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WHITEPAPER




Wi-Fi DATA OFFLOADING,
IMPACTS ON CAPEX AND OPEX


                   www.greenpacket.com
WHITEPAPER


Abstract

Continued aggressive growth in data traffic fuelled by increase in
smartphones, video and application usage has created an urgent need for
faster and efficient networks. Figuring an approach to make systems
extensible and scalable is important to the success of effective data offload
strategies that bridge the gaps of disparate systems.

This paper will describe the Wi-Fi offload approach from the perspective of
modeling the traffic model, impacts on the CAPEX and OPEX costs within
network infrastructure, managing and integrating multiple access
technologies. We examine the offload trend amongst Wi-Fi and small cells
landscape of femtocells. The emerging trends in key geographical regions,
supporting technologies, infrastructure requirements and product portfolio
are discussed. Rapid proliferation of smartphones and the popularity of
value added services have increased the data traffic significantly. As the
penetration of smartphone devices ranging from entry level to mid-level and
high-end market increases further, new opportunities exist for carriers to
further monetize advanced Wi-Fi services to overcome the threat of over
the top applications eroding their market share.
WHITEPAPER


Contents

Overview                                                   01


Mobile Me, Creating a Compelling Experience                02

Hybrid Mobile Devices

Optimized Experience


Building a Successful Offload Strategy                     05

Data Offload Study
• Designing Offload

Trade-Off between Macro Cell Densification and Wi-Fi
• Wi-Fi Offload Simplified
• Wi-Fi Offload Observations


Wi-Fi or Femto                                             11

Scalability

Standardization

Subscriber Management – Policy Meets Revenue Opportunity


Greenpacket Mobile Data Offload Solution                   14

Seamless Data Offload

Dynamic Data Offload

Wi-Fi Experience Management


Conclusion                                                 17


Wi-Fi Now, Maximize Investments                            19


References                                                 20
WHITEPAPER                                                                                       Overview - 01




Overview

The explosion of data traffic was not an overnight phenomenon.
Wi-Fi entered the wireless scene much earlier in the early 2000’s, but was
deemed too niche in the initial stage. The detractors saw Wi-Fi as a poor
cousin to cellular technology that had strict security and QoS
measurements necessary to deliver voice centric services at that time.
Fast forward to 2010, the telecoms landscape has evolved and
transformed into a 2nd generation of end-users that demand more than
voice services. The take-off of HSPA between the years 2006-2008 was a
turning point in the adoption of data-centric services. The impact of mobile
data hit hard on mobile operators, when AT&T launched the iPhone in
2007. Undoubtedly, the signing of higher revenue customers that used
smartphones was welcomed. However, the network was embroiled in
apologetic customer relations in the aftermath of frustrated customers for
dropped calls, spotty services, delayed text and voice messages and drastic
download speeds in densely populated areas.


There were up to 4121 HSPA networks globally deployed, responding to the
mobile broadband explosion. The once dominant voice and SMS services
were then reduced to the basic fundamental services that an operator
provides, with little excitement, as the price competition drove down even
further the revenues. It was the plethora of web 2.0 applications that were
engaging, new and interesting which kept the end-users excited and thus
operators are finding it hard to keep up their bandwidth.


Despite the efforts of AT&T to fix the network inefficiencies, and doubling
capacity, it did not stop customer’s backlash and switch to a rival carrier.
Smart devices like iPhones, iPads and tablets can be disruptive, if the
operator cannot handle the traffic that is generated. In order to mitigate the
negative sentiments that impacted growth rates, reduction of high revenue
customers and loss of brand value; AT&T embarked on improving its
service delivery with alternative data offload approach and communicate
those investments by deploying over 29,000 Wi-Fi hotspot to allow its
customers to access its services complementary to the cellular network.


                                                                                1Source : Informa Telecoms & HSPA+
                                                                                         Media, 4G Americas
                                                                                         – Aug 2011
WHITEPAPER                                           Mobile Me, Creating a Compelling Experience - 02
                                                                                  Where is Wi-Fi




Mobile Me,
Creating a Compelling Experience
Anytime and anywhere connectivity is important in today’s lifestyle and thus
resulting in the pressure for operators struggling to maintain network
efficiency and rapid service delivery. The simplifying of user interface like the
iPad is so intuitive. It may not necessarily be the most technologically
advanced device, but ranks high on usability scale. These devices have
made accessing Internet, applications and so forth pervasive. The key to
keeping customers happy is to delight them. Increasingly, operators
worldwide are recognizing the importance of building good customer
relationships. The customer experience extends beyond getting the
customers on-board. The ultimate goal is to create excellent mobile
performance, brand and better communicate with their smartphone and
tablet-savvy customer base by getting closer to; when and how to connect,
offering loyalty programs like rewards, or some other end goal to activate a
marketing ad and spend time with the operators’ brand. So that it will give
them a good reason to do it the first time and then a great experience so
they’ll do it again and again.




Hybrid Mobile Devices
The connected world now is dominated by smartphones and media
tablets. Worldwide PC shipments totaled 84.32 million units in the first
quarter of 2011, a 1.1 percent decline from the first quarter of 2010 and
showing signs of slowdown. Low prices for consumer PCs, which had long
stimulated growth, no longer attracted buyers. Instead, consumers turned
their attention to media tablets and other consumer electronics. The overall
connected device market will grow at more than 40% CAGR3 through 2014
and 50% from 2015-2020. The smart devices that enter the market are
becoming more diverse in terms of functionality, platform support and
usability. Android based devices have the potential to drive down price
points, with lower, mid and higher range models to hit different markets.          2Source : Gartner April 2011
                                                                                             “Market Share: Preliminary
                                                                                             PC Shipment Estimates by
                                                                                             Region, 1Q11 Update”

                                                                                   3Source : Gartner “The M2M Market
                                                                                             Evolution: Growth Attracts
                                                                                             Everyone”
WHITEPAPER                                                Mobile Me, Creating a Compelling Experience - 01
                                                                                            Overview 03



Hybrid type devices will dominate in coming years, as more multi
development and delivery allow applications and content developers to
extend their reach over open APIs to be included into devices. In terms of
the multi-touch interfaces, it will have even greater sensitivity and
processing ability to run faster and more intensive through HTML 5 support.
These new generations of smart devices will become a component of other
end products and systems. For example, the iPad is now already used
popularly in conjunction with PoS terminal for providing inventory, billing and
ordering systems.




Figure 1 : Hybrid Smart Devices



Million of Units

1,200

1,000

  800
                                                                                           775.79
  600                                                                             677.18
                                                                   561.42
  400
                                                   458.01
              270.93              362.45
  200                                                                                      318.32
                                                                                  235.69
               17.61                               114.58          169.73
                                  69.08
     0
               2010               2011              2012            2013           2014     2015

                                          Media Tablets                    Smartphone

Figure 2 : Forecast shipment of media tablets and smartphones 2010-2015
Source : Gartner
WHITEPAPER                                           Mobile Me, Creating a Compelling Experience - 02
                                                                                  Where is Wi-Fi 04




Optimized Experience
Consumer behaviors are driven in part by the usability and simplicity of the
device to bring out the experience. Similarly, operating systems and
platforms are a blend of functional utilities. Optimization of the applications
and development tools are changing compression techniques from settings
that were impractical or that were restricted in traditional approaches into
optimized support. This largely, helped reinvent the approach to deliver the
web-centered approach surrounding application and media consumption.
The convergence of IT and the cascading effect on the consumer
electronics industries has had a shift in IT innovation from large businesses
direct to the consumer. Likewise, many mobile application priorities are
being re-invented for various areas. CIOs and CTOs of organizations are
recognizing the commercial benefits of combining the powerful delivery
mechanism of Wi-Fi with mobile applications, of which include connectivity,
mobility of B2C or B2B2C that cuts across consumers and enterprise
models, context-aware ability and M2M collaboration.
WHITEPAPER                                                    Building a Successful Offload Strategy - 02
                                                                                     Where is Wi-Fi 05




Building a Successful Offload
Strategy
The success of mobile data take-off was a victim of its own, eventually
driving data exponentially and leaving the operators in vain to combat its
ailing performance. With smarter pricing strategies in place, Wi-Fi has
served well to offload some of these highly targeted dense data needs.
The main inhibitor of successful Wi-Fi deployments can be attributed to the
ambiguity of service quality and long term returns, whether Wi-Fi will still be
relevant in the LTE space. Many operators with legacy 3GPP systems and
architecture will naturally evolve to LTE-based architecture for the same
reasons of perceived easier integration towards flat IP, consolidating
charging, billing and mediation mechanism, and converged EPC to carry
out core network control. Can Wi-Fi find a space in this environment? There
are mixed reviews, but the response from Tier 1 operators are positive by
complementing the power of macro cellular network with the widely popular
Wi-Fi hotspots that are widely accessible, mainly due to zero-licensing and
high burst data capacity.




