Whats Inside

Key Drivers for Mobile Operators Entering Wi-Fi Hotspots Defining the Wi-Fi Hotspot User Use Cases for Mobile Data Offload How Important Are Wi-Fi Bundles Realizing Monetized Wi-Fi Hotspot Services Wi-Fi Hotspot Core Components Achieving Convergence via Mobile Charging Core Integration Growing a Wi-Fi Hotspot Footprint Customer Case Study

CAPITALIZING ON WI-FI HOTSPOTS

Emerging Opportunities for Mobile Operators

Alepo Copyright 2011

Introduction
Wi-Fi is a mature and widespread technology, today reaching over 700 million homes, schools, enterprises and hotspot locations worldwide. As mobile data usage continues to sky rocket and as Wi-Fi-enabled mobile devices become more abundant and diverse, mobile operators are beginning to see great potential for leveraging Wi-Fi hotspots services in order to reduce congestion on cellular networks and to capitalize on new revenue channels.

Key Drivers for Mobile Operator Wi-Fi Hotspots

Wi-Fi hotspots can provide a complementary method to delivering internet services to mobile subscribers at a relatively low cost per byte.

In launching and managing Wi-Fi hotspots, mobile operators can gain control over their subscribers Wi-Fi experience, in terms of security, accessibility and consistency across multiple hotspot locations.
Mobile operators can offer Wi-Fi as a value added service (VAS) to boost customer loyalty and ARPU, as well as generate new revenue streams by extending monetized Wi-Fi hotspot services to a wide reach of customers.

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Whos at Your Hotspot?

Wi-Fi hotspots resemble the Wild West of network access technologies, playing host to such a diverse and difficult to define group of users. One of the greatest challenges for mobile operators in developing a viable Wi-Fi Hotspot business model is understanding who their potential Wi-Fi Hotspot customers are. Operators must consider how different users, whether an existing mobile subscriber on a smartphone or a new user on a laptop, access and interact with the Wi-Fi network. Customer intentions and expectations vary from market to market, and even location to location. Thus, mobile operators must determine the most efficient way to deliver Wi-Fi hotspot services (free or monetized) to their target customer base. In the coming pages, well explore various options and common business scenarios.

Non-Subscribers

Your Existing Subscribers

On What Device?

SIM Enabled

Wi-Fi Only

Wi-Fi Only

SIM + EAP Enabled

How Do They Access Wi-Fi?

Web Portal

Offload
One-Time Data Pass

How Frequently? How Do They Pay?

Wi-Fi Subscription User ID / Password

Unlimited (Free or Add-On)

Counted in Data Cap

Charging Options
Credit Card Voucher Mobile Account Premium SMS

Your Existing Subscribers Only

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FINDING VALUE IN MOBILE DATA OFFLOAD

Mobile Data Offload a Win-Win Situation

Examples of Wi-Fi Plans for Mobile Subscribers
UNLIMITED WI-FI TIERED SERVICES VOLUME LIMIT DATA PLANS

Mobile data offload can be a win-win situation for mobile operators and subscribers. By offloading data (internet) traffic from a cellular network to a Wi-Fi hotspot network, mobile operators can optimize available cellular network resources, increase overall capacity and reduce bottlenecking of service. By alleviating congestion caused by heavy smartphone data usage, mobile operators can better allocate their cellular network resources to other customers.

Free or Bundled Unlimited Wi-Fi Hotspot Access with All Mobile Data Plans - Free Add-On Package Unlimited Wi-Fi Hotspot Access with Any Plan $9.99/ mo.

Premium Wi-Fi Unlimited Wi-Fi at Hotels, Airports & Retail Zones $19.99 / mo. Wi-Fi Roaming Unlimited Global Access on Partner Wi-Fi Networks $29.99 / mo.

Data On-the-Go Up to 2GB Data on GSM & Wi-Fi Hotspot Networks $29.99/ mo. On-the-Go Plus! Up to 4GB Data on GSM & Wi-Fi Hotspot Networks $39.99 / mo.

