customer keynote - overview of nttbp’s business

© 2013 NTT Broadband Platform, Inc All Rights Reserved 1

Overview of NTTBP’s Business

Nov 13, 2013

NTT Broadband Platform, Inc.

Tadao Kobayashi

Airheads Conference 2013

http://www.ntt-bp.net/pc/index.shtml


Founded July 15, 2002

Location 3-6-2 Uchikanda , Chiyoda-ku , Tokyo

Capital

Formation

Business

NTT East 100％

July 2002 -

NTT East 40%

NTT West 30%

NTT docomo 30%

March 2006 - Present

NTT East 34%

NTT West 22%

NTT docomo 22%

NTT Com 22%

WLAN base station (AP) facility wholesale business New service & application development business

120,000APs at train stations, airports, cafes, etc.

Providing services to both NTT group and non-group companies

In-train internet: Tokaido Shinkansen (bullet train) & Tsukuba Express

Cognitive mobile router

development

Wi-fine Platforms

for attracting customers

Providing business areas with a Wi-Fi based

solution for attracting customers

Our clients (in random order)

NTTBP is pure-play Wi-Fi company of NTT Group

Founded

July 2005 -

NTTBP - Company Overview


http://www.wi2.co.jp/index.html


Wi-Fi utilization has been changing with improvement of Wi-Fi usage as follows : High-speed wireless (1st stage) → Off-loading (2nd stage)→ Wi-Fi Cloud (3rd stage)

1st 2nd 3rd

NTTBP NW

●

POI

Wi-Fi Cloud

Internet authentication

Content delivery

Exterior GW

Wi-Fi NW

Mobile phone carrier NW

Internet High speed

Area coverage

Co

mm

un

ica

tio

n s

pee

d

Wide

Wi-Fi NW

Mobile phone carrier NW

・Targeted area

・High-speed

Low speed

Narrow

Business Transition

High-Speed Wireless Wi-Fi Off-loading Wi-Fi Cloud


© 2013 NTT Broadband Platform, Inc All Rights Reserved

NTTBP Core NW

Content synchronization apps

●

POI

3G/LTE FTTH

Wi-Fi auto connect apps

Sample Case: Seibu Dome

High-density Wi-Fi

Wi-Fi Cloud Business Facility Wholesale Business

(Core business) Wi-Fi Solution Business

■Providing communication carriers w/ our facility

wholesale service (currently offering the service to 8

communication carriers)

■Installing APs in train stations, airports, and other

good locations

■Planning to increase the # of APs to 160,000

(installed 120,000 APs by FY 2012 end)

160,000APs by this FY end.

Offering full Wi-Fi coverage – train

stations, airports, convenience stores, etc.

Providing Tokaido Shinkansen with

In-train Wi-Fi service

■Developing new services by combining our

wholesale business with Wi-Fi Cloud Service

■Increasing the number of non-carrier customers

■100 client companies

NTTBP Core NW

Wi-Fi Cloud


Content delivery

Exterior

GW

Coupons

Videos

Store info.

Stamp Rallies

Free Wi-Fi

Sample case: 7-Eleven

etc. ・・・

100 Clients

NTTBP Core NW

Wi-Fi Cloud


Content delivery

Exterior GW

■Construction of high-density Wi-Fi intended for the

use of tens of thousands

■Developing mobile routers with cognitive functions

■Creating apps automatically connecting to NTTBP’s

APs

■ Offering service allowing to upload/download

content automatically via content synchronization tools

Mobile routers with

cognitive functions （Personal Wireless Router）

Unit sales

exceeded

820,000 units

<FY 2012 end>

Our Business Domains



© 2013 NTT Broadband Platform, Inc All Rights Reserved 5 5

NTT Group

Other Carriers

Non-Carriers

NTT East

NTT docomo

NTT West

UQ

SoftBank

Kopticom

Nintendo

Fukuoka City

INTERNET

Facility Operators Facility

The n

um

ber o

f custo

mers is in

cre

asin

g

NTTBP DC

POI●

Optical fiber backhaul

Business operators services

＜Shared AP mechanism＞

Facility Wholesale Business by Shared Wi-Fi APs

・・・

Seven & i

・・・

・・・

Wi2

SSID

Multi-SSID

Multi-VLAN

Multi-Radius

One single base station covers

multiple business operators

Shared APs supporting multi-SSID, multi-VLAN, and multi-Radius: avoiding radio interference and providing high-quality and stable Wi-Fi environments

Allowing to share installation costs among business operators. Offering our facilities to an increasing number of customers

60,000APs→120,000 APs (FY 2012 end)

Offering full Wi-Fi coverage – train stations, airports,

convenience stores, etc.

