WHITEPAPER

Wi-Fi FOR A CONNECTED WORLD

TOWARDS NEXT GENERATION NETWORKS

www.greenpacket.com

WHITEPAPER

Abstract
The next generation networks that we envision to be would be unimaginable with multitude of new generation of services, connected devices value chain and emerging embedded systems like telematics and automation gaining momentum in vertical industries. Mobile devices have transformed communication and Internet access. Wireless technology has enabled the concept of mobility and connectivity to expand beyond the days of laptops. Most people if not all, have ownership of a smart device that is voice, data and Wi-Fi capable. At this very moment of reading this and downloading the paper, you would potentially be running an application. The following sections of the paper, discusses the Wi-Fi effects of connectedness shifting from people to people into the connecting a billion of devices. Todays network consists of multiple access network technologies playing a different role in different contexts. In the race to smart next generation networks, secondary markets in embedded mobile is beginning to garner attention with greater ambitions into tertiary markets of cloud-based solutions, where anything and almost everything will be connected, regardless of geographical boundaries with the ultimate aim of cost effective development and implementation. This will help open doors to attractive new services that reect the consumers desire for solutions that they will be willing to pay for a premium. Wi-Fi is vendor neutral technology and potentially more effective alternative to operators building high bandwidth data networks without dependency on spectrum licensing. Wi-Fi as a complementary technology can help ease trafc by 20% with substantial impact of freeing up spectrum, when implemented strategically. By delivering multiple service bundles of voice, data, video, contents similar to quad-play can create stickiness and improve the overall user experience. Of course, pulling together devices, network services and applications creates complexity for operators and solution providers. In particular, the following barriers need to be addressed by operators and solution provider from the point of view of devices, integration, scalability and TCO relevant to building strong business models. Whichever the motivation for deploying Wi-Fi, be it value proposition in terms of price sensitivity, market leadership, interoperability or scalability, operators are quick to embrace faster time to market solutions to grow its business model. Similarly, consumers benet from a connected society that brings them closer to families, enriching their lives and making it more efcient.

WHITEPAPER

Contents
Overview 01

Where is Wi-Fi

02

Pervasive Connectivity: From Billions of People to Billions of Things Getting Wi-Fi Right

04

Maximize Capacity, Minimize Costs with Wi-Fi Wi-Fi Usage - What is the User Expectation Performance and Capacity - Where is the Spends - Business Model Consumer or Enterprise Key Takeaways of Wi-Fi

06

Conclusion

12

Think Forward with Wi-Fi

14

WHITEPAPER

Overview - 01

Overview
Wi-Fi has established itself as one of the most popular and widespread technology today reaching millions of homes, schools, enterprises and hotspot locations worldwide. Communication has become an essential part of our lives. The ever-growing Wi-Fi networks combined with integrated Wi-Fi chipsets into thousands of devices has matured and ensured that hundreds of millions of users worldwide now make regular use of Wi-Fi to access the Internet. Virtually every smartphone in the market is Wi-Fi enabled. In 2010 alone, more than 1,9501 device models supporting Wi-Fi were certied by the Wi-Fi Alliance, including almost 250 Wi-Fi enabled smartphones. Connections to Wi-Fi networks were historically dominated by the nomadic device such as laptops, but the rise of smartphones haven taken precedence as the primary device connecting to public Wi-Fi networks, as more and more people are connecting to the Internet conveniently, anytime and anywhere. With the penetration of smartphones, tablets and other connected devices, operators are driven to enter the Wi-Fi domain at some level to remain competitive. Internet connectivity has gone beyond conventional communication for business processes. Increasingly, it has permeated into the lifestyles of people, ranging from more than one aspect of M2M, NFC, telematics, healthcare, automation that directly impacts how and when interactions govern inter-connectedness. In this new era of explosive mobile data growth, rapid rise in mobile broadband services, rich digital content such as video streaming, online gaming, social networking and a plethora of web2.0 applications are contributing to unprecedented level of stress on mobile networks and disruption to operator business models with the arrival of iconic devices such as the Apple iPhone, Google Android devices and iPad; leaving network operators in anxiety and incapable to respond to the deluge of data.

