Embracing Amenity Wi-Fi: From the World’s Richest Wireless ......Embracing Amenity Wi-Fi: From the World’s Richest Wireless Resource to the Always Best Connection Dave Fraser December

Embracing Amenity Wi-Fi: From the World’s Richest Wireless Resource to the Always Best Connection

Dave Fraser December 4, 2014

Devicescape Proprietary and Confidential

2010 2011 2012 2013 2014

Inside the Data Explosion

2

85%

15%

Smartphone Wi-Fi Usage Surpasses Cellular

54%

37% Cellular

Wi-Fi 63%

46%

2011 2012 2013 New Street Research The Wall Street Journal

Data Tsunami

Traffic

Revenues

LTE and shared data


0% Are always best

connected

63% of Smartphone Usage is Wi-Fi, yet…

3

91% Of potential public Wi-Fi

connections go unrealized

71% Inconsistently

connect to Wi-Fi

29% Never connect

to home Wi-Fi

83% Find Wi-Fi

connectivity too complex

70% Want their

service provider to deliver integrated Wi-Fi and cellular.

Just keep me connected!


The Monetization Disconnect

4

WiFi Mobile Current Operator Strategy

Monetize

Monetize the entire experience

WiFi Mobile Future

Operator Strategy

Despite the major role of Wi-Fi, operators don’t help, don’t participate, and don’t monetize. Why not?


Bloomberg’s Emily Chang: Is this (Personal Cellspot) an admission that your network is not that good and you need the help?

T-Mobile CEO John Legere:

Who cares?! If I can give you 5 bars who cares the reason how I do it?

John Legere: “5 Bars—Who Cares How I Do It”

5


Telecom Operator’s Evolution of Wi-Fi Adoption

6

Virtualized Carrier Wi-Fi: Auto-Connecting to Amenity Wi-Fi Very high Impact Trending to ubiquity

“Home Club” Wi-Fi Higher impact by leveraging CPE Homes that allow sharing

Carrier Wi-Fi Focused Impact High density / value venues

Note: Average Starbucks gets 432 visitors a day; Average home gets fewer than 1


Virtualizing Public Wi-Fi: The Devicescape CVN


Devicescape’s Curated Virtual Network (CVN)

8

What Brings order to the chaos of public Wi-Fi with a virtual network that acts as a single service

How Through the scale and power of crowd-sourcing, detects and tests real-time QoE for public and affiliate Wi-Fi hotspots

Where Complement LTE, 3G, carrier Wi-Fi, small cells and Home Club Wi-Fi

End Users Confidently, seamlessly, and conveniently connect to high quality public Wi-Fi

Operators Monetize Wi-Fi without the cost of deployment


Selected Popular Venues in the CVN

9

McDonald's Staples Dick's Sporting Goods Saks Fifth Avenue

Starbucks Barclays Bank Bob Evans Macerich Shopping Malls

Dunkin Donuts Firestone Applebees American Airlines Admirals Club

Pizza Hut IHoP Caribou Coffee Bloomingdales

Burger King Safeway Boston Market King Soopers

Wendys Famous Footwear Sheetz ScheelsGuest

Taco Bell OfficeMax Hooters Aurora Health Care

KFC Ruby Tuesday 24 Hour Fitness Tulsa Intl Airport

Tesco Macy's Vons AT&T Park, SF

Krogers Party City Dillard's LAX International

Boots Barnes and Noble Chick-fil-A Wi-Fi McCarran Airport

AT&T Retail Store Pep Boys Hy-Vee Philadelphia Intl Airport

The Home Depot Kaiser California Pizza Kitchen SFO International

Target Stores Sam's Club BJ's Washington Dulles Airport

FedEx Office Best Buy Fred Meyer Disney Hotels

Panera Bread Tim Hortons CarMax Marriott Hotels


The Curated Virtual Network in North America

10

Devicescape Proprietary and Confidential 11

Bucharest

Budapest

Bratislava

Barcelona

Amsterdam

Zagreb

Warsaw

Stockholm Prague

London

The Emerging CVN in Europe

Vienna


Always Best Connected: Integrating Wi-Fi and Mobile to Drive Data Usage ABCbyD


Before ABC All-Cellular Case


ABC Wi-Fi at Home


ABC Wi-Fi at Home & Office


ABC “Prefer Wi-Fi” Policy


ABC “Prefer Mobile”Policy


ABC “Always Best Connection”


Cellular

Devicescape’s ABC Solution Spans the Ecosystem

Wi-Fi Radio Control

Private Network Connector

Black-hole Avoidance

Portal Navigation / Auto-connection

Adaptive Network Selection

Auto-Secure VPN

Private Wi-Fi Public Wi-Fi Carrier Wi-Fi

Quality of Experience (QoE) Enforcement


Monetizing the Entire Data Experience


Monetizing the Entire Data Experience

21

WiFi Mobile Before Directly monetize mobile data Indirectly monetize mobile behavior

WiFi Mobile After CVN

Grows directly monetizable data Expands indirect monetization

grows varies adds


35

450

Amenity Wi-Fi Monthly Usage (MB)

Before Auto-Connecting After Auto-Connecting

Usage increases 10-fold when auto-connecting

Huge Pent-up Demand for Amenity/Public Wi-Fi!

22


ABC Experience – Set by Operator Policy or by User

23

1.   Prefer Wi-Fi: Maximize use of Wi-Fi networks both private and public.

•  Ideal for roaming and offload •  More data at less cost

2.   Best Connection: Keep user always best connected to the world’s largest selection of network options

•  More data due to improved connectivity

3.   Prefer Mobile: Maximize use of the 4G LTE network •  More data because mobile network would be disconnected

or slow


Commercial Results: Cellular Data INCREASE (GB/Mo.)

•  Six-month analysis

•  Large scale deployment

•  64% of base users (Medium level)

•  North American Operator

24

17%

27%

21%

Prefer Wi-Fi *Best Connected *Prefer Mobile * Initial trial estimate


Monetization Strategies

•  Increase mobile data usage •  Directly monetize

•  Auto Wi-Fi Connectivity •  Auto-Secure VPN

•  Upsell additional services from Wi-Fi usage insights

•  Offer Wi-Fi roaming services

Increase ARPU

•  Increased cellular & Wi-Fi traffic delivered for less

•  Extend indoor coverage with footprint that complements cellular coverage

•  Churn reduction from improved customer experience

•  New roaming tariffs may attract new customers

•  Differentiation from “keeping customers connected”

Lower Costs

Increase Loyalty

& Market Share


www.devicescape.com @devicescape [email protected]

Documents

Embracing Amenity Wi-Fi: From the World’s Richest Wireless ......Embracing Amenity Wi-Fi: From the World’s Richest Wireless Resource to the Always Best Connection Dave Fraser December