Maurizio Gradi
Sales Business Development Manager
Agenda
§ Cisco Universal WiFi for SP architecture
§ Business Models
§ Enabling Tecnology
§ Customer Use Cases
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Cisco Universal Wi-Fi for Service Providers
Cisco Policy Management
Cisco USC 5000 Series for
Aironet 3600/3700
Mobility
Services Engine
Small Cell Gateway
Presentation_ID
Cisco Aironet
802.11ac Indoor &
Outdoor APs
Cisco 8510
Wireless Controller Subscriber/MNO Gateway
Cisco ASR 1000
Cisco Prime Management
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Cisco ASR 5000
Internet
Business Model Differentiation Leads to Value
Creation
Save Money
Retention and Loyalty
Cost-Effective Increased
Network Capacity
Make Money
Managed Connectivity Services
Location Analytics
Location-Based Advertising
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Business Model Differentiation Leads to Value
Creation
Save Money
Retention and Loyalty
Cost-Effective Increased
Network Capacity
Make Money
Managed Connectivity Services
Location Analytics
Location-Based Advertising
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Wi-Fi and Small Cells Are Integral to Fighting Churn
Retention and Loyalty
Aggressive Wi-Fi deployment for Western Canada; bundling broadband with public Wi-Fi access
Wi-Fi is “ a churn-reduction strategy”.
Peter Bissonnette, President
Public Enterprise Small Cells to improve coverage and accommodate data traffic
190,000
Small cell-base stations in Japan
44,000 femtocells
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A Business Case for Differentiating with Wi-Fi
Retention and Loyalty
$49 for Triple-Play package offered by competitor
$495 High subscriber acquisition cost
$115 Average monthly revenue per subscribe
OPTION A: Differentiate with Wi-Fi
Retention
Savings
$14.0M
OPTION B: Match Competitive Pricing
Total Wi-Fi
Costs
$10.1M
OR
Net Gain $3.9M
Foregone Revenue
(net loss)
$6.0M
Service Provider ended up ahead by $9.9M by differentiating with Wi-Fi
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Business Model Differentiation Leads to Value
Creation
Save Money
Retention and Loyalty
Cost-Effective Increased
Network Capacity
Make Money
Managed Connectivity Services
Location Analytics
Location-Based Advertising
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Wi-Fi and Enterprise Small Cells Provide
Cost-Effective Indoor Network Expansion
$3.00
Cost vs. Density of Traffic
Indoor Small Cell
$2.50
$2.00
$1.50
$1.00
$0.50
Macro
Stadium DAS
Repeater
$0.00
0 .005 .01 .015 .02 .025
Mbps / square meter
.03
Carrier Wi-Fi
.035
• Small Cells and Wi-Fi provide better cost vs density of traffic compared to
DAS and macro networks
• Combinations of small cells with Wi-Fi will add MORE capacity
• By 2017, 70% of all licensed small cells will include Wi-Fi
Source: Mobile Experts, Reaching a Balance Between Macro, Small Cells, and Carrier Wi-Fi , February 2013
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Increased Capacity for both Mobile Data and Voice
Mobile
Data Offload
32,000
Public
Wi-Fi hotspots
+10% +200%
Venue footprint
Wi-Fi connections in 2013 during 2013
2012
2013 traffic exchanged on the
Wi-Fi network
Wi-Fi works in tandem with our global network to keep people connected wherever they are.
Wi-Fi is a clear factor in mobile use, driving purchase decisions to enriched hospitality, fan and travel experiences.
Josh Goodell, AVP
AT&T Wi-Fi Services
According to
Small Cell Forum,
Enterprise Small Cells
Will …
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• Provide additional mobile coverage, capacity and services
• Offload subscribers to reduce network load and improve customer experiences
Source: Small Cell Forum 2013
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Case Study: Middle East Tier-1 Mobile Operator
Wi-Fi Offload Savings
Mobile
Data Offload
Mobile subscription to grow x5
2011
2016
3.5 M
17.5 M
Mobile broadband data usage to grow x3
550 MB/Mo
2011
1.6 GB/Mo
2016
7%
7% of mobile data traffic to be offloaded by 2020
Representing
$3.6B savings
1.6%
185
M
290
M
425
M
615
M
830
M
1.1
B
2013 2020
Service Provider Subscription and Traffic Forecast Through 2016
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Business Model Differentiation Leads to Value
Creation
Save Money
Retention and Loyalty
Cost-Effective Increased
Network Capacity
Make Money
Managed Connectivity Services
Location Analytics
Location-Based Advertising
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Managed Connectivity Services with
Wi-Fi and Enterprise Small Cells
Venue and retail owners start using Small Cells as a way to improve business
Creates an opportunity for service providers offering managed Small Cells
Managed
Services
Generate more customer traffic attracting more customers
Increase customer dwell time more time spent = more money
Managed Private Network for secure business and wholesale operations
Managed Public Network for guest Internet and voice access
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Transportation
Centers
• 30 second video every
30–40 minutes of access
• Subscription model for higher speeds starting at $4.95/hour
Connecting frequent and occasional travelers
Managed
Services
Hospitality
Connecting hotel guests and visitors
• Subscription models: free access for value-hotels and up to $5–30/day for luxury hotels
• Tiered pricing model and customized applications available for VIP customers
Stadiums
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Connecting fans to social media
• Paid subscription to users, as low as $7.95 / 24 hours