Data Offload Study
Competitive pressure and the need for cost savings are determinants of a
successful Wi-Fi strategy. Below are a few questions that entail the
challenges faced by operators.


• Where and when should data-optimized architecture be deployed?
• How to maximize the use of existing infrastructure and benefit from it?
• How would Wi-Fi support and complement macro cell and/or femtocells
   and manage multiple access architecture types?
• What is the most cost-effective backhaul architecture?
• When does Wi-Fi offloading approach become more attractive to macro
   RAN densification?


It is commonly acknowledged in the industry, Wi-Fi and femtocells provide
for good indoor coverage. However, it is still arguable, whether Wi-Fi or
femtocells should be used purely for data offload purposes. In indoor
coverage, the Wi-Fi proposition brings benefit to both the carrier and the
subscriber since the macro cellular performance is limited by the
WHITEPAPER                                                     Building a Successful OffloadOverview - 01
                                                                                            Strategy 06



penetration losses. In the offload case, it primarily benefits the carrier,
although the subscriber’s data experience becomes more compelling
because of the higher data speeds. Both Wi-Fi and femtocells approach
can help offload indoor traffic. The early focus of Wi-Fi indoor offload has
been based on user deployed, self-managed Wi-Fi. However, there is an
alternative approach that integrates indoor unlicensed radios into an
end-to-end carrier Wi-Fi architecture which is gaining popularity with the
near ubiquitous availability of Wi-Fi in smartphone devices.



Designing Offload

Traffic Model
The busy hour traffic parameter is used to measure the occurrence of heavy
traffic, at a given point of time. The shift of busy hour traffic shows a greater
tendency to be present during late evenings, at home and primarily utilized
indoors over data intensive applications such as video streaming on
smartphones and tablets. Not forgetting, the spike of busy hour also
applies during the day where users are “on-the-go” between workplaces
during mid-day. The busy hour is a key indication of network utilization that
drives carrier cost and determines when to invest in new RAN capacity
upgrade. Typically, when the busy hour threshold is exceeded, the carrier
will add more carriers (multi-carrier) or introduce cell splitting and thus
contributing towards the total cost of ownership; where every byte of data
offloaded via Wi-Fi during the busy hour will have a direct impact on the
reduction of macro network CAPEX and OPEX costs.


Capacity Model
A typical macro cell in an urban area can have hundreds of concurrent
users (depending on varying averages of Mbps/user for a given point in
time) and cell capacity is shared. If one subscriber does not use the
capacity, the underlying cost of operating the capacity can be allocated to
the other subscribers that are actually using it. For example, a 3G carrier
can deliver average throughput per cell of 14.4Mbps. Under non-busy hour
condition, the node B can support up to 14 subscribers at the average
1Mbps per user. Given that busy hour traffic reaches 70% utilization,
the number of active subscribers supported per node B drops to halve.
As more concurrent subscribers consume more capacity, it gets more
expensive for the carrier to provide the extra capacity requirements to all the
users at the same time.
WHITEPAPER                                                    Building a Successful Offload Strategy - 02
                                                                                     Where is Wi-Fi 07



For a given Wi-Fi cell, the average cell throughput is 11Mbps4. With greater
channel bandwidth of 22MHz and 3 non-overlapping channels, Wi-Fi
achievable throughput can reach up to 33Mbps. The subscribers
supported per Wi-Fi cell is approximately 20 given the same busy hour
utilization. The cost to service the increased capacity demand remains
roughly the same throughout for Wi-Fi since the device cost is already fixed
regardless of whether the subscriber uses it or not and, most often
purchased by the subscriber. In addition, Wi-Fi uses unlicensed spectrum.


Network Cost
The network cost model is useful to estimate the CAPEX and OPEX of a
carrier’s macro cell case by considering capacity estimate like the radio
access base stations, RNC, core network (SGSN and GGSN) and
backhaul. In effect, the total cost per Mbps capacity is the sum of CAPEX
and OPEX for each of the network elements over the busy hour usage.
Given that the cost model considers CAPEX elements are amortized
between 8 to 10 years, depending on the equipment type while Wi-Fi
access points are amortized over a shorter lifecycle of 2-3 years.
For simplicity of study, carrier Wi-Fi implementation is integrated and
therefore CAPEX already accounts for access gateways, security gateways
and aggregation gateways.


The OPEX element includes site rental, power, site maintenance, leasing of
backhaul and data centers applicable to macro cell and to a lesser extent
on Wi-Fi deployment. Other macro network cost elements include
spectrum and cell site leasing of up to 20 years or more. Wi-Fi assumes the
access points are in the range of $60-$150, without site leasing and power
is provided by subscriber and backhaul via the Internet Service Provider
which is more appealing.


When the output of the cost comparison is plotted between macro cell and
Wi-Fi relative to the different user types of bronze, silver and gold, it will
arrive at a point where the clarity of which technologies are better suited to
different traffic demands.




                                                                                 4Source : Assumes the IEEE 802.11a
                                                                                          standard
WHITEPAPER                                                       Building a Successful Offload Strategy - 08




Trade-Off between Macro Cell
Densification and Wi-Fi
In order to quantify the amount of traffic that is traversing over Wi-Fi
networks, carriers use various methods to analyze the traffic usage patterns
of its mobile network and sets a baseline to benchmark additional capacity;
when and how it could be mitigated either by macro sites or Wi-Fi offload.



Wi-Fi Offload Simplified

The coverage percentage of geographical area and density of access point
per square kilometer deployment is critical in the selection criteria of Wi-Fi
offload. The design of coverage and access point density depends on the
density of subscribers and their assumed data consumption. Consumption
models can be profiled to three types for simplicity of study; bronze user
with 0.5MB/month, silver user with 1.5GB/month and gold user with
5GB/month.


Assuming a HSDPA network at 2100 MHz spectrum, typical single carrier
and transmit power of 40W+- for urban deployments5. Based on the
network parameters and planning computations, the capacity for a single
sector HSDPA macro base station is estimated to be 3.6 Mbps and
assumes 70% busy hour utilization. Typically, carriers dimension the
capacity model with an overbooking of 20-30% for busy hour. If the carrier
can no longer sustain with single-carrier, three-sector cell site, it will need to
add a second carrier for additional capacity as required. Also, the carrier
has to consider the trade-off of installing additional capacity with the
incremental cost of installing that particular capacity. Meanwhile, a carrier
Wi-Fi offload would entail the fundamental cost of the access points with
minimal installation costs and zero unlicensed spectrum costs.
Other associated cost of backhaul and core network is assumed integrated
as part of the carrier Wi-Fi and can be adjusted depending on the vendor.
A separate whitepaper, titled “Operators Can Save $14million Yearly
Through Data Offloading” describes the breakdown of CAPEX and OPEX
costs for further reading.


