Wireless Broadband Services

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
Area Network
Area Network
Area Network
Area Network
• 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
• 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
w/o Attach. Professional
Service Worker
Service Profile
Source: Fye Associates
Full Desktop
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
- 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
• 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
• 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
• 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
• Roaming is the key enabler for expanding footprint for 3G and WLAN services