1Source : WBA/ Informa Telecoms &

Media industry survey

WHITEPAPER

Where is Wi-Fi - 02

Where is Wi-Fi
According to a recent report by WBA2, the unprecedented growth in Wi-Fi hotspot deployments is predicted to rise 350% by 2015. It found that 58% of operators - including 47% of mobile operators - believe Wi-Fi hotspots are either very important or crucial to enhance their customers experience; ofoad busy mobile broadband networks; and provide a value-added services platform. Improvement in connection speeds and innovative consumer devices, applications and content has driven an exponential growth in demand, especially for data consumption. As operators roll out or upgrade to LTE, this improvement in connection speed and capacity as we know, will drive even greater bandwidth consumption; eventually outpacing LTE deployments and lling up very quickly. The overall data trafc projection is expected to increase by an annual CAGR of 32%3 from 2010 to 2015. As the world migrates inevitably and substantially towards LTE for wireless connection of both voice and data, the question beckons whether Wi-Fi has a value proposition in a LTE world. True enough, Wi-Fi is embedded in virtually every mobile Internet device and common hotspot services have formed to ll the gap in ensuring effective coverage for todays service providers worldwide that offer smartphones. A total of 440.5 million devices sold in 3Q11, of which 115 million were smartphones4 evident that demand for connectivity is real. In a nutshell, Wi-Fi is here to stay for the foreseeable future! 6 5 4 3
2Note:

WBA Industry Report 2011, Global Developments in Public Wi-Fi Index: Forecast and Methodology, 20102015

3Source: Cisco Visual Networking

4Source: http://www.gartner.com/it/

page.jsp?id=1848514

5.8 4.5 3.3 2.1

Public Hotspots (mil.)

2 1 0

1.3 0.5 0.8

Figure 1 : Global Public Hotspots, 2009-2015 Source : Informa Telecoms & Media

WHITEPAPER

Where is Wi-Fi - 01 Overview 03

700 600 Public Hotspots (mil.) 500

646 571 492 416 345 282 233

400 300 200 100 0 2009 2010

2011

2012

2013

2014

2015

Figure 2 : Global Public Hotspots, 2009-2015 Source : Informa Telecoms & Media

As a measure to reduce congestion on their network, several tier 1 operators have discontinued unlimited data plans and launched tiered plans to ensure network performance, in a similar move by AT&T in the US. At the same time, operators do not want to risk losing a signicant growing market of smartphone users that are looking for value added services. With greater foresight and methods, operators are turning to mobile data ofoading to relieve the network congestion and to monetize their 3G and 4Gnetworks more effectively. Some operators aggressively build-out extensive networks, whereas some choose to build partnerships via Wi-Fi aggregators such as Boingo and iPass. Whichever way, operators are now seeing their strategies to pragmatic practice to strengthen its market position.

WHITEPAPER

Pervasive Connectivity - 02 Where is Wi-Fi 04

Pervasive Connectivity: From Billions of People to Billions of Things

Wi-Fi is an enabler to transcend connectivity to the Internet of Things. Emerging wireless networking technologiesand the ability to embed connectivity to these networks in virtually all types of devicesare creating a new connected future. The tremendous expansion and evolution of wireless technologies together with growing user demand for ubiquitous voice and data access has encouraged a new generation of smart devices giving new meaning to connected world. Handset Unit Sales Per Region, 2011

11% 14%

12%

AME APAC CEE

43% 12% 8%

LATAM NA WE

Figure 3 : Smartphone Handset Sales 2011 Source : Pyramid Research, except from UBM TechWebs Light Reading Communications Network

Transforming customer experience is obviously a huge challenge. If the customer interaction isnt smart, fast and effective, it will fall short of expectations. Transactions become more immediate and the entire experience more cohesive and visible. Its common for a user to juggle a smartphone, a personal phone, a laptop and a tablet, depending on the task at a given time. As such, users are becoming more productive in the way the conduct work. Much attention has been focused on the convenience and productivity associated with the exibility of mobility and ultimately leads to cost reduction for operators to deliver its services.

WHITEPAPER
As operators modernize their networks to address its business needs, it presents opportunity for re-shaping old approaches to build and deliver new value add service by exploiting the various usage models around Wi-Fi. In order to further monetize their next-gen networks, operators have to move from simply providing access to creating new revenue streams from subscribers, verticals and advertisers for a broader role in the wireless communication value chain.

Pervasive Connectivity - 02 Where is Wi-Fi 05

Getting Wi-Fi Right

The perceived network performance on offer, as well as perceptions of usability, security and privacy, will be focused on delivering access in key venues with high trafc demand, such as airports, hotels and urban hotspots. Users continue to show willingness to pay for Wi-Fi services, wherever there lacks any form of connectivity. The direct relationship of equating the usability and quality of experience will be the determining factor on the adoption of Wi-Fi as a genuine wireless data technology that is compelling and seamless user experience, regardless of the location or delivery mechanism. Connectivity has transformed the way consumers and enterprises interact with their devices and assets. The following trends have led industry players and end-users across the value chain toward embedded connectivity: Consumers demand a compelling customer experience. Consumers demand connectivity at all times. Device manufacturers can target new segments of the consumer population. Network providers can monetize new services. Businesses can gain a competitive advantage over their peers.

