WiFi Roaming: An Opportunity in the Middle East

Farah Fadi T-Systems International

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International Carrier Sales and Solutions Arabcom 2004 Arabcom 2004

Agenda

WiFi and Roaming: basic concepts.

WiFi Market Overview in the Middle-East. WiFi Roaming: an opportunity and a need. How to roam?

Turnkey WiFi Roaming Solutions.

International Carrier Sales and Solutions Arabcom 2004

What is WiFi?

Wireless Fidelity

A technology to provide Wireless LAN service

Allows access to private networks and to the public Internet

Radio technology (2,4 - 5 GHz), based on IEEE 802.11 specs

High bandwidth (several MBit/sec) but low coverage (<300m)

International Carrier Sales and Solutions Arabcom 2004

What is Hotspot?

Public Hotspot: A location equipped with a WiFi network for access to the public Internet. Can either be free, or for a fee. Can be pre-paid or post-paid access fee.
Hotspo t

Private Hotspot: A location equipped with a WiFi network for access to a private network. Home Hotspots. Company Hotspots.
International Carrier Sales and Solutions Arabcom 2004

What is WiFi Roaming?

Gas station

Provider As Hotspot in France

Coffee Shop

Provider Bs Hotspot in the Lebanon

The traveling end user wants to access the Internet through domestic and internationally based hotspots. But he has only an account with the blue provider B.

Hotel

Roaming would allow this end user to access the Internet Provider Cs through his home account while Hotspot in using Hotspots not belonging to Asia his home provider.
International Carrier Sales and Solutions Arabcom 2004

Who are the Players of the Hotspot Market?

WISPs
Operate Hotspots Dont own end-customers Dont bill end users

Providers

Dont operate Hotspots Have a large customer base Bill the end users
ISPs like T-Online, Wanadoo, etc Mobile Operators like Optimus, etc.

Examples: Kubiwireless in Spain The Cloud in the UK

Examples - Providers are typically:

Both: WISPs + Providers

T-Mobile in Germany and the US, SFR in France, OTENet in Greece, Telefonica in Spain, etc.
International Carrier Sales and Solutions Arabcom 2004

Agenda

WiFi and Roaming: Basic Concepts.

WiFi Market Overview in the Middle-East. WiFi Roaming: An Opportunity and A Need. How to Roam?

Turnkey WiFi Roaming Solutions.

International Carrier Sales and Solutions Arabcom 2004

Market Trends

WiFi is experiencing significant growth, driven by cost and convenience factors.

Revenues from Public WiFi services by region to 2006
Number of Public WiFi locations by region to 2006
7,000 6,000 5,000
$ millions

140,000

Rest of World
Number of PWLAN locations

120,000 100,000 80,000 60,000 40,000 20,000 0

Rest of World North America Asia Pacific EMEA

North America Asia Pacific EMEA

4,000 3,000 2,000 1,000 0 2002

2003

2004

2005

2006

2002

2003

2004

2005

2006

*Source: Gartner Dataquest 2003 International Carrier Sales and Solutions Arabcom 2004

Number of Hotspots in Middle East Growth in Public WLAN in the Middle East, 2003-2008
18 16
Public WLAN Revenues ($m)

800 700 600 500

Number of Hotspots

14 12 10

400 8 300 6 4 2 0 2003 2004 2005 2006 2007 2008 200 100 0

PWLAN revenues ($ million)

Number of PWLAN hotspots

International Carrier Sales and Solutions Arabcom 2004

Market Trends

Drivers for WiFi rapidly growing deployment:

Rapidly improving components (smaller, faster, cheaper)

All new laptops are WiFi enabled (Centrino processors)

Relatively low risk and low cost of deployment

Source of differentiation b y offering an innovative VA service

Mobility of workforce

In the Middle-East most WISPs, Carriers, Mobile Operators and ISPs are implementing WiFi strategies.
International Carrier Sales and Solutions Arabcom 2004

Agenda

WiFi and Roaming: Basic Concepts.

WiFi Market Overview in the Middle-East. WiFi Roaming: An Opportunity and A Need. How to Roam?

Turnkey WiFi Roaming Solutions.

International Carrier Sales and Solutions Arabcom 2004

First Opportunity: Revenues through In-Roaming

You are a WISP, operating one or several hotspots. How to Improve your Revenue? Allow Customers of various providers to use your Hotspots through WiFi Roaming agreements
Roaming partner A Roaming partner B Roaming partner C

You are a WISP

hotspot

hotspot

At the hotel

At the airport

International Carrier Sales and Solutions Arabcom 2004

Second Opportunity: Revenues through Roaming

Out-

You are a Provider, typically an ISP or Mobile Operator. How to Improve your Revenue and ARPU? Allow your Customers to use Hotspots of various WISPs through WiFi Roaming agreements
You are a Provider

WISP

WISP

WISP

hotspot

hotspot

hotspot

hotspot

hotspot

hotspot

International Carrier Sales and Solutions Arabcom 2004

WiFi Roaming: A Need

Hotspot operators (WISPs) need customers to use their Hotspots! ISPs and Mobile Operators need Hotspots for their customers!

