Our experience in deploying

public Wi-Fi infrastructure and

the future vision toward 2020

Toshiya Masuzawa

1. Wi-Fi activities and initiatives

2. Carrier grade Wi-Fi operations

3. Wi-Fi application services

4. Partnerships among service providers

5. Future vision toward 2020

1

Overview of our Company

Established

Bu

sin

ess

tren

d

July 15, 2002, 13 years passed since establishment

10,000

120,000

FY2011 FY2012 FY2013[Airports, Railroads]

[Cafes]

[Convenience stores]

[Public sectors]

10,000 120,000 150,000+30,000+110,000

Wi-

Fi A

P d

eplo

ymen

t

150,000[Stadiums]

- NTTBP is a subsidiary of NTT Groups and operates Wi-Fi infrastructure wholesale services

and several Wi-Fi related value added services for mobile and telecom carriers, enterprises

and public sectors in Japan.

Rapid expansion since 2011on the back of offload demandfrom mobile carriers

2

+110,000

+30,000

Policy of Service Installation

- We are operating more than 150,000 access points mainly deployed along with densely-

populated area.

20 million FTTH subscribers

↓Switch to Wi-Fi

70 million

40 million

44 million

Commercial facilities, restaurants and cafes, leisure facilities, hotels, etc.

<NTT East , NTT West > Hikari station, Dospot

Smart TV Homeappliances

Smartphones/tablets

Total: 200,000 APs

FTTH area (77,000)

Xi area (76,000)

4 million

2,500 AP

accessible numbers of people

16,000 AP

11,000 AP

9,000 AP

Nationwide 2,000 stations of 47 railroad companies: 13,000 AP

38 Airports throughout Japan: 700 AP

Cafés, Shopping malls, etc.

3

19,000 APs

54,000 APs

48,000 APs

76,000 APs

4,000 APs

Stations,airports

Convenience stores

Small and medium-sized shops

Educational facilities

Homes,offices

Small shops

Shopping Malls,cafés, etc.

(As of August, 2014)

Wi-Fi Services on the Railroad/Subway Stations

- We have deployed 12,863 APs at 1,968 railroad stations all over the country.

-Sapporo Municipal Subway-JR Hokkaido

Sendai Municipal Subway

JR Shikoku

Kotohira Electric Railroad

Kobe Municipal Subway

-Fukuoka City Subway-JR Kyushu (bullet train, conventional lines)

-Nishi-Nippon Railroad-Nagasaki Electric Tramway

Iyo Railway

Echizen Railway

Kansai area-Osaka Municipal Subway

-Nankai Electric Railway

-Keihan Electric Railway

-Kintetsu Railway-JR West-Hankyu Railway-Hanshin Electric Railway

-Kita-Osaka Kyuko Railway

-Osaka Monorail

-Nagoya Municipal Subway-Nagoya Railroad-JR Central(conventional lines)

Tokyo Metropolitan area-Tokyo Metro-Toei Subway-Keikyu Line-Seibu Railway-Tsukuba Express-Yurikamome Line-Tobu Railway-Keio Railway-Keisei Electric Railway-Shin-Keisei Electric Railway

-Hokuso Railway-Tama Monorail-Sagami Railway-Yokohama MunicipalSubway

-Saitama Railway-Chiba Urban Monorail-Tokyo Waterfront AreaRaipd Transit Rinkai Line

-JR East-Tokyu Line-Odakyu Line-Minatomirai Line

Tokaido Shinkansen line stations

Sanyo Shinkansen line stations

4

- We have deployed 692 APs at 38 airports all over the country.

