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Key Drivers for Mobile Operators Entering Wi-Fi Hotspots Defining the Wi-Fi Hotspot User Use Cases for Mobile Data Offload How Important Are Wi-Fi Bundles Realizing Monetized Wi-Fi Hotspot Services Wi-Fi Hotspot Core Components Achieving Convergence via Mobile Charging Core Integration Growing a Wi-Fi Hotspot Footprint Customer Case Study
Introduction
Wi-Fi is a mature and widespread technology, today reaching over 700 million homes, schools, enterprises and hotspot locations worldwide. As mobile data usage continues to sky rocket and as Wi-Fi-enabled mobile devices become more abundant and diverse, mobile operators are beginning to see great potential for leveraging Wi-Fi hotspots services in order to reduce congestion on cellular networks and to capitalize on new revenue channels.
In launching and managing Wi-Fi hotspots, mobile operators can gain control over their subscribers Wi-Fi experience, in terms of security, accessibility and consistency across multiple hotspot locations.
Mobile operators can offer Wi-Fi as a value added service (VAS) to boost customer loyalty and ARPU, as well as generate new revenue streams by extending monetized Wi-Fi hotspot services to a wide reach of customers.
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Non-Subscribers
On What Device?
SIM Enabled
Wi-Fi Only
Wi-Fi Only
Offload
One-Time Data Pass
Charging Options
Credit Card Voucher Mobile Account Premium SMS
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FINDING VALUE IN MOBILE DATA OFFLOAD
Mobile data offload can be a win-win situation for mobile operators and subscribers. By offloading data (internet) traffic from a cellular network to a Wi-Fi hotspot network, mobile operators can optimize available cellular network resources, increase overall capacity and reduce bottlenecking of service. By alleviating congestion caused by heavy smartphone data usage, mobile operators can better allocate their cellular network resources to other customers.
Free or Bundled Unlimited Wi-Fi Hotspot Access with All Mobile Data Plans - Free Add-On Package Unlimited Wi-Fi Hotspot Access with Any Plan $9.99/ mo.
Premium Wi-Fi Unlimited Wi-Fi at Hotels, Airports & Retail Zones $19.99 / mo. Wi-Fi Roaming Unlimited Global Access on Partner Wi-Fi Networks $29.99 / mo.
Data On-the-Go Up to 2GB Data on GSM & Wi-Fi Hotspot Networks $29.99/ mo. On-the-Go Plus! Up to 4GB Data on GSM & Wi-Fi Hotspot Networks $39.99 / mo.
For mobile subscribers on SIM-enabled devices (think smartphones), mobile data offload offers a convenient, effortless way to access high-speed internet across all operator-managed Wi-Fi locations. This eliminates the burden of having to switch networks, sign up or purchase services at each hotspot. A carrier-class mobile data offload solution enables subscribers to be automatically authenticated to the Wi-Fi hotspot network without intervention or interruption of service.
Mobile operators have considerable flexibility in how they position and market Wi-Fi hotspot services to existing mobile subscribers. Unlimited Wi-Fi hotspots services may be bundled with a mobile data plan or available as a monthly add-on package. Operators can offer tiered Wi-Fi hotspot services for premium locations and frequent roaming subscribers.
*In some markets, where Wi-Fi hotspot services are commonly metered (per hour / per byte), it may be viable for mobile operators to count mobile subscribers Wi-Fi hotspot data usage towards an overall mobile data cap. Whether the user is browsing on a 3G or Wi-Fi network, the usage accumulates towards her monthly limit. This scenario, unlike the aforementioned, requires closer integration with the mobile charging core. Page | 5
In choosing your mobile provider, how important is it to have bundled Wi-Fi access with your smartphone tariff?
35
While a few mobile subscribers may prefer to keep Wi-Fi and mobile services separate, a recent Light Reading survey shows that over 85% of respondents consider Wi-Fi Hotspot access bundled with a smartphone to be a factor in choosing a mobile operator.
30 25 20 15 10 5 0
Not Important, l prefer Wi-Fi to be separate Marginally Important Important, but Not Decisive Very Important, A "Must Have" Feature
Source: Light Reading, 2011
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HLR / AUC
IN
SS7 / SIGTRAN
AAA (RADIUS)
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REALIZING WI-FI HOTSPOT MONETIZATION
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In monetizing Wi-Fi hotspot services, mobile operators have seemingly unlimited options to create innovative business plans and offers that resonate strongly with their target customers. For frequent hotspot users, Wi-Fi hotspot subscriptions are a popular choice. These may be unlimited, volume or time limited. Typically, customers pay a monthly fee for access to most or all of the operators Wi-Fi hotspots. A real-time, flexible rating engine lends itself to more granular options, such as rates based on time or day, location, device type, etc. One-time or casual users may prefer to pay for Wi-Fi services by the hour or by the megabyte at a single location. Customers can easily use a credit card or one-time prepaid voucher with a predefined time or volume limit to avoid having to sign up or register for services. A hybrid option, the Wi-Fi Data Pass affords casual users more longevity than a single session without the commitment of a subscription. Wi-Fi Data Passes can offer unlimited or volume-limited service for a day, week or month, for example. Once the pass expires or the volume allotment is exhausted, the customer simply purchases another pass as he needs it. This is a popular option for roaming customers who may be traveling for a short period.
