Local Area Networks

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Special Topic: WiFi Roaming in the Middle EastWiFi Roaming in the Middle East

WiFi and Roaming: basic concepts.

WiFi Market Overview in the Middle-

East.

WiFi Roaming: an opportunity and a

need.

How to roam?

Turnkey WiFi Roaming Solutions.

Agenda

Wireless Fidelity

A technology to provide Wireless LAN service

Allows access to private networks and to the public Internet

Radio technology (2,4 - 5 GHz), based on IEEE 802.11 specs

High bandwidth (several MBit/sec) but low coverage (<300m)

What is WiFi?

Public Hotspot:A location equipped with a WiFi network for access

to the publicInternet.

Can either be free, or for a fee. Can be pre-paid or post-paid access fee.

Private Hotspot:A location equipped with a WiFi network for access

to a privatenetwork.

Home Hotspots. Company Hotspots.

What is Hotspot?

Hotspot

Provider A’s Hotspot in France

Gas station

Provider B’s Hotspot in the Lebanon

Coffee Shop

HotelProvider C’s Hotspot in Asia

The traveling end user wants to access the Internet through domestic and internationally based hotspots. But he has only an account with the blue provider B.

Roaming would allow this end user to access the Internet through his home account while using Hotspots not belonging to his home provider.

What is WiFi Roaming?

Operate Hotspots Don’t “own” end-customers Don’t bill end usersExamples:

Kubiwireless in Spain The Cloud in the UK

Don’t operate Hotspots Have a large customer base Bill the end usersExamples - Providers are typically:

ISP’s like T-Online, Wanadoo, etc Mobile Operators like Optimus, etc.

T-Mobile in Germany and the US, SFR in France, OTENet in Greece, Telefonica in Spain, etc.

Who are the Players of the Hotspot Market?

WISPs Providers

Both: WISPs + Providers

WiFi and Roaming: Basic Concepts.

WiFi Market Overview in the Middle-

East.

WiFi Roaming: An Opportunity and A

Need.

How to Roam?

Turnkey WiFi Roaming Solutions.

Agenda

*Source: Gartner Dataquest 2003

WiFi is experiencing significant growth, driven by cost and convenience factors.

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Nu

mb

er o

f P

WL

AN

loca

tio

ns

2002 2003 2004 2005 2006

Number of Public WiFi locations by region to 2006

Rest of World

North America

Asia Pacific

EMEA

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

$ m

illio

ns

2002 2003 2004 2005 2006

Revenues from Public WiFi services by region to 2006

Rest of World

North America

Asia Pacific

EMEA

Market Trends

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2003 2004 2005 2006 2007 2008

Pub

lic W

LAN

Rev

enue

s ($

m)

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100

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700

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Num

ber

of H

otsp

ots

PWLAN revenues ($ million) Number of PWLAN hotspots

Number of Hotspots in Middle EastGrowth in Public WLAN in the Middle East, 2003-2008

Drivers for WiFi rapidly growing deployment: Rapidly improving components (smaller, faster, cheaper) All new laptops are WiFi enabled (Centrino processors) Relatively low risk and low cost of deployment Source of differentiation b y offering an innovative VA service Mobility of workforce

In the Middle-East most WISP’s, Carriers, Mobile Operators and ISP’s are implementing WiFi strategies.

Market Trends

WiFi and Roaming: Basic Concepts.

WiFi Market Overview in the Middle-

East.

WiFi Roaming: An Opportunity and A

Need.

How to Roam?

Turnkey WiFi Roaming Solutions.

Agenda

You are a WISP

hotspot

At the hotel

At the airport

hotspot

You are a WISP, operating one or several hotspots.

Roaming

partner A

Roaming

partner B

Roaming

partner C

First Opportunity: Revenues through ‘In-Roaming’

How to Improve your Revenue? Allow Customers of various providers to use your Hotspots through WiFi Roaming agreements

You are a

Provider

WISP

hotspot hotspot

WISP

hotspot hotspot

WISP

hotspot hotspot

Second Opportunity: Revenues through ‘Out-Roaming’

You are a Provider, typically an ISP or Mobile Operator.How to Improve your Revenue and ARPU? Allow your Customers to use Hotspots of various WISPs through WiFi Roaming agreements

WiFi Roaming: A Need

Hotspot operators (WISP’s) need customers to use their Hotspots! ISP’s and Mobile Operators need Hotspots for their customers!

No one has WiFi a worldwide coverageThere is a need for international WiFi Roaming This is similar to the GSM Roaming concept.

Most countries are not monopolistic for WiFiThere is also a need for in-country WiFi RoamingThis is different from GSM Roaming concept.

WiFi and Roaming: Basic Concepts.

WiFi Market Overview in the Middle-

East.

WiFi Roaming: An Opportunity and A

Need.

How to Roam?

Turnkey WiFi Roaming Solutions.

Agenda

100 players means nearly 5000

connections !WIS

P

WISP

WISP

WISP

Mobile

Mobile

Mobile

ISP

ISP

ISP

ISP

How to Roam: First PossibilityNegotiate Multiple Bilateral Agreements for Roaming

Clearing-House solution

WISP

WISP

WISP

WISP

Mobile

Mobile

Mobile

ISP

ISP

ISP

ISP

How to Roam: Second PossibilityUse a Single Clearing-House for Multiple Roaming Possibilities

How to Roam: What Strategy?

