The Wi-Fi Monetization Opportunity: Amdocs Service Provider Wi-Fi Research Study

The Wi-Fi Monetization Opportunity: Amdocs Service Provider Wi-Fi Research Study

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The Wi-Fi Monetization Opportunity: Amdocs Service Provider Wi-Fi Research Study

The widespread availability of Wi-Fi-enabled devices, including smartphones, PCs and tablets, has led to enormous demand for reliable Wi-Fi services. As a result, service providers are refining their Wi-Fi strategies and deploying Wi-Fi networks in greater numbers.

Amdocs recently completed a sponsored research study on service provider Wi-Fi strategies and perspectives. Conducted by leading analyst firm Analysys Mason on behalf of Amdocs, the study involved telephone interviews with technical and business personnel at more than 30 operators around the globe, including North America, Caribbean and Latin America, Europe, the Middle East and Asia-Pacific.

Join Ann Hatchell, Director of Marketing for the Amdocs Data Experience business unit, and Chris Nicoll, Principal Analyst at Analysys Mason, to review the key findings of the study and to understand service provider perspectives on:

-    Key drivers for service provider Wi-Fi deployments;
-    Innovative methods for monetizing Wi-Fi that go beyond direct charging of customers;
-    Top technical and business challenges service providers are facing; and
-    Evolving technologies and standards for Wi-Fi.

Tags; Amdocs, Analysys Mason, telecoms.com, Wi-Fi
Q&A
  • Nicole Ramson
    Nicole Ramson January 15, 2013 at 4:29 pm

    Thank you for all your questions today, this Q&A is now closed. You can email your questions directly to Chris Nicoll and Ann Hatchell by sending them to Chris.Nicoll@analysysmason.com or Ann.Hatchell@amdocs.com

  • Valentí January 15, 2013 at 4:01 pm

    Will WIFI networks “die” once the mobile operators start to deploy massively small cells at street level if finally there is not spectrum (capacity) limitation?

    • Chris Nicoll
      Chris Nicoll January 15, 2013 at 4:03 pm

      The big IF there is spectrum availability.. Wi-Fi has lower cost points than cellular connections, but even where cell service is plentiful, we have seen both in our own Arbitron Mobile study as well as the AT&T example that usage of both services goes up.

  • VladoneS January 15, 2013 at 3:59 pm

    Even if an operator deploys hotspots with eap-sim authentification, how will it manage to monetize because not many terminals are eap-sim/aka capabile?

    • Ann Hatchell
      Ann Hatchell January 15, 2013 at 4:05 pm

      hi – in the absence of eap capable devices, then a captive portal would be the primary direct charging vehicle.

  • Abha January 15, 2013 at 3:57 pm

    What are the major differences between passpoint and ansdf?

    • Ann Hatchell
      Ann Hatchell January 15, 2013 at 4:03 pm

      hi – Passpoint is actually the certification program for Hotspot 2.0. HS 2.0 will facilitate access to WiFi hotspots – based on criteria such as my hotspot (ie operator), or my partners. So it’s really about getting better seamless access to Wifi.
      ANDSF is a 3GPP initiative and this is around controlling whether to put a user onto WiFi or keep them on 3G/4G. So this is really about Always Best Connected – getting onto the best possible network.

  • Surajh Surjoo January 15, 2013 at 3:54 pm

    I think that wifi shuold be best effort and cheap service for all the P2P junkies to abuse. keep the 3G network clean and premium with better quality and speeds and charge for mobility. Chris, your views please?

  • Chris Nicoll
    Chris Nicoll January 15, 2013 at 3:53 pm

    I think there are limits to charging users for Wi-Fi service, and in some markets, such as the US, users expect Wi-Fi to be a free service. In Europe and in particular Asia, Wi-Fi is more common as a paid service. My point is that users are not the only source of revenue operator should be looking towards.

    • yogitriharso January 15, 2013 at 3:55 pm

      Sorry Chris, I don’t know which part of Asia you refer to, but I think not in Indonesia, Malaysia and Singapore. the same perception is built here : it’s usually a free service (although yes, smetimes the service not good)

      • Ann Hatchell
        Ann Hatchell January 15, 2013 at 3:58 pm

        Hi – what i can say is that we are seeing interest in introducing tiered or metered wifi in a number of markets in Asia including southest Asia.

        • yogitriharso January 15, 2013 at 4:02 pm

          yes, that would be a better adressing statement. most of operators here are try to monetize this service, or use them as “additional revenue channel” or event an off-loading,or combination of those. but I think we’re just in the early stage of it

          • Chris Nicoll
            Chris Nicoll January 15, 2013 at 4:04 pm

            Yes, sorry, it would be much more accurate to say they are attempting to monetize it. thanks Ann!

