In Pursuit of Carrier WiFiA Light Reading Webinar

Sponsored by

Today’s Presenters

Gabriel Brown

Senior Analyst, Heavy Reading

Danielle Russell

Marketing Director, Alepo

Matt MacPherson

Board Member, Wireless Broadband Alliance

Agenda

Introduction – Towards Carrier WiFi (Heavy Reading)

Commercial Drivers for Hotspot Services (Alepo)

Next-Generation Hotspot Initiative (WBA)

Summary

WiFi in the Smartphone Era

• Between 25% and 50% of smartphone data usage is via WiFi– Based on data volume, time, number of sessions, and so on

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

0

50

100

150

200

250

300

350

Co

nn

ec

tio

ns

(m

illio

ns

)

Source: AT&T

Connections to AT&T’s Hotspot Infrastructure

Towards Carrier WiFi

Offload• Hard offload• User-driven• Unmanaged

Optimize• Auto-login• User identity• Secure

Integrate• Session mobility• Policy-driven• Service transparency

2010 2012 2014

Phases of WiFi Offload

• WiFi has come in from the cold; it is becoming part of mainstream operator-thinking

• WiFi integration is user- and services-led; it is not primarily about cost reduction

• Ultimately WiFi will be considered a trusted access network on a par with the 2G/3G/LTE RAN

Integrating WiFi into a Cellular Environment?

HSPA

LTE

WiFi

EPC

Operator Services

How to decide which network to

attach to?

How to integrate with the core

network?

•Device is best-placed to understand local radio conditions; but

• May not know which APs it has permission to access •May not know the prevailing performance of each access type

•Some services *only* available through the operator core

•Core network not aware of radio access conditions

•Will ANDSF, policy & NGHI help bridge these gaps?

Router

Internet

Internet Services

How to make operator services available on WiFi?

The Wild West of WiFi

WIFI TYPEATTRACTIVENESS

TO MOBILE OPERATORS

DEPLOYMENT OR INTEGRATION

Residential WiFi MEDIUM DIFFICULT

Enterprise MEDIUM MEDIUM

Managed Hotspot HIGH EASIER

Free WiFi LOW DIFFICULT

Residential Hotspot HIGH MEDIUM

Hotspot / Enterprise MEDIUM MEDIUM

WiFi Zone HIGH DIFFICULT

Personal Hotspots LOW N/A

• Adaptability of WiFi creates diversity of implementation• Managed Hotspots are the focus of attention• Are Hotspots enough to make a real difference?

Poll Question #1

How important is it to your choice of mobile provider that your smartphone tariff includes bundled WiFi access?

•Not important at all; I prefer WiFi to be separate •Valuable at the margins, but not especially important •An important factor, but not decisive•Very important; a “must-have” feature

Commercial Drivers for Operator Hotspot Services

Who’s at Your Hotspot?Your Existing SubscribersNon-Subscribers

SIM Enabled SIM + EAP EnabledWi-Fi Only Wi-Fi Only

OffloadWeb Portal

Unlimited(Free or Add-On)

Counted in Data Cap

On What Device?

How Do They Access Wi-Fi?

How Frequently? One-TimeData Pass

Credit CardHow Do They Pay?

Wi-Fi SubscriptionUser ID / Password

Voucher MobileAccount

PremiumSMS

Charging Options

Mobile Data Offload• Objective:

– Increase capacity and optimize network resources

• Challenges:– How to ensure that subscribers actually

utilizing Wi-Fi Hotspot services?