Providing in-train Wi-Fi service for Tokaido Shinkansen ・・・




Internet

NTT-BP Data Center

NTT-BP NW（Shared APs）

Other SSID

Service

Other SSID

Example: “B to B” Business Model in between Carrier and NTTBP

Contract Contract Contract

Customers

Business Scheme of the Facility Wholesale



Station

Airport

Convenience

store

Minor scale

store

Home/

Office

12,000ＡＰ

34,500ＡＰ

74,000ＡＰ

Optical Fiber

20millon lines

↓

Add Wi-Fi

The main area APs Users ※NTTBP estimation

※Mar.2013

Almost all stations are covered.

Almost all airports are covered.

A hotel and a large-scale office building are covered.

The store and area in which

people gather are covered broadly.

Wi-Fi becomes an infrastructure which connects television,

and SmartPhones and also a household appliance.

AP is built from the area in which many people gather so that the multiplication of the number of AP(s) and the number of

persons which can be used may become the maximum.

As a result, Internet connection according to Wi-Fi at the interval which walks several minutes is possible in urban areas.

Shopping center

Convenience store

Smart TV SmartPhones/

Tablets

Beauty parlour

Restaurant

Small scale

store 200,000ＡＰ

70millions／day

40millions／day

20millions／day

44millions／day

15,500ＡＰ Major cafe chain store

（Xi-SPOT) 4millions／day

The view of wireless LAN spot deployment

FTTH

Entrance

62,000

LTE

Entrance

74,000



0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

H22_4Q H23_1Q H23_2Q H23_3Q H23_4Q H24_1Q H24_2Q H24_3Q H24_4Q

9,100APs

11,000APs

71,000APs

120,000APs

•A 7-fold increase in

just half a year!

•A 12-fold increase in

only one year!

<As of FY2012>

Stations

Airports

Convenience stores

Café chains

Local governments

Shopping streets

Private shops

A 7-fold increase in just half a year and a 12-fold increase in one year (from FY 2011 end)

Transition of the number of APs

March 2014 Forecast

160,000APs

FY10 4Q FY11 1Q FY11 2Q FY11 3Q FY11 4Q FY12 1Q FY12 2Q FY12 3Q FY12 4Q



Total Connections at Railway and Convenience Store (Daily)

0

1

2

3/1

3/2

3/3

3/4

3/5

3/6

3/7

3/8

3/9

3/10

3/11

3/12

3/13

3/14

3/15

3/16

3/17

3/18

3/19

3/20

3/21

3/22

3/23

3/24

3/25

3/26

3/27

3/28

3/29

3/30

3/31

holiday

Railroad

Convenience Store

holiday holiday holiday holiday holiday



NTTBP Core NW


●

POI

3G/LTE FTTH



High-density Wi-Fi







good locations












NTTBP Core NW

Wi-Fi Cloud


Content delivery

Exterior

GW

Coupons

Videos

Store info.

Stamp Rallies

Free Wi-Fi


etc. ・・・

100 Clients

NTTBP Core NW

Wi-Fi Cloud


Content delivery

Exterior GW





APs



Mobile routers with


Unit sales

exceeded

820,000 units

<FY 2012 end>





High-speed wireless connection

Offloading

Domestic communication

carriers

Value-added services to

specific locations Prime objectives

Until now From now

Players Various area owners

160,000 APs by this FY end. Offering full Wi-Fi coverage – such as

train stations, airports, convenience stores, etc.

Convenience stores

NTTBP NW

●

POI

Stations/ Airports Cafes

+

NTTBP NW

●

POI

Cafes Local governments

Wi-Fi Cloud


Content delivery Exterior

GW

Area owners can deliver specific information to specific audiences “only for now” “only for here” “only for you”

Stations/ Airports Convenience stores

Business Model Transition




Wi-Fi Cloud

Our shared APs enable us to offer “Wi-Fi Cloud Service” as well as “facility wholesale“. Targets for our Wi-Fi Cloud business: 1) Local governments/Local shopping areas, 2) Area owners (airports, convenience stores, Cafes, etc.), and 3) Game consoles. Each AP can send its own unique content to terminals in the area.

