile Operators Entering Wi-Fi Hotspots CAPITALIZING ON WI-FI • • • Defining the Wi-Fi Hotspot User Use Cases for Mobile Data Offload How Important Are Wi-Fi Bundles HOTSPOTS • Realizing Monetized Wi-Fi Hotspot Emerging Opportunities Services for Mobile Operators • Wi-Fi Hotspot Core Components • Achieving Convergence via Mobile Charging Core Integration • Growing a Wi-Fi Hotspot Footprint • Customer Case StudyAlepo Copyright © 2011
  2. 2. Introduction Wi-Fi is a mature and widespread technology, today reaching over 700 million homes, schools, enterprises and hotspot locations worldwide. As mobile data usage continues to sky rocket and as Wi-Fi-enabled mobile devices become more abundant and diverse, mobile operators are beginning to see great potential for leveraging Wi-Fi hotspots services in order to reduce congestion on cellular networks and to capitalize on new revenue channels. Key Drivers for Mobile Operator Wi-Fi Hotspots • Wi-Fi hotspots can provide a complementary method to delivering internet services to mobile subscribers at a relatively low cost per byte. • In launching and managing Wi-Fi hotspots, mobile operators can gain control over their subscribers’ Wi-Fi experience, in terms of security, accessibility and consistency across multiple hotspot locations. • Mobile operators can offer Wi-Fi as a value added service (VAS) to boost customer loyalty and ARPU, as well as generate new revenue streams by extending monetized Wi-Fi hotspot services to a wide reach of customers.Page | 2 Alepo Copyright © 2011
  3. 3. Who’s at Your Hotspot?Wi-Fi hotspots resemble the “Wild West” Non-Subscribers Your Existing Subscribersof network access technologies, playinghost to such a diverse and difficult todefine group of users. One of thegreatest challenges for mobile operatorsin developing a viable Wi-Fi Hotspotbusiness model is understanding whotheir potential Wi-Fi Hotspot customersare.Operators must consider how different On What Device? SIM Enabled Wi-Fi Only Wi-Fi Only SIM + EAP Enabledusers, whether an existing mobilesubscriber on a smartphone or a newuser on a laptop, access and interact withthe Wi-Fi network. Customer intentions How Do They Access Wi-Fi?and expectations vary from market to Web Portal Offloadmarket, and even location to location. Wi-Fi Subscription One-TimeThus, mobile operators must determine How Frequently? User ID / Password Data Passthe most efficient way to deliver Wi-Fi Unlimited Counted in (Free or Add-On) Data Caphotspot services (free or monetized) totheir target customer base. In the coming Charging Optionspages, we’ll explore various options and How Do They Pay? Credit Card Voucher Mobile Premium Account SMScommon business scenarios. Your Existing Subscribers OnlyPage | 3 Alepo Copyright © 2011
  5. 5. Mobile Data Offload a “Win-Win” SituationExamples of Wi-Fi Plans Mobile data offload can be a win-win situation for mobile operators and subscribers. By offloading data (internet) traffic from a cellular network to a Wi-Fi hotspot network, mobilefor Mobile Subscribers operators can optimize available cellular network resources, increase overall capacity and reduce bottlenecking of service. By alleviating congestion caused by heavy smartphone data VOLUME LIMIT UNLIMITED WI-FI TIERED SERVICES DATA PLANS usage, mobile operators can better allocate their cellular network resources to other customers. Free or Bundled Premium Wi-Fi Data On-the-Go Unlimited Wi-Fi Unlimited Wi-Fi at Up to 2GB Data on For mobile subscribers on SIM-enabled devices (think smartphones), mobile data offload offers Hotspot Access Hotels, Airports & GSM & Wi-Fi with All Mobile Retail Zones Hotspot Networks a convenient, effortless way to access high-speed internet across all operator-managed Wi-Fi Data Plans - Free $19.99 / mo. $29.99/ mo. locations. This eliminates the burden of having to switch networks, sign up or purchase services Add-On Package Wi-Fi Roaming On-the-Go Plus! at each hotspot. A carrier-class mobile data offload solution enables subscribers to be Unlimited Wi-Fi Unlimited Global Up to 4GB Data on automatically authenticated to the Wi-Fi hotspot network without intervention or interruption Hotspot Access Access