www.tsiconnections.com Relentless Ingenuity

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  • 1. www.tsiconnections.com Relentless Ingenuity Public WLAN Roaming

2. WLAN Roaming:

  • Public WLANs as Compliments to 3G Services
  • The WLAN Value Chain
  • Business Model Considerations
  • WLAN Roaming Summary and Challenges

3. Network Comparisons

  • 3G networks
    • Provide wide-area always-on coverage
    • Modest-data-rate applications
    • Data and voice share same spectrum which inhibits flat-rate data pricing
  • WLANs
    • Yield the low network cost per kb for data-intensive applications
    • Support flat-rate or time-based pricing for data services

4. Network Comparisons ROI declines across service profiles as colors change from green to red Service Profile SMS WAP Voice Emailw/o Attach. Mobile Professional Mobile Service Worker Full Desktop Equivalent Network Cost $ $$$ 2G 3G WLAN 5. 3G and WLANs: Complimentary Technologies

  • Market studies indicate that user demand for high-speed Internet/Intranet applications is greatest in quasi-stationary environments
  • Data roaming combines 2.5/3G technologies for wide-area, low-data-rate coverage with WLAN access for localized high-data-rate coverage
  • Consideration of the WLAN value chain identifies challenges to sustainable business models for integrated wireless data services

6. Value Chain Participants: Cellular Roaming

  • Wide-area cellular networks dont require property access agreements
  • Mature business models, well developed data exchange processes
  • Large numbers of transactions
  • Little need for aggregator services

Visited Operator Visited Operator Visited Operator Clearinghouse Home Operator 7. Value Chain Participants: WLAN Roaming

  • WLAN business models are immature and evolving
    • many small operators, few transactions compared to cellular voice services
  • Venues are strong participants in WLAN value chain
    • many local property agreements required for WLAN coverage
    • large venues may directly manage neutral host access
    • venue revenue share complicates pricing strategies
  • WISPs and aggregators may offer branded service or unbranded wholesale access

Venue Venue Venue Local WISP (Optional) Clearinghouse or Aggregator (optional) Home Operator 8. Entities Participating Data Roaming Value Chain

  • WISP - provider of public wireless Internet services via operation of venue access points.
    • example: Wayport, Spotnik, ANS, Cometa,
  • Aggregator provider of retail WLAN services through marketing and resale of WLAN access from multiple WISPs.
    • example: Boingo, Airpath
  • Broker (or Aggregating Broker) provider of wholesale access to multiple WISPs via multilateral roaming and resale agreements.
    • example: iPass, GRIC
  • Clearinghouse provider of AAA information flow and other services (e.g. billing mediation, financial settlement) between two or more service providers.
    • example: TSI, Verisign/Illuminet
  • Mobile Operator - operators of mobile networks with data services.
    • example: Verizon, SK Telecom, Telecom New Zealand

9. Business Model Considerations

  • The Neutral Host
    • Airports and premier venues are leaning towards the Neutral Host business model
      • venue owns the WLAN network and offers access to all users via roaming, credit card, and/or prepaid access
      • venue contracts with neutral host manager for operations and marketing support services
      • roaming AAA functions and home-network billing is supported via relationship(s) with clearinghouse
      • maximizes revenue generation
      • for the venue owner
      • One-way Roaming

10. Business Model Considerations

  • Aggregators
    • provide access to multiple-WISP hot spots
      • revenue model based on wholesale-retail markup
      • provides centralized AAA functions
      • client software provides uniform user experience
      • aggregator model appeals most to small WISPs or individual hot spots
      • Roaming agreements could be bi-lateral
  • Clearinghouses
    • Provides AAA functions for inter-WISP and cross-bearer roaming
      • Revenue based on transaction fees for AAA, billing mediation, settlement
      • Do not negotiate wholesale access rates
      • Can support wide range of billing options:
      • AAA function supports proxy authentication to home database
      • manage complexities of multiple roaming agreements

11. Other Considerations

  • Customer Experience
    • Smart Client
      • Flexible
    • Range of alternative access available
    • Customer Service
      • Inquiries
      • Problem Resolution
  • Management of Roaming Agreements
    • Greater number of players
      • Wireless Operators
      • WISPs
      • Aggregators