The world is changing for Operators as they offer an ever increasing array of services and intelligence in smartphones. While these advances have great income potential for the Operator, they also bring a whole array of responsibilities. Users expect a level of protection as they use applications like mobile banking or mHealth where privacy and personal data need to be secured. The users whether a consumer or enterprise, expects a user experience where they are protected under any and all circumstances. The stakes are high since users will churn if they don't feel condent of the service.

WHITEPAPER

Maximize Capacity, Minimize Costs with Wi-Fi - 01 Overview 06

Maximize Capacity, Minimize Costs with Wi-Fi

One of the more signicant hurdles operator deal with when considering connected device solutions is building a business case. On one side, operators are looking toward connectivity as a way to widen additional business models both internally and externally. On the other side meanwhile, operators are challenged with reducing TCO for their connected device investments. From a business case perspective, most successful implementations begin with an objective of focusing on either the customer service-oriented benets or internal cost-efciencies. By focusing on a key internal or external pain point, companies can identify KPIs that will drive ROI. However, the benets derived from connected device implementations is subject to both internal and external (customer) metrics.

Wi-Fi Usage
Many if not all operators are jumping onto the Wi-Fi space to strengthen and protect its market position. Integrating Wi-Fi within the cellular network today can more effectively leverage on the advantage of capacity increase that Wi-Fi brings in a unied framework. In the likely scenario of operator requiring capacity boost needed in the near term, along with the exibility and compact form factor needed for highly-localized deployments in high-trafc environments, overlaying Wi-Fi over existing 3G/4G networks would be a viable option. While the macro network will continue to provide essential wide area coverage and support for high-mobility users, operators have started to look at other solutions to increase capacity in high-trafc areas. Wi-Fi ofoad is the most widely and successfully adopted solution in areas where subscriber density and usage is high such as urban areas, and locations such as airports, cafes, stadiums etc. Operators can gain incremental revenue per connection but take on more customer service responsibility, when strategically implementing Wi-Fi. Some of the more important

WHITEPAPER

Maximize Capacity, Minimize Costs with Wi-Fi - 02 Where is 07

considerations fall into usability, security, robustness and mobility when deploying a WLAN network. Mobile operators can further improve network utilization by actively managing the trafc beyond the RAN within the core, using content caching, mobile device management, tiered pricing, and policy enforcement through intelligent analytics. These solutions do not increase capacity per se, but make data transmission more efcient, allowing operators to pack more content within the same network infrastructure.

What is the User Expectation Performance and Capacity

How much data trafc deteriorates the network quality and upsets a user? Can a user on 256kbps plan have the case to declare a network as congested just because video streaming is slow? Would complaints be justied when the users neighbor, also a subscriber to the same network, enjoys uninterrupted instant messaging sessions with his girlfriend overseas? There is never a perfect solution in network planning. What matters is to deliver a throughput level that is justiable to subscribers and a data rate which is sufcient to satisfy subscriber usage with the correct denition of service level agreement in place.

Where is the Spends

Simply put, Wi-Fi deployment into cost per byte investment to real monetary gains is key. The cost savings can be demonstrated via the optimization of RAN and core network as in Figure 4. Any such modeling is very sensitive to many assumptions and situations in different regions, affecting these underlying assumptions. However, with the fundamental assumptions of backhaul is sufce, the network planning on direct capital expenditure spends is one of the most signicant hurdle operator encounter when considering a business case to build Wi-Fi deployments.

WHITEPAPER

Maximize Capacity, Minimize Costs with Wi-Fi - 08

Investments are often compared to the potential ROI and effectiveness of the proposed solution to derive benets both internally and externally. Secondary to that, the critical questions beg to have a clear focus of targeting a pain point. The likely high density demands occur in central business districts, major shopping areas, commuting hubs, airports and stadiums. There is periodic surge of activity which is fairly predictable and manageable with the right t of network planning by densication. Together with association of service aware and subscriber aware mechanism, operators can proactively execute policy enforcement and thus generate enough business intelligence to dynamically control access and ofoad based on the criticality level.