on Partner GSM & Wi-Fi with Any Plan Wi-Fi Networks Hotspot Networks of service. $9.99/ mo. $29.99 / mo. $39.99 / mo. Mobile operators have considerable flexibility in how they position and market Wi-Fi hotspot *In some markets, where Wi-Fi hotspot services are services to existing mobile subscribers. Unlimited Wi-Fi hotspots services may be bundled with commonly metered (per hour / per byte), it may be viable for mobile operators to count mobile a mobile data plan or available as a monthly add-on package. Operators can offer tiered Wi-Fi subscribers’ Wi-Fi hotspot data usage towards an hotspot services for premium locations and frequent roaming subscribers. overall mobile data cap. Whether the user is browsing on a 3G or Wi-Fi network, the usage accumulates towards her monthly limit. This scenario, unlike the aforementioned, requires closer integration with the mobile charging core.Page | 5 Alepo Copyright © 2011
  6. 6. In choosing your mobile provider, how important is it to have bundled Wi-Fi access with your smartphone tariff? 35 30 Percent of Total ResponsesWhile a few mobile subscribers mayprefer to keep Wi-Fi and mobile services 25separate, a recent Light Reading surveyshows that over 85% of respondents 20consider Wi-Fi Hotspot access bundledwith a smartphone to be a factor in 15choosing a mobile operator. 10 5 0 Not Important, l Marginally Important Important, but Not Very Important, A prefer Wi-Fi to be Decisive "Must Have" Feature separate Source: Light Reading, 2011Page | 6 Alepo Copyright © 2011
  7. 7. Alepo Wi-Fi to Mobile Realizing Automatic Mobile Data OffloadAuthentication GatewayAlepo’s Wi-Fi to Mobile Authentication Subscriber CredentialsGateway makes it possible for mobile Wi-Fi Service On / Offoperators to instantly and effortlessly Premium Locationsshift cellular data traffic to a Wi-Fi Roaming Access HLR / AUC INHotspot Network.The gateway connects the Wi-Fi network SS7 / SIGTRANto the existing subscriber profiles in themobile core network. By employing SIM-based EAP authentication towards the Alepo Wi-Fi to MobileWi-Fi network and by fetching subscriberauthentication vectors from the HLR over Authentication GatewaySS7, the gateway is able to automatically (EAP Server)authenticate subscriber devices, such assmartphones and tablets, to the Wi-Finetwork, ensuring that the Wi-Fi hotspot AAA (RADIUS)resources are utilized to their fullest.In addition, automatic mobile dataoffload requires the customer device to Operator SSIDrecognize and prioritize the operator’s SettingsWi-Fi network SSID. This SSID should beprovisioned to the device either as a Wi-Fi Access Point Mobile Subscriberfactory setting or remotely (over the air) (EAP Authenticator) (EAP Supplicant)with a mobile device managementsystem.Page | 7 Alepo Copyright © 2011
  9. 9. Opportunities & Considerations By monetizing Wi-Fi hotspots, mobile operators can offset the costs of the Wi-Fi infrastructure. Even if the operator’s main motivation for implementing a Wi-Fi hotspot network is to increase cellular network capacity through mobile data offload, they can quickly see a return on their investment by opening the network to other paid users. Furthermore, Wi-Fi hotspot monetization afford mobile operators an opportunity to expand their reach to new customer segments, including new and casual users, whether on SIM- enabled or Wi-Fi-only devices, roaming users, as well as their existing mobile subscribers using secondary Wi-Fi-only devices. Key Considerations & Challenges of Mobile Operator Wi-Fi Hotspot Monetization • How to facilitate customer adoption and encourage use of services, especially in markets where free and other paid Wi-Fi hotspots are abundant. • How to integrate with the existing mobile core charging infrastructure in order to realize convergent services for mobile subscribers with secondary, Wi-Fi only devices. • How to quickly and cost-efficiently expand a Wi-Fi hotspot footprint in order to justify the deployment costs and increase revenue.Page | 9 Alepo Copyright © 2011