                                                                                     5Note : Penetration loss of industry
                                                                                             practice of 15dBi is assumed.
WHITEPAPER                                                       Building a Successful Offload Strategy - 09



 Wi-Fi Offload Observations

                                   Trade-off point for Wi-Fi and HSPA capacity density

                                                                                         Add HSPA
                                                                                         cell site
                                                                      Add 2nd HSPA
                                                                      carrier
Cost to Deliver




                                                                                                       Coverage
                       Add Wi-Fi                            Busy hour
                                                            threshold




                          HSPA




                   Bronze User                         Silver User                        Gold User
                  0.5MB / month                       1.5MB / month                      5GB / month

 Figure 3 : Trade-off Study of Wi-Fi and HSPA RAN Densification



 From a cost perspective, Wi-Fi is much more cost effective on a dollar
 per Mbps basis than the macro cell. The conventional macro cell
 densification increases capacity by packing more cells within the same
 area. This approach can be effective, but suffers from diminishing returns
 as traffic grows. High-traffic areas in urban centers prove to be
 challenging, where deploying and operating a cell site is more expensive
 as site leasing can be difficult to secure. And as the density of macro cells
 increases, interference become more difficult to manage, with per-sector
 throughput declining as a result. A single sector in a macro cell can have
 a comparable capacity to a Wi-Fi access point, but coverage is greater,
 resulting in lower capacity density. Wi-Fi on the other hand, is limited by
 range and the impact of interference is reduced while capacity density is
 increased.
WHITEPAPER                                                    Building a Successful Offload Strategy - 10



Given the study of capacity in busy hour, there is little impact on the cost to
deliver data to the bronze users, as the demand for capacity is far below the
busy hour threshold shown in Figure 3. The intersecting point where the
macro cell and Wi-Fi begin to show distinct cost savings advantage is clear,
when the busy hour capacity is reached. This effect is more obvious, when
a large number of silver and gold users are introduced into the network.
These are the premium users which carry a higher degree of service level.
The areas of device subsidies and depreciation of assets whether minimal
or otherwise can influence the decision for macro cell densification or Wi-Fi
offloading strategy. Other long term OPEX6 costs such as maintenance, site
leasing and carrier-upgrade can draw the differential cost. The key to
delivering a cost-effective mobile broadband service is to understand when
the trade-off becomes more attractive for an operator to deploy Wi-Fi
offload solution over densification of macro RAN capacity, as well as the
differences between licensed and unlicensed Wi-Fi offload solutions.




                                                                                  6Note : The Internet point of presence
                                                                                         and Internet backbone and
                                                                                         international fiber connectivity
                                                                                         is not considered in this
                                                                                         discussion.
WHITEPAPER                                                                                 Wi-Fi or Femto - 11




Wi-Fi or Femto

Which is the best fit for offload? It does not have an absolute approach,
as demonstrated by various carriers. The issue of data offloading must be
assessed from the aspects of suitability, readiness, integration of existing
infrastructure, cost effectiveness, pain points and a host of indirect costs
related to customer expectations, loyalty and brand awareness.


As mobile data congestion become greater, carriers are using all tools
including tiers and caps to survive the low yield data revenues through
bandwidth management. The on-going challenge is not without mixed
results. According to Informa Telecoms and Media market report, there are
more than 2.3 million femtocells deployments in 2011, which is small and
relatively weak in comparison to the 1.3 billion Wi-Fi hotspots globally.
Although femtocells provide benefits to the user in terms of “full bar”
coverage and higher mobile capacity, it typically is dependent on a fixed line
to backhaul. The key advantage for users is it supports existing 3G terminal,
but technical aspects add to the challenges of spectrum, as femtocells are
deployed over the same licensed spectrum of macro networks and can
potentially cause interference.


Wi-Fi on the other hand, specifically addresses the issue of data traffic
offload that represents carriers’ immediate challenge, and highly suited for
indoor coverage. Wi-Fi can be a complementary proposition for mobilizing
broadband. It can help manage cost by offloading traffic, while offering
a cost-effective high-bandwidth service at home as well as in many
heavily-used public locations such as airports, stadiums, cafes, hotels and
so forth. Given the installed base, it is likely that security, voice services
over Wi-Fi, and seamless handover will be added to Wi-Fi to strengthen (all
of these being efforts that are already addressed in some way or another)
offload strategies alongside femtocells. Several key issues that will emerge
from the success of the network are scalability and manageability.
                                                                                 7Note :   The congestion described in
Ultimately, carriers want to create a unique mobile experience that is fluid                this literature exclude the
between Wi-Fi and 3GPP networks.                                                           study of wireless or fiber
                                                                                           backhaul connectivity.
                                                                                 8Source : WBA Industry Report 2011 –
                                                                                           Informa Telecoms and Media
                                                                                 9Note :   Backhaul enhancements
                                                                                           study is not included in
                                                                                           this publication.
WHITEPAPER                                                                                   Wi-Fi or Femto - 12




                                    What will be the impact of Wi-Fi offload
                                    on revenues or subscriber experience?

                      100%
                                14%
                                                                    30%
                      80%       14%
Response Percentage




                                                                                                50%
                                                                    10%
                      60%
                                43%                                 20%
                                                                                                13%
                      40%


                      20%                                           40%                         38%
                                29%

                       0%
                               APAC                             Europe                    North America

                             High Positive Impact               Low Positive Impact            No Impact

                             Low Negative Impact                High Negative Impact

   Figure 4 : Wi-Fi Offload Impact on Subscriber Experience Survey
   Source : Senza Fili




   Scalability
   Wi-Fi has demonstrated its ability to provide cost effectiveness in terms of
   the cost per byte deployment. China Mobile, having one of the biggest
   subscriber base in the world, has big ambitions to deploy up to 1million10
   hotspots by 2014 in its commitment to bring ubiquitous mobile services.
   Similarly, the device chain support has reached a maturity level that
   provides for improvement to support specifications of EAP-SIM and drive
   down the cost by large volumes to make Wi-Fi a de-facto capability. For
   most parts, smartphones are designed ideally for Wi-Fi offload.



                                                                                       10Source : WBA Industry Report 2011
                                                                                                 – Informa Telecoms
                                                                                                 and Media
WHITEPAPER                                                                      Wi-Fi or Femto - 13




Standardization
The need for a unified framework to standardize authentication, security,
roaming and inter-working between disparate access networks is
necessary. The Wi-Fi ecosystem is maturing and it is anticipated, their role
in bringing economies of scale by supplanting ubiquity. Data roaming prices
are unattractive for the mass market, and as a result, customers tend to
resist by switching off data roaming and relying on Wi-Fi. In the recent 2012
Mobile World Congress (MWC) in Barcelona, talks of carrier Wi-Fi was
featured heavily among the industry carriers and analysts. With strong
commitments from Wireless Broadband Alliance through the Next
Generation Hotspot program and Wi-Alliance Hotspot 2.0 initiative
encouraging trials amongst operators, the progressive development of
Wi-Fi will see acceleration of co-operation to a wider ecosystem.




Subscriber Management –
Policy Meets Revenue Opportunity
Carriers are seeing the importance of context-awareness to drive better
understanding of user behavior – by combining the traffic management
algorithms and tools behind backend data processing. Real-time policy
control is evolving to pass intelligence from the core network to the network
edge, i.e. to bring device state awareness closer to the type of running
applications. By doing so, carriers can push personalized services to the
users and at the same time delivering the most optimum Wi-Fi operational
capacity. Building intelligence into the system is central to Wi-Fi user
experience. The general view is accepted that a carefully designed Wi-Fi
deployment with granular subscriber management gives more mileage to
extended revenue, as users are willing to pay for service, if the perceived
performance is heightened. Based on a survey by Senza Fili Consulting,
the impact of Wi-Fi offload to subscriber revenue and user experience as
shown in Figure 4 are generally positive.
WHITEPAPER                                                   Greenpacket Mobile Data Offload Solution - 14




Greenpacket Mobile
Data Offload Solution

Seamless Data Offload

Greenpacket’s Intouch Seamless Data Offload is a client-based solution
that aims to deliver a simplified and cost-effective offload method across
multiple access networks. It is based on the Data Offload Platform.
The Intouch Seamless Data Offload client can transparently offload
3G~Wi-Fi and continue to push operator services and manage data traffic
effectively. Seamless Data Offload, through Inter-working WLAN (iWLAN)
takes traffic from the mobile operator’s radio access over Wi-Fi by
tunneling through the PDG at the operator’s core network. This fits with
mobile operators’ need to monetize services through the personalization
of services and the application of policy management; something which
can’t be said of other Wi-Fi offload approaches in the market today.