• Core Components & Functions:– Automatic EAP Authentication– Wi-Fi to Mobile Authentication Gateway– Pre-Provision SSID in Mobile Devices– Mobile Device Management

Wi-Fi Hotspot Monetization• Objectives:

– Generate New Revenue Stream on Wi-Fi Hotspot Network– Offset Investment in Wi-Fi Hotspot Infrastructure– Reach a Broader Audience of Customers, incl. non-subscribers, internet only

• Sample Business Plans for Monetized Wi-Fi Hotspots:

SUBSCRIPTIONWI-FI SERVICES

Unlimited Everywhere Wi-Fi Plan

Unlimited Wi-Fi Access at All Hotspot Locations$39.99 / month

5GB Everywhere Wi-Fi PlanWi-Fi Access Up to 5GB at All

Hotspot Locations$19.99/ month

PAY AS YOU GO

Single Session, Single Location

Up to 2GB Wi-Fi Access at Single Hotspot Location$6.99 / session

Pay by the Hour Wi-FiUnlimited (volume) Wi-Fi at

Single Hotspot Location$2.50 / hour

WI-FI DATA PASS

One Week Wi-Fi PassOne Week Unlimited Wi-Fi

Access at All Hotspot Locations$14.99

One Week Wi-Fi Roaming Pass

One Week Unlimited Wi-Fi Access at All Hotspot & Global

Partners$24.99

Wi-Fi Hotspot Core Network + Mobile Core Integration

How to Grow a Wi-Fi Hotspot Network: MTN Case Study• Tiered Wi-Fi Hotspot Network Model

– Facilitates Rapid, Cost-Effective Expansion of Wi-Fi Hotspots– Centralizes All Wi-Fi Hotspot Management– Leverage Partners & Resellers to Set Up Hotspots and Revenue Share

Emerging Wi-Fi Use Cases for Mobile Operators

DATA (INTERNET) OFFLOAD MONETIZATION

FEMTOCELL ALTERNATIVE

OBJECTIVEAlleviate Cellular Data Internet Traffic

Revenue GenerationOperator Services in Homes with No or Poor Cellular Coverage

DEVICE SUPPORT Most (Smartphones) All (Universal) Limited

ANDSF, SeGW, TTG X Not Required X Not Required Required

HOTSPOT PORTAL X Not Required Required X Not Required

WI-FI TO MOBILE AUTHENTICATION

GW Required X Not Required X Not Required

CORE CHARGING INTEGRATION

ᴓ Optional ᴓ Optional ᴓ Optional

MOBILE OPERATOR PRIORITY

Immediate Emerging Future

Poll Question #2

• What is the biggest barrier to integrating WiFi into mobile operator service portfolios?

– It is hard to get a large enough WiFi footprint to make a real difference to most users

– It is hard to get a consistent device implementation and so difficult to market and support

– The back-end tools to mange provisioning and billing of devices are not mature enough

Next-Generation Hotspot Initiative

WBA an Unique Experts Group

Focused on enabling global Wi-Fi roamingKey enablers & strong expertise in Wi-Fi based services

Strong Operator Heritage & Ecosystem Engagement

WBA was founded in 2003 by a unique mix of Wi-Fi, mobile and broadband network operators who viewed public Wi-Fi as a strategic complement to other networks (3G/UMTS, CDMA, WiMAX, Cable, xDSL etc).

Global footprint of 290,000+ hotspots Collective user base of 360 million+ subscribers

The Problem…

1000

100

10

11990 1995 2000 2005 2010 2015

Spectrum

Macro Capacity

26x Growth

Gro

wth

Source: Agilent

Macro2G/3G/4G

Business CommunityConsumerWi-Fi

Femto

Overall Capacity Not Keeping Pace with Data Demand

Small Cells Increase Existing Capacity

The Barriers…

Top barriers to further adoption and usage of Wi-Fi:

Top barriers to wider implementation of Wi-Fi roaming:

• Network discovery, identification, connection, authentication and security all key for seamless integration of Wi-Fi and cellular

Next Generation Hotspot Vision

Turn on phone and getsecure cellular connectivity

GSM NGHTurn on device and get

secure Wi-Fi connectivity

Automatic. Secure. EAP-Based.

