© 2013 NTT Broadband Platform, Inc All Rights Reserved 1
Overview of NTTBP’s Business
Nov 13, 2013
NTT Broadband Platform, Inc.
Tadao Kobayashi
Airheads Conference 2013
© 2013 NTT Broadband Platform, Inc All Rights Reserved 2
Founded July 15, 2002
Location 3-6-2 Uchikanda , Chiyoda-ku , Tokyo
Capital
Formation
Business
NTT East 100%
July 2002 -
NTT East 40%
NTT West 30%
NTT docomo 30%
March 2006 - Present
NTT East 34%
NTT West 22%
NTT docomo 22%
NTT Com 22%
WLAN base station (AP) facility wholesale business New service & application development business
120,000APs at train stations, airports, cafes, etc.
Providing services to both NTT group and non-group companies
In-train internet: Tokaido Shinkansen (bullet train) & Tsukuba Express
Cognitive mobile router
development
Wi-fine Platforms
for attracting customers
Providing business areas with a Wi-Fi based
solution for attracting customers
Our clients (in random order)
NTTBP is pure-play Wi-Fi company of NTT Group
Founded
July 2005 -
NTTBP - Company Overview
© 2013 NTT Broadband Platform, Inc All Rights Reserved 3
Wi-Fi utilization has been changing with improvement of Wi-Fi usage as follows : High-speed wireless (1st stage) → Off-loading (2nd stage)→ Wi-Fi Cloud (3rd stage)
1st 2nd 3rd
NTTBP NW
●
POI
Wi-Fi Cloud
Internet authentication
Content delivery
Exterior GW
Wi-Fi NW
Mobile phone carrier NW
Internet High speed
Area coverage
Co
mm
un
ica
tio
n s
pee
d
Wide
Wi-Fi NW
Mobile phone carrier NW
・Targeted area
・High-speed
Low speed
Narrow
Business Transition
High-Speed Wireless Wi-Fi Off-loading Wi-Fi Cloud
© 2013 NTT Broadband Platform, Inc All Rights Reserved
NTTBP Core NW
Content synchronization apps
●
POI
3G/LTE FTTH
Wi-Fi auto connect apps
Sample Case: Seibu Dome
High-density Wi-Fi
Wi-Fi Cloud Business Facility Wholesale Business
(Core business) Wi-Fi Solution Business
■Providing communication carriers w/ our facility
wholesale service (currently offering the service to 8
communication carriers)
■Installing APs in train stations, airports, and other
good locations
■Planning to increase the # of APs to 160,000
(installed 120,000 APs by FY 2012 end)
160,000APs by this FY end.
Offering full Wi-Fi coverage – train
stations, airports, convenience stores, etc.
Providing Tokaido Shinkansen with
In-train Wi-Fi service
■Developing new services by combining our
wholesale business with Wi-Fi Cloud Service
■Increasing the number of non-carrier customers
■100 client companies
NTTBP Core NW
Wi-Fi Cloud
Internet authentication
Content delivery
Exterior
GW
Coupons
Videos
Store info.
Stamp Rallies
Free Wi-Fi
Sample case: 7-Eleven
etc. ・・・
100 Clients
NTTBP Core NW
Wi-Fi Cloud
Internet authentication
Content delivery
Exterior GW
■Construction of high-density Wi-Fi intended for the
use of tens of thousands
■Developing mobile routers with cognitive functions
■Creating apps automatically connecting to NTTBP’s
APs
■ Offering service allowing to upload/download
content automatically via content synchronization tools
Mobile routers with
cognitive functions (Personal Wireless Router)
Unit sales
exceeded
820,000 units
<FY 2012 end>
Our Business Domains
© 2013 NTT Broadband Platform, Inc All Rights Reserved 5 5
NTT Group
Other Carriers
Non-Carriers
NTT East
NTT docomo
NTT West
UQ
SoftBank
Kopticom
Nintendo
Fukuoka City
INTERNET
Facility Operators Facility
The n
um
ber o
f custo
mers is in
cre
asin
g
NTTBP DC
POI●
Optical fiber backhaul
Business operators services
<Shared AP mechanism>
Facility Wholesale Business by Shared Wi-Fi APs
・・・
Seven & i
・・・
・・・
Wi2
SSID
Multi-SSID
Multi-VLAN
Multi-Radius
One single base station covers
multiple business operators
Shared APs supporting multi-SSID, multi-VLAN, and multi-Radius: avoiding radio interference and providing high-quality and stable Wi-Fi environments
Allowing to share installation costs among business operators. Offering our facilities to an increasing number of customers
60,000APs→120,000 APs (FY 2012 end)
Offering full Wi-Fi coverage – train stations, airports,
convenience stores, etc.