                                                                                           Extend 3GPP services
                                                                                           and functionality to the
                                          • Mobile IP                                      WLAN access
                                                                                           environment


                                                                                           Security for Wi-Fi the
                            3rd Party HA
                                                                                           same as security
                                                                                           for 3G networks
                                      IPSEC Secured Tunnel
                Cellular                                                     WLAN


    3rd Party PDG                                                                          Better Wi-Fi
                                                                                           experience
                                                                IP Traffic

                                                                                           Common
                                                                                           authentication
                                                                                           architecture between
                                                                                           Wi-Fi~3G
                           Intouch Seamless Data Offload Client
                           • 3GPP-WLAN Interworking
                           • Seamless Authentication
                           • Consolidated Charging
                           • Unified Services Access

Figure 5 : Intouch Seamless Data Offload
WHITEPAPER                                              Greenpacket Mobile Data Offload Solution - 15




Dynamic Data Offload

Operators are increasingly looking at using Wi-Fi for offload as part of their
mobile broadband strategies. However, it risks losing visibility over traffic
policies that were configured for the user once it routes through Wi-Fi.
What is lacking is a way for the network to communicate to users
(applications and/or websites they are using) a real-time or predicted
measure of the network’s congestion levels. Greenpacket’s Dynamic Data
Offload client is compliant to the defined 3GPP Access Network and
Discovery and Selection Function (ANDSF), to enable dynamic network
selection and switching based on various contextual ability such as cell
location, device, peak hours and subscription plan. Operators can also
opt to customize these policies based on application aware policy,
device policy, subscriber policy and time-based policy to trigger data offload.


Manage Data Offload Policies in Real Time

                                                                                         Real Time, Precise
                                                                                         and Dynamic Offloading
                         Policy
                                              Policy                                     Decisions
                      Enforcement
                                             Enforcer
                         Point
                                                                                         Less Load on
                                    SOAP                                                 Packet Core



                                                                                         High Level of
                                                                                         Control to Operators
                                                                                         to Manage Congestion
Intouch Dynamic Data Offload Client               Operator PCRF/
(Compliant to ANDSF)                              3rd Party Policy Control
• Device Information                              • Congestion Information               High Quality Experience
• Usage Information                               • Subscriber Profiles                  to the Subscriber
• Environment Information                         • Usage Information …


  1. Get Policy                              2. Receive Policy                   3. Apply Policy
  Send Location Information                  No Policy/Prioritized Access/       APPLY and OVERRIDE
  (UE Location)                              Validity Areas/Time of Day/         DEVICE POLICY
                                             Discovery Information

Figure 6 : Intouch Dynamic Data Offload
WHITEPAPER                                           Greenpacket Mobile Data Offload Solution - 16




Wi-Fi Experience Management

The Intouch Connectivity Experience for Wi-Fi is based on the
Connectivity Experience Platform suite of solutions, specific to managing
the Wi-Fi experience. It is designed as an intelligent client that can
automatically detect and switch to Operator hotspot, user-defined
hotspot or partner hotspot. The client also supports various connection
policies that allow time-based restrictions and device restrictions.
User experience is made simple and transparent by giving control; when,
how and which Wi-Fi hotspot to access without manual selection of Wi-Fi
SSIDs and configuration. The client supports various authentication
methods such as WISPr, Hotspot 2.0, Next Generation Hotspots (NGH)
as well as secured authentication protocol such as EAP-SIM, EAP-AKA,
EAP-TLS, EAP-TTLS on 802.1X networks and thus provides a Wi-Fi
environment in which subscribers can roam automatically with fully
integrated authentication and a standard based approach with minimal
change to existing networks. With advanced Wi-Fi management,
the client can be extended to support advanced features of iWLAN and
ANDSF for operators considering the implementation of 3G~Wi-Fi offloading.
WHITEPAPER                                                                                      Conclusion - 17




Conclusion

The motivation of Wi-Fi offloading is varied and dependent on the use cases
of the carrier’s mobile strategy. One factor that ranks high amongst the
C-level execs would be the return on investment for every dollar that is
spent. Carriers today are faced with a challenging task to protect their
ARPU and battle the changing behavior of tech-savvy users. The appetite
for YouTube, Netflix, Hulu skyrocketed, at the expense of the traditional
carrier’s dumb pipes. The popularization of those platforms is not difficult to
understand given its free-mium value while the carriers were struggling with
licensing rights on their mobile TV offering and expensive charges passed
down to the end-users. Carrier’s now have embarked on a task to bring
value back to their subscribers.


There can be debates on how to achieve greater degree of control
surrounding issues of data offload such as when, how and which should be
the right network at the right location and right time. Wi-Fi offload
approaches should ideally give operators the flexibility to route offload traffic
back to their core network as well as directly to the Internet; Wi-Fi offload
via iWLAN promises greater visibility and management control as part of the
offload process. With many context-aware policy control and charging
solutions in the market today, carriers can integrate Wi-Fi offload through a
closer understanding of the underlying triggers of when, how, where and
what drives data usage. Contextual experience brings together - mobile,
social networks, location, payment and commerce that affects the user
experience in a more meaningful and relevant state of engagement. As in
Greenpacket’s    Wi-Fi   solutions,   the   device   client   supports   both
3GPP-based iWLAN and ANDSF specifications.


Ideally, every byte of data offloaded should have a positive impact on the
ROI. The parameters that carriers pay great attention is the costs relevant
to coverage area percentage and capacity to capture the maximum offload
traffic over a given period. The TCO11 consists of varying CAPEX and OPEX
components with dependency of achieving coverage by the density of
access points per square kilometer versus the maximum achievable
savings. The end goal is the direct result of reduction in additional macro
cell by the placement of corresponding access point density over the same
                                                                                 11Note : Total Cost of Ownership (TCO)
coverage area percentage. However, if the difference in TCO of Wi-Fi                     distribution is approximately
offload savings falls short of macro cell densification, the business case for             30% CAPEX : 70% OPEX in
                                                                                         general industry estimation
offloading will become less useful.
WHITEPAPER                                                                     Conclusion - 18



Additionally, it needs to ensure compatibility and interoperability between
the disparate systems. Roaming is a highly desirable feature for Wi-Fi. With
cellular networks, data roaming charges are unattractive. To prevent
bill-shock and disgruntled service experience, carriers have begun to
implement notification and alerts, so that customers can disable data
roaming. Data roaming, when dealt with the correct approach, can add
value to the subscribers, i.e. making Wi-Fi accessible through roaming
partner by offering discounted services proposition which are more
competitive. Bundling of roaming services with voice, messaging and data
services is a good alternative to keep the customers happy. As a result, the
cost of roaming for the end-user is reduced and they continue to receive the
same level of services they are used to without the frustration. One such
example is the roaming bundle currently offered through Orange France;
daily, weekly or even 30-day basis, available in France, UK, Poland and
other European markets.


Integrating mobile services in the fundamental user experience is important
to create optimized access and services to win them back. Customers view
value in the service experience; regardless of the device, network and
conditions they work in. A number of Wi-Fi providers are already developing
carrier-grade products designed to provide seamless handover from
3G/LTE    networks    while   keeping   down    the   associated   network
infrastructure cost and complexity.
WHITEPAPER                                                       Wi-Fi Now, Maximize Investments - 19




Wi-Fi Now,
Maximize Investments
Greenpacket welcomes you to embark on tailored Wi-Fi solutions for
optimizing your network operations. At Greenpacket, we understand the
demands placed on Operators like you. Our solutions are designed to give
you the flexibility to constantly deliver cutting-edge offerings without
exhausting your capital and operating expenditures.


