New Ways to Generate Revenues from Public Wi-Fi

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


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 revenueSource: Maravedis-Rethink RAN Service



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%



5

From offload to the full HetNet

Revenue strategies and trends - MNOs

June 2014

Copyright © Maravedis Inc 2014


• 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



6

Dense edge-based networking drives revenue

Revenue strategies and trends - MNOs

June 2014



• 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

20

25

30

% o

f ad

dit

ion

al r

eve

nu

e

2012 2017



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 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



8

More radical thinking needed

Revenue strategies and trends - MSOs

June 2014



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



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)



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 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

12

Personalized promotions Relevant information on location Wide roaming

Exclusive apps and content Trusted security or interface



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


Copyright © Maravedis Inc 2013.CLIENT CONFIDENTIAL

Contact Information

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MaravedisRethink

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+1 305-865-1006

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New Ways to Generate Revenues from Public Wi-Fi