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Wireless Broadband Services: Emerging Technology Solutions and Business Models

Wireless Broadband Services: Emerging Technology Solutions and Business Models. Manuel A. Maseda Syniverse Technologies. Presentation Outline. Wireless Broadband Technologies Overview 3G Network Resources vs. Revenue How Public WLANs Compliment 3G Services

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Wireless Broadband Services: Emerging Technology Solutions and Business Models

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  1. Wireless Broadband Services: Emerging Technology Solutions and Business Models Manuel A. Maseda Syniverse Technologies

  2. Presentation Outline • Wireless Broadband Technologies Overview • 3G Network Resources vs. Revenue • How Public WLANs Compliment 3G Services • Public WLAN Business Models and Case Studies • Unique role of WiMAX for Wireless Operators • Conclusions

  3. Wireless Broadband Technologies PAN Personal Area Network LAN Local Area Network MAN Metropolitan Area Network WAN Wide AreaNetwork WiMAX 1xEV-DO Wi-Fi Bluetooth

  4. Bluetooth • Specifications defined by the Bluetooth SIG • Largely driven and controlled by major software companies and device manufacturers • - IBM, Microsoft, Nokia, Ericsson, Motorola, Nokia • Throughput: < 1Mbps • Range: < 30 meters • Spectrum: Unlicensed • Applications: Device to device communications • Evolution: Version 2.0

  5. Wi-Fi (Wireless Fidelity) • Specifications defined by IEEE 802.11 groups and promoted by the Wi-Fi Alliance • Largely driven by chip and hardware manufacturers • Throughput: • - 802.11b – 11 Mbps 802.11a / 802.11g – 54 Mbps • Range: < 100 meters • Spectrum: Unlicensed • Applications: Local wireless broadband access • Evolution: 802.11n >100 Mbps

  6. WiMAX (Worldwide Interoperability for Microwave Access) • Specifications defined by IEEE 802.16 groups and promoted by the WiMAX Forum • Largely driven by chip and hardware manufacturers • Throughput: up to 40 Mbps • Range: up to 10 kilometers • Spectrum: Licensed and unlicensed • Applications: Last mile wireless broadband access • Evolution: 802.16e adds mobility

  7. 1xEV-DO • Specifications defined by the TIA and 3GPP2 • Largely driven by wireless operators and equipment manufacturers • Throughput (peak): • - up to 2.4 Mbps to device • - up to 153Kbps from device • Spectrum: Licensed • Applications: Mobile wireless broadband access • Evolution: 1xEV-DO Rev A QoS (VoIP)

  8. $$$ Network Cost 3G 2G WLAN $ Source: Fye Associates Email w/o Attach. SMS WAP Voice Mobile Professional Mobile Service Worker Full Desktop Equivalent Service Profile 3G Data Services: Network Resources vs. Revenue ROI declines across service profiles as colors change from light to dark

  9. How Public WLANs Compliment 3G Services • Mobile Internet/Intranet access will require 10-200X network capacity of voice per subscriber - Desktop-equivalent 3G access for laptops and PDAs is unlikely to produce revenue proportional to the required network investment • Wireless data roaming combines 3G technologies for wide-area, mobile coverage with WLAN access for localized high-data-rate coverage - One-bill roaming is first essential step to full 3G/WLAN service integration - Full handoff with session continuity is not required to meet current customer expectations - Availability of converged devices and services such as VoIP could change this

  10. Public WLAN Business Models • WLAN business models are still in early development stages • Residential and enterprise WLAN adoption drives demand for public WLAN access • A large majority of new laptop computers produced today are equipped with WLAN • Multiple business and pricing models are being tested for sustainability - Many service providers are electing not to build out their own WLAN networks or limiting deployment to strategic locations - Flat rate, per session, per minute pricing

  11. Public WLAN Business Models (continued) Case Study: SBC • Currently operates over 4500 hotspots - UPS Stores, Barnes and Noble Bookstores • Currently provides access to their wireline, DSL, and dial-up internet customers • Expected to provide access to their cellular subscribers • Offers their hotspots to other providers via roaming agreements

  12. Public WLAN Business Models (continued) Case Study: Sprint • Currently operates 20 hotspots - Mostly airports • Currently provides WLAN access to their cellular and enterprise subscribers • Plans to provide subscribers access to more than 25,000 domestic and international hotspots by year end 2005 via roaming agreements • Focusing their efforts on supporting secure mobile workforce access across 1xEV-DO, WLAN (enterprise, home and public access), and dial-up

  13. Public WLAN Business Models (continued) Case Study: unnamed small wireless operator • Currently operates no hotspots • Desires to provide their existing wireless subscribers with WLAN access • Planning to launch service consisting of access to 6000+ hotspots exclusively through roaming agreements • Retail pricing will be based on marking up the negotiated wholesale roaming rates • This creative approach has very little financial risk

  14. Unique role of WiMAX for Wireless Operators • A WiMAX network is configured in much the same way as a traditional cellular network - Strategically located base stations using a point-to-multipoint - - architecture to deliver services over a radius of up to several kilometers • Positioned as a DSL or cable modem replacement • Ideal technology for build-out in areas not currently served by DSL or cable • Deployment success depends on securing base station sites or antenna rights

  15. Unique role of WiMAX for Wireless Operators (continued) • Exiting wireless operators have an advantage in that they usually have already secured base station sites or antenna rights - Wireless operators can either provide WiMAX services directly or provide access for other WiMAX providers • WiMax is an excellent technology for supporting WLAN backhaul • WiMAX networks can also be used for cellular backhaul to minimize wireless operator dependency on backhaul facilities leased from other providers and competitors

  16. Conclusions • Many wireless broadband technologies are complementary and can be combined to offer a more cost effective solution • Wireless operators are uniquely positioned to offer their subscribers a multitude of wireless broadband services • Creative business models for deploying WLAN services exist which allow for minimal financial risk • Roaming is the key enabler for expanding footprint for 3G and WLAN services

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