With Greenpacket, limitless freedom begins now!



Free Consultation


If you would like a free consultation on how you can apply Wi-Fi solutions,
feel free to contact us at marketing.gp@greenpacket.com. Kindly quote the
reference code, SWPS1211-D when you contact us.
WHITEPAPER                                                               References - 20




References
1. Gartner “Emerging Technology Analysis: Mobile Business Intelligence
   “13 July 2011, ID:G00214124 by Bhavish Sood, Andreas Bitterer,
   James Richardson.

2. Gartner “The M2M Market Evolution: Growth Attracts Everyone”

3. Senza Fili Consulting “Technology to drive wireless disruption,
   with service monetization mired in uncertainty” by Monica Paolini

4. Wireless 20/20 “Carrier Wi-Fi Offload” by Randall Schwartz and
   Magnus Johansson
For more information on Greenpacket’s products and solutions,                                                                                                                                   Associate
please contact us at marketing.gp@greenpacket.com                                                                                                                                                Member


San Francisco              ·   Kuala Lumpur               ·   Singapore           ·   Shanghai          ·   Taiwan        ·   Sydney        ·   Bahrain         ·   Bangkok          ·   Hong Kong
         ©
Copyright 2001-2012 Green Packet Berhad. All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language, in any
form by any means, without the written permission of Green Packet Berhad. Green Packet Berhad reserves the right to modify or discontinue any product or piece of literature at anytime without prior notice.

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WiFi data offloading whitepaper