For mobile subscribers on SIM-enabled devices (think smartphones), mobile data offload offers a convenient, effortless way to access high-speed internet across all operator-managed Wi-Fi locations. This eliminates the burden of having to switch networks, sign up or purchase services at each hotspot. A carrier-class mobile data offload solution enables subscribers to be automatically authenticated to the Wi-Fi hotspot network without intervention or interruption of service.
Mobile operators have considerable flexibility in how they position and market Wi-Fi hotspot services to existing mobile subscribers. Unlimited Wi-Fi hotspots services may be bundled with a mobile data plan or available as a monthly add-on package. Operators can offer tiered Wi-Fi hotspot services for premium locations and frequent roaming subscribers.

*In some markets, where Wi-Fi hotspot services are commonly metered (per hour / per byte), it may be viable for mobile operators to count mobile subscribers Wi-Fi hotspot data usage towards an overall mobile data cap. Whether the user is browsing on a 3G or Wi-Fi network, the usage accumulates towards her monthly limit. This scenario, unlike the aforementioned, requires closer integration with the mobile charging core. Page | 5

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In choosing your mobile provider, how important is it to have bundled Wi-Fi access with your smartphone tariff?
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While a few mobile subscribers may prefer to keep Wi-Fi and mobile services separate, a recent Light Reading survey shows that over 85% of respondents consider Wi-Fi Hotspot access bundled with a smartphone to be a factor in choosing a mobile operator.

Percent of Total Responses

30 25 20 15 10 5 0
Not Important, l prefer Wi-Fi to be separate Marginally Important Important, but Not Decisive Very Important, A "Must Have" Feature
Source: Light Reading, 2011

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Alepo Wi-Fi to Mobile Authentication Gateway

Alepos Wi-Fi to Mobile Authentication Gateway makes it possible for mobile operators to instantly and effortlessly shift cellular data traffic to a Wi-Fi Hotspot Network. The gateway connects the Wi-Fi network to the existing subscriber profiles in the mobile core network. By employing SIMbased EAP authentication towards the Wi-Fi network and by fetching subscriber authentication vectors from the HLR over SS7, the gateway is able to automatically authenticate subscriber devices, such as smartphones and tablets, to the Wi-Fi network, ensuring that the Wi-Fi hotspot resources are utilized to their fullest. In addition, automatic mobile data offload requires the customer device to recognize and prioritize the operators Wi-Fi network SSID. This SSID should be provisioned to the device either as a factory setting or remotely (over the air) with a mobile device management system.
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Realizing Automatic Mobile Data Offload

Subscriber Credentials Wi-Fi Service On / Off Premium Locations Roaming Access

HLR / AUC

IN

SS7 / SIGTRAN

Alepo Wi-Fi to Mobile Authentication Gateway (EAP Server)

AAA (RADIUS)

Operator SSID Settings

Wi-Fi Access Point (EAP Authenticator)

Mobile Subscriber (EAP Supplicant)

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REALIZING WI-FI HOTSPOT MONETIZATION

Opportunities & Considerations

By monetizing Wi-Fi hotspots, mobile operators can offset the costs of the Wi-Fi infrastructure. Even if the operators main motivation for implementing a Wi-Fi hotspot network is to increase cellular network capacity through mobile data offload, they can quickly see a return on their investment by opening the network to other paid users. Furthermore, Wi-Fi hotspot monetization afford mobile operators an opportunity to expand their reach to new customer segments, including new and casual users, whether on SIMenabled or Wi-Fi-only devices, roaming users, as well as their existing mobile subscribers using secondary Wi-Fi-only devices. Key Considerations & Challenges of Mobile Operator Wi-Fi Hotspot Monetization How to facilitate customer adoption and encourage use of services, especially in markets where free and other paid Wi-Fi hotspots are abundant. How to integrate with the existing mobile core charging infrastructure in order to realize convergent services for mobile subscribers with secondary, Wi-Fi only devices. How to quickly and cost-efficiently expand a Wi-Fi hotspot footprint in order to justify the deployment costs and increase revenue.