Kushiro Airport

Hakodate Airport

Asahikawa Airport

Nakashibetsu Airport

New Chitose Airport

Aomori Airport

Sendai Airport

Narita International Airport

Haneda Airport

Niigata Airport

Toyama Airport

Osaka International Airport

Kansai International

Airport

Nagasaki Airport

Hiroshima Airport

Takamatsu Airport

Tokushima Awaodori Airport

Tottori Airport

New Ishigaki Airport

Naha Airport

Saga Airport

Fukuoka Airport

Central Japan International Airport

Kitakyushu Airport

Kumamoto Airport

Kochi Airport

Matsuyama AirportKagoshima Airport

Miyazaki airport

Izumo Airport

Komatsu Airport

Kobe Airport

Okayama Airport

Okadama Airport

Tokachi-Obihiro Airport

Noto Airport

Yamagata Airport

Matsumoto Airport

Wi-Fi Services at the Airports

5

Wi-Fi Infrastructure Wholesale Services

6

- We provide Wi-Fi infrastructure wholesale services with mobile and telecom carriers.

- Not only NTT groups but also other telecom carriers are also our customers.

- By sharing APs with those carriers installed by us at densely-populated area, such as

airports and railroad stations, the venue owner could keep the radio quality stable.

Multi SSID (service name)

Multi VLAN (virtual network)

Shared AP

NTT East

DOCOMO

NTT West

UQ

SoftBank

Kopti

Inte

rnet

infrastructure Carrier Network

NTTBPDC

optical backhaul

Carrier Service

POI

Wi-Fi application

platform

NTTBP NW

GW

C

A B

① ② ③

BA

Provide different content and information via each AP

Contentsdistribution

Log collection

Contents, applications of each company, etc.

Internet authentication

Multilingual

Single sign-on

Municipalities want to gather tourists with free Wi-Fi

Narita Airport

Haneda Airport

C

Enterprises want to delivercoupons andcontents ateach store

Wi-Fi Application Services

7

- We provide Wi-Fi related value added services, so called “Wi-Fi Application Services” to variety

of venue owners and/or property owners.

- They are industry wide-spread to areas such as transportation, entertainment, distribution and

municipalities, etc.

- We deliver various content and information according to their request for each AP on our Wi-Fi

application platform.

Business Model and Revenue Stream

For carrier’s subscribers

Automatic connection anywhere in the country with one registration

Free of charge for end users

Needs to register for each venue owner ‘sWi-Fi

NTTBP

Carrier

Customers (subscribers)

NTTBP

Venue owner

Customers

AP installation,SSID configuration

Wi-Fi offered bycarrier

AP installation, SSID configuration

and providing application

services

Wi-Fi offered by venue owner

Revenue increase from attracting customers and improvement in customer satisfaction

Carrier Wi-Fi

Venue owner Wi-Fi

NTT BP NW, cloud

NTTBP NW

●

Mobile phonecarrier A

Mobile phonecarrier B

Mobile phonecarrier C

Conveniencestore

Subway Municipal

●

Stadium

POI

POI

- Our business model is based on B-B-C model, which means NTTBP to telecom carriers or

venue owners to end customers.

- We provide Wi-Fi access services to carriers for traffic offload and some value added

application services to venue owners on their request in order to make their revenue increase

by providing useful and attractive information, such as coupons, ads, popular contents, etc.

8

1. Wi-Fi activities and initiatives

2. Carrier grade Wi-Fi operations

3. Wi-Fi application services

4. Partnerships among service providers

5. Future vision toward 2020

9

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

0

500

1,000

1,500

2,000

2,500

3,000

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

2013 2014 2015

Traffic

Association

- Wi-Fi traffic, data volume, has been rapidly increasing, 5 times more than ever before.

- The number of Wi-Fi association has been increasing, 6 times as well.

- Once the deployment of SIM authentication, EAP-SIM, in October 2013, the rate of growing

data volume and association has been accelerated.

