Monetizing WiFi

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Special Talk - How to Monetize WiFi with an Example

Text of Monetizing WiFi

  • 1.Monetizing WiFi Dr. Mazlan Abbas MIMOS Berhad

2. Wi-Fi Strategy for Content Players Building an Educational Eco-System Business Models for Enterprise Connectivity Physical & Digital Advertising Avenues Summary 3. The Commercial Wi-Fi Ecosystem 4. - Superior indoor connectivity International Roaming - Cheap & convenient internet access for foreign nationals (Digital/Physical) - Popular hangout joints are attractive avenue for advertisers - A combination of physical/ digital advertising is more impactful Device Partners - Wi-Fi provides superior video/browsingexperience over smart devices - Most appropriatechannel to push in-house content/apps Content Partners - Touch-points for accessing content eco- systems - Promoting specific apps/content - Attracts users by THE COMMERCIAL WI-FI ECOSYSTEM Data Offloading - Freeing up 2G/3G airwaves - High-speed connectivity compared to 2G/3G 5. Commercial Models For Telecom Operators 6. Operators can effectively offload mobile traffic onto Wi-Fi networks, thereby freeing up capacity in their strained 3G/LTE networks Combines Wi-Fi hotspot plans with home broadband subscriptions enables consumers to experience smooth internet connectivity while on the go Enables users to roam seamlessly & enjoy high speed Wi-Fi connectivity as they travel from one country to another Model 1: Data Offloading Model 2: Home & Away Model 3: International Roaming Telecom operators can therefore provide premium services to customers without worrying about regulatory or cost limitations. COMMERCIAL MODELS FOR TELECOM OPERATORS Due to spectrum constraints for 3G & lack of 4G enabled devices, telecom operators are gearing up for big Wi-Fi play through: 7. Example: The O-Zone & Aircel Partnership Aircel, a leading telecom operator with 65 million subscribers, partnered with O-Zone in 2011 to promote Aircel Wi-Fi hotspots The objective of the partnership was to enable seamless 3G/Wi-Fi offloading, thereby creating a flawless customer experience 8. Example: The O-Zone & Airtel Partnership Airtel, Indias biggest telecom operator tied up with O-Zone to enable its customers to access home & public hotspot Wi-Fi in a reliable & convenient way 9. Wi-Fi Strategy for Device Players 10. Problems Identified High demandfor databut no properchannelto supportit Competitionfrom Operator content& apps Low cost device players intensifycompetition Desired Result EnhancedCustomer Experience Long term Customer Relationship IncreasedSales & MarketShare Proposed Solution Cheaper,faster , betterin- building connectivity channel which compliments3G Extensive Wi-Fi network in areasof high adoption& high contentusage WI-FI STRATEGY FOR DEVICE PLAYERS Device Players can leverage Apps & Content ecosystem through the public Wi-Fi network with bundled in Wi-Fi plans, thus creating a customer engagement platform 11. Wi-Fi vouchers bundled with LG Optimus phones Purchases smartphone LG Wi-Fi Cycle Voucher branding enables recall & customer retention: completes the loop Visits O-Zone hotspots, accesses free Wi-Fi Word of mouth creates awareness Example: O-Zone & LG Bundled In Wi-Fi Plans 12. Wi-Fi Strategy For Content Players 13. By reaching out to innumerable users across O-Zones extensive Wi-Fi network, content companies can directly increase subscribers, content usage & stickiness Problems Identified Low Usage Lack of CustomerRetention Mass Players Desired Result IncreasedSubscriber Base IncreasedUsage Increased Stickiness Proposed Solution Additionaldistribution networkwhich compliments 3G WI-FI STRATEGY FOR CONTENT PLAYERS 14. Customer visits O-Zone hotspot with Google Takes, edits & uploads photos to share with friends on Google Plus. Is re-directed to page below above to get free access to G+ Example: O-Zone & Google Wi-Fi Campaign displays The 3 month campaign resulted in approx. 1.1 million log ins on the network Clicks on ad 15. Building an Educational Ecosystem 16. Proposition University Public Wi-Fi Cafeteria Common Room Dorms Building an Educational Ecosystem Wi-Fi deployment across the campus Classrooms O-Zones Value Educational tablet devices to access Wi-Fi Revenue earned through mandatory per student fee 17. Commercial Models for Enterprise Connectivity 18. Model 1: Creating Private Networks Multiple Private networks are created for commercial buildings The builder may lease out these networks to tenant companies for their enterprise needs. Revenue Opportunities: System integration fee for building the network Maintenance fee for managing it Model 2: Guest Wi-Fi Solution Guests/visitors can access Wi-Fi while waiting for meetings in reception areas. Separate Guest Wi-Fi SSIDs are created for guests/visitors. Revenue Opportunities: Management fee for creating & managing Guest network Voucher Sale Model 3: Public Wi-Fi Hotspot Public Wi-Fi hotspots created in common areas like lobby areas, coffee shops Roaming in hotspots within building & public hotspots Revenue Opportunities: Mandatory Subscriber Fee per employee Ad Revenue COMMERCIAL MODELS FOR ENTERPRISE CONNECTIVITY 19. Physical & Digital Advertising Avenues 20. PHYSICAL ADVERTISING AVENUES O-Zone has secured exclusive physical Wi-Fi marketing rights across its hotspots Example: During Googles Wi-Fi campaign, revenue generated through advertising was shared equally with hotspot owners TentCardsPosters 21. DIGITAL ADVERTISING AVENUES Potential advertisers may also advertise on O-Zones landing page, displayed across all our hotspots Example: Revenue generated through Googles digital ad campaign was shared equally with hotspot owners 22. SUMMARY Revenue Models based solely on ad-hoc users walking into a hotspotdo not exist Operator Driven Standalone Wi-Fi retail business is also complex to Sustain long term However, Lucrative Business Opportunities do arise when a WISP builds the ecosystem of operators,devices, content, advertising etc. Worldwide Tsunami of Data & Video can generate huge revenues for a neutral WISP charging per megabit, enabling it to ride the wave! 23. References Creating a Continuous Monetized Wi-Fi Network, Bobby Sarin, WiFi World Summit 2012 24. THANK YOU EMAIL: mazlan@gmail.com TWITTER: mazlan_abbas FACEBOOK: www.facebook.com/drmazlanabbas LINKEDIN: my.linkedin.com/in/mazlan/ SLIDESHARE: www.slideshare.net/mazlan1