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Public WLAN Roaming. www.tsiconnections.com. Relentless Ingenuity. WLAN Roaming:. Public WLANs as Compliments to 3G Services The WLAN Value Chain Business Model Considerations WLAN Roaming Summary and Challenges. Network Comparisons. 3G networks Provide wide-area always-on coverage
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Public WLAN Roaming www.tsiconnections.com Relentless Ingenuity
WLAN Roaming: • Public WLANs as Compliments to 3G Services • The WLAN Value Chain • Business Model Considerations • WLAN Roaming Summary and Challenges TSI Telecommunication Services Inc. Proprietary and Confidential
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 TSI Telecommunication Services Inc. Proprietary and Confidential
$$$ 3G Network Cost 2G WLAN $ Email w/o Attach. SMS WAP Voice Mobile Professional Mobile Service Worker Full Desktop Equivalent Network Comparisons ROI declines across service profiles as colors change from green to red Service Profile TSI Telecommunication Services Inc. Proprietary and Confidential
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 TSI Telecommunication Services Inc. Proprietary and Confidential
Visited Operator Visited Operator Clearinghouse Home Operator • • • Visited Operator Value Chain Participants: Cellular Roaming • Wide-area cellular networks don’t require property access agreements • Mature business models, well developed data exchange processes • Large numbers of transactions • Little need for aggregator services TSI Telecommunication Services Inc. Proprietary and Confidential
Venue Local WISP (Optional) Venue Clearinghouse or Aggregator (optional) Home Operator • • • Venue 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 TSI Telecommunication Services Inc. Proprietary and Confidential
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… TSI Telecommunication Services Inc. Proprietary and Confidential
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 TSI Telecommunication Services Inc. Proprietary and Confidential
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 TSI Telecommunication Services Inc. Proprietary and Confidential
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 TSI Telecommunication Services Inc. Proprietary and Confidential