DOCOMO SIM authentication starts

Traffic: Terabyte Association: million

Rapid increase since SIM authentication

Daily average-Traffic: 83TB/day-Association: 50 millions/day

Wi-Fi Usage Trend

10

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

0

100

200

300

400

500

600

700

800

Am

ou

nt

2013 ～ 2014

障害発生数

オンサイト数

障害発生率

オンサイト率

- We have been monitoring approx. 200,000 APs deployed all over

Japan for 24 hours a day and keeping quite a good service level.

- Failure rate: up to 0.8% Failure rate = Failure amounts / AP amounts

- Onsite rate: nearby 0.2% Onsite rate = Onsite amounts / AP amounts

19,000 APs

54,000 APs

48,000 APs

76,000 APs

4,000 APs

Wi-Fi Service Operations

Failure Amounts

Onsite Amounts

Failure Rate

Onsite Rate

Stations,airports

Convenience stores

Small and medium-sized shops

Educational facilities

Homes,offices

Small shops

Shopping Malls,cafés, etc.

(As of August, 2014)

Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov

11

Wi-Fi Service Quality Management

- Through our operational effort for better services, we believe that it could help us to

- gain the trust from our customers

- encourage a good relationship with customers, etc.

POI

Internet

Carrier Network

Throughput

Traffic

Traffic

Traffic

Smartphones, etc.

APAP

Wi-FiCloud

InternetServices

Associations

Zabbix / Zabicom

AlarmTrafficCPU

Resource Monitoring Status Monitoring

StatusMemory

Cacti / TOPS

Alarm Status CPU Memory Traffic

24 hours365 days

Throughput Association

12

1. Wi-Fi activities and initiatives

2. Carrier grade Wi-Fi operations

3. Wi-Fi application services

4. Partnerships among service providers

5. Future vision toward 2020

13

Concerns and Fears for ALL tourists

14

TransportationHow to get there?

WeatherCold ? Hot? Humid?

ShoppingSomething special?

AmusementPlay spot? Theater?

GourmetLocal cuisine?

- Before you travel, you might explore a variety of information about your destination.

- However, even if you do it hard, especially, if the destination is foreign country, you still

might be worried about how you could spend your time safely, happily and efficiently.

SightseeingHeritage?

AccommodationHotel? B&B? Cash/Currency

Exchange rate?

EmergencyPolice? Ambulance?

A lot of concerns and fears for travels in foreign countries

Wi-Fi Application Services for ALL tourists

15

TransportationHow to get there

WeatherCold Hot Humid

ShoppingSomething special

AmusementPlay spot Theater

GourmetLocal cuisine

- We are providing Wi-Fi based application services for travelers from foreign countries.

- We could provide a wide variety of useful information and ads for them timely via Wi-Fi.

i.e. tour guide for sightseeing, such as landmarks and museums, coupons for shopping, a lot of

information and navigation for local cuisines restaurants and transportations in their own languages

SightseeingHeritage

AccommodationHotel B&B Cash/Currency

Exchange rate

EmergencyPolice Ambulance

A lot of helpful and convenient information via Wi-Fi

Searching Wi-Fi Hot Spots

16

Tap here

You are here

Choosing Wi-Fi Service Provider

17

Tap here

Connecting Wi-Fi Hot Spots

18

Tap here

Tap here

Enjoying Travel Applications

19

Tap here

Tap here

Tap here

Tap here

Translation Support Applications

20

Tap here

Tap here

Searching ATMs

21

Tap here

You are here

Limited area with free Wi-Fi

Not sure where Wi-Fi is available

Connection procedure varies from area to area

and it is hard to figure out

Authentication procedure varies by area and that

make inconvenient

Currently, single step sign-on is available at 92,000 APs.

22

Killer Application for Wi-Fi Hot Spots

- We have been providing an application that enable users to login to each

Wi-Fi access point with single sign-on function.

- The application provides the mechanism that brings co-relation of

authentication information among multi-service providers.

- Currently, through more than 92,000 Wi-Fi APs, customers are able to

enjoy single sign-on to connect Wi-Fi access services.

- With just this application, end users can enjoy several useful services

explained in previous pages.