  • 1. WHITEPAPER Wi-Fi DATA OFFLOADING, IMPACTS ON CAPEX AND OPEX www.greenpacket.com
  • 2. WHITEPAPER Abstract Continued aggressive growth in data traffic fuelled by increase in smartphones, video and application usage has created an urgent need for faster and efficient networks. Figuring an approach to make systems extensible and scalable is important to the success of effective data offload strategies that bridge the gaps of disparate systems. This paper will describe the Wi-Fi offload approach from the perspective of modeling the traffic model, impacts on the CAPEX and OPEX costs within network infrastructure, managing and integrating multiple access technologies. We examine the offload trend amongst Wi-Fi and small cells landscape of femtocells. The emerging trends in key geographical regions, supporting technologies, infrastructure requirements and product portfolio are discussed. Rapid proliferation of smartphones and the popularity of value added services have increased the data traffic significantly. As the penetration of smartphone devices ranging from entry level to mid-level and high-end market increases further, new opportunities exist for carriers to further monetize advanced Wi-Fi services to overcome the threat of over the top applications eroding their market share.
  • 3. WHITEPAPER Contents Overview 01 Mobile Me, Creating a Compelling Experience 02 Hybrid Mobile Devices Optimized Experience Building a Successful Offload Strategy 05 Data Offload Study • Designing Offload Trade-Off between Macro Cell Densification and Wi-Fi • Wi-Fi Offload Simplified • Wi-Fi Offload Observations Wi-Fi or Femto 11 Scalability Standardization Subscriber Management – Policy Meets Revenue Opportunity Greenpacket Mobile Data Offload Solution 14 Seamless Data Offload Dynamic Data Offload Wi-Fi Experience Management Conclusion 17 Wi-Fi Now, Maximize Investments 19 References 20
  • 4. WHITEPAPER Overview - 01 Overview The explosion of data traffic was not an overnight phenomenon. Wi-Fi entered the wireless scene much earlier in the early 2000’s, but was deemed too niche in the initial stage. The detractors saw Wi-Fi as a poor cousin to cellular technology that had strict security and QoS measurements necessary to deliver voice centric services at that time. Fast forward to 2010, the telecoms landscape has evolved and transformed into a 2nd generation of end-users that demand more than voice services. The take-off of HSPA between the years 2006-2008 was a turning point in the adoption of data-centric services. The impact of mobile data hit hard on mobile operators, when AT&T launched the iPhone in 2007. Undoubtedly, the signing of higher revenue customers that used smartphones was welcomed. However, the network was embroiled in apologetic customer relations in the aftermath of frustrated customers for dropped calls, spotty services, delayed text and voice messages and drastic download speeds in densely populated areas. There were up to 4121 HSPA networks globally deployed, responding to the mobile broadband explosion. The once dominant voice and SMS services were then reduced to the basic fundamental services that an operator provides, with little excitement, as the price competition drove down even further the revenues. It was the plethora of web 2.0 applications that were engaging, new and interesting which kept the end-users excited and thus operators are finding it hard to keep up their bandwidth. Despite the efforts of AT&T to fix the network inefficiencies, and doubling capacity, it did not stop customer’s backlash and switch to a rival carrier. Smart devices like iPhones, iPads and tablets can be disruptive, if the operator cannot handle the traffic that is generated. In order to mitigate the negative sentiments that impacted growth rates, reduction of high revenue customers and loss of brand value; AT&T embarked on improving its service delivery with alternative data offload approach and communicate those investments by deploying over 29,000 Wi-Fi hotspot to allow its customers to access its services complementary to the cellular network. 1Source : Informa Telecoms & HSPA+ Media, 4G Americas – Aug 2011
  • 5. WHITEPAPER Mobile Me, Creating a Compelling Experience - 02 Where is Wi-Fi Mobile Me, Creating a Compelling Experience Anytime and anywhere connectivity is important in today’s lifestyle and thus resulting in the pressure for operators struggling to maintain network efficiency and rapid service delivery. The simplifying of user interface like the iPad is so intuitive. It may not necessarily be the most technologically advanced device, but ranks high on usability scale. These devices have made accessing Internet, applications and so forth pervasive. The key to keeping customers happy is to delight them. Increasingly, operators worldwide are recognizing the importance of building good customer relationships. The customer experience extends beyond getting the customers on-board. The ultimate goal is to create excellent mobile performance, brand and better communicate with their smartphone and tablet-savvy customer base by getting closer to; when and how to connect, offering loyalty programs like rewards, or some other end goal to activate a marketing ad and spend time with the operators’ brand. So that it will give them a good reason to do it the first time and then a great experience so they’ll do it again and again. Hybrid Mobile Devices The connected world now is dominated by smartphones and media tablets. Worldwide PC shipments totaled 84.32 million units in the first quarter of 2011, a 1.1 percent decline from the first quarter of 2010 and showing signs of slowdown. Low prices for consumer PCs, which had long stimulated growth, no longer attracted buyers. Instead, consumers turned their attention to media tablets and other consumer electronics. The overall connected device market will grow at more than 40% CAGR3 through 2014 and 50% from 2015-2020. The smart devices that enter the market are becoming more diverse in terms of functionality, platform support and usability. Android based devices have the potential to drive down price points, with lower, mid and higher range models to hit different markets. 2Source : Gartner April 2011 “Market Share: Preliminary PC Shipment Estimates by Region, 1Q11 Update” 3Source : Gartner “The M2M Market Evolution: Growth Attracts Everyone”
  • 6. WHITEPAPER Mobile Me, Creating a Compelling Experience - 01 Overview 03 Hybrid type devices will dominate in coming years, as more multi development and delivery allow applications and content developers to extend their reach over open APIs to be included into devices. In terms of the multi-touch interfaces, it will have even greater sensitivity and processing ability to run faster and more intensive through HTML 5 support. These new generations of smart devices will become a component of other end products and systems. For example, the iPad is now already used popularly in conjunction with PoS terminal for providing inventory, billing and ordering systems. Figure 1 : Hybrid Smart Devices Million of Units 1,200 1,000 800 775.79 600 677.18 561.42 400 458.01 270.93 362.45 200 318.32 235.69 17.61 114.58 169.73 69.08 0 2010 2011 2012 2013 2014 2015 Media Tablets Smartphone Figure 2 : Forecast shipment of media tablets and smartphones 2010-2015 Source : Gartner
  • 7. WHITEPAPER Mobile Me, Creating a Compelling Experience - 02 Where is Wi-Fi 04 Optimized Experience Consumer behaviors are driven in part by the usability and simplicity of the device to bring out the experience. Similarly, operating systems and platforms are a blend of functional utilities. Optimization of the applications and development tools are changing compression techniques from settings that were impractical or that were restricted in traditional approaches into optimized support. This largely, helped reinvent the approach to deliver the web-centered approach surrounding application and media consumption. The convergence of IT and the cascading effect on the consumer electronics industries has had a shift in IT innovation from large businesses direct to the consumer. Likewise, many mobile application priorities are being re-invented for various areas. CIOs and CTOs of organizations are recognizing the commercial benefits of combining the powerful delivery mechanism of Wi-Fi with mobile applications, of which include connectivity, mobility of B2C or B2B2C that cuts across consumers and enterprise models, context-aware ability and M2M collaboration.
  • 8. WHITEPAPER Building a Successful Offload Strategy - 02 Where is Wi-Fi 05 Building a Successful Offload Strategy The success of mobile data take-off was a victim of its own, eventually driving data exponentially and leaving the operators in vain to combat its ailing performance. With smarter pricing strategies in place, Wi-Fi has served well to offload some of these highly targeted dense data needs. The main inhibitor of successful Wi-Fi deployments can be attributed to the ambiguity of service quality and long term returns, whether Wi-Fi will still be relevant in the LTE space. Many operators with legacy 3GPP systems and architecture will naturally evolve to LTE-based architecture for the same reasons of perceived easier integration towards flat IP, consolidating charging, billing and mediation mechanism, and converged EPC to carry out core network control. Can Wi-Fi find a space in this environment? There are mixed reviews, but the response from Tier 1 operators are positive by complementing the power of macro cellular network with the widely popular Wi-Fi hotspots that are widely accessible, mainly due to zero-licensing and high burst data capacity. Data Offload Study Competitive pressure and the need for cost savings are determinants of a successful Wi-Fi strategy. Below are a few questions that entail the challenges faced by operators. • Where and when should data-optimized architecture be deployed? • How to maximize the use of existing infrastructure and benefit from it? • How would Wi-Fi support and complement macro cell and/or femtocells and manage multiple access architecture types? • What is the most cost-effective backhaul architecture? • When does Wi-Fi offloading approach become more attractive to macro RAN densification? It is commonly acknowledged in the industry, Wi-Fi and femtocells provide for good indoor coverage. However, it is still arguable, whether Wi-Fi or femtocells should be used purely for data offload purposes. In indoor coverage, the Wi-Fi proposition brings benefit to both the carrier and the subscriber since the macro cellular performance is limited by the