  10. 10. Emerging Wi-Fi Hotspot Business Models Monetized Wi-Fi Plans In monetizing Wi-Fi hotspot services, mobile operators have seemingly unlimited options to create innovative business plans and offers that resonate strongly with their target customers. SUBSCRIPTION ONE-TIME OR WI-FI DATA PASS WI-FI SERVICES CASUAL USE For frequent hotspot users, Wi-Fi hotspot subscriptions are a popular choice. These may be Unlimited Single Session, Wi-Fi Roaming Pass unlimited, volume or time limited. Typically, customers pay a monthly fee for access to most Everywhere Single Location One Week Unlimited Wi-Fi Up to 2GB Wi-Fi Unlimited Wi-Fi or all of the operator’s Wi-Fi hotspots. A real-time, flexible rating engine lends itself to moreAccess at All Hotspot Access at Single Access at All granular options, such as rates based on time or day, location, device type, etc. Locations Hotspot Location Hotspot & Global $39.99 / month $6.99 / session Partners for $24.99 One-time or casual users may prefer to pay for Wi-Fi services by the hour or by the 5GB Everywhere Wi-Fi by the Hour One Week Pass megabyte at a single location. Customers can easily use a credit card or one-time prepaid One Week Wi-Fi Access Up to Unlimited (volume) Unlimited Wi-Fi voucher with a predefined time or volume limit to avoid having to sign up or register for 5GB at All Hotspot Wi-Fi at Single Locations Hotspot Location Access at All services. Hotspot Locations - $19.99/ month $2.50 / hour $14.99 A hybrid option, the Wi-Fi Data Pass affords casual users more longevity than a single session without the commitment of a subscription. Wi-Fi Data Passes can offer unlimited or volume-limited service for a day, week or month, for example. Once the pass expires or the volume allotment is exhausted, the customer simply purchases another pass as he needs it. This is a popular option for roaming customers who may be traveling for a short period.Page | 10 Alepo Copyright © 2011
  11. 11. Alepo Wi-Fi Hotspot Management Platform Solution In Brief Existing Mobile Core Network / IN Alepo’s Wi-Fi Hotspot Management Platform enables operators to effectively Subscriber Mobile deploy and manage an expansive Wi-Fi SS7 / SIGTRAN HLR Charging Data Vouchers hotspot business. It features: • Intelligent Hotspot Location Controls Alepo Wi-Fi Platform Batch Balance Refill • Centralized Policy + Real-time Charging Wi-Fi to Business Policy & Subscriber IN to IP Mobile Auth. Management • Carrier-Grade AAA Infrastructure GW Charging Data / AAA Charging GW Subscriber Info / Password (BSS) • Easily Customized, Branded Web Portal AAA Session Fetch Location • Full Partner & Reseller Management Access Controller Interaction Information HTTPS Alepo Web Existing • Real-Time Revenue Reporting Engine DHCP Session Portal Web Portal Router Requests Alepo Hotspot • Wi-Fi Voucher Management System Controller Location Server Send OTP Send E-mail The platform integrates seamlessly with Data Path SNMP an existing IN-based core network to E-Mail Payment Internet SMSc allow for convergent services, including Server Gateways unified balance management, across all AAA (RADIUS) Send OTP legacy and NGN technologies. Access Network & AP SubscribersPage | 11 Alepo Copyright © 2011
  12. 12. COMPONENT OR FUNCTION DESCRIPTION DATA (INTERNET) OFFLOAD MONETIZATION WI-FI TO MOBILE Enables automatic authentication of SIM / EAP-enabled  Required X Not Required AUTHENTICATION GW mobile devices to Wi-Fi network. Performs authentication, authorization & accounting; X Not Required, Included in AAA INFRASTRUCTURE Provides quota-based session management & subscriber  Required Wi-Fi to Mobile Auth. GW identity management. Handles per volume / time rating and leakage-free REAL-TIME POLICY & CHARGING X Not Required  Recommended disconnect or redirect upon credit expiration Facilitates location-specific portal pages, content, charging HOTSPOT SERVER and commissioning; Monitors APs; Assigns IP addresses at X Not Required  Recommended (LOCATION) session start Provides a convenient store front to purchase & register for HOTSPOT PORTAL services, access hotspot network & free content; May be X Not Required  Required branded and integrated with existing customer website May include voucher management, real-time reporting,  Optional, if offload is done BSS / BUSINESS MANAGEMENT  Recommended customer care