NTTBP NW

GW

C

A B C

① ② ③

B A

＜ Basic functions of our Wi-Fi cloud ＞

•Each AP receives specific information

e.g. “Content A” goes to AP#1, “Content B” to AP#2 …

•Providing a content delivery server via Cloud service

Each AP receives

original content


Content delivery

Local area Info. delivery

100APs in Fukuoka City

□Free internet

□Area portal site

□Tourist information

3,000APs at train

stations etc. – planning to

expand the service

□Game, content, and message

delivery features

About 14,000APs at seven &i

stores across Japan

□Store information

□Coupons and videos

□Questionnaires

Wi-Fi for tourists

Automatic content/

game delivery

Store-based coupon/

content delivery

AP usage fee

Cloud service usage fee

Portal development fee

AP usage fee


AP usage fee


Wi-Fi Cloud Business Overview



Wi-Fi based new information delivery service – available at all stores across the country

Internet

E-books Local area information delivery

（Coupons, stamp cards , etc.）

Game Content

× about 14,500 stores

Music/movie sales

Printing service

As a backup line

Multiple use of

operational terminals Original Content Delivery Service “7SPOT” Public Wireless LAN area

NGN

Collaboration model/scheme

Convenience stores, mass

retailers, department stores,

and family restaurants

Digital Signages

7 Spot membership：

Over 948,000 registered members

（as of Nov 8, 2013)

usage situation

Wi-Fi Cloud Introduction Example: (Seven & I Group)



Characteristic 1

Quadrilingual

Free Public Wi-Fi Service “Fukuoka City Wi-Fi” – launched on April 27, 2013

Characteristics 2


Characteristics 3

Local information

Characteristics 4

Disaster planning

■Available areas

■Service launched

■Provision system

All Fukuoka City subway stations, tourist Information centers, municipal facilities, Fukuoka

airport, and Hakata port international terminal （53 areas in total）

⇒Thanks to mayor’s appeal: planning to increase the number of APs with private sector

investment (hotels, commercial buildings, tourist facilities, etc.)

April 27, 2013 –

NTTBP （Coordinating, Creating a service model), ICR （Handling RFPs),

NTT WEST （Installing APs, Acting as a contact point）

Wi-Fi Cloud Introduction Example：Fukuoka City



◇Local governments and other area owners provide visitors with “carrier-free” Wi-Fi internet access

service for free, regardless of their carries. The costs of the service are paid by local government.

◇NTTBP offers Wi-Fi internet access service for profit as a business, based on the request from

local governments.

◇Local governments can focus on their objectives, by placing NTTBP in charge of the service

offering: thus, free from concerns for quality maintenance/improvement, or trouble, such as

breakdowns, unfair use, etc.

Area visitors

Service usage fee

Service offering

Free Wi-Fi offering （improvement of convenience）

Tourist information delivery （economic effects）

Telecommunications service

offering （terms of service）

15

Attracting

tourists and

business

travelers

City Wi-Fi : Wi-Fi Solution Business

Area Owners （Fukuoka City, Okinawa City,

Hiroshima City, etc.)

（Okinawa City)



Japan Connected-free Wi-Fi

Japan Connected-free Wi-Fi Conventional Way

Registration

at each location

Available with

single registration

Launch of “Japan Connected-free Wi-Fi”

- interworking the open Wi-Fi services provided by corporations and local governments

Office buildings (Marunouchi Building,

Shin Marunouchi Building,

etc. )

Airports

Tourist spots,

museums, galleries,

city halls, etc.

Railway

stations

Narita International Airport

Tokyo International Airport

Osaka International Airport

Fukuoka Airport

Accelerating Innovation and Collaboration for the Next Stage (NTT: Nov 8, 2013)



NTTBP Core NW


●

POI

3G/LTE FTTH



High-density Wi-Fi







good locations












NTTBP Core NW

Wi-Fi Cloud


Content delivery

Exterior

GW

Coupons

Videos

Store info.

Stamp Rallies

Free Wi-Fi


etc. ・・・

100 Clients

NTTBP Core NW

Wi-Fi Cloud


Content delivery

Exterior GW





APs



Mobile routers with


Unit sales

exceeded

820,000 units

<FY 2012 end>





Minimizing each AP’s cell area while increasing the density of APs – enable to

offer adequate communication capacity and coverage to tens of thousands of users

After Before

<Upper part>

High directional

antennas

<Middle part>

Directional

patch antennas

<Bottom part>

Directional

patch antennas

APs in a dome stadium Area design outline

high-density

area design

AP’s Cell

Wi-Fi Solution Introduction Example: Seibu Dome



<Smartphone image>

1. Free-internet access Available 90 minutes per session/

3 times a day

5. Banner ads Auto-changing banner images

2. Player directory Information on Lions players

3. Videos “Ｌｉｏｎｓ@ＹｏｕＴｕｂｅ”

9. Lions official website

4. Real-time game data Real-time game scores

and information

8. Baseball quizzes Quizzes the same as displayed

on the stadium video board

6. Calendar Seibu Lions team schedule

7. Restaurants List of restaurants at the stadium

Providing various content services

The key words are fun, convenience, and share

Wi-Fi Solution Introduction Example: Seibu Dome



Business

- Increase in smartphones and tablets - All terminals and devices: wireless connection to networks - Spread of various devices - The wireless times: wireless connection at any time and anywhere (Google Glass, sensors, cameras, etc. ) (people ⇔ people / people ⇔ machines / machines ⇔ machines)