• Paid apps to access in-venue premium content
• Ad-supported connectivity
• Opportunity for SPs: $3–5M
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Retail Connecting retail store customers
• Partner with retail chains to provide Wi-Fi and managed services
• Free Wi-Fi is offered to retail customers in exchange for analytics and marketing
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Wi-Fi Wholesale Case Study:
MSO Wi-Fi Used for Mobile Data Offload
Managed
Services
Cisco outdoor AP 1552C
With CleanAir technology installed
A single access point is offering three SSIDs, one per service
Mobile SSID is a closed (secured) network; Mobile operator users connect and authenticate automatically via EAP-SIM
MSO broadband clients are eligible for free public
Wi-Fi through this SSID
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With Passpoint (Hotspot 2.0) selection of the right
SSID/AP will be secure and automated
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Easily Add Managed Small Cells for Voice Coverage
Managed
Services
Reduced network costs and operations with integrated design
Reduced CapEx—reuse of Ethernet connection and power
Zero touch configuration and provisioning
Secure, carrier-grade
3G base station technology
Standards-based Home Node B with specified Iuh interface
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Cisco USC 5310 / USC 8718
Cisco Aironet 3600
Power/Backhaul/Real Estate Solved
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Business Model Differentiation Leads to Value
Creation
Save Money
Retention and Loyalty
Cost-Effective Increased
Network Capacity
Make Money
Managed Connectivity Services
Location Analytics
Location-Based Advertising
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Location Analytics and Big Data
Customer journeys
Common paths
Popular destinations
First stop
Visit duration
Visitor patterns
Repeat vs. first time visitors
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Venues Gather Valuable Location Data
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Location
Analytics
20
Location Analytics and Big Data
Quantify and justify rental pricing
Analyze changes impact
Measure signage impact
Perform predictive analytics
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Venues Make Data-Driven Decisions
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Location
Analytics
21
Service Providers Launching
Analytics Business Units
Dynamic Insights
Location
Analytics
Pinsight
Precision
Marketing
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GeoVision
22
Verizon Precision Marketing
Location
Analytics
Dedicated business unit to help companies understand their customers’ usage data
Aggregates and anonymizes subscriber data and reports
Extension of online information, with websites tracking clicks and visitor information and interests
Allows customers to ‘opt out’
Verizon is working to sell demographics about the people who, for example, attend an event, how they got there or the kinds of apps they use once they arrive.
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Business Model Differentiation Leads to Value
Creation
Save Money
Retention and Loyalty
Cost-Effective Increased
Network Capacity
Make Money
Managed Connectivity Services
Location Analytics
Location-Based Advertising
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Mobile Advertising Is Broken
Location-Based
Advertising
Average CPM $ by Advertising Type
Online video ad—UGC
Online Banner
Cable Network
Broadcast TV
Online video ad (prem.)
Broadcast TV primetime
Cable (local)
Hulu (popular content)
Want that
Getting this
$0
Source: RCBG analysis of advertisement market
$20 $40 $60 $80
Mobile CPMs are below expectations, closer to desktop than television
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Mobile User Behavior Reveals Opportunities
Location-Based
Advertising
50%+ of all purchases influenced by mobile apps and social media
19% of mobile users turned on location services in 2012
94% of users who receive locationbased services consider them valuable
Source: Conlumino, TNS Global, Nick Lippis
UK retailers missing out on up to £12 billion in potential sales by failing to engage consumers through digital channels
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Cracking the Nut with Wi-Fi Location
Location-Based
Advertising
Volume-Based Impressions
Venues
100%
LBS
No eCPM
$2-$5
Targeting-Based Mobile Ads
Venues
10%
LBS
Yes eCPM
$24
100% 80% 60% 40%
Volume-Based Impressions % OF WI-FI VENUES ENABLED FOR ADVERTISING
Source: Cisco & RCBG SP Wi-Fi Monetization Research (2013)
20%
Hyper-Targeted
0%
Moving to Targeted Mobile Advertising
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$5.82
ARPU uplift by year five x2.5
More mobile advertising revenues in 5 years
27
With Cisco CMX ( Connected Mobile Experience ),
You Can
Detect Connect Engage
Guest Presence
§ Mobile device detected
§ Location Analytics
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Guest Access
§ Smooth, secure Wi-Fi connection
§ Facebook or Custom Login
Analytics
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Guest Experience
§ API/SDK-Enabled
Experience
§ App or Browser Engage
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Cisco CMX Analytics
§ Boost operational efficiencies
§ Analyze business performance to improve in-venue marketing
§ Optimize layouts to increase revenue per square foot
§ Increase customer satisfaction by understanding patterns and adjusting staffing
How Long Were People in the
Venue?