and partner / reseller management via partnership with WISP  Optional, if Wi-Fi data usage  Optional, allows subscribers INTEGRATION TOWARDS Allows for convergent Wi-Fi + mobile services, unified is counted towards an to use mobile account as a MOBILE CHARGING CORE account & balance management overall data limit or cap payment method for Wi-Fi INTEGRATION TOWARDS Extends functionality of existing prepaid mobile vouchers to  Optional, contributes to a X Not Required MOBILE VOUCHER SYSTEM purchase convergent Wi-Fi services. ubiquitous user experience Remotely manages customer devices and Wi-Fi access MOBILE DEVICE MANAGEMENT  Recommended  Recommended points, including provisioning operator’s Wi-Fi SSIDPage | 12 Alepo Copyright © 2011
  13. 13. Alepo Wi-Fi Hotspot Server Alepo’s Wi-Fi Hotspot Server enables location mapping and identification, used to render uniquely branded reseller portals at each hotspot, including location- specific content and offers, and used to perform rating and charging based on location. This level of location-based granularity gives mobile operators an advantage over other competing free and paid hotspots. Allowing for partners and resellers of all types and sizes, the server can consider a hotspot location to be a switch with multiple access points (hotel), a single access point or even a single CPE / MAC address. This affords operators granular control over each access point while maintaining a centralized access network / enforcement point. The Alepo Wi-Fi Hotspot Server includes a Network Monitoring Server (NMS) to track the performance of hotspot locations and access points using SNMP-based management interfaces. It provides a dashboard to monitor the distributed network, including such information as AP uptime, throughput and more. With built-in DHCP functionality, it also maintains and assigns IP addresses at the start of each user session.Page | 13 Alepo Copyright © 2011
  14. 14. Alepo Wi-Fi Hotspot Web Portal The Alepo Wi-Fi Hotspot Portal works to facilitate customer adoption and encourage repeat use of Wi-Fi hotspot services by enabling a fast and intuitive registration and purchase process for all customers. Via Alepo’s Hotspot Portal, any customer can select a Wi-Fi option (Wi-Fi data pass or subscription) and prepay for services using a credit card or prepaid voucher. With mobile core integration, operators can allow mobile subscribers accessing Wi-Fi services on secondary devices to charge Wi-Fi services to their existing mobile account, using SMS to verify account ownership. Alepo’s open web portal can be easily customized to mimic the look and feel of the operator’s existing portal, lending itself to creating a seamless and ubiquitous customer experience across all hotspot locations, whether the customers are using mobile or Wi-Fi data services. Left: Alepo’s Wi-Fi Hotspot Web Portal, branded and integrated with MTN Cameroon’s existing customer self care portal.Page | 14 Alepo Copyright © 2011
  15. 15. Core Charging IntegrationAchieving Convergence - Through integration, the mobile core can be extended to serve as the main balance manager for Wi-Fi services in addition to the existing mobile services. To initiate Wi-Fi services, Alepo IN to IPIN to IP Core Integration Charging Gateway checks for a subscriber’s real-time balance and sends rated accounting • Unified, real-time balance information in order to credit or debit the balance according to the real-time usage. management across all services - mobile & Wi-Fi Voucher refills made through the Alepo Web Portal can be pushed to the corresponding mobile core subsystem, allowing operators to extend existing prepaid mobile vouchers for the purchase • Single subscriber account across all of Wi-Fi services, allowing subscribers to top up mobile and Wi-Fi services with a single, familiar services - mobile & Wi-Fi voucher. This functionality notably helps to lower operator costs of building a new distribution chain and brand awareness for Wi-Fi vouchers. • Customers can use one voucher to purchase mobile & Wi-Fi services Subscriber information, including MSISDN, can be synchronized between the Wi-Fi platform and the mobile core to allow for