No one has WiFi a worldwide coverage There is a need for international WiFi Roaming This is similar to the GSM Roaming concept. Most countries are not monopolistic for WiFi There is also a need for in-country WiFi Roaming This is different from GSM Roaming concept.
International Carrier Sales and Solutions Arabcom 2004

Agenda

WiFi and Roaming: Basic Concepts.

WiFi Market Overview in the Middle-East. WiFi Roaming: An Opportunity and A Need. How to Roam?

Turnkey WiFi Roaming Solutions.

International Carrier Sales and Solutions Arabcom 2004

How to Roam: First Possibility Negotiate Multiple Bilateral Agreements for Roaming
100 players means nearly 5000 connections ! ISP WISP Mobile WISP

Mobile

ISP

WISP ISP Mobile WISP ISP

International Carrier Sales and Solutions Arabcom 2004

How to Roam: Second Possibility Use a Single Clearing-House for Multiple Roaming Possibilities

ISP WISP

WISP

Mobile

ISP Mobile

Clearing-House solution

WISP

ISP

WISP

Mobile ISP

International Carrier Sales and Solutions Arabcom 2004

How to Roam: What Strategy?

Clearing-House Solutions for WiFi Roaming are used to reach many players (WISPs and/or Providers) through one agreement. Easy and cheap! Only one agreement is necessary, and the solutions on the market provide billing, clearing, etc.

Bilateral WiFi agreements for WiFi roaming are in general used for strategic partnerships. For example large European Mobile operators are signing bilateral agreements for WiFi Roaming.
International Carrier Sales and Solutions Arabcom 2004

Agenda

WiFi and Roaming: Basic Concepts.

WiFi Market Overview in the Middle-East. WiFi Roaming: An Opportunity and A Need. How to Roam?

Turnkey WiFi Roaming Solutions.

International Carrier Sales and Solutions Arabcom 2004

WiFi Roaming Solutions on the Market

Airpath Boingo GRIC iPass Picopoint WeRoam

and many others

International Carrier Sales and Solutions Arabcom 2004

The divisions of Deutsche Telekom Four-division Strategy

Deutsche Telekom

International Carrier Sales and Solutions Arabcom 2004

T-Systems

T-Online

T-Mobile

T-Com

T-Systems WiFi Roaming Solution Benefits

Benefits for WISPs, ISPs and Mobile Operators
Potentially millions of additional end customers, but through only one connection, one contract, one bill. Great value added service to differentiate form competition. No initial investment in most cases, no monthly fee. Strong R & D resources: customized solutions available Additional revenues. And the guarantee of a stable and a long lasting partner.

Benefits for End-Users:

Easy, fast and highly secure access worldwide. Usage of home provider Login and Password. Post-paid invoicing by the home provider.
International Carrier Sales and Solutions Arabcom 2004

T-Systems WiFi Roaming Solution Footprint

We Target by end 2004: WISP: over 10 000 Hotspots. ISPs and Mobile Operators: over 100 million users.
Current Partners of T-Systems Roaming Platform: Providers: T-Mobile, T-Online, Eplus, DNA, etc. WISP: T-Mobile, Berlinet, Viewquest, Airnix, Frankfurt Airport, etc. and we are in contact with most of the players in the Middle East. We also focus on strategic presence: Events: Eurocup in Portugal, Olympics in Athens, etc. Locations: Airports, Hotels, Congress centers, etc. and we are CBBs first partner you can surf while flying!!
International Carrier Sales and Solutions Arabcom 2004

Fadi Farah
International Carrier Sales & Solutions T-Systems International Phone: +33 6 15 36 54 12 E-mail: ffarah@t-systems.fr

Farah Fadi T-Systems International

International Carrier Sales and Solutions Arabcom 2004

WiFi Roaming Back-up slides

International Carrier Sales and Solutions Arabcom 2004

Buying and Selling of Online Minutes.

Provid er Provid er Provid er

T-systems
Buys from WISPs access to their hotspots

Selling of WLAN Minutes

WLAN Roaming Platform

Buying of WLAN Minutes

WIS P WIS P

Sells to ISPs and Mobile Operators, access to WISP hotspots

hotspo International Carrier Sales and Solutions t

hotspo t

hotspo t

hotspo t

Arabcom 2004

Authentication: Information Flow.

Legend
1 2 3

Provider WLAN Authentication WLAN Authorization Internet Traffic Internet Hotspot

2

WLAN Roaming Platform

Access Points

WISP

User Laptop Access Cube

3 International Carrier Sales and Solutions Arabcom 2004

Billing: Financial flows.

Provider

/$
End-user pays his provider/carrier

WISP

e.g. ISPs

e.g. GSM carrier

/$ /$
Clearing-House pays WISP their share

WLAN RoamingPlatform
Money flow Legal relationship International Carrier Sales and Solutions Arabcom 2004