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Cost savings from Next Generation Hotspot Wi-Fi
1.
Cost savings and
revenue benefits from Next Generation Hotspot (NGH) Wi-Fi By Tiago Rodrigues Program Director of WBA November 2013 Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved.
2.
WBA Members have
a Common Vision Better Customer Experience New Growth Opportunities “Next Generation” Wi-Fi Platform Interoperable Seamless Secure Our Diverse Organization Has The Expertise To Deliver This Vision And Remove Friction Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved.
3.
Diverse Membership Across
The Wi-Fi Ecosystem 100 Members 24 28 Mobile operators Integrated & fixed broadband operators Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. 33 15 Wi-Fi operators/ aggregators Vendors & other industry players
4.
Central role in
accelerating the ecosystem Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. 4
5.
WBA key strategic
objectives 2013 Objectives Next Generation Hotspot Commercial Reality Wi-Fi Roaming Globalize Carrier Wi-Fi Set Clear Roadmap Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. 5
6.
Source: NGH Wi-Fi: a new
Wi-Fi experience in public locations Next Generation Hotspot Wi-Fi: Features • Wi-Fi is a mature, yet evolving technology: • • • • • • Better support for mobile devices Full-fledged RAN technology Efficient spectrum utilization Better support for public access Enthusiastic support from users Wider commitment from operators Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. Seamless SIM-based (cellular devices) and EAP-TTLS (devices without a SIM card) authentication. Automatic network discovery and selection, with the ability to steer subscribers toward preferential Wi-Fi use. Secure access to trusted networks. Policy support for defining connection preferences – e.g., to decide which Wi-Fi network a device should associate with, when multiple ones are available. NGH Wi-Fi: Benefits to operators Increased traffic on Wi-Fi networks. More visibility into subscriber experience. Policy management and enforcement extended to Wi-Fi and, if desired, integrated with cellular policy control, enabling operators to leverage Wi-Fi access more extensively to relieve traffic load in cellular networks. Wi-Fi as a radio-access technology that can be tightly integrated with the cellular RAN and core network, and jointly deployed in cellular small-cell networks. Support for location-based services, such as navigation, mobile advertising, geofencing and B2B applications, especially at indoor locations where the GPS signal is not available or is less accurate than outdoors. 6
7.
Source: Yet, questions remain What
is the business case? How do you monetize Wi-Fi? What are the service revenues from Wi-Fi? Can you recoup your investment in Wi-Fi? Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. 7
8.
Source: A few definitions NGH
Wi-Fi Wi-Fi offload Legacy Wi-Fi 3G and 4G Small cells (and Wi-Fi) ARPU (and data ARPU) Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. 8
9.
Source: A TCO model
for NGH Wi-Fi in public networks Model assumptions Wi-Fi can add capacity to congested mobile networks, but is it cost effective? Mobile network components: 2G macro cell (2GM) - 3G macro cell (3GM) - 4G macro cell (4GM) - If Wi-Fi access is cheaper than cellular access in the macro network, is it also cheaper when deployed alongside small cells? - 3G small cell (3GS) - 4G small cell (4GS) - NGH Wi-Fi Base case: ARPU: $22 per subscriber, per month Subscribers: 10 million And does NGH Wi-Fi provide a cost benefit over legacy hotspot Wi-Fi? Traffic per subscriber, per month: from 0.5 GB (3G only) to 1.25 GB (3G, 4G, Wi-Fi) Wi-Fi traffic: ranges from 0% (3G only) to 20% (3G, 4G, Wi-Fi) Sources: Senza Fili, Cisco, GSMA, Ericsson and mobile operators. Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. 9
10.
Source: More or less
Wi-Fi? If NGH Wi-Fi carries 20% of mobile traffic • 18% per-bit cost savings • 22% more traffic for subscribers for the same RAN costs HOW M UCH W I -FI? $10 No NGH Wi-Fi $9 $9 $8 $8 5% NGH 10% NGH 15% NGH 20% NGH Wi-Fi Wi-Fi Wi-Fi Wi-Fi Per-GB RAN Costs Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. 10
11.
Source: Adding small cells
to NGH Wi-Fi • 38% per-bit cost savings • 167% more traffic for subscribers for the same RAN costs Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. 11
12.
Source: NGH and legacy
Wi-Fi • • 18% higher per-bit RAN costs with 75% of traffic reduction with legacy Wi-Fi 16% reduction in profitability NGH AND LEGACY W I -FI $10,22 $10,84 $11,47 $12,09 NGH Wi-Fi Legacy Wi-Fi, Legacy Wi-Fi, Legacy Wi-Fi, 75% 50% 25% Per-GB RAN Costs Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. 12
13.
Source: NGH Wi-Fi service
revenues N GH W I -FI S E RV I C E R E V E N U E S $160 The revenue opportunity by 2018: • $150 billion in service revenues from NGH Wi-Fi Billion • 9% of mobile traffic over Wi-Fi networks run by operators $120 $80 $40 $2014 2015 2016 2017 2018 Latin America North America Asia Pacific Central and Eastern Europe, Middle East, Africa Western Europe Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. 13
14.
Source: Summary of results Lower
per-bit costs in networks wit NGH Wi-Fi 18% lower per-bit RAN costs with 20% of traffic through NGH Wi-Fi The combination of Wi-Fi and cellular small cells brings additional benefits 38% lower per-bit RAN costs when small cells and Wi-Fi are combined NGH Wi Fi to account for 9% of global mobile traffic and reach $150 billion by 2018. Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. 14
15.
For more information
see the new white paper from Senza Fili sponsored by the WBA, “Cost savings and revenue benefits from Next Generation Hotspot (NGH) Wi-Fi” Download the white paper from www.wballiance.com Senza Fili Consulting www.senzafiliconsulting.com Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. 15
16.
Tiago Rodrigues Program Director E-mail:
tiago@wballiance.com Copyright © 2013. Wireless Broadband Alliance Ltd. All rights reserved. 16