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
• Public WLAN Business Models and Case Studies
• Unique role of WiMAX for Wireless Operators
• Conclusions
Wireless Broadband Technologies
PAN
LAN
MAN
WAN
Personal
Area Network
Local
Area Network
Metropolitan
Area Network
Wide
Area Network
Bluetooth
Wi-Fi
WiMAX
1xEV-DO
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
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
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
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)
3G Data Services: Network Resources vs. Revenue
ROI declines across service profiles as
colors change from light to dark
Network Cost
$$$
3G
2G
WLAN
$
SMS
WAP
Voice
Email
Mobile
w/o Attach. Professional
Mobile
Service Worker
Service Profile
Source: Fye Associates
Full Desktop
Equivalent
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
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
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
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
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
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
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
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