Cellular Mobility Experience on Wi-Fi

History of SP Wi-Fi Authentication

802.11Apple

AirportWebAuth

WISPr1.0

AppleiPhone

WISPr2.0 HS2.0

1997 1999 2003 2007 2010 2011

TRUSTED WI-FI NETWORK802.1x/802.11i 3G Offload

EAP-FASTEAP-SIMEAP-TLS

802.1x802.11i

UNTRUSTED WI-FI NETWORKWeb-Based Auth/No Encryption

Mostly Hotspot Side Business

UsernamePassword

UsernamePassword

UsernamePasswordEAP-SIM

Portal Page

AutoPortal Page

AutoPortal Page

Next Generation Hotspot Roam, Authenticate, Monetize

SEAMLESSSimplifies network

discovery and selection for

seamless cellular data offload

SECUREExtends existing

SIM-based authentication

techniques over encrypted Wi-Fi

RELIABLECarrier-class

solution

PROFITABLEEnables location-based and value-added services

802.1x , EAP-SIMAuto SIM

credentials

Encrypted Wi-Fi Link

802.11i

1

802.11u

2 3 4

Mobile “concierge” serviceMobile Service Advertisement Protocol

(MSAP)

NGH Technology Enablers

Authentication and Roaming Hotspot(Today)

NGH(HS2.0 Spec)

Network Discovery and Selection SSID 802.11u

L2 Authentication None 802.11x

Layer 2 Air Encryption None 802.11i

L3 Authentication WebAuthWISPr

EAP-SIM,AKA, TLS, TTLS

Hotspot Network Untrusted Trusted

IPR No Yes

Interoperable No Yes

2011 NGH Program Timeline

Guidelines for Wi-Fi Seamless

Authentication, Roaming and 3G/4G Data Offload

Next Generation Hotspot (NGH) Trial

Guidelines development

WFA MRD

Release

WFA Draft

Spec HS 2.0

Paris Round Table

Thailand Round

Table

Launch of the trial

Trial period

Demo on NGH

Fev 12

WBA Guidelines

for WiFi auth & data

offload

Guide lines Info

Pack

End of Phase 1

WBA NGH trial

recommen-dations

document

Recruiting guidelines participant

s

1st version of

guidelines

Terms of Reference approved

Jan 11 March 11

June 11 Nov 11

Terms of Reference approved

Oct 11

Trial Information Pack

Recruiting trial participantsEnd of

Phase 1

2011 NGH Program at WBA

WBANGH Program 2011

Best practices guide for operators

• Implement seamless authentication over Wi-Fi networks based on NGH

• Transition from legacy to NGH networks

• Implement 3G/4G data offload over NGH networks

• Use lessons from past WBA seamless authentication trials & the NGH Trial

End-to-end “Real-World” Wi-Fi roaming trial to

• Test & validate NGH

• Engage ecosystem including operators, equipment providers and roaming hub providers for end-to-end testing

• Provide detailed instructions for NGH based roaming lifecycle and feedback on the Wi-Fi Alliance specifications

NGH TrialNGH Operators Guide Joint Taskforce Cooperation Framework

Objectives:

• Make WiFi-WiFi roaming as easy and transparent as GSM

• Common technical implementation for 3GPP-WiFi interworking

• 3GPP-WiFi integration seamless and transparent to the customer

Objectives:

• Have a complementary focus and cooperation that maximizes the benefits of innovation for end users, manufacturers and service providers within the Wi-Fi industry

• Join effort to promote the benefits of WBA’s NGH program & Wi-Fi Alliance HS 2.0 program among the wide ecosystem associated with the Wi-Fi industryEnhancement to support NGH Roaming

Summary

• WiFi is now a core part of the smartphone user experience

• Operators are evaluating how to attract and retain customers through integration of WiFi in their service portfolios and networks

• Managed hotspots are the most viable starting point because of the ability to influence service quality and monetize usage

• The Next-Generation Hotspot Initiative makes an important contribution towards making WiFi a carrier-class technology

• Potential for WiFi to be considered a trusted access network on a par with 3G or LTE

Q & A Session

Please submit your questions!