23

Single Sign-on Application, JCW

Without JCW With JCW

Registration&

Authentication

Registration&

Authentication

Registration&

Authentication

Authentication

Once Registration

Authentication Authentication

How to find SSID?How to connect?

What is ID & Password?

Very easyJust Tap “Connect”

●●●●●●

1. Send messages via notification when entering the Wi-Fi area with automatic language recognition function.

2. Request customer’s approval of implementing notification.

3. Deliver various kinds of information such as guides, coupon and ads regarding transportations, sightseeing and/or local foods and cuisines, etc.

Real-time Notification Service

- We are providing a real-time notification service according to the location of each Wi-Fi AP.

- Venue owners enable to deliver various kinds of information such as guides, coupon and ads

regarding transportations, sightseeing and/or local foods and cuisines, etc.

- Customers can get various kinds of useful information easily and timely from their smart devices.

24

●●●●●●

Sightseeing Information Coupon & Advertisement Urgent Alert

Information cut-in on the Web, without Apps

- We are providing an information insertion service according to each Wi-Fi AP via web browser.

- Venue owners enable to deliver various kinds of information such as guides, coupon and ads

regarding transportations, sightseeing and/or local foods and cuisines, etc.

- Customers can get various kinds of useful information easily and timely without installation of

any applications.

25

1. Wi-Fi activities and initiatives

2. Carrier grade Wi-Fi operations

3. Wi-Fi application services

4. Partnerships among service providers

5. Future vision toward 2020

26

Customers of non-Japanese Wi-Fi providers

Customers of NTTBP Wi-Fi

Non-Japanese Wi-Fi providers

NTTBP Wi-Fi

World

RADIUS

RADIUS

Already built partnership among carriers of South Korea, Taiwan, China, and Indonesia

27

Wi-Fi Roaming Partnerships

- The number of foreigners visiting Japan have already exceeded 13 millions in 2014.

- From customer’s perspective, Wi-Fi global roaming could bring a huge economical benefit.

- In addition of that, we could provide a variety of useful and beneficial information tailored to

the location of visitors with Wi-Fi hotspot feature.

Japan

- Customers can use their account, ID & password, used in their own country.

- We would provide safe and secure services with WPA2 scheme.

1. Wi-Fi activities and initiatives

2. Carrier grade Wi-Fi operations

3. Wi-Fi application services

4. Partnerships among service providers

5. Future vision toward 2020

28

[Airport][Station]

[Press centers]

<Olympic Games-related facilities>

[Hotels, inns][Tourist

destinations]

[Inside buses]

[Inside trains]

[Convenience store]

[Café] Athletes, Olympic Games officials, mass media, audience, etc.

[Olympic village]

[Small outlets]

[Large-scale commercial facility]

<Shopping center><Department store>

[Stadiums][Indoor

stadiums]

Initiatives for Wi-Fi Expansion toward 2020

29

- We are planning to expand our Wi-Fi hot spots in Japan toward 2020.

- We would like to provide “hospitality via Wi-Fi” for Tokyo Olympic & Paralympic Games.

- location information, maps/navigation, multilingual guidance, translation and security

- We would like to become a value partner as business supply chains of various industries.

PC

Smartphone

Music player

Tablet PC

ゲーム

Television

Video camera

Digital camera

IP cameravarious sensor

Wearable deviceWearable device

Paper display

Railway stations Airport

Shop Hotel

Home

Offices, school, etc.

Home, officeVenue owner

Video game

Being Wireless with Wi-Fi in ALL Devices

30

Business Development in Wi-Fi Environment

- W-Fi is the technology with guaranteed interoperability among a variety of devices.

- It is easy for everybody to build connections among devices via Wi-Fi technology.

- Wi-Fi has a lot of potential, where we can build many kinds of customer-centric services.

Thank you for your attention.

Please enjoy your trip in

Fukuoka.