Providing in-train Wi-Fi service for Tokaido Shinkansen ・・・
© 2013 NTT Broadband Platform, Inc All Rights Reserved 6
Internet
NTT-BP Data Center
NTT-BP NW(Shared APs)
Other SSID
Service
Other SSID
Example: “B to B” Business Model in between Carrier and NTTBP
Contract Contract Contract
Customers
Business Scheme of the Facility Wholesale
© 2013 NTT Broadband Platform, Inc All Rights Reserved 7
Station
Airport
Convenience
store
Minor scale
store
Home/
Office
12,000AP
34,500AP
74,000AP
Optical Fiber
20millon lines
↓
Add Wi-Fi
The main area APs Users ※NTTBP estimation
※Mar.2013
Almost all stations are covered.
Almost all airports are covered.
A hotel and a large-scale office building are covered.
The store and area in which
people gather are covered broadly.
Wi-Fi becomes an infrastructure which connects television,
and SmartPhones and also a household appliance.
AP is built from the area in which many people gather so that the multiplication of the number of AP(s) and the number of
persons which can be used may become the maximum.
As a result, Internet connection according to Wi-Fi at the interval which walks several minutes is possible in urban areas.
Shopping center
Convenience store
Smart TV SmartPhones/
Tablets
Beauty parlour
Restaurant
Small scale
store 200,000AP
70millions/day
40millions/day
20millions/day
44millions/day
15,500AP Major cafe chain store
(Xi-SPOT) 4millions/day
The view of wireless LAN spot deployment
FTTH
Entrance
62,000
LTE
Entrance
74,000
© 2013 NTT Broadband Platform, Inc All Rights Reserved 8
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
H22_4Q H23_1Q H23_2Q H23_3Q H23_4Q H24_1Q H24_2Q H24_3Q H24_4Q
9,100APs
11,000APs
71,000APs
120,000APs
•A 7-fold increase in
just half a year!
•A 12-fold increase in
only one year!
<As of FY2012>
Stations
Airports
Convenience stores
Café chains
Local governments
Shopping streets
Private shops
A 7-fold increase in just half a year and a 12-fold increase in one year (from FY 2011 end)
Transition of the number of APs
March 2014 Forecast
160,000APs
FY10 4Q FY11 1Q FY11 2Q FY11 3Q FY11 4Q FY12 1Q FY12 2Q FY12 3Q FY12 4Q
© 2013 NTT Broadband Platform, Inc All Rights Reserved 9
Total Connections at Railway and Convenience Store (Daily)
0
1
2
3/1
3/2
3/3
3/4
3/5
3/6
3/7
3/8
3/9
3/10
3/11
3/12
3/13
3/14
3/15
3/16
3/17
3/18
3/19
3/20
3/21
3/22
3/23
3/24
3/25
3/26
3/27
3/28
3/29
3/30
3/31
holiday
Railroad
Convenience Store
holiday holiday holiday holiday holiday
© 2013 NTT Broadband Platform, Inc All Rights Reserved
NTTBP Core NW
Content synchronization apps
●
POI
3G/LTE FTTH
Wi-Fi auto connect apps
Sample Case: Seibu Dome
High-density Wi-Fi
Wi-Fi Cloud Business Facility Wholesale Business
(Core business) Wi-Fi Solution Business
■Providing communication carriers w/ our facility
wholesale service (currently offering the service to 8
communication carriers)
■Installing APs in train stations, airports, and other
good locations
■Planning to increase the # of APs to 160,000
(installed 120,000 APs by FY 2012 end)
160,000APs by this FY end.
Offering full Wi-Fi coverage – train
stations, airports, convenience stores, etc.
Providing Tokaido Shinkansen with
In-train Wi-Fi service
■Developing new services by combining our
wholesale business with Wi-Fi Cloud Service
■Increasing the number of non-carrier customers
■100 client companies
NTTBP Core NW
Wi-Fi Cloud
Internet authentication
Content delivery
Exterior
GW
Coupons
Videos
Store info.