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Emerging Wi-Fi Hotspot Business Models

Monetized Wi-Fi Plans
SUBSCRIPTION WI-FI SERVICES Unlimited Everywhere Unlimited Wi-Fi Access at All Hotspot Locations $39.99 / month ONE-TIME OR CASUAL USE Single Session, Single Location Up to 2GB Wi-Fi Access at Single Hotspot Location $6.99 / session WI-FI DATA PASS

In monetizing Wi-Fi hotspot services, mobile operators have seemingly unlimited options to create innovative business plans and offers that resonate strongly with their target customers. For frequent hotspot users, Wi-Fi hotspot subscriptions are a popular choice. These may be unlimited, volume or time limited. Typically, customers pay a monthly fee for access to most or all of the operators Wi-Fi hotspots. A real-time, flexible rating engine lends itself to more granular options, such as rates based on time or day, location, device type, etc. One-time or casual users may prefer to pay for Wi-Fi services by the hour or by the megabyte at a single location. Customers can easily use a credit card or one-time prepaid voucher with a predefined time or volume limit to avoid having to sign up or register for services. A hybrid option, the Wi-Fi Data Pass affords casual users more longevity than a single session without the commitment of a subscription. Wi-Fi Data Passes can offer unlimited or volume-limited service for a day, week or month, for example. Once the pass expires or the volume allotment is exhausted, the customer simply purchases another pass as he needs it. This is a popular option for roaming customers who may be traveling for a short period.

Wi-Fi Roaming Pass One Week Unlimited Wi-Fi Access at All Hotspot & Global Partners for $24.99 One Week Pass One Week Unlimited Wi-Fi Access at All Hotspot Locations $14.99

5GB Everywhere Wi-Fi Access Up to 5GB at All Hotspot Locations $19.99/ month

Wi-Fi by the Hour Unlimited (volume) Wi-Fi at Single Hotspot Location $2.50 / hour

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Alepo Copyright 2011

Alepo Wi-Fi Hotspot Management Platform

Solution In Brief
Alepos Wi-Fi Hotspot Management Platform enables operators to effectively deploy and manage an expansive Wi-Fi hotspot business. It features: Intelligent Hotspot Location Controls Centralized Policy + Real-time Charging Carrier-Grade AAA Infrastructure Easily Customized, Branded Web Portal Full Partner & Reseller Management Real-Time Revenue Reporting Engine
Wi-Fi to Mobile Auth. GW AAA Session Interaction SS7 / SIGTRAN HLR

Existing Mobile Core Network / IN

Subscriber Data Batch Charging Mobile Vouchers Refill

Alepo Wi-Fi Platform

Policy & Charging Business Management (BSS) Subscriber Data / AAA

Balance

IN to IP Charging GW

Subscriber Info / Password

Access Controller
Router

Fetch Location Information DHCP Requests Alepo Hotspot Location Server SNMP HTTPS Alepo Web Existing Portal Web Portal Send E-mail Payment Gateways

Wi-Fi Voucher Management System

The platform integrates seamlessly with an existing IN-based core network to allow for convergent services, including unified balance management, across all legacy and NGN technologies.

Session Controller Data Path

Send OTP E-Mail Server

Internet AAA (RADIUS) Access Network & AP Subscribers

SMSc

Send OTP

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COMPONENT OR FUNCTION WI-FI TO MOBILE AUTHENTICATION GW AAA INFRASTRUCTURE

DESCRIPTION Enables automatic authentication of SIM / EAP-enabled mobile devices to Wi-Fi network. Performs authentication, authorization & accounting; Provides quota-based session management & subscriber identity management. Handles per volume / time rating and leakage-free disconnect or redirect upon credit expiration Facilitates location-specific portal pages, content, charging and commissioning; Monitors APs; Assigns IP addresses at session start Provides a convenient store front to purchase & register for services, access hotspot network & free content; May be branded and integrated with existing customer website May include voucher management, real-time reporting, customer care and partner / reseller management Allows for convergent Wi-Fi + mobile services, unified account & balance management Extends functionality of existing prepaid mobile vouchers to purchase convergent Wi-Fi services. Remotely manages customer devices and Wi-Fi access points, including provisioning operators Wi-Fi SSID