Zero spectrum fee Wi-Fi ofoad

DPI / Policy Control Billing / OSS CRM WAC IMS / Application Server P-GW RNC

UTRAN

Backhaul

e-NB

Internet HSS / HLR EPC

Macrocell

Radio Access

Core Network

Application and Services

Figure 4 : Optimization of Radio Access through Wi-Fi ofoad and Smart Trafc Management Source : modied from IDATE Consulting and Research

WHITEPAPER

Maximize Capacity, Minimize Costs with Wi-Fi - 09

The choice of densication of the cellular macro network by cell splitting and adding additional carriers can be useful to serve wide area coverage radius and mobility. Conversely, Wi-Fi hotspots can serve targeted capacity needs and applications that require burst data performance. Although Wi-Fi is limited in range of 100s of meters in comparison to cellular range of 10s of kilometers, there is considerable difference that arises in cost; the cost per bit or service charge of 3G is remarkably high, while Wi-Fi is almost free. As a matter of fact, spectrum is a rare resource. Wi-Fi being non-dependent on spectrum licensing is a signicant advantage over cellular technology to deploy. Most data usage occurs in indoors (i.e. home, ofce and public spaces). As with Wi-Fi hotspots, it provides the same capacity or even more than the macro cell at targeted locations and suitable for burst data, depending on the number of subscribers that concurrently accesses the AP. Macro networks is challenged by the physics of indoor penetration. By providing Wi-Fi hotpots it can signicantly improve the performance, whereby macro cells take considerably longer due to zoning, approval permits, environmental issues and other factors. Not forgetting, the operating expenditure it takes to maintain the useful lifetime. Similarly, some operators may choose to deploy femtocells to enhance indoor coverage, depending on their business needs. The usage of data is affected by the amount of byte (MBs, GBs) and the intensity it is used. For example, a user in the ofce consumes large amount of data ranging from emails, conference calls, le sharing applications and so forth. Similarly, a user at home which is streaming a youTube video would be consuming a lot of data. However, if the user is walking (i.e. mobile) the user may probably be using a navigation application, which is less data intensive and unlikely to be streaming video and watching it at the same time. Henceforth, the user is more likely to associate or describer their experience based on their behavior and the perceived benet they gain from the using the device as opposed to the amount of bytes consumed. To this extent, the applicability of home and ofce usage reects behavior that can be fairly predicted and provides a business case to reduce macro cellular trafc and ofoading onto Wi-Fi, so that revenue and cost trade-off is balanced. Through ofoad cost savings, it will benet operators while it also benets consumers as it may offer a higher quality of service (e.g. bandwidth) for the mobile data connection. Although residential Wi-Fi in the home (e.g. video, music, games, voice) do not contribute to much to chargeable bytes, it makes it appealing to consumers for reasons other than coverage and capacity. In enterprise Wi-Fi the ofce can provide a growing range of services (e.g. VPN, email, data sharing).

WHITEPAPER

Maximize Capacity, Minimize Costs with Wi-Fi - 10

Central to the external factors of Wi-Fi, it is also important to consider the inter-network roaming among multiple networks of different standards. The various means of addressing this is already in practice if not fully endorsed yet, such as 3GPP based iWLAN, ANDSF specication that allows inter-working between WLAN networks and 3GPP based networks. With Wi-Fi Alliance and WBA driving the standardization of frameworks for the Next Generation Networks (hotpot 2.0), it will indeed represent a milestone feat, and is a vision that will motivate industry players even more. The real end-to-end (E2E) application of wireless broadband will emerge with technological maturity that will allow a single terminal to seamlessly roam.

Business Model Consumer or Enterprise

The other issue being, the business model and ownership of network is commonly debated. Some operators choose to partner aggregators for various reasons of lack of support, coverage or purely for convenience. With variation of the level of connectedness, which will be the winning recipe for operators? There are several ways to incorporate Wi-Fi access into a mobile operators service mix and the choice of solution has long-term implications. Data subscription plans and charging methods will need to adapt change from the current ones in offer. Operators know that revenues will not keep up proportionally with increased data trafc, and therefore have to come up with other alternatives. According to an ABI Research paper, data revenues will only grow at a CAGR of about 15 to 18 percent until 2015, while data trafc is expected to have a 42 percent CAGR rate. From the perspective of mobile cloud computing, this is imperative. Users will always be sensitive to unexpected or unreasonable charges for data trafc exceeding their monthly limits. They are unlikely to accept the current pricing plans offered by operators that dont support the expected performance and growth in data trafc. Nevertheless, it will be interesting to follow both how the mobile cloud will proliferate and how operators will adapt in this premature stage. The business model for consumers and enterprise can be brought closer in terms of the moving up the content value chain. In the longer run, price factor will become less of a contributor, but the biggest differentiator between operators will be user experience, customer service and convenience. Together with cloud solutions, enterprise communication can diminish and reduce the fragmentation of siloed systems while at the same time give a reasonable level of operational efciency to the operators and deliver by the same token of convenience and performance to the end-user.