Clearing-House Solutions for WiFi Roaming are used to reach many players (WISPs and/or Providers) through one agreement.

Easy and cheap! Only one agreement is necessary, and the solutions on the market provide billing, clearing, etc.

Bilateral WiFi agreements for WiFi roaming are in general used for strategic partnerships.

For example large European Mobile operators are signing bilateral agreements for WiFi Roaming.

WiFi and Roaming: Basic Concepts.

WiFi Market Overview in the Middle-

East.

WiFi Roaming: An Opportunity and A

Need.

How to Roam?

Turnkey WiFi Roaming Solutions.

Agenda

WiFi Roaming Solutions on the Market

Airpath Boingo GRIC iPass Picopoint WeRoam

…and many others…

T-O

nlin

e

T-M

ob

ile

T-C

om

Deutsche Telekom

T-S

yst

em

s

Fixed N

etw

ork

A

ccess

Inte

rnet

Serv

ice

Pro

vid

er

Mobile

C

om

munic

ati

ons

IT &

TC

solu

tions

(ITC

)

The divisions of Deutsche Telekom Four-division Strategy

T-Systems’ WiFi Roaming SolutionBenefits

Potentially millions of additional end customers, but through only one connection, one contract, one bill. Great value added service to differentiate form competition. No initial investment in most cases, no monthly fee. Strong R & D resources: customized solutions available Additional revenues.

And the guarantee of a stable and a long lasting partner.

Benefits for WISPs, ISPs and Mobile Operators

Benefits for End-Users:

Easy, fast and highly secure access worldwide. Usage of home provider Login and Password. Post-paid invoicing by the home provider.

T-Systems‘ WiFi Roaming SolutionFootprintWe Target by end 2004:

WISP: over 10 000 Hotspots. ISP’s and Mobile Operators: over 100 million users.

Current Partners of T-Systems’ Roaming Platform:

Providers: T-Mobile, T-Online, Eplus, DNA, etc. WISP: T-Mobile, Berlinet, Viewquest, Airnix, Frankfurt Airport, etc.

…and we are in contact with most of the players in the Middle East.

We also focus on strategic presence: Events: Eurocup in Portugal, Olympics in Athens, etc. Locations: Airports, Hotels, Congress centers, etc.

…and we are CBB’s first partner you can surf while flying!!

WiFi Roaming

Back-up slides

T-systems

Buys from WISPs access to their hotspots

Sells to ISPs and Mobile Operators, access to WISP hotspots

Buying and Selling of Online Minutes.

WLAN Roaming Platform

Selling ofWLAN

Minutes

Buying ofWLAN

Minutes

Provider

Provider

Provider

WISP

WISP

hotspot

hotspot

hotspot

hotspot

Authentication: Information Flow.

WISP

Provider2

Hotspot

AccessCube

Access Points

User Lapto

p

1

3

WLAN Roaming Platform

1

2

3

Legend

WLAN AuthenticationWLAN Authorization

Internet

Internet Traffic

Billing: Financial flows.

Money flow

WLAN Roaming-Platform

Provider

e.g. GSM carrier

e.g. ISPs

Legal relationship

WISP

Clearing-House pays WISP their share

€/$

€/$

End-user pays his provider/carrier

€/$

Appendix: Wireless LANs

Wireless LAN networks, including 802.11 or Wi-Fi, are growing quickly for home and office applications

Unregulated frequency bands - Quality of Service not guaranteed, but speed, low cost, and ease of implementation are compelling

Very suitable for local data transmission and access outside operator networks - e.g. company internal solutions or home installations

Being endowed with roaming capabilities and voice enabled devices to compete directly with carrier-owned networks

Wi-Fi

Wireless Fidelity (Wi-Fi) IEEE 802.11b 50m range approximately Data rates vary

– 11 - 56 Mb/s in theory Higher with some proprietary extensions

– 7 Mb/s is more realistic Walls can reduces range and throughput Number of users can reduce data rates

WLANs are specified by IEEE 802.11 standards: 802.11a: 5.8 GHz OFDM technology supporting typical ranges of 100m and 54 Mbps data rates. 802.11b: 2.4 GHz DSSS technology supporting typical ranges of 100m and 11 Mbps data rates. 802.11g: 2.4 GHz OFDM & DSSS technology supporting typical ranges of 100m and 54 Mbps data

rates.

802.11i: MAC layer security using AES, 802.1x, and SHA…Expected draft for 2004 802.11e: QoS features in the air interface…Expected draft for 2004 802.11f: Inter Access Point Protocol (IAPP) for seamless interoperable roaming…Expected draft for

2005

RF &

MAC

Layer

MAC

Layer

Features

• All 802.11 standards can be used for Point-to-Point or Point-to-Multi-Point configurations

WLAN Overview

Wi-Fi Problems

Security– Wi-Fi was not designed with robust security in mind

Interference– operates in unlicensed 2.4 GHz spectrum– competes with other products e.g microwave ovens!

Scarcity of “hotspots”

Bluetooth

1998 Goal: eliminate the need for cables Short range - 10m data rate - 1 Mb/s Example of an ad-hoc network

– network formed on an “as-needed” basis

Bluetooth Topology

Piconet– Two or more Bluetooth devices– One master

regulates traffic between devices– Remainder termed slaves

Scatternet– Two or more piconets

Note that a device can be a member of more than one piconet at a given time.