Wi-Fi Roaming Pass One Week Unlimited Wi-Fi Access at All Hotspot & Global Partners for $24.99 One Week Pass One Week Unlimited Wi-Fi Access at All Hotspot Locations $14.99
5GB Everywhere Wi-Fi Access Up to 5GB at All Hotspot Locations $19.99/ month
Wi-Fi by the Hour Unlimited (volume) Wi-Fi at Single Hotspot Location $2.50 / hour
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Balance
IN to IP Charging GW
Access Controller
Router
Fetch Location Information DHCP Requests Alepo Hotspot Location Server SNMP HTTPS Alepo Web Existing Portal Web Portal Send E-mail Payment Gateways
SMSc
Send OTP
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DESCRIPTION Enables automatic authentication of SIM / EAP-enabled mobile devices to Wi-Fi network. Performs authentication, authorization & accounting; Provides quota-based session management & subscriber identity management. Handles per volume / time rating and leakage-free disconnect or redirect upon credit expiration Facilitates location-specific portal pages, content, charging and commissioning; Monitors APs; Assigns IP addresses at session start Provides a convenient store front to purchase & register for services, access hotspot network & free content; May be branded and integrated with existing customer website May include voucher management, real-time reporting, customer care and partner / reseller management Allows for convergent Wi-Fi + mobile services, unified account & balance management Extends functionality of existing prepaid mobile vouchers to purchase convergent Wi-Fi services. Remotely manages customer devices and Wi-Fi access points, including provisioning operators Wi-Fi SSID
DATA (INTERNET) OFFLOAD Required X Not Required, Included in Wi-Fi to Mobile Auth. GW X Not Required
Required
Recommended
X Not Required
Recommended
HOTSPOT PORTAL
X Not Required
Optional, if offload is done
Required
Recommended
Optional, allows subscribers
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Through integration, the mobile core can be extended to serve as the main balance manager for Wi-Fi services in addition to the existing mobile services. To initiate Wi-Fi services, Alepo IN to IP Charging Gateway checks for a subscribers real-time balance and sends rated accounting information in order to credit or debit the balance according to the real-time usage. Voucher refills made through the Alepo Web Portal can be pushed to the corresponding mobile core subsystem, allowing operators to extend existing prepaid mobile vouchers for the purchase of Wi-Fi services, allowing subscribers to top up mobile and Wi-Fi services with a single, familiar voucher. This functionality notably helps to lower operator costs of building a new distribution chain and brand awareness for Wi-Fi vouchers. Subscriber information, including MSISDN, can be synchronized between the Wi-Fi platform and the mobile core to allow for unified subscriber identity management. This enables IN- and IPbased services to be merged onto a single subscriber account, and makes it possible for the mobile core to handle Wi-Fi-only customer accounts as well. Alepo has proven knowledge and expertise in integrating with mobile core network infrastructures in order to realize convergent, next generation services. Leading operators, including France Telecom and Digicel, have relied on Alepos professional services to realize their convergent business needs.
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3
HOW TO GROW A WI-FI HOTSPOT FOOTPRINT
Page | 16 Alepo Copyright 2011
With a Tiered Wi-Fi Hotspot Network Model, mobile operators can quickly and cost-effectively expand their Wi-Fi hotspot footprint by leveraging & revenue sharing with partners and resellers. Partners benefit from low-cost setup and maintenance (no expensive onsite software), branded portal pages and accurate commissions based on actual usage, rather than original point of purchase, making it an attractive microbusiness model.
IN
Access Network
Internet
Subscribers
About Alepo
CONTACT ALEPO
Corporate Headquarters & North America Sales Austin, Texas +1 (512) 879 1030 sales@alepo.com EMEA Regional Sales Paris, France +33 3 69 61 81 92 dan.stern@alepo.com CALA Regional Sales Buenos Aires, Argentina +54 11 4711 8235 ramiro.costa@alepo.com
Founded in 1994, Alepo is a leading provider of enabling infrastructure for telecommunications service providers. Alepo provides IT systems and IT consulting services for telecommunications companies, enabling them to compete efficiently and realize next generation service opportunities. Alepo is proud to support innovative market leaders such as France Telecom, Digicel and Charter Communications as they evolve in the telecommunications marketplace. Alepos comprehensive suite of Wi-Fi Solutions enables mobile operators to successfully implement, expand and capitalize on Wi-Fi services. Tailored each operators unique business needs, Alepos solutions integrate seamlessly with a mobile operators existing IN-based infrastructure to allow for effortless and automatic Wi-Fi authentication, as well as convergent services, including unified balance management, across all legacy and NGN technologies. Alepos solutions are built according to the design principles of compliance to standards, automation, flexibility, scalability and feature-richness. The company has partnered with leading manufacturers of telecommunications equipment to ensure improved interoperability and smooth customer experience for users. Maturity, stability and innovation make Alepo a market-leading vendor of solutions for both greenfield and established service providers.
www.alepo.com
Twitter: @AlepoUSA Facebook: /AlepoUSA LinkedIn: /Company/Alepo
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