Number of Devices per Zone
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Before/After Zones
Detect
Location-Specific Guest Access
Cisco CMX Connect
§ Customize the Wi-Fi guest access experience
§ Gain valuable analytics about who is in venue
§ Simplify the user experience while offering clear terms and conditions
Connect
Registration, Terms, and
Conditions
Custom Landing Page/
Video
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Simplified Login
Cisco CMX for Facebook Wi-Fi
Easy Guest Access
§ Increase brand recognition and gain insights through
Facebook Wi-Fi
§ User connects to Wi-Fi, opens browser, and checks in
§ Venue gains exposure through news feeds, notifying friends
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Connect
Using Location-Based Wi-Fi to Engage
Consumers
þ
þ
þ
Engage
Work with Cisco and/or Ecosystem
Partners to Align to Business Needs
Fully Customizable Applications with
Zone-based Captive Portals and
Enhanced Advertising
Location-Aware App for Personalized
Experience
Integrate with Business Systems
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Cisco ® CMX Partner Ecosystem
Americas EMEAR APJC
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Global Network of Technology Partners
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Location Excellence Means Better Business
Intelligence
T=00s
FastLocate: Critical to actionable data
T=30s
Cisco CleanAir ® Technology –
Detects BLE beacons, interferers and optimizes RF
Cisco FastLocate – Faster refresh provides more location detail
Hyperlocation – Provides enhanced location accuracy
BLE Gateway – Complete BLE management, Integrated and plugin BLE options, BLE SDK*, and BLE Analytics*
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Cisco Universal Wi-Fi and Small Cells
Built on Unrivaled Expertise
• Most widely deployed small cells in the world
• Over 18 million Wi-Fi APs deployed, 55%+ share
• 200+ Service Providers using Cisco SP Wi-Fi
• Over 2 million Licensed Small Cells deployed
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Cisco SP Wi-Fi Deployments*
Mobile One
*Partial list—over 200 deployments worldwide
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O2 UK
§ Target 15,000 sites across the UK
§ O2 is realizing a cost savings from previous wholesale partnerships, marketing and brand image boosts, network offload benefits in dense areas, and joint marketing opportunity through proximity based advertising
§ Target market— hotels, bars, department stores, train stations, and football stadiums
§ The sign up process was auto-provisioned for all O2 customers with Wi-Fi devices by the end of the 2011 with a one-time registration based on MAC address; SIM-based authentication is now in deployment
“We don’t see Wi-Fi as trying to replace 3G, [but] there will always be physical limitations. The spectrum is limited. Wi-Fi increases your overall capacity to service demand.”
—Gavin Franks, Head of O2 Wifi
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Shaw Canada
§ Shaw Communications Inc. provides consumers with broadband cable television, High-Speed
Internet, Home Phone, telecommunications services, satellite direct-to-home services and engaging programming content. Shaw serves 3.4 million customers in Canada, through a reliable and extensive fibre network.
§ Shaw opts for SP Wi-Fi buildout over LTE
§ Goal: Extend the superior home Internet experience to the mobile world.
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AT&T Example Architecture
Cowboys Stadium Dallas Super Bowl XLV
§ 942 indoor and outdoor APs deployed
§ Cisco WLC architecture in NxN configuration
§ WCS for operation for monitoring and reporting of the network
§ Over 50,000 clients estimated in the stadium
§ Over 6200 simultaneous clients connected on Wi-Fi at peak time
§ 15,000 unique devices registered to the network
§ Full 3G offload from AT&T phones using
WISPr authentication
“With the new stadium, we've jumped to the forefront of a lot of new, emerging technologies.
We wanted to have Wi-Fi throughout the stadium. We see peak loads for kickoff, halftime, and Cowboys end game periods when everyone is doing video uploads. “
—Peter Walsh, CIO, Dallas
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Telkom Indonesia WiFi Vision
Phase 1
70,000 Access Points
Hotspot services
3G/WiFi data mobility
Phase 2a (Now)
+100,000 Access Points
Hotspot services
Home WiFi Services
3G/WiFi data mobility
Pay As You Install Model
Senior Level Engagement
Phase 2b (Planned)
+2 million Access Points
Hotspot services
Home WiFi Services
3G/WiFi data mobility
Multimedia services
Consumption Model
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PT Telkom, Jakarta Convention Center
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MGM Resorts International/Mobilitie
Cisco Connected Mobile Experiences
§ Concierge App
§ Personalized guest information
§ Indoor location services
– Indoor navigation
– Push notifications and promotions
§ Location analytics
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Cisco Solutions - Where to go Next:
§ Cisco Connected Analytics
– Cisco Support Community for Connected Analytics: https://supportforums.cisco.com/community/12223636/connected-analytics
– Cisco.com: http://www.cisco.com/c/en/us/products/cloud-systems-management/dataanalytics/index.html#~products
§ Cisco Mobility IQ http://miq.cisco.com
§ Cisco Enterprise Mobility Services Platform – MESP https://emsp.cisco.com/
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