Stamp Rallies
Free Wi-Fi
Sample case: 7-Eleven
etc. ・・・
100 Clients
NTTBP Core NW
Wi-Fi Cloud
Internet authentication
Content delivery
Exterior GW
■Construction of high-density Wi-Fi intended for the
use of tens of thousands
■Developing mobile routers with cognitive functions
■Creating apps automatically connecting to NTTBP’s
APs
■ Offering service allowing to upload/download
content automatically via content synchronization tools
Mobile routers with
cognitive functions (Personal Wireless Router)
Unit sales
exceeded
820,000 units
<FY 2012 end>
Our Business Domains
© 2013 NTT Broadband Platform, Inc All Rights Reserved 11
High-speed wireless connection
Offloading
Domestic communication
carriers
Value-added services to
specific locations Prime objectives
Until now From now
Players Various area owners
160,000 APs by this FY end. Offering full Wi-Fi coverage – such as
train stations, airports, convenience stores, etc.
Convenience stores
NTTBP NW
●
POI
Stations/ Airports Cafes
+
NTTBP NW
●
POI
Cafes Local governments
Wi-Fi Cloud
Internet authentication
Content delivery Exterior
GW
Area owners can deliver specific information to specific audiences “only for now” “only for here” “only for you”
Stations/ Airports Convenience stores
Business Model Transition
© 2013 NTT Broadband Platform, Inc All Rights Reserved 12
Wi-Fi Cloud
Our shared APs enable us to offer “Wi-Fi Cloud Service” as well as “facility wholesale“. Targets for our Wi-Fi Cloud business: 1) Local governments/Local shopping areas, 2) Area owners (airports, convenience stores, Cafes, etc.), and 3) Game consoles. Each AP can send its own unique content to terminals in the area.
NTTBP NW
GW
C
A B C
① ② ③
B A
< Basic functions of our Wi-Fi cloud >
•Each AP receives specific information
e.g. “Content A” goes to AP#1, “Content B” to AP#2 …
•Providing a content delivery server via Cloud service
Each AP receives
original content
Internet authentication
Content delivery
Local area Info. delivery
100APs in Fukuoka City
□Free internet
□Area portal site
□Tourist information
3,000APs at train
stations etc. – planning to
expand the service
□Game, content, and message
delivery features
About 14,000APs at seven &i
stores across Japan
□Store information
□Coupons and videos
□Questionnaires
Wi-Fi for tourists
Automatic content/
game delivery
Store-based coupon/
content delivery
AP usage fee
Cloud service usage fee
Portal development fee
AP usage fee
Cloud service usage fee
AP usage fee
Cloud service usage fee
Wi-Fi Cloud Business Overview
© 2013 NTT Broadband Platform, Inc All Rights Reserved 13
Wi-Fi based new information delivery service – available at all stores across the country
Internet
E-books Local area information delivery
(Coupons, stamp cards , etc.)
Game Content
× about 14,500 stores
Music/movie sales
Printing service
As a backup line
Multiple use of
operational terminals Original Content Delivery Service “7SPOT” Public Wireless LAN area
NGN
Collaboration model/scheme
Convenience stores, mass
retailers, department stores,
and family restaurants
Digital Signages
7 Spot membership:
Over 948,000 registered members
(as of Nov 8, 2013)
usage situation
Wi-Fi Cloud Introduction Example: (Seven & I Group)
© 2013 NTT Broadband Platform, Inc All Rights Reserved 14
Characteristic 1
Quadrilingual
Free Public Wi-Fi Service “Fukuoka City Wi-Fi” – launched on April 27, 2013
Characteristics 2
Internet authentication
Characteristics 3
Local information
Characteristics 4
Disaster planning
■Available areas
■Service launched
■Provision system
All Fukuoka City subway stations, tourist Information centers, municipal facilities, Fukuoka
airport, and Hakata port international terminal (53 areas in total)
⇒Thanks to mayor’s appeal: planning to increase the number of APs with private sector
investment (hotels, commercial buildings, tourist facilities, etc.)
April 27, 2013 –
NTTBP (Coordinating, Creating a service model), ICR (Handling RFPs),
NTT WEST (Installing APs, Acting as a contact point)
Wi-Fi Cloud Introduction Example:Fukuoka City
© 2013 NTT Broadband Platform, Inc All Rights Reserved
◇Local governments and other area owners provide visitors with “carrier-free” Wi-Fi internet access
service for free, regardless of their carries. The costs of the service are paid by local government.
◇NTTBP offers Wi-Fi internet access service for profit as a business, based on the request from
local governments.
