The document discusses how wireless data usage is exploding due to increased smartphone adoption, stretching the limits of 3G and 4G networks. It notes that backhaul is the main bottleneck and that Wi-Fi offloading provides a scalable solution by leveraging existing Wi-Fi networks to handle data traffic. The CEO of Towerstream discusses their pilot Wi-Fi network in NYC that saw over 21 million connections in a quarter, mostly from handheld devices, transferring 1 terabyte of data daily and peaking at 70,000 unique visitors. Possible revenue models for carriers include wholesale offload deals and an advertising platform.
1. So Much Demand So Little Time
Jeff Thompson
Towerstream CEO
2. Jeff Thompson, CEO Towerstream
• Towerstream is a leading 4G service provider delivering
high speed wireless Internet access to businesses.
• Jeff has over 10 years experience building wireless
networks.
• Jeff co-founded Towerstream in December 1999 and
serves as President and CEO. Thompson has overseen
Towerstream’s growth establishing robust wireless
networks in 11 US cities including Boston, New York City,
Los Angeles, Chicago, among others.
3. Current State of Wireless
• Smartphones made up 42% of all U.S. handset sales in the
second quarter of 2010, up from 28% in 2009 - NPD
• By 2014 smartphones will generate more than 87% of total
mobile network data traffic for US operators. - ABI Research
• By 2014, mobile will be bigger than desktop Internet and half
of Americans’ Web browsing will be done on mobile devices -
Morgan Stanley
• New devices, media content and applications continue to
stretch the limits of today’s 3G mobile networks.
As smartphones and data-intensive tablets continue to see huge
spikes in user adoption, sub-par 3G and 4G networks are no
longer sufficient to handle this massive increase in data transfer.
4. Broadband Adoption
• IP-based services driving exponential data traffic growth
• High focus on rich user experience and service delivery
• Carrier focus on revenue growth and opex reduction
– Average revenue per mobile user (ARPU) growing slower than
average amount of data consumed by user
• According to ABI Research, year 2015 projection for wireless traffic:
– Video: 67%
– Web browsing: 17%
– Voice/other: 14%
5. Backhaul is the Bottleneck
• Most cell sites have insufficient bandwidth behind them to
handle 3G/4G data
• Wireless networks are already running hot due to
smartphones
• Alternative networks need carrier class backhauling capacity
A new report from In-Stat states that mobile operators are
expected to spend nearly $117 billion by 2014 on last-mile
backhaul, including line leasing, new equipment, and spectrum
acquisitions.
6. Wi-Fi Based Offloading
• Newer smartphones are built with Wi-Fi support
– Provides a means for scalable offloading model
• Key Questions:
– How seamless it is to the end user?
– Is it secure?
– Can service providers monetize?
• Service providers should be able to maximize the use of their Wi-Fi
hotspots and manage the user experience
• Support public WLAN/hotspots that work well with mobile network
– Unified/easy authentication
– Seamless switching between Wi-Fi and cellular networks
– Fee schedule integrated into regular mobile billing
7. Femtocell Based Offloading
• Service providers deliver the equipment or
work with DSL/Cable modem makers to
include Femtocell support
• Although there has been a lot of venture
capital invested in Femtocell technology,
deployment has been slow and cost
remains high
8. Wi-Fi vs. Femtocells
• Femtocells vs. Wi-Fi? = Let’s Discuss the Facts
- Femtocells failed as a consumer device so far
- Require additional equipment
- Significant costs associated
• The more bandwidth that wireless networks can handle,
the more people will use it.
• Offloading via Wi-Fi is the best option for carriers to
support the staggering amount of data traffic associated
with the increased adoption of data intensive
smartphones.
9. How Does the Offload Work?
•Data traffic offload
via
Smart Wi-Fi
•Smart Wi-Fi
backhaul
•Buffered
authentication and
roaming
transactions
•Flexible, dynamic
tunneling options
10. Pilot Wi-Fi Network in New York City
Coverage
– Covering approximately 40% of NYC
– Powering up to 60% of the data used in NYC
Capacity
– Network has 20 times the capacity of
proposed LTE network of 2013
Mobile VoIP
– Network can allow your phone to work like a
phone not just a Wi-Fi hotspot, with Carrier
class Quality of Service (QoS)
11. Results
Initial test measured volume of connections from
subscribers of popular Wi-Fi services
• Majority of users access via handsets
• 21 million connections in Q2 (mostly from handheld devices)
• Roughly 250,000 connections per day
• One terabyte of data transfer daily
• Peaks of 70,000 unique visitors per day
12. Possible Revenue Models
Wholesale Offload to CELCOS
– Advantage of speed to market
– Robust backhaul already installed
– Alleviate Network Congestion today
Advertising platform
– Free access for watching 30 seconds of ads
– Product for screen placements