DATA (INTERNET) OFFLOAD Required X Not Required, Included in Wi-Fi to Mobile Auth. GW X Not Required

MONETIZATION X Not Required

Required

REAL-TIME POLICY & CHARGING HOTSPOT SERVER (LOCATION)

Recommended

X Not Required

Recommended

HOTSPOT PORTAL

X Not Required
Optional, if offload is done

Required

BSS / BUSINESS MANAGEMENT

INTEGRATION TOWARDS MOBILE CHARGING CORE INTEGRATION TOWARDS MOBILE VOUCHER SYSTEM MOBILE DEVICE MANAGEMENT

via partnership with WISP

Optional, if Wi-Fi data usage

Recommended
Optional, allows subscribers

is counted towards an overall data limit or cap X Not Required Recommended

to use mobile account as a payment method for Wi-Fi

Optional, contributes to a

ubiquitous user experience Recommended

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Alepo Copyright 2011

Alepo Wi-Fi Hotspot Server

Alepos Wi-Fi Hotspot Server enables location mapping and identification, used to render uniquely branded reseller portals at each hotspot, including locationspecific content and offers, and used to perform rating and charging based on location. This level of location-based granularity gives mobile operators an advantage over other competing free and paid hotspots. Allowing for partners and resellers of all types and sizes, the server can consider a hotspot location to be a switch with multiple access points (hotel), a single access point or even a single CPE / MAC address. This affords operators granular control over each access point while maintaining a centralized access network / enforcement point. The Alepo Wi-Fi Hotspot Server includes a Network Monitoring Server (NMS) to track the performance of hotspot locations and access points using SNMP-based management interfaces. It provides a dashboard to monitor the distributed network, including such information as AP uptime, throughput and more. With built-in DHCP functionality, it also maintains and assigns IP addresses at the start of each user session.

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Alepo Copyright 2011

Alepo Wi-Fi Hotspot Web Portal

The Alepo Wi-Fi Hotspot Portal works to facilitate customer adoption and encourage repeat use of Wi-Fi hotspot services by enabling a fast and intuitive registration and purchase process for all customers. Via Alepos Hotspot Portal, any customer can select a Wi-Fi option (Wi-Fi data pass or subscription) and prepay for services using a credit card or prepaid voucher. With mobile core integration, operators can allow mobile subscribers accessing Wi-Fi services on secondary devices to charge Wi-Fi services to their existing mobile account, using SMS to verify account ownership. Alepos open web portal can be easily customized to mimic the look and feel of the operators existing portal, lending itself to creating a seamless and ubiquitous customer experience across all hotspot locations, whether the customers are using mobile or Wi-Fi data services. Left: Alepos Wi-Fi Hotspot Web Portal, branded and integrated with MTN Cameroons existing customer self care portal.

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Core Charging Integration

Achieving Convergence IN to IP Core Integration
Unified, real-time balance management across all services mobile & Wi-Fi Single subscriber account across all services - mobile & Wi-Fi Customers can use one voucher to purchase mobile & Wi-Fi services Existing mobile subscribers can use SMS to pull credit or charge Wi-Fi services to the mobile account