◇Local governments can focus on their objectives, by placing NTTBP in charge of the service
offering: thus, free from concerns for quality maintenance/improvement, or trouble, such as
breakdowns, unfair use, etc.
Area visitors
Service usage fee
Service offering
Free Wi-Fi offering (improvement of convenience)
Tourist information delivery (economic effects)
Telecommunications service
offering (terms of service)
15
Attracting
tourists and
business
travelers
City Wi-Fi : Wi-Fi Solution Business
Area Owners (Fukuoka City, Okinawa City,
Hiroshima City, etc.)
(Okinawa City)
© 2013 NTT Broadband Platform, Inc All Rights Reserved 16
Japan Connected-free Wi-Fi
Japan Connected-free Wi-Fi Conventional Way
Registration
at each location
Available with
single registration
Launch of “Japan Connected-free Wi-Fi”
- interworking the open Wi-Fi services provided by corporations and local governments
Office buildings (Marunouchi Building,
Shin Marunouchi Building,
etc. )
Airports
Tourist spots,
museums, galleries,
city halls, etc.
Railway
stations
Narita International Airport
Tokyo International Airport
Osaka International Airport
Fukuoka Airport
Accelerating Innovation and Collaboration for the Next Stage (NTT: Nov 8, 2013)
© 2013 NTT Broadband Platform, Inc All Rights Reserved
NTTBP Core NW
Content synchronization apps
●
POI
3G/LTE FTTH
Wi-Fi auto connect apps
Sample Case: Seibu Dome
High-density Wi-Fi
Wi-Fi Cloud Business Facility Wholesale Business
(Core business) Wi-Fi Solution Business
■Providing communication carriers w/ our facility
wholesale service (currently offering the service to 8
communication carriers)
■Installing APs in train stations, airports, and other
good locations
■Planning to increase the # of APs to 160,000
(installed 120,000 APs by FY 2012 end)
160,000APs by this FY end.
Offering full Wi-Fi coverage – train
stations, airports, convenience stores, etc.
Providing Tokaido Shinkansen with
In-train Wi-Fi service
■Developing new services by combining our
wholesale business with Wi-Fi Cloud Service
■Increasing the number of non-carrier customers
■100 client companies
NTTBP Core NW
Wi-Fi Cloud
Internet authentication
Content delivery
Exterior
GW
Coupons
Videos
Store info.
Stamp Rallies
Free Wi-Fi
Sample case: 7-Eleven
etc. ・・・
100 Clients
NTTBP Core NW
Wi-Fi Cloud
Internet authentication
Content delivery
Exterior GW
■Construction of high-density Wi-Fi intended for the
use of tens of thousands
■Developing mobile routers with cognitive functions
■Creating apps automatically connecting to NTTBP’s
APs
■ Offering service allowing to upload/download
content automatically via content synchronization tools
Mobile routers with
cognitive functions (Personal Wireless Router)
Unit sales
exceeded
820,000 units
<FY 2012 end>
Our Business Domains
© 2013 NTT Broadband Platform, Inc All Rights Reserved 18
Minimizing each AP’s cell area while increasing the density of APs – enable to
offer adequate communication capacity and coverage to tens of thousands of users
After Before
<Upper part>
High directional
antennas
<Middle part>
Directional
patch antennas
<Bottom part>
Directional
patch antennas
APs in a dome stadium Area design outline
high-density
area design
AP’s Cell
Wi-Fi Solution Introduction Example: Seibu Dome
© 2013 NTT Broadband Platform, Inc All Rights Reserved 19
<Smartphone image>
1. Free-internet access Available 90 minutes per session/
3 times a day
5. Banner ads Auto-changing banner images
2. Player directory Information on Lions players
3. Videos “Lions@YouTube”
9. Lions official website
4. Real-time game data Real-time game scores
and information
8. Baseball quizzes Quizzes the same as displayed
on the stadium video board
6. Calendar Seibu Lions team schedule
7. Restaurants List of restaurants at the stadium
Providing various content services
The key words are fun, convenience, and share
Wi-Fi Solution Introduction Example: Seibu Dome
© 2013 NTT Broadband Platform, Inc All Rights Reserved 20
Business
- Increase in smartphones and tablets - All terminals and devices: wireless connection to networks - Spread of various devices - The wireless times: wireless connection at any time and anywhere (Google Glass, sensors, cameras, etc. ) (people ⇔ people / people ⇔ machines / machines ⇔ machines)
