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Carrier Wi-Fi: State of the Market 2014

December 2, 2014

Adlane Fellah Maravedis LLCafellah@maravedis--bwa.com

Copyright © Maravedis Inc 2014.

• Founded in 2002

• Based in Miami & London

• Wireless Infrastructure Analysts

• Official Research Supplier for the WBA

• Partner with Rethink (UK) and EJL Wireless (USA)

www.maravedis-bwa.com

About MaravedisDecember 2014

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• Drivers & Enablers

• Carrier strategies

• Challenges

• Projections

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AgendaDecember 2014

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December 2014Network operators’ revenues

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Source: MaRe operator survey 2014

0

10

20

30

40

50

60

70

80

Access Consumer apps Enterprise humanapps

Machine apps

% o

f d

ata

reve

nu

es

2014 2019

Copyright © Maravedis-Rethink 2014

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December 2014

Data storm continues and users prefer Wi-Fi

Drivers of carrier Wi-Fi adoption

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• Need for data capacity continues to intensify ($38B AWS US auction!)

• Wi-Fi is there!

• End-users simply prefer Wi-Fi

•Byod

•Cheapest wireless broadband technology to deliver data/video

Source: Mobidia, Nov 2014

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December 2014

Advances during 2014 make Wi-Fi more viable in the carrier network

Enablers

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• Standards

• NGH• Passpoint

• Interoperability• Work with 3GPP and CableLabs• Multimode devices proliferate• Common core platforms

• 802.11 ac and evolution• Evolution of device ecosystem• New Spectrum

•Improving customer experiencemost important reason to invest(57%)

Changes in attitudes to public Wi-FiSource WBA/MaRe survey October 2014

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Carrier Strategies

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December 2014

From offload to the full HetNet

Carrier strategies and trends - MNOs

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• 30% of new capacity comes from Wi-Fiin 2014

• Down to 9% in 2018 as carriersintegrate Wi-Fi in their own networks

• 75% of MNO small cells to integrate Wi-Fi by 2018

• Key MNO uses• Data offload• Differentiated QoS levels• VoWiFi• LBS• IoT % of new mobile data capacity MNOs expect to gain from

various techniques in 2013 and 2018Source Maravedis-Rethink operator survey

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December 2014

Progress to quad play and community hotspots are key trends

Carrier strategies and trends - wireline

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Deployment of community hotspots by operator type 2014-2018 Source: Maravedis-Rethink forecasts for iPass

• Cable and broadband investments inWi-Fi

• Importance of community hotspots

• Key MSO uses• Data onload• Steps to quad play• Presence in new territories• Deals with mobile carriers

-

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

2013 2014 2015 2016 2017 2018

Rise of community hotspots

Community hotspots

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December 2014

Roaming and location services now, IoT and quad play in future

Business models proliferate

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Wi-Fi monetization strategiesSource: WBA/Maravedis-Rethink survey Nov 2014

• Strong networks of well locatedhotspots will gain value

• Importance of Roaming

• Rise of neutral host model

• Wholesale Wi-Fi capacity services

• Cloud-based & crowd sourcedhotspot aggregation

•Wi-Fi first network

Wi-FiRoamin

g

ROIfromWI-Fi

Offload

Wi-FioffloadWholes

ale

Wi-Fi asa

Metropolitan

Service

Advertising

Marketing Dealsin Retail

WiFiAnalytic

s

LocationBased

Services

Enterprise

Services

Wi-Fi-first –

(mobile services which

use Wi-Fi

whenever

available)

All ofthe

aboveOther

Series1 35.1% 22.8% 26.3% 18.9% 25.9% 19.3% 21.5% 27.6% 28.1% 22.8% 7.9% 20.2%

35.1%

22.8%26.3%

18.9%

25.9%

19.3%21.5%

27.6% 28.1%

22.8%

7.9%

20.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

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Challenges Ahead

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December 2014Medieval Wi-Fi Networks

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December 2014

Key challenges remain in 2014

Challenges ahead

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What do you see as the key challenges faced by mobile operators if they are to deploy and monetize seamless Wi-Fi services?Source: WBA- Maravedis-Rethink survey, Nov 2014

• Island Networks

• Barriers to usage

• Immature monetization

• Generate new revenues not justdefensive measures

• Sit and backhaul issues for Wi-Fi

• Investments in the core

• LTE-U disruption?

Clarify Business Model Deployment Issues Ensuring Quality of Service Backhaul and Site Issue

Series1 63.0% 39.1% 38.0% 42.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

What do you see as the 'Key Challenges' faced by operators when deploying and monetizing

"Seamless Wi-Fi Services"?

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Projections

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December 2014

HetNet won’t happen overnight, but Wi-Fi adoption accelerates

Looking ahead

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• Installed base of 47m in 2014• Asia-Pacific will account for more thanhalf the base• Homespots could top 340m

Key catalysts to optimize use of thisbase:

• Full Wi-Fi/cellular integration• Mass adoption of NGH andPasspoint• Evolution of Wi-Fi standards

Source: Maravedis-Rethink forecasts for iPasshttp://www.ipass.com/wifi-growth-map/

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2013 2014 2015 2016 2017 2018

Hotspot Projections by Service Provider Type

MNOs and Fixed Fixed Broadband operators Platform providers Venue controlled

Copyright © Maravedis Inc 2014.

• Wi-Fi is now at the center of carries strategies

• Wi-Fi Business Models proliferate

• Required investments ahead

• Global Alternative Network?

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Closing ThoughtsDecember 2014

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• http://www.wballiance.com/resource-center/wba-industry-report

• http://www.ipass.com/wifi-growth-map/

• Wi-Fi Newsletter every Wednesday• Go to www.wi-fi360.com

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Free ResourcesDecember 2014

Copyright © Maravedis Inc 2014.

• Wi-Fi Blasts Ahead with 11ac Wave 2 Chipsets

www.maravedis-bwa.com

New Wi-Fi ReportDecember 2014

19

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Copyright © Maravedis Inc 2014.CLIENT CONFIDENTIAL

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afellah@maravedis-bwa.com

+1 (305) 865-1006

THANK YOU!

Adlane Fellah, Customer Engagement