1. Convergence of wireless systems to two wireless systems, LTE (FD & TD) and Wi-Fi - combining the use of LTE and Wi-Fi as basic bearers 2. Increase capacity and efficiency in area cover by combining two systems - combining the use of macro-cells and small-cells - combining the use of outdoor-cells and indoor-cells 3. Introduction of SIM authentication and carrier aggregation 4. Increasing assignment to Wi-Fi frequencies

- Early realization of 802.11ac and multi-streams - Traditional role of Wi-Fi : Information exchange

⇒ New role of Wi-Fi : Monetization and Analytics by taking advantage of Wi-Fi characteristics - Referred to NTT holding company’s vision

Wireless – Future Trend

New strategies – Technology / System / Frequencies

Best mix of wireless (LTE & Wi-Fi) and optical fiber – increasing Wi-Fi’s value

Wi-Fi Value in the Future



Smart Life & Smart Work in the Next Stage

걷는다

走

Walk

Transportation Intelligent Transportation

Systems, Quick Charging

Environment Smart Housing / Smart Buildings,

Demand Response

Health Care Telemedicine, Regional

Medical Collaboration

Home

Entertainment 4K / 8K, Ultra High Definition

Video on Demand

Tourism Multilingualization, Barrier-free

Stadiums Highly Realistic /

Ultra High Definition Video,

Public Viewing

- ICT as an Enabler




Infrastructure Supporting ICT Utilization


Optimal Navigation Highly Realistic / Ultra

High Definition Video

Energy Control

Traffic congestion mitigation

(Best route guidance),

Multilingualization, Barrier-free Multi-angle / Multi-view, Time shift

Heat island mitigation,

Electric energy projections

Most advanced Internet access infrastructure in the world by

the best mix of wireless (including Wi-Fi) and fiber-based communications



Key Challenges – Network Control


Interference Cooperation

From hardware-intensive

to software-defined efficient network controls

<Figure 1> Increased density of Wi-Fi base stations <Figure 2> Dynamic cells

Challenges Issues

Increase in connected device users at stadiums

etc. - Wi-Fi frequency interference caused by increase in the

number of access points <Figure 1>

(lower speed)

Simultaneous massive access to high-definition

videos - Resource shortage of delivery servers and backbone

network (difficulty in viewing)

Improvement in data transmission efficiency

with reliable multicast*2 etc. - Next generation high compression technology (HEVC*3)

- Interactive panorama video delivery system

Interference evasion using dynamic cell

based on software controls <Figure 2>

- Cooperative wireless LAN*1

- Simultaneous transmission for high efficiency wireless LAN

*1：Technology that prevents throughput loss by the collaboration of multiple access points *2：High quality simultaneous broadcasting technology that prevents packet loss. *3：High Efficiency Video Coding



6:00 9:00 12:00 15:00 18:00 21:00 24:00 3:00

Home Company Company Pub Home

Home Part time job Home

Home University Part time job Home

Many Wi-Fi APs are available on the path in life of urban area Wi-Fi APs are being deployed to Home/Office/School

In case of living in urban area, the duration staying in Wi-Fi spots will be much longer than before

Shopping at supermarket

Shopping at convenience store

Wi-Fi Wi-Fi Wi-Fi Wi-Fi

Convenience store Mall at station Platform for waiting Platform for stopping

Wi-Fi is always available for every

few minutes during outside

・・・ a few

minutes

In case of family who has optical fiber + Wi-Fi

and lives in urban area

Time Ratio Covered by Wi-Fi

Fath

er (

Worke

r)

Moth

er (

House

wife

) Daughte

r (Stu

dent)

Lunch

a few minutes

a few minutes



Thank you so much for inviting to

Aruba Airheads Conference 2013


customer keynote - overview of nttbp’s business

Business

providing tokaido shinkansen

good locations planning

upload download content automatically

fi solution introduction

eleven ftth high

fi sample case

providing communication carriers

offering full wi