1. www.tsiconnections.com Relentless Ingenuity Public WLAN Roaming

2. WLAN Roaming:

Public WLANs as Compliments to 3G Services

The WLAN Value Chain

Business Model Considerations

WLAN Roaming Summary and Challenges

3. Network Comparisons

3G networks

• Provide wide-area always-on coverage

• Modest-data-rate applications

• Data and voice share same spectrum which inhibits flat-rate data pricing

WLANs

• Yield the low network cost per kb for data-intensive applications

• Support flat-rate or time-based pricing for data services

4. Network Comparisons ROI declines across service profiles as colors change from green to red Service Profile SMS WAP Voice Emailw/o Attach. Mobile Professional Mobile Service Worker Full Desktop Equivalent Network Cost $ $$$ 2G 3G WLAN 5. 3G and WLANs: Complimentary Technologies

Market studies indicate that user demand for high-speed Internet/Intranet applications is greatest in quasi-stationary environments

Data roaming combines 2.5/3G technologies for wide-area, low-data-rate coverage with WLAN access for localized high-data-rate coverage

Consideration of the WLAN value chain identifies challenges to sustainable business models for integrated wireless data services

6. Value Chain Participants: Cellular Roaming

Wide-area cellular networks dont require property access agreements

Mature business models, well developed data exchange processes

Large numbers of transactions

Little need for aggregator services

Visited Operator Visited Operator Visited Operator Clearinghouse Home Operator 7. Value Chain Participants: WLAN Roaming

WLAN business models are immature and evolving

• many small operators, few transactions compared to cellular voice services

Venues are strong participants in WLAN value chain

• many local property agreements required for WLAN coverage

• large venues may directly manage neutral host access

• venue revenue share complicates pricing strategies

WISPs and aggregators may offer branded service or unbranded wholesale access

Venue Venue Venue Local WISP (Optional) Clearinghouse or Aggregator (optional) Home Operator 8. Entities Participating Data Roaming Value Chain

WISP - provider of public wireless Internet services via operation of venue access points.

• example: Wayport, Spotnik, ANS, Cometa,

Aggregator provider of retail WLAN services through marketing and resale of WLAN access from multiple WISPs.

• example: Boingo, Airpath

Broker (or Aggregating Broker) provider of wholesale access to multiple WISPs via multilateral roaming and resale agreements.

• example: iPass, GRIC

Clearinghouse provider of AAA information flow and other services (e.g. billing mediation, financial settlement) between two or more service providers.

• example: TSI, Verisign/Illuminet

Mobile Operator - operators of mobile networks with data services.

• example: Verizon, SK Telecom, Telecom New Zealand

9. Business Model Considerations

The Neutral Host

• Airports and premier venues are leaning towards the Neutral Host business model

• • venue owns the WLAN network and offers access to all users via roaming, credit card, and/or prepaid access

• • venue contracts with neutral host manager for operations and marketing support services

• • roaming AAA functions and home-network billing is supported via relationship(s) with clearinghouse

• • maximizes revenue generation

• • for the venue owner

• • One-way Roaming

10. Business Model Considerations

Aggregators

• provide access to multiple-WISP hot spots

• • revenue model based on wholesale-retail markup

• • provides centralized AAA functions

• • client software provides uniform user experience

• • aggregator model appeals most to small WISPs or individual hot spots

• • Roaming agreements could be bi-lateral

Clearinghouses

• Provides AAA functions for inter-WISP and cross-bearer roaming

• • Revenue based on transaction fees for AAA, billing mediation, settlement

• • Do not negotiate wholesale access rates

• • Can support wide range of billing options:

• • AAA function supports proxy authentication to home database

• • manage complexities of multiple roaming agreements

11. Other Considerations

Customer Experience

• Smart Client

• • Flexible

• Range of alternative access available

• Customer Service

• • Inquiries

• • Problem Resolution

Management of Roaming Agreements

• Greater number of players

• • Wireless Operators

• • WISPs

• • Aggregators