  • 9. WHITEPAPER Building a Successful OffloadOverview - 01 Strategy 06 penetration losses. In the offload case, it primarily benefits the carrier, although the subscriber’s data experience becomes more compelling because of the higher data speeds. Both Wi-Fi and femtocells approach can help offload indoor traffic. The early focus of Wi-Fi indoor offload has been based on user deployed, self-managed Wi-Fi. However, there is an alternative approach that integrates indoor unlicensed radios into an end-to-end carrier Wi-Fi architecture which is gaining popularity with the near ubiquitous availability of Wi-Fi in smartphone devices. Designing Offload Traffic Model The busy hour traffic parameter is used to measure the occurrence of heavy traffic, at a given point of time. The shift of busy hour traffic shows a greater tendency to be present during late evenings, at home and primarily utilized indoors over data intensive applications such as video streaming on smartphones and tablets. Not forgetting, the spike of busy hour also applies during the day where users are “on-the-go” between workplaces during mid-day. The busy hour is a key indication of network utilization that drives carrier cost and determines when to invest in new RAN capacity upgrade. Typically, when the busy hour threshold is exceeded, the carrier will add more carriers (multi-carrier) or introduce cell splitting and thus contributing towards the total cost of ownership; where every byte of data offloaded via Wi-Fi during the busy hour will have a direct impact on the reduction of macro network CAPEX and OPEX costs. Capacity Model A typical macro cell in an urban area can have hundreds of concurrent users (depending on varying averages of Mbps/user for a given point in time) and cell capacity is shared. If one subscriber does not use the capacity, the underlying cost of operating the capacity can be allocated to the other subscribers that are actually using it. For example, a 3G carrier can deliver average throughput per cell of 14.4Mbps. Under non-busy hour condition, the node B can support up to 14 subscribers at the average 1Mbps per user. Given that busy hour traffic reaches 70% utilization, the number of active subscribers supported per node B drops to halve. As more concurrent subscribers consume more capacity, it gets more expensive for the carrier to provide the extra capacity requirements to all the users at the same time.
  • 10. WHITEPAPER Building a Successful Offload Strategy - 02 Where is Wi-Fi 07 For a given Wi-Fi cell, the average cell throughput is 11Mbps4. With greater channel bandwidth of 22MHz and 3 non-overlapping channels, Wi-Fi achievable throughput can reach up to 33Mbps. The subscribers supported per Wi-Fi cell is approximately 20 given the same busy hour utilization. The cost to service the increased capacity demand remains roughly the same throughout for Wi-Fi since the device cost is already fixed regardless of whether the subscriber uses it or not and, most often purchased by the subscriber. In addition, Wi-Fi uses unlicensed spectrum. Network Cost The network cost model is useful to estimate the CAPEX and OPEX of a carrier’s macro cell case by considering capacity estimate like the radio access base stations, RNC, core network (SGSN and GGSN) and backhaul. In effect, the total cost per Mbps capacity is the sum of CAPEX and OPEX for each of the network elements over the busy hour usage. Given that the cost model considers CAPEX elements are amortized between 8 to 10 years, depending on the equipment type while Wi-Fi access points are amortized over a shorter lifecycle of 2-3 years. For simplicity of study, carrier Wi-Fi implementation is integrated and therefore CAPEX already accounts for access gateways, security gateways and aggregation gateways. The OPEX element includes site rental, power, site maintenance, leasing of backhaul and data centers applicable to macro cell and to a lesser extent on Wi-Fi deployment. Other macro network cost elements include spectrum and cell site leasing of up to 20 years or more. Wi-Fi assumes the access points are in the range of $60-$150, without site leasing and power is provided by subscriber and backhaul via the Internet Service Provider which is more appealing. When the output of the cost comparison is plotted between macro cell and Wi-Fi relative to the different user types of bronze, silver and gold, it will arrive at a point where the clarity of which technologies are better suited to different traffic demands. 4Source : Assumes the IEEE 802.11a standard
  • 11. WHITEPAPER Building a Successful Offload Strategy - 08 Trade-Off between Macro Cell Densification and Wi-Fi In order to quantify the amount of traffic that is traversing over Wi-Fi networks, carriers use various methods to analyze the traffic usage patterns of its mobile network and sets a baseline to benchmark additional capacity; when and how it could be mitigated either by macro sites or Wi-Fi offload. Wi-Fi Offload Simplified The coverage percentage of geographical area and density of access point per square kilometer deployment is critical in the selection criteria of Wi-Fi offload. The design of coverage and access point density depends on the density of subscribers and their assumed data consumption. Consumption models can be profiled to three types for simplicity of study; bronze user with 0.5MB/month, silver user with 1.5GB/month and gold user with 5GB/month. Assuming a HSDPA network at 2100 MHz spectrum, typical single carrier and transmit power of 40W+- for urban deployments5. Based on the network parameters and planning computations, the capacity for a single sector HSDPA macro base station is estimated to be 3.6 Mbps and assumes 70% busy hour utilization. Typically, carriers dimension the capacity model with an overbooking of 20-30% for busy hour. If the carrier can no longer sustain with single-carrier, three-sector cell site, it will need to add a second carrier for additional capacity as required. Also, the carrier has to consider the trade-off of installing additional capacity with the incremental cost of installing that particular capacity. Meanwhile, a carrier Wi-Fi offload would entail the fundamental cost of the access points with minimal installation costs and zero unlicensed spectrum costs. Other associated cost of backhaul and core network is assumed integrated as part of the carrier Wi-Fi and can be adjusted depending on the vendor. A separate whitepaper, titled “Operators Can Save $14million Yearly Through Data Offloading” describes the breakdown of CAPEX and OPEX costs for further reading. 5Note : Penetration loss of industry practice of 15dBi is assumed.
  • 12. WHITEPAPER Building a Successful Offload Strategy - 09 Wi-Fi Offload Observations Trade-off point for Wi-Fi and HSPA capacity density Add HSPA cell site Add 2nd HSPA carrier Cost to Deliver Coverage Add Wi-Fi Busy hour threshold HSPA Bronze User Silver User Gold User 0.5MB / month 1.5MB / month 5GB / month Figure 3 : Trade-off Study of Wi-Fi and HSPA RAN Densification From a cost perspective, Wi-Fi is much more cost effective on a dollar per Mbps basis than the macro cell. The conventional macro cell densification increases capacity by packing more cells within the same area. This approach can be effective, but suffers from diminishing returns as traffic grows. High-traffic areas in urban centers prove to be challenging, where deploying and operating a cell site is more expensive as site leasing can be difficult to secure. And as the density of macro cells increases, interference become more difficult to manage, with per-sector throughput declining as a result. A single sector in a macro cell can have a comparable capacity to a Wi-Fi access point, but coverage is greater, resulting in lower capacity density. Wi-Fi on the other hand, is limited by range and the impact of interference is reduced while capacity density is increased.
  • 13. WHITEPAPER Building a Successful Offload Strategy - 10 Given the study of capacity in busy hour, there is little impact on the cost to deliver data to the bronze users, as the demand for capacity is far below the busy hour threshold shown in Figure 3. The intersecting point where the macro cell and Wi-Fi begin to show distinct cost savings advantage is clear, when the busy hour capacity is reached. This effect is more obvious, when a large number of silver and gold users are introduced into the network. These are the premium users which carry a higher degree of service level. The areas of device subsidies and depreciation of assets whether minimal or otherwise can influence the decision for macro cell densification or Wi-Fi offloading strategy. Other long term OPEX6 costs such as maintenance, site leasing and carrier-upgrade can draw the differential cost. The key to delivering a cost-effective mobile broadband service is to understand when the trade-off becomes more attractive for an operator to deploy Wi-Fi offload solution over densification of macro RAN capacity, as well as the differences between licensed and unlicensed Wi-Fi offload solutions. 6Note : The Internet point of presence and Internet backbone and international fiber connectivity is not considered in this discussion.
  • 14. WHITEPAPER Wi-Fi or Femto - 11 Wi-Fi or Femto Which is the best fit for offload? It does not have an absolute approach, as demonstrated by various carriers. The issue of data offloading must be assessed from the aspects of suitability, readiness, integration of existing infrastructure, cost effectiveness, pain points and a host of indirect costs related to customer expectations, loyalty and brand awareness. As mobile data congestion become greater, carriers are using all tools including tiers and caps to survive the low yield data revenues through bandwidth management. The on-going challenge is not without mixed results. According to Informa Telecoms and Media market report, there are more than 2.3 million femtocells deployments in 2011, which is small and relatively weak in comparison to the 1.3 billion Wi-Fi hotspots globally. Although femtocells provide benefits to the user in terms of “full bar” coverage and higher mobile capacity, it typically is dependent on a fixed line to backhaul. The key advantage for users is it supports existing 3G terminal, but technical aspects add to the challenges of spectrum, as femtocells are deployed over the same licensed spectrum of macro networks and can potentially cause interference. Wi-Fi on the other hand, specifically addresses the issue of data traffic offload that represents carriers’ immediate challenge, and highly suited for indoor coverage. Wi-Fi can be a complementary proposition for mobilizing broadband. It can help manage cost by offloading traffic, while offering a cost-effective high-bandwidth service at home as well as in many heavily-used public locations such as airports, stadiums, cafes, hotels and so forth. Given the installed base, it is likely that security, voice services over Wi-Fi, and seamless handover will be added to Wi-Fi to strengthen (all of these being efforts that are already addressed in some way or another) offload strategies alongside femtocells. Several key issues that will emerge from the success of the network are scalability and manageability. 7Note : The congestion described in Ultimately, carriers want to create a unique mobile experience that is fluid this literature exclude the between Wi-Fi and 3GPP networks. study of wireless or fiber backhaul connectivity. 8Source : WBA Industry Report 2011 – Informa Telecoms and Media 9Note : Backhaul enhancements study is not included in this publication.
  • 15. WHITEPAPER Wi-Fi or Femto - 12 What will be the impact of Wi-Fi offload on revenues or subscriber experience? 100% 14% 30% 80% 14% Response Percentage 50% 10% 60% 43% 20% 13% 40% 20% 40% 38% 29% 0% APAC Europe North America High Positive Impact Low Positive Impact No Impact Low Negative Impact High Negative Impact Figure 4 : Wi-Fi Offload Impact on Subscriber Experience Survey Source : Senza Fili Scalability Wi-Fi has demonstrated its ability to provide cost effectiveness in terms of the cost per byte deployment. China Mobile, having one of the biggest subscriber base in the world, has big ambitions to deploy up to 1million10 hotspots by 2014 in its commitment to bring ubiquitous mobile services. Similarly, the device chain support has reached a maturity level that provides for improvement to support specifications of EAP-SIM and drive down the cost by large volumes to make Wi-Fi a de-facto capability. For most parts, smartphones are designed ideally for Wi-Fi offload. 10Source : WBA Industry Report 2011 – Informa Telecoms and Media
