New Ways to Generate Revenues from Public Wi-Fi

June
1
CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink 2014
New ways to generate revenues from
public WiFi
June 2014
Caroline Gabriel, Research Director,
Maravedis-Rethink

June
2014
Copyright © Maravedis Inc 2014.
“The biggest change will be one that people
won’t even realize has happened – a whole
new customer experience enabled by
ubiquitous mobile broadband access”
JR Wilson, Chairman, Wireless Broadband Alliance
www.maravedis-bwa.com

CLIENT CONFIDENTIAL
3
The need for multiple networks
The wireless data challenge
June
2014
•Operators must invest to handle
13fold rise in mobile data
•Combining WiFi with mobile and
cable may make the case alone
• But direct revenues increasingly
needed
•Justify dense networks
•Non-traditional operators
0
20
40
60
80
100
120
140
160
180
200
2013 2014 2015 2016 2017 2018$bn
Capacity investments Data revenues
Operator predicted capacity capex vs revenue
Source: Maravedis-Rethink RAN Service

CLIENT CONFIDENTIAL
4
The business case is changing
From capacity to revenue
June
2014
• WiFi becomes part of ‘densification’, with other networks or alone
• At first, affordable capacity is enough
• MNOs can lower cost of delivering data by over 40% in dense areas
• MSOs can lower fees to MNOs and increase loyalty
• Increased access and offload revenues for pure-plays
• But improved capacity and TCO are becoming table stakes
• In a survey of c120 WiFi providers, 76% were looking for additional
business benefits
• New revenue streams would be essential to justify significant density or
upgrade, said 54%

CLIENT CONFIDENTIAL
5
From offload to the full HetNet
Revenue strategies and trends - MNOs
June
2014
Copyright © Maravedis Inc 2014
• 22% of new capacity comes from WiFi
in 2013
• Down to 20% in 2018 as carriers
integrate WiFi in their own networks
• 75% of MNO small cells to integrate
WiFi by 2018
• Key MNO uses
• Data offload
• Differentiated QoS levels
• First step to small cell layer (eg O2)
• Location and presence
% of new mobile data capacity MNOs expect to gain from
various techniques in 2013 and 2018
Source Maravedis-Rethink operator survey
0
5
10
15
20
25
30
35
New
spectrum
LTE upgrades Wi-Fi offload Small cells
inc Wi-Fi
Flexible
networks
CoMP
%ofnewcapacity
2013 2018

CLIENT CONFIDENTIAL
6
Dense edge-based networking drives revenue
Revenue strategies and trends - MNOs
June
2014
• Key opportunities for MNOs to harness
Carrier WiFi and integrated WiFi/small
cells
• To date, focus has been on
advertising and location awareness
• By 2018, context aware business
services are leading
• Key is to make WiFi a tool for added
value services
• Alternative route – use WiFi-first for
access, keep LTE for premium services
• In all cases, processing and intelligence
moves to the edge
Source Maravedis-Rethink operator survey
0
5
10
15
20
25
30
%ofadditionalrevenue
2012 2017

CLIENT CONFIDENTIAL
7
Advances during 2013 make WiFi more viable in the carrier network
Enablers
June
2014
• Standards
• NGH
• Passpoint
• Interoperability
• Work with 3GPP and CableLabs
• Multimode devices proliferate
• Common core platforms
• Development of integrated
WiFi/cellular small cells
• Evolution of device ecosystem
• New WiFi standards
Deployment of small cells with integrated WiFi
Source:: Maravedis-Rethink RAN Service
142 557
1,718
4,588
9,912
16,095
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2013 2014 2015 2016 2017 2018
,000units
Wi-Fi/cellular Cellular only Total

CLIENT CONFIDENTIAL
8
More radical thinking needed
Revenue strategies and trends - MSOs
June
2014
Source: RealWireless/Amdocs
65
55
20
15
10
10
Small cell backhaul to
third parties
Add public WiFi
Encourage onload
Provide SCaaS
Add mobile services for
subscribers
Undecided
• Like MNOs, MSOs have started with
conservative thinking
• Leverage cables for backhauling urban
WiFi
• Adding WiFi as added value for cable
subscribers
• However, WiFi becoming strategic
• Huge build-outs eg Liberty, Cable
WiFi
• Homespots
• WiFi-first
• Business hotspots
• New relationship with customers and
MNOs

CLIENT CONFIDENTIAL
9
It’s not all about cellular – but Google lurks
WiFi pure play networks
June
2014
•WiFi-only operators remain
significant deployers
• Beyond offload and access ...
•Location
•Targeted services
•How to work with OTT
Source: Maravedis-Rethink RAN Service
0 2000 4000 6000 8000 10000 12000
2012
2013
2014
2015
2016
2017
WiSP/wholesaler Fixed line MNO Other (eg muni)

CLIENT CONFIDENTIAL
10
Move to ‘aas’ platforms, or their own consumer services?
Revenue strategies and trends - Pureplay
June
2014
Source: Maravedis-Rethink
Two key routes:
Wholesale:
• Aggregators increasingly important as
MNOs and MSOs limit own build
• Big opportunity in hotspot ‘as a service’
• Evolving platforms to support large
numbers of service providers flexibly
• BandwidthX, Google
Retail:
• Key to providing direct services is to
move beyond access
• In survey, WISPs said consumers drawn
primarily to spend more by:
•Context awareness
•Well targeted promotions
•Broad roaming
•Exclusive applications or content
28
2320
17
12
Personalized promotions Relevant information on location Wide roaming
Exclusive apps and content Trusted security or interface

CLIENT CONFIDENTIAL
11
Power lies in big data
The Google era
June
2014
• WiFi-only operators remain significant
deployers
• Biggest asset is huge base of hotspots
• Opportunities with OTT players to
provide alternative quad play
• Power lies with the data
• Context awareness
• Big data analytics
• Predictive offers and search
• New web experiences
• Will Google be friend or foe?

12
CLIENT CONFIDENTIAL
Contact Information
https://www.linkedin.com/company/maravedis
www.twitter.com/maravedis
MaravedisRethink
info@maravedis-bwa.com
http://www.maravedis-bwa.com
+1 305-865-1006
Adlane Fellah, Customer Engagement

New Ways to Generate Revenues from Public Wi-Fi

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