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Service Provider WiFiAddressing the Mobile Data Challenge

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802.11 Wireless EvolutionFrom Best-Effort to Mission Critical to Next Generation Hot Spot

System Management

Capacity802.11n Self Healing

and Optimizing

Hotspot

Casual Pervasive Media RichApplications

Mission Critical

2000 2005 2008 2010 2012

Secure and Simplified Access

Hot Spot 2.0

802.11u

?

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Underlying capacity demand driversTablets and smartphones outpacing PCs

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2010 2011 2012 2013 2014 2015

3.8 EBper mo

0.24 EBper mo

Drivers for Change: Mobile Data Traffic Growth Global mobile data traffic will increase 26X from 2010 to 2015

6.3 EBper mo

2.2 EBper mo

1.2 EBper mo

0.6 EBper mo

Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, 2010–2015

92% CAGR 2010–2015

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Capacity Not Keeping Pace with Data Demand

Small Cells Increase Existing Capacity

Future networks supporting the mobile Internet will need to integrate smaller cell architectures to scale

Market Driver for SP Wi-Fi

Cisco Confidential© 2010 Cisco and/or its affiliates. All rights reserved. 6AZP: Acquisition, Zoning,

& Planning

Macrocell (3G/4G) Sub-optimal delivery of

high BW to POPs High CAPEX/OPEX: $400K Poor Spectral Efficiency 4G collocated 2G sites

New Sites: Zoning issues

Picocell/WiFi (Metro) Delivers coverage &

capacity where its needed (Targeted)

Precision delivery of high BW to POPs

Min CAPEX/OPEX Good Spectral Efficiency

Macro Cellular Blanket Coverage + Reliable Spectrum

Voice & Limited-Capacity Data Metro WiFi

Targeted Coverage High-Capacity Data

POP density is never uniform over the Area-of-Interest

Site selection process always targets optimal AZP

2G/3G site network design based on uniform CINR to maintain 10e-3 BER coverage for low BW voice calls.

Macro-Cellular Network Challenges

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Evolution from Hot Spots to Mobile Infrastructure

Targeted High Value LocationsWhere People Gather

Mix of Indoor and Outdoor Deployments

Enterprise Managed Services with public SSID

Hospitality, MDU and Student Housing

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Next Generation Hotspot Roam, Authenticate, Monetize

SEAMLESSSimplifies network

discovery and selection for

seamless cellular data offload

SECUREExtends existing

SIM-based authentication

techniques over encrypted Wi-Fi

RELIABLECarrier-class

solution

PROFITABLE

Enables location-based and value-added services

802.1x , EAP-SIMAuto SIM credentials

Encrypted Wi-Fi Link

802.11i

1

802.11u

2 3 4

Mobile “concierge” serviceMobile Service Advertisement Protocol

(MSAP)

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Why is the market transitioning to WiFi?Increased demand and improved customer experience

• Over 80% of all mobile internet and video usage in the US takes place in a fixed location

• Many smartphone applications are nomadic, not mobile, allowing WiFi to provide the necessary access

• Almost half of all smartphone and tablet device traffic is already connected via WiFi

• US households are moving aggressively towards broadband untethering; by 2015 nearly a quarter of broadband households will purchase a mobile/cellular element

• The number of WiFi connected portable devices will double between 2010 and 2015

• Technology improvements are delivering a more cellular-like experience, which will accelerate WiFi use

• By 2014 US public WiFi hotspot usage will have grown 200%

Using Mobile Data Watching Mobile Video

43% 52%

17%14%

20%20%

20% 14%On the Move

Public Fixed Loca-tion

At Office

At Home

Percent of US Mobile Internet and Video Usage Taking Place by Location, 2011

Source: Cisco IBSG Connected Life Market Watch, 2009, 2011

Base: US Mobile Internet Users

86%80%

Source: Instat, 2010

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ABI Whitepaper• http://ecm-link.cisco.com/ecm/

view/objectId/090dcae1814a5ed5/versionLabel/CURRENT

• “The use of small cells, including femtocells and carrier Wi-Fi solutions, directly reduces the need for busy hour capacity in the macro network, and as a result they directly reduce the carrier’s CapEx and OpEx requirements for that network.”

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Why is the Market Transitioning to WiFi•The Smartphone and Tablet revolution continues

• The number of WiFi connected portable devices will double between 2010 and 2015 to more than 2 billion devices worldwide

• Almost half of all smartphone and tablet device traffic is already connected via WiFi

•Compelling video and social networking apps are clogging mobile networks• Global mobile data traffic will increase 26x from 2010 to 2015

•Users expectations have morphed from nice to have must have, anywhere, anytime• Many smartphone applications are nomadic, not mobile, allowing WiFi to provide the necessary access

• By 2014 US public WiFi hotspot usage will have grown 200%

• Technology improvements are delivering a more cellular-like experience, which will accelerate WiFi use

Clean Air

Next Generation Hotspot

•WiFi does not replace but rather compliments Cellular

•Macro Cellular networks are designed for coverage not capacity

•WiFi (Small Cell) can increase capacity and fill coverage holes for Mobile Operators.

•WiFi can provide a mobile experience for non-Mobile Operators