unified subscriber identity management. This enables IN- and IP- • Existing mobile subscribers can use SMS to pull credit or charge Wi-Fi based services to be merged onto a single subscriber account, and makes it possible for the services to the mobile account mobile core to handle Wi-Fi-only customer accounts as well. Alepo has proven knowledge and expertise in integrating with mobile core network infrastructures in order to realize convergent, next generation services. Leading operators, including France Telecom and Digicel, have relied on Alepo’s professional services to realize their convergent business needs.Page | 15 Alepo Copyright © 2011
  16. 16. 3 HOW TO GROW A WI-FI HOTSPOT FOOTPRINTPage | 16 Alepo Copyright © 2011
  17. 17. A Tiered Wi-Fi Hotspot Network ModelMTN CASE STUDY Cameroon’s largest converged operator, With a Tiered Wi-Fi Hotspot Network Model, mobile operators can quickly and cost-effectively MTN, employed Alepo’s Wi-Fi Hotspot expand their Wi-Fi hotspot footprint by leveraging & revenue sharing with partners and resellers. Management Platform as a tiered model in order to quickly cultivate an expansive nationwide Wi-Fi hotspot network. Partners benefit from low-cost setup and maintenance (no expensive onsite software), branded portal pages and accurate commissions based on actual usage, rather than original point of Integration with MTN’s existing mobile purchase, making it an attractive microbusiness model. core infrastructure granted flexible payment options to mobile subscribers as well as unified balance management. In MTN Loaded Wi-Fi Hotspot Wi-Fi Hotspot Wi-Fi Hotspot addition, the Alepo Wi-Fi portal was IN Web Portal Web Portal Management Server Branded Portal customized to mimic the look and feel of Pages & Location- the existing portal, creating a seamless Specific Content experience between mobile and Wi-Fi. MTN Mobile Core Alepo Wi-Fi Hotspot Platform By partnering with Alepo, MTN was able Access any hotspot with a single to quickly forge partnerships with small account Access Network businesses and academic institutions in order to realize their vision for an expansible, carrier-grade Wi-Fi hotspot Partner A Access Point network.To read the full case study,please contact your Aleposales representative. Internet Partner C Access Point Subscribers Partner B Access PointPage | 17 Alepo Copyright © 2011
  18. 18. About Alepo CONTACT ALEPO Founded in 1994, Alepo is a leading provider of enabling infrastructure for telecommunications service providers. Alepo provides IT systems and IT consulting services for telecommunications Corporate Headquarters companies, enabling them to compete efficiently and realize next generation service & North America Sales Austin, Texas opportunities. Alepo is proud to support innovative market leaders such as France Telecom, +1 (512) 879 1030 Digicel and Charter Communications as they evolve in the telecommunications marketplace. sales@alepo.com EMEA Regional Sales Alepo’s comprehensive suite of Wi-Fi Solutions enables mobile operators to successfully Paris, France implement, expand and capitalize on Wi-Fi services. Tailored each operator’s unique business +33 3 69 61 81 92 dan.stern@alepo.com needs, Alepo’s solutions integrate seamlessly with a mobile operator’s existing IN-based infrastructure to allow for effortless and automatic Wi-Fi authentication, as well as convergent CALA Regional Sales Buenos Aires, Argentina services, including unified balance management, across all legacy and NGN technologies. +54 11 4711 8235 ramiro.costa@alepo.com Alepo’s solutions are built according to the design principles of compliance to standards, APAC Regional Sales automation, flexibility, scalability and feature-richness. The company has partnered with Mumbai, India leading manufacturers of telecommunications equipment to ensure improved interoperability +919820145547 girish.nair@alepo.com and smooth customer experience for users. Maturity, stability and innovation make Alepo a market-leading vendor of solutions for both greenfield and established service providers. www.alepo.com Twitter: @AlepoUSA Facebook: /AlepoUSA LinkedIn: /Company/AlepoPage | 18 Alepo Copyright © 2011