WHITEPAPER Key Takeaways of Wi-Fi

Maximize Capacity, Minimize Costs with Wi-Fi - 11

Wi-Fi itself has evolved through the times from being merely a connector to a key technology enabler of the Internet of Things in the last decade. Once considered a poor cousin to the wireless technology, it is now a found in almost all smart devices in the market. Being an affordable and widely accepted in the wireless ecosystem, Wi-Fi is becoming the favored alternative to address the ever growing consumer needs to access data, applications, voice, OTT services wherever available with most Operators bundling Wi-Fi as part of the mobile broadband strategies. The obvious reason for adopting Wi-Fi has its benets for both the consumer and operator level. Savings Acquisition Retention Value Added Service Platform Enhanced User Experience Data Ofoading

Wi-Fi ofoad is an appealing option for operators that are looking to optimize its network, while maintaining a balance and check mechanism in its investments.

WHITEPAPER

Conclusion - 12

Conclusion
Cellular networks such as GPRS/EDGE/EVDO/HSPA/LTE offer broad coverage, roaming capability, and high-speed mobility. While Wi-F is suitable for high-rate and large volume indoor data services which is similar to carrier-class quality. These technologies have specic core applications, but they can be mutually supplementary. For example, subscribers can expect lower cost and high speed Wi-Fi access in the home, while Wi-Fi hotspot coverage is more suited for airports or other places where broadband access needs to have a wider range and guaranteed throughput. In areas that lack Wi-Fi, cellular networks can maintain basic service availability. Undoubtedly, the resulting QoE will be consistently high and seamless, and the intelligent combination of technologies will be welcomed by subscribers. End users are most concerned with the balance of price and quality, and the latter is mostly judged by download rates. A convergence-oriented combination of technologies is urgently required to satisfy subscribers increasing demands on fees, performance, coverage, and mobility. Moreover, these demands span multiple networks that are embraced by a range of different standards. The convergence of technologies will become signicant to synchronize business processes, control and deliver services across multiple networks is an integral part of the user experience. Also, evaluating device management can profoundly impact the way consumers connect to services. Virtualization of consumer web experience means, Operators must quickly adopt social and mobile practices like Google, Amazon and Apple. The human context i.e. user that is using the technology is driven through mobile-centric applications and interfaces, while the business context primarily driven by business opportunities to turn apps stores and developer marketplaces into protable ventures by bringing the most talented designers. The application model of Wi-Fi is limitless, ranging from delivering mobile centric applications and interfaces, contextual, personal and social experiences. The evolving cloud computing architecture will impact how and which applications are designed and linked and thus encourage diversity in terms of the pricing models for consumers or enterprises as part of broader mobile strategies including Wi-Fi.

WHITEPAPER
Operators are recognizing the need to responding to changing demands from end users to drive the development of frameworks to further enhance the Wi-Fi user experience. Based on common standards and interest of industry players, WBA and Wi-Fi Alliance are harmonizing the Wi-Fi ecosystem in a move towards Next Generation Hotspot and Hotspot 2.0 certication respectively. Wi-Fi serves as a powerful enabler of pervasive wireless technology in terms of data trafc transmitted and transformation of the wireless data business model in years to come. Whilst the world is still in early stage development of high speed, high capacity networks, there will continue to be a need for Wi-Fi infrastructure to manage both capacity and cost of service delivery. Ultimately, ability to keep up with achieving cohesive user experience through robust networking is a competitive business advantage for bringing high quality service and sustainability in the long run with no particular technology platform and form factor dominance.

Conclusion - 13

WHITEPAPER

Think Forward with Wi-Fi - 14

Think Forward with Wi-Fi

Greenpacket welcomes you to embark on Wi-Fi solutions for optimizing your network operations and drive revenue. At Greenpacket, we understand the demands placed on Operators like you. Our solutions are designed to give you the exibility to constantly deliver cutting-edge offerings without exhausting your capital and operating expenditures. With Greenpacket, limitless freedom begins now!

Free Consultation If you would like a free consultation on how you can apply Wi-Fi solutions, feel free to contact us at marketing.gp@greenpacket.com. Kindly quote the reference code, SWPS1211-A when you contact us.

For more information on Greenpackets products and solutions, please contact us at marketing.gp@greenpacket.com San Francisco

Associate Member

Kuala Lumpur

Singapore

Shanghai

Taiwan

Sydney

Bahrain

Bangkok

Hong Kong

Copyright 2001-2012 Green Packet Berhad. All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language, in any form by any means, without the written permission of Green Packet Berhad. Green Packet Berhad reserves the right to modify or discontinue any product or piece of literature at anytime without prior notice.