  • 16. WHITEPAPER Wi-Fi or Femto - 13 Standardization The need for a unified framework to standardize authentication, security, roaming and inter-working between disparate access networks is necessary. The Wi-Fi ecosystem is maturing and it is anticipated, their role in bringing economies of scale by supplanting ubiquity. Data roaming prices are unattractive for the mass market, and as a result, customers tend to resist by switching off data roaming and relying on Wi-Fi. In the recent 2012 Mobile World Congress (MWC) in Barcelona, talks of carrier Wi-Fi was featured heavily among the industry carriers and analysts. With strong commitments from Wireless Broadband Alliance through the Next Generation Hotspot program and Wi-Alliance Hotspot 2.0 initiative encouraging trials amongst operators, the progressive development of Wi-Fi will see acceleration of co-operation to a wider ecosystem. Subscriber Management – Policy Meets Revenue Opportunity Carriers are seeing the importance of context-awareness to drive better understanding of user behavior – by combining the traffic management algorithms and tools behind backend data processing. Real-time policy control is evolving to pass intelligence from the core network to the network edge, i.e. to bring device state awareness closer to the type of running applications. By doing so, carriers can push personalized services to the users and at the same time delivering the most optimum Wi-Fi operational capacity. Building intelligence into the system is central to Wi-Fi user experience. The general view is accepted that a carefully designed Wi-Fi deployment with granular subscriber management gives more mileage to extended revenue, as users are willing to pay for service, if the perceived performance is heightened. Based on a survey by Senza Fili Consulting, the impact of Wi-Fi offload to subscriber revenue and user experience as shown in Figure 4 are generally positive.
  • 17. WHITEPAPER Greenpacket Mobile Data Offload Solution - 14 Greenpacket Mobile Data Offload Solution Seamless Data Offload Greenpacket’s Intouch Seamless Data Offload is a client-based solution that aims to deliver a simplified and cost-effective offload method across multiple access networks. It is based on the Data Offload Platform. The Intouch Seamless Data Offload client can transparently offload 3G~Wi-Fi and continue to push operator services and manage data traffic effectively. Seamless Data Offload, through Inter-working WLAN (iWLAN) takes traffic from the mobile operator’s radio access over Wi-Fi by tunneling through the PDG at the operator’s core network. This fits with mobile operators’ need to monetize services through the personalization of services and the application of policy management; something which can’t be said of other Wi-Fi offload approaches in the market today. Extend 3GPP services and functionality to the • Mobile IP WLAN access environment Security for Wi-Fi the 3rd Party HA same as security for 3G networks IPSEC Secured Tunnel Cellular WLAN 3rd Party PDG Better Wi-Fi experience IP Traffic Common authentication architecture between Wi-Fi~3G Intouch Seamless Data Offload Client • 3GPP-WLAN Interworking • Seamless Authentication • Consolidated Charging • Unified Services Access Figure 5 : Intouch Seamless Data Offload
  • 18. WHITEPAPER Greenpacket Mobile Data Offload Solution - 15 Dynamic Data Offload Operators are increasingly looking at using Wi-Fi for offload as part of their mobile broadband strategies. However, it risks losing visibility over traffic policies that were configured for the user once it routes through Wi-Fi. What is lacking is a way for the network to communicate to users (applications and/or websites they are using) a real-time or predicted measure of the network’s congestion levels. Greenpacket’s Dynamic Data Offload client is compliant to the defined 3GPP Access Network and Discovery and Selection Function (ANDSF), to enable dynamic network selection and switching based on various contextual ability such as cell location, device, peak hours and subscription plan. Operators can also opt to customize these policies based on application aware policy, device policy, subscriber policy and time-based policy to trigger data offload. Manage Data Offload Policies in Real Time Real Time, Precise and Dynamic Offloading Policy Policy Decisions Enforcement Enforcer Point Less Load on SOAP Packet Core High Level of Control to Operators to Manage Congestion Intouch Dynamic Data Offload Client Operator PCRF/ (Compliant to ANDSF) 3rd Party Policy Control • Device Information • Congestion Information High Quality Experience • Usage Information • Subscriber Profiles to the Subscriber • Environment Information • Usage Information … 1. Get Policy 2. Receive Policy 3. Apply Policy Send Location Information No Policy/Prioritized Access/ APPLY and OVERRIDE (UE Location) Validity Areas/Time of Day/ DEVICE POLICY Discovery Information Figure 6 : Intouch Dynamic Data Offload
  • 19. WHITEPAPER Greenpacket Mobile Data Offload Solution - 16 Wi-Fi Experience Management The Intouch Connectivity Experience for Wi-Fi is based on the Connectivity Experience Platform suite of solutions, specific to managing the Wi-Fi experience. It is designed as an intelligent client that can automatically detect and switch to Operator hotspot, user-defined hotspot or partner hotspot. The client also supports various connection policies that allow time-based restrictions and device restrictions. User experience is made simple and transparent by giving control; when, how and which Wi-Fi hotspot to access without manual selection of Wi-Fi SSIDs and configuration. The client supports various authentication methods such as WISPr, Hotspot 2.0, Next Generation Hotspots (NGH) as well as secured authentication protocol such as EAP-SIM, EAP-AKA, EAP-TLS, EAP-TTLS on 802.1X networks and thus provides a Wi-Fi environment in which subscribers can roam automatically with fully integrated authentication and a standard based approach with minimal change to existing networks. With advanced Wi-Fi management, the client can be extended to support advanced features of iWLAN and ANDSF for operators considering the implementation of 3G~Wi-Fi offloading.
  • 20. WHITEPAPER Conclusion - 17 Conclusion The motivation of Wi-Fi offloading is varied and dependent on the use cases of the carrier’s mobile strategy. One factor that ranks high amongst the C-level execs would be the return on investment for every dollar that is spent. Carriers today are faced with a challenging task to protect their ARPU and battle the changing behavior of tech-savvy users. The appetite for YouTube, Netflix, Hulu skyrocketed, at the expense of the traditional carrier’s dumb pipes. The popularization of those platforms is not difficult to understand given its free-mium value while the carriers were struggling with licensing rights on their mobile TV offering and expensive charges passed down to the end-users. Carrier’s now have embarked on a task to bring value back to their subscribers. There can be debates on how to achieve greater degree of control surrounding issues of data offload such as when, how and which should be the right network at the right location and right time. Wi-Fi offload approaches should ideally give operators the flexibility to route offload traffic back to their core network as well as directly to the Internet; Wi-Fi offload via iWLAN promises greater visibility and management control as part of the offload process. With many context-aware policy control and charging solutions in the market today, carriers can integrate Wi-Fi offload through a closer understanding of the underlying triggers of when, how, where and what drives data usage. Contextual experience brings together - mobile, social networks, location, payment and commerce that affects the user experience in a more meaningful and relevant state of engagement. As in Greenpacket’s Wi-Fi solutions, the device client supports both 3GPP-based iWLAN and ANDSF specifications. Ideally, every byte of data offloaded should have a positive impact on the ROI. The parameters that carriers pay great attention is the costs relevant to coverage area percentage and capacity to capture the maximum offload traffic over a given period. The TCO11 consists of varying CAPEX and OPEX components with dependency of achieving coverage by the density of access points per square kilometer versus the maximum achievable savings. The end goal is the direct result of reduction in additional macro cell by the placement of corresponding access point density over the same 11Note : Total Cost of Ownership (TCO) coverage area percentage. However, if the difference in TCO of Wi-Fi distribution is approximately offload savings falls short of macro cell densification, the business case for 30% CAPEX : 70% OPEX in general industry estimation offloading will become less useful.
  • 21. WHITEPAPER Conclusion - 18 Additionally, it needs to ensure compatibility and interoperability between the disparate systems. Roaming is a highly desirable feature for Wi-Fi. With cellular networks, data roaming charges are unattractive. To prevent bill-shock and disgruntled service experience, carriers have begun to implement notification and alerts, so that customers can disable data roaming. Data roaming, when dealt with the correct approach, can add value to the subscribers, i.e. making Wi-Fi accessible through roaming partner by offering discounted services proposition which are more competitive. Bundling of roaming services with voice, messaging and data services is a good alternative to keep the customers happy. As a result, the cost of roaming for the end-user is reduced and they continue to receive the same level of services they are used to without the frustration. One such example is the roaming bundle currently offered through Orange France; daily, weekly or even 30-day basis, available in France, UK, Poland and other European markets. Integrating mobile services in the fundamental user experience is important to create optimized access and services to win them back. Customers view value in the service experience; regardless of the device, network and conditions they work in. A number of Wi-Fi providers are already developing carrier-grade products designed to provide seamless handover from 3G/LTE networks while keeping down the associated network infrastructure cost and complexity.
  • 22. WHITEPAPER Wi-Fi Now, Maximize Investments - 19 Wi-Fi Now, Maximize Investments Greenpacket welcomes you to embark on tailored Wi-Fi solutions for optimizing your network operations. At Greenpacket, we understand the demands placed on Operators like you. Our solutions are designed to give you the flexibility to constantly deliver cutting-edge offerings without exhausting your capital and operating expenditures. With Greenpacket, limitless freedom begins now! Free Consultation If you would like a free consultation on how you can apply Wi-Fi solutions, feel free to contact us at marketing.gp@greenpacket.com. Kindly quote the reference code, SWPS1211-D when you contact us.
  • 23. WHITEPAPER References - 20 References 1. Gartner “Emerging Technology Analysis: Mobile Business Intelligence “13 July 2011, ID:G00214124 by Bhavish Sood, Andreas Bitterer, James Richardson. 2. Gartner “The M2M Market Evolution: Growth Attracts Everyone” 3. Senza Fili Consulting “Technology to drive wireless disruption, with service monetization mired in uncertainty” by Monica Paolini 4. Wireless 20/20 “Carrier Wi-Fi Offload” by Randall Schwartz and Magnus Johansson
  • 24. For more information on Greenpacket’s products and solutions, Associate please contact us at marketing.gp@greenpacket.com Member San Francisco · Kuala Lumpur · Singapore · Shanghai · Taiwan · Sydney · Bahrain · Bangkok · Hong Kong © Copyright 2001-2012 Green Packet Berhad. All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language, in any form by any means, without the written permission of Green Packet Berhad. Green Packet Berhad reserves the right to modify or discontinue any product or piece of literature at anytime without prior notice.