Carrier Wi-Fi & Wi-Fi offload

WiFi Consulting Services

Independent Wi-Fi Offload Network

Client Confidential- Maravedis Inc copyright ALl rights reseerved 2013

1

Research Offering

www.maravedis-bwa.com© Maravedis Inc.

CLIENT CONFIDENTIAL

MOSA RAN

Backhaul Clearspectrum

Wireless Watch

Faultline

Consulting

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

•

Module 1: WiFi Business Model

End-to-end techno-economic modelling frameworkModel 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

Module 2: Network & Vendor Selection

Preliminary Network PlanCosting and Vendor Recommendation

Final end-to-end Network PlanFinal Vendor selection

RFP/RFQ submissions and evaluations

Client Confidential- Maravedis Inc copyright ALl rights reseerved 2013

5

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

Consulting Team

Customer Engagement Miami

Senior Analyst Video London

www.maravedis-bwa.com

CLIENT CONFIDENTIAL

Adlane Fellah

Caroline Gabriel

Research DirectorLondon

Robert Syputa

Peter White

Senior AdvisorSeattle

Claus Hetting

WiFi Business ModelCopenhagen

Esteban Monturus

Backhaul AnalystBarcelona

Basharat Ashai

Market Analyst APAC and MEA

India

MagnusJohansson

Senior WiFi AdvisorLima

© Maravedis Inc.CLIENT CONFIDENTIAL

Contact Information

© Maravedis Inc.CLIENT CONFIDENTIALBROADBAND WIRELESS INTELLIGENCE

www.maravedis-bwa.com

www.linkedin.com/in/adlanefellah

www.twitter.com/maravedis

MaravedisRethink

info@maravedis-bwa.com

http://www.maravedis-bwa.comhttp://www.rethinkresearch.biz/

(305) 865-1006

(514) 313-5656

Adlane FellahCustomer Engagement

Carrier Wi-Fi & Wi-Fi offload:

New opportunities for service providersBy Claus Hetting

Senior consultant & analyst

Maravedis-Rethink October 2013

Copyright HETTING Consulting 2013 9

1 GB

3 GBWi-Fi proportion of smartphone

traffic

Mobile data proportion of smartphone

traffic

Businessopportunity

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 thepreferred mass-market device – wholesale or otherwise

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

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

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 CONGREGATIONShopping, transport, many other venues Opportunity for new carrier Wi-Fi build Opportunity for wholesale Wi-Fi capacity sales to MNOs

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MegaSPOT

What do consumers really want?

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• 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

What are the carrier Wi-Fi & Wi-Fi offload business models?

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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

Why mobile services alonewill never be enough: Capacity & costs

Airport:1,000 smartphone users50 MB/user in BH100,000 m2

Peak capacity need = 110 Mbps

6 x LTE pico eNodeB (10 MHz)With DAS ≈ 120 MbpsCost ≈ $170,000

100 x 802.11n Wi-Fi APs≈ 100 x 50 Mbps≈ 5,000 MbpsCost ≈ $100,000

Wi-Fi offload:CAPEX savings ≈ 40%Capacity gain ≈ 4000%

SIM

Source: HETTING Consulting

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So where should you begin?

There’s only one way:

Build a strategy & build a business case

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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 Consultingwww.hettingconsulting.com

.. and join the community!

LinkedIn Group:’Seamless Wi-Fi Offload’

And remember to connect to me too!

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Wigo is wi-fi free of wait, complications orobsticals

MAGNUS JOHANSSON

COO

DigitalWay SA

1.

Where and Why Go Wi-Fi

Users Have Wi-Fi Devices & Expects Free Wi-Fi

“We love us some Wi-Fi…”

“…because mobile data

[insert complaints]”

2.

Wigo, the vision

carriergrade,

operatoragnosticmanaged

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

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.

The

preferred

access

network

away from

home

Our Vision

making free unmanaged

wi-fi irrelevant

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

3.

A network to supportmultiple business models

freemium

premium

wholesale

PrepaidserviceSeamlessaccesstoen renetworkunlimited

UnlimitedPremium

servicesponsredbyadver seroneclicktoregisterandconnectmelimit

InternetFreemium

serviceintegratedwithoperatorssimauthen ca onunlimited

WholesalePremium

Our Business Model

4.

How do we do it?

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

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

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 simauthentication

SIM authentication Server

Insource versus outsource considerations

Insource

Out source

Design and Site selection

Design and site selection

Design and site selection

NOC, Monitoring1st & 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

Advertisingplatform, social media platform, systems dependent on demand

Outdoor Root APOutdoor 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

5.

Simple Access Process

The Mall

AP installation examples

Registration Process

Continuar

Bienvenido a WIGO

Te invitamos a registrarte para que vivas

la experiencia WIGO, wi-fi libre.

Social Media Integration

Regístrate para disfrutar de WIGO

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!

Redirected to location specific landing page

Tu cuenta ha sido creada.

Serás redirigido a www.facebook.com/MinkaPeru

Call to action venue specific advert portal

*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

Thank you!

Magnus Johansson

COO

Digital Way S.A.