Through integration, the mobile core can be extended to serve as the main balance manager for Wi-Fi services in addition to the existing mobile services. To initiate Wi-Fi services, Alepo IN to IP Charging Gateway checks for a subscribers real-time balance and sends rated accounting information in order to credit or debit the balance according to the real-time usage. Voucher refills made through the Alepo Web Portal can be pushed to the corresponding mobile core subsystem, allowing operators to extend existing prepaid mobile vouchers for the purchase of Wi-Fi services, allowing subscribers to top up mobile and Wi-Fi services with a single, familiar voucher. This functionality notably helps to lower operator costs of building a new distribution chain and brand awareness for Wi-Fi vouchers. Subscriber information, including MSISDN, can be synchronized between the Wi-Fi platform and the mobile core to allow for unified subscriber identity management. This enables IN- and IPbased services to be merged onto a single subscriber account, and makes it possible for the mobile core to handle Wi-Fi-only customer accounts as well. Alepo has proven knowledge and expertise in integrating with mobile core network infrastructures in order to realize convergent, next generation services. Leading operators, including France Telecom and Digicel, have relied on Alepos professional services to realize their convergent business needs.

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HOW TO GROW A WI-FI HOTSPOT FOOTPRINT
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A Tiered Wi-Fi Hotspot Network Model

MTN CASE STUDY
Cameroons largest converged operator, MTN, employed Alepos Wi-Fi Hotspot Management Platform as a tiered model in order to quickly cultivate an expansive nationwide Wi-Fi hotspot network. Integration with MTNs existing mobile core infrastructure granted flexible payment options to mobile subscribers as well as unified balance management. In addition, the Alepo Wi-Fi portal was customized to mimic the look and feel of the existing portal, creating a seamless experience between mobile and Wi-Fi. By partnering with Alepo, MTN was able to quickly forge partnerships with small businesses and academic institutions in order to realize their vision for an expansible, carrier-grade Wi-Fi hotspot network. To read the full case study, please contact your Alepo sales representative.
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With a Tiered Wi-Fi Hotspot Network Model, mobile operators can quickly and cost-effectively expand their Wi-Fi hotspot footprint by leveraging & revenue sharing with partners and resellers. Partners benefit from low-cost setup and maintenance (no expensive onsite software), branded portal pages and accurate commissions based on actual usage, rather than original point of purchase, making it an attractive microbusiness model.

IN

MTN Loaded Web Portal

Wi-Fi Hotspot Web Portal

Wi-Fi Hotspot Management

Wi-Fi Hotspot Server

MTN Mobile Core

Alepo Wi-Fi Hotspot Platform

Branded Portal Pages & LocationSpecific Content

Access Network

Access any hotspot with a single account

Partner A Access Point

Internet

Partner C Access Point

Partner B Access Point

Subscribers

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About Alepo
CONTACT ALEPO
Corporate Headquarters & North America Sales Austin, Texas +1 (512) 879 1030 sales@alepo.com EMEA Regional Sales Paris, France +33 3 69 61 81 92 dan.stern@alepo.com CALA Regional Sales Buenos Aires, Argentina +54 11 4711 8235 ramiro.costa@alepo.com

Founded in 1994, Alepo is a leading provider of enabling infrastructure for telecommunications service providers. Alepo provides IT systems and IT consulting services for telecommunications companies, enabling them to compete efficiently and realize next generation service opportunities. Alepo is proud to support innovative market leaders such as France Telecom, Digicel and Charter Communications as they evolve in the telecommunications marketplace. Alepos comprehensive suite of Wi-Fi Solutions enables mobile operators to successfully implement, expand and capitalize on Wi-Fi services. Tailored each operators unique business needs, Alepos solutions integrate seamlessly with a mobile operators existing IN-based infrastructure to allow for effortless and automatic Wi-Fi authentication, as well as convergent services, including unified balance management, across all legacy and NGN technologies. Alepos solutions are built according to the design principles of compliance to standards, automation, flexibility, scalability and feature-richness. The company has partnered with leading manufacturers of telecommunications equipment to ensure improved interoperability and smooth customer experience for users. Maturity, stability and innovation make Alepo a market-leading vendor of solutions for both greenfield and established service providers.

APAC Regional Sales Mumbai, India +919820145547 girish.nair@alepo.com

www.alepo.com
Twitter: @AlepoUSA Facebook: /AlepoUSA LinkedIn: /Company/Alepo

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