  • Dmitry Podogov January 15, 2013 at 3:51 pm

    Chris Nicoll
    Hi Joanie, I think the industry has to get beyond charging users as the main method of monetizing Wi-Fi. There are many other options including advertising, charging the venues, providing value add via data analytics. There are many different options.

    So you basically do not beleive in monetization through charging an enduser? Then what are the ways for carrier grade wifi (which cost sisnificantly for operators) to compete with plenty of small free wifi (low quality but still free) spots that are covering a lot of venues enen here in Russia? Tnx

  • Oluwado January 15, 2013 at 3:51 pm

    Does this technology support voice call? and will the charges be cheaper than what is obtainable on GSM platform.? Will the SPs still use SIM to connect their customers

    Will like to confirm if this slide will be made available

    • Ann Hatchell
      Ann Hatchell January 15, 2013 at 4:13 pm

      yes, voice can be supported over WiFi. I can’t comment on the charging here. EAP SIM will be used to authenticate both voice and data over wifi.

  • Kush January 15, 2013 at 3:48 pm

    In case of Wi-fi,Authentication method,Back haul is different…Suppose in case of on-going VOIP call how will it switch to 4G/3G once the user is out of wi-fi service area ?

    • Ann Hatchell
      Ann Hatchell January 15, 2013 at 4:16 pm

      Hi – IP Flow Mobility and other 3GPP handover technologies can be deployed to support this

  • KLaneSBD January 15, 2013 at 3:48 pm

    You said that offload is an incentive for operators to offer Wi-Fi. Are the cost-savings of offloading onto Wi-Fi enough to actually cover the cost of Wi-Fi access?

    • Chris Nicoll
      Chris Nicoll January 15, 2013 at 3:50 pm

      Potentially, yes. Look for an Analysys Mason update report on the Costs of Wi-Fi offload in the next quarter.

  • Sean January 15, 2013 at 3:47 pm

    What roles will wireless offload play in this mix?

    • Ann Hatchell
      Ann Hatchell January 15, 2013 at 4:14 pm

      Hi – the research showed that offload (to reduce congestion in 3G network) is still a key driver for implementing WiFi. However it also showed that service differentiation is now equally important as offload as drivers for wifi

  • KD January 15, 2013 at 3:43 pm

    is there a trend amongst operators to rely less on aggregators moving forward…i.e. buid up and own their own wifi assets and negotiate roaming agreements directly ala the mobile model today?

    • Ann Hatchell
      Ann Hatchell January 15, 2013 at 3:53 pm

      Hi – The research showed that 92% of those surveyed offering roaming, use aggregators which offer a timesaving benefit. Curative is another business model that will become important – for operators who do not have wifi assets.

  • Surajh Surjoo January 15, 2013 at 3:42 pm

    wifi access will have to be much cheaper than 3g/4g if you expect users to pay for it. build the costs into your 3g offers and make it a vas service? your views on this please?

    • Ann Hatchell
      Ann Hatchell January 15, 2013 at 4:09 pm

      Hi – the answer is, it depends. some of the interest we are seeing in offering metered wifi, means that this would have some level of premium options such as restricted access, speed and so forth, better securty.

  • john4383 January 15, 2013 at 3:41 pm

    Will we be able to get a PDF or similar so we can share this with colleagues?

  • Michael Schachter January 15, 2013 at 3:39 pm

    Is mobile-WiFi handover within a session currently supported / deployed anywhere?

  • francois January 15, 2013 at 3:39 pm

    You were mentioning 260MB used during Wi-Fi sessions. Is this the average session? or per month?

    • Chris Nicoll
      Chris Nicoll January 15, 2013 at 3:45 pm

      This data came from our actual user panel, in conjunction with Arbitron Mobile, and represents a montly median. 148MB Wi-Fi + 111MB Cellular. The means are much higher: 679MB Wi-Fi and 417MB Cellular.

  • mroetter January 15, 2013 at 3:38 pm

    What will be the relative roles of small cells and Wi-Fi in coping with traffic – more complementary than competitive?

    • Chris Nicoll
      Chris Nicoll January 15, 2013 at 3:52 pm

      i expect them to be complimentary – mostly due to spectrum availability and constraints. Cellular requires licensed spectrum which may come with capacity restraints, even in a small cells format. is 5×5 enough of a channel? 10×10? With Wi-Fi, and of course the necessary interference control (and backhaul – a HUGE challenge), providing huge channels (upwards of a gig with 802.11 ac) they will be complimentary.

  • James January 15, 2013 at 3:38 pm

    how common is the EAP SIM technology across the UK cellular providers to gain seamless connectivity / authentication?