1. Convergence of wireless systems to two wireless systems, LTE (FD & TD) and Wi-Fi - combining the use of LTE and Wi-Fi as basic bearers 2. Increase capacity and efficiency in area cover by combining two systems - combining the use of macro-cells and small-cells - combining the use of outdoor-cells and indoor-cells 3. Introduction of SIM authentication and carrier aggregation 4. Increasing assignment to Wi-Fi frequencies
- Early realization of 802.11ac and multi-streams - Traditional role of Wi-Fi : Information exchange
⇒ New role of Wi-Fi : Monetization and Analytics by taking advantage of Wi-Fi characteristics - Referred to NTT holding company’s vision
Wireless – Future Trend
New strategies – Technology / System / Frequencies
Best mix of wireless (LTE & Wi-Fi) and optical fiber – increasing Wi-Fi’s value
Wi-Fi Value in the Future
© 2013 NTT Broadband Platform, Inc All Rights Reserved 21
Smart Life & Smart Work in the Next Stage
걷는다
走
Walk
Transportation Intelligent Transportation
Systems, Quick Charging
Environment Smart Housing / Smart Buildings,
Demand Response
Health Care Telemedicine, Regional
Medical Collaboration
Home
Entertainment 4K / 8K, Ultra High Definition
Video on Demand
Tourism Multilingualization, Barrier-free
Stadiums Highly Realistic /
Ultra High Definition Video,
Public Viewing
- ICT as an Enabler
Accelerating Innovation and Collaboration for the Next Stage (NTT: Nov 8, 2013)
© 2013 NTT Broadband Platform, Inc All Rights Reserved 22
Infrastructure Supporting ICT Utilization
Accelerating Innovation and Collaboration for the Next Stage (NTT: Nov 8, 2013)
Optimal Navigation Highly Realistic / Ultra
High Definition Video
Energy Control
Traffic congestion mitigation
(Best route guidance),
Multilingualization, Barrier-free Multi-angle / Multi-view, Time shift
Heat island mitigation,
Electric energy projections
Most advanced Internet access infrastructure in the world by
the best mix of wireless (including Wi-Fi) and fiber-based communications
© 2013 NTT Broadband Platform, Inc All Rights Reserved 23
Key Challenges – Network Control
Accelerating Innovation and Collaboration for the Next Stage (NTT: Nov 8, 2013)
Interference Cooperation
From hardware-intensive
to software-defined efficient network controls
<Figure 1> Increased density of Wi-Fi base stations <Figure 2> Dynamic cells
Challenges Issues
Increase in connected device users at stadiums
etc. - Wi-Fi frequency interference caused by increase in the
number of access points <Figure 1>
(lower speed)
Simultaneous massive access to high-definition
videos - Resource shortage of delivery servers and backbone
network (difficulty in viewing)
Improvement in data transmission efficiency
with reliable multicast*2 etc. - Next generation high compression technology (HEVC*3)
- Interactive panorama video delivery system
Interference evasion using dynamic cell
based on software controls <Figure 2>
- Cooperative wireless LAN*1
- Simultaneous transmission for high efficiency wireless LAN
*1:Technology that prevents throughput loss by the collaboration of multiple access points *2:High quality simultaneous broadcasting technology that prevents packet loss. *3:High Efficiency Video Coding
© 2013 NTT Broadband Platform, Inc All Rights Reserved 24
6:00 9:00 12:00 15:00 18:00 21:00 24:00 3:00
Home Company Company Pub Home
Home Part time job Home
Home University Part time job Home
Many Wi-Fi APs are available on the path in life of urban area Wi-Fi APs are being deployed to Home/Office/School
In case of living in urban area, the duration staying in Wi-Fi spots will be much longer than before
Shopping at supermarket
Shopping at convenience store
Wi-Fi Wi-Fi Wi-Fi Wi-Fi
Convenience store Mall at station Platform for waiting Platform for stopping
Wi-Fi is always available for every
few minutes during outside
・・・ a few
minutes
In case of family who has optical fiber + Wi-Fi
and lives in urban area
Time Ratio Covered by Wi-Fi
Fath
er (
Worke
r)
Moth
er (
House
wife
) Daughte
r (Stu
dent)
Lunch
a few minutes
a few minutes
© 2013 NTT Broadband Platform, Inc All Rights Reserved 25
Thank you so much for inviting to
Aruba Airheads Conference 2013