SP WiFi Monetization Strategies

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 Models

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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Key Vertical Managed Services

Business Models

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

Enabling Technology

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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Hyperlocation Video

Customer Use Cases

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*

Cable Mobile

Mobile One

Fixed

*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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O2 WiFi Video

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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Stary Browar Video

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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