    • Ann Hatchell
      Ann Hatchell January 15, 2013 at 4:28 pm

      hi – i can’t comment specifically on Eap sim penetration in the UK, but generally speaking fairly broad penetration. and the research highlighted this as a a primary auth method

  • Ron Heron January 15, 2013 at 3:35 pm

    Consider intelligent client coupled with crowd sourced free hotspots. While it benefits the carriers greatly in terms of data offload, how sustainable is this business model, and what does the evolution look like?

    • Ann Hatchell
      Ann Hatchell January 15, 2013 at 4:24 pm

      hi- curative models will continue to be important. this is also where the role of intelligent clients comes in – to help determine the viability of available hotspots such as signal strength, congestion and available speed.

  • Gregory Glineur January 15, 2013 at 3:33 pm

    Can there be a mix of toll free and tiered WIFI models? Depending on the type of content viewed by the users

    • Ann Hatchell
      Ann Hatchell January 15, 2013 at 3:44 pm

      Hi Gregory – yes, I think we can expect to see a mix of models. Toll-free could be applied to a specific time of day or day of week to relieve a wifi tiered quota. Or against access to specific apps as part of a promotion.

  • Joanie T. January 15, 2013 at 3:33 pm

    The question really is about who bears the “monetization” of WiFi? Provider charges the end user, Carrier charges the WiFI agent??? Personally, I cannot envision end user adoption of paying for WiFi……the precedent today in the US is that it’s free. Paying for WiFi access would be a tough pill for an end user to swallow.

    • Chris Nicoll
      Chris Nicoll January 15, 2013 at 3:37 pm

      Hi Joanie, I think the industry has to get beyond charging users as the main method of monetizing Wi-Fi. There are many other options including advertising, charging the venues, providing value add via data analytics. There are many different options.

  • Gary Lo January 15, 2013 at 3:26 pm

    Chris mentioned that Operators are attracted to WiFi because they are “off the meter”. Yet, in Ann’s slide – she mentions that Operators are keen on “Tiered WiFi” – are there conflicting views amongst operators on this topic?

    • Chris Nicoll
      Chris Nicoll January 15, 2013 at 3:29 pm

      Hi Gary, Actually, Users are attracted to Wi-Fi because it is ‘off the meter’. We see Operators turning to SP WiFi as a means to increase the value of Wi-Fi and thus increase revenue opportunities.

  • Paul Hemming January 15, 2013 at 3:24 pm

    Will the role of Wi-Fi change as Net Nets – comprising pico cells, femtocells, DAS etc. – become pervasive in maturing cellular networks?

    • Ann Hatchell
      Ann Hatchell January 15, 2013 at 4:17 pm

      I don’t see the role of Wi-Fi changing in a Het Net environment as long as seamless handover is fully supported

  • lydia January 15, 2013 at 3:23 pm

    What is the Technology used in order to seamlessly hand-off from 4G to WIFI? How does the authentication take place?

  • Moby Aragones January 15, 2013 at 3:20 pm

    Here in the Philippines mobile internet is bundled with other mobile vas products, do you see service providers bundling Wi-FI with other online products?

  • mohsin.sohail January 15, 2013 at 3:10 pm

    The reson why the usgae over WiFi continues to increase is because the heavy monetisation of usage over the Cellular network? And if yes then by monetising WiFi wouldnt we hinder usage there as well?

    • Chris Nicoll
      Chris Nicoll January 15, 2013 at 3:32 pm

      The challenge for making users pay for Wi-Fi comes down to the value of the service to users. Today, there is little value-add beyond connectivity provided by most providers. Where users have to pay for access, such as many airports, some hotels, user satisfaction is very low. However, montization where users are not charged but the venue owners are, does represent a key opportunity. The value to the venue owners and retailers can come from the data analytics via an intelligent client on the device or improved analystics in the access points themselves.

  • Nicole Ramson
    Nicole Ramson January 15, 2013 at 3:00 pm

    The webinar has started, if you are experiencing problems with the live streaming then please click here to view the non streaming version: http://webinars.telecoms.com/webinar/nostream/

  • Jim Dev January 15, 2013 at 1:23 pm

    Do you think users will eventually get used to the idea of paying for Wi-Fi in the way that they pay for cellular data access?

  • Jim Dev January 15, 2013 at 1:23 pm

    Can you explain what interfaces are used to do metering in the Wi-Fi network?

    • Ann Hatchell
      Ann Hatchell January 15, 2013 at 4:25 pm

      Hi Jim – the key protocol today is RADIUS. however as operators evolve to a common evolved packet core supporting multiple network types, then Diameter will be a key protocol for applying metering and policy across WiFi