new ways to generate revenues from public wi-fi
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Carrier Wi-Fi World Summit, presented by Caroline Gabriel. “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"TRANSCRIPT
June
1CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink 2014
New ways to generate revenues from public WiFiJune 2014
Caroline Gabriel, Research Director, Maravedis-Rethink
June 2014
Copyright © Maravedis Inc 2014.
“The biggest change will be one that peoplewon’t even realize has happened – a wholenew customer experience enabled byubiquitous mobile broadband access”
JR Wilson, Chairman, Wireless Broadband Alliance
www.maravedis-bwa.com
CLIENT CONFIDENTIALCopyright © Maravedis-Rethink 2013
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3
The need for multiple networks
The wireless data challenge
June 2014
Copyright © Maravedis Inc 2014.
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•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 revenueSource: Maravedis-Rethink RAN Service
CLIENT CONFIDENTIALCopyright © Maravedis-Rethink 2013
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4
The business case is changing
From capacity to revenue
June 2014
Copyright © Maravedis Inc 2014.
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• 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 CONFIDENTIALCopyright © Maravedis-Rethink 2013
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5
From offload to the full HetNet
Revenue strategies and trends - MNOs
June 2014
Copyright © Maravedis Inc 2014
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• 22% of new capacity comes from WiFiin 2013
• Down to 20% in 2018 as carriersintegrate WiFi in their own networks
• 75% of MNO small cells to integrateWiFi 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 2018Source Maravedis-Rethink operator survey
0
5
10
15
20
25
30
35
Newspectrum
LTE upgrades Wi-Fi offload Small cellsinc Wi-Fi
Flexiblenetworks
CoMP
% o
f n
ew c
apac
ity
2013 2018
CLIENT CONFIDENTIALCopyright © Maravedis-Rethink 2013
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6
Dense edge-based networking drives revenue
Revenue strategies and trends - MNOs
June 2014
Copyright © Maravedis Inc 2014
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• Key opportunities for MNOs to harnessCarrier WiFi and integrated WiFi/smallcells
• To date, focus has been onadvertising and location awareness• By 2018, context aware businessservices are leading
• Key is to make WiFi a tool for addedvalue services• Alternative route – use WiFi-first foraccess, keep LTE for premium services• In all cases, processing and intelligencemoves to the edge
Source Maravedis-Rethink operator survey
0
5
10
15
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30
% o
f ad
dit
ion
al r
eve
nu
e
2012 2017
CLIENT CONFIDENTIALCopyright © Maravedis-Rethink 2013
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7
Advances during 2013 make WiFi more viable in the carrier network
Enablers
June 2014
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• Standards
• NGH• Passpoint
• Interoperability• Work with 3GPP and CableLabs• Multimode devices proliferate• Common core platforms
• Development of integratedWiFi/cellular small cells
• Evolution of device ecosystem• New WiFi standards
Deployment of small cells with integrated WiFiSource:: Maravedis-Rethink RAN Service
142 5571,718
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
,00
0 u
nit
s
Wi-Fi/cellular Cellular only Total
CLIENT CONFIDENTIALCopyright © Maravedis-Rethink 2013
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8
More radical thinking needed
Revenue strategies and trends - MSOs
June 2014
Copyright © Maravedis Inc 2014
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Source: RealWireless/Amdocs
65
55
20
15
10
10
Small cell backhaul tothird parties
Add public WiFi
Encourage onload
Provide SCaaS
Add mobile services forsubscribers
Undecided
• Like MNOs, MSOs have started withconservative thinking• Leverage cables for backhauling urbanWiFi• Adding WiFi as added value for cablesubscribers• However, WiFi becoming strategic
• Huge build-outs eg Liberty, CableWiFi• Homespots• WiFi-first• Business hotspots
• New relationship with customers andMNOs
CLIENT CONFIDENTIALCopyright © Maravedis-Rethink 2013
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9
It’s not all about cellular – but Google lurks
WiFi pure play networks
June 2014
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•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 CONFIDENTIALCopyright © Maravedis-Rethink 2013
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10
Move to ‘aas’ platforms, or their own consumer services?
Revenue strategies and trends - Pureplay
June 2014
Copyright © Maravedis Inc 2014
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Source: Maravedis-Rethink
Two key routes:Wholesale:• Aggregators increasingly important asMNOs and MSOs limit own build• Big opportunity in hotspot ‘as a service’• Evolving platforms to support largenumbers of service providers flexibly• BandwidthX, Google
Retail:• Key to providing direct services is tomove beyond access• In survey, WISPs said consumers drawnprimarily to spend more by:
•Context awareness•Well targeted promotions•Broad roaming•Exclusive applications or content
28
2320
17
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Personalized promotions Relevant information on location Wide roaming
Exclusive apps and content Trusted security or interface
CLIENT CONFIDENTIALCopyright © Maravedis-Rethink 2013
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11
Power lies in big data
The Google era
June 2014
Copyright © Maravedis Inc 2014.
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• 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
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