Post on 17-Aug-2019
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CHANGING THE WORLD BY CONNECTING THE UNCONNECTED
Market Trend
Rev.3 06/2019
Wi-Fi HotspotsChanging the World
by Connecting the Unconnected
Introduction
In a world where Internet access is coming to be regarded as an essential utility,
not having access to broadband connectivity can severely affect quality of life.
Large parts of the globe, especially those in rural locations, can find themselves
cut off from the digital revolution that is happening all around us, harming their
potential for growth and development.
However, this is not solely a problem in rural or hard-to-reach areas. A recent
market study released by the Wireless Broadband Alliance showed that more
than half of the global urban population remains unconnected to broadband
Internet, with 37% living in some of the world’s wealthiest cities.
As the number of Internet-enabled devices globally continues to grow, the
demand for Internet connectivity is only going to increase – can satellite Wi-Fi
hotspots provide the answer?
By Richard Schaap, Market Director Broadband Access
at Newtec
Wi-Fi HotspotsChanging the World
by Connecting the Unconnected
Reaching the Masses
Finding a solution that can provide mass connectivity in areas
where terrestrial infrastructure is severely lacking is a major
concern for network operators, with the demand for Internet
access on a global scale reaching an unprecedented level.
In Africa, for example, more than half of the continent’s
1.2 billion population has little-to-no broadband Internet
access, with 400 million of those lacking even the most basic
levels of connectivity. These numbers illustrate a great potential
for growth and a great opportunity for access solutions that
can reach these difficult-to-reach areas, which are often vast
and without the infrastructure to connect by more traditional
means.
This lack of terrestrial infrastructure is one of the main reasons
for millions of people in rural areas remaining deprived from
Internet connectivity. In many regions of the world, it is likely that
this infrastructure challenge will continue for the foreseeable
future and this is traditionally when satellite becomes the
primary connectivity solution. However, the cost of satellite
equipment and capacity – not to mention the transport costs
and national duties and taxes – means that even a traditional
satellite VSAT solution remains out of reach for many.
Photo Courtesy of Liq
uid Telecom2
Wi-Fi HotspotsChanging the World
by Connecting the Unconnected
2012 2013 2014 2015 2016 2017 2018
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Standard Notebook PC Ultra-slim PC Tablet PC
A Growing DemandThe irony of this situation is that many of these traditionally under-served countries and
regions are seeing huge growth in the sales of smartphones and tablet PCs, bucking the
global trend which shows smartphone sales are decreasing. Since 2012, there has been a
significant market shift with consumers bypassing traditional personal computers in favor
of handheld devices, opening a significant market for connectivity. Returning to the African
example, the continent now has more than 200 million devices with the ability to connect to
the Internet through Wi-Fi. This figure is expected to grow to 500 million by 2020, despite the
fact that not all areas are covered by Internet connectivity.
These market conditions have created enormous pent-up demand and a great business
opportunity. Smartphone and tablet PC users are eager to be connected to the Internet to
browse websites, conduct business and get involved with social media – all at a price that is
affordable to the end-user.
©N
PD D
isplaySearch
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Why Not DTH Or Mobile?
Finding the right type of connectivity to reach the masses
in such regions with an economical solution, is a difficult
task. While mobile networks are a viable solution in built-
up and semi-rural areas, the economies of scale that
operators work to often mean that they cannot justify the
required investments in even the most basic GSM mobile
connectivity for rural and hard-to-reach areas.
Similarly, while satellite provides an answer to the issues
of reach and accessibility posed by mobile, the traditional
solution – direct-to-home broadband through a VSAT
terminal – poses significant problems in terms of Total
Cost of Ownership for the end-user due to it being more
commonly deployed in a pre-paid scenario.
In this situation, what is required is a combination of the
overarching connectivity that satellite can provide with the
affordability, ease of installation and reliability that is craved
by operators, service providers and end-users alike.
THIS WAY!
NO, THIS WAY!
CONFLICTING ELEMENTS!Recurring questions of satellite broadband access
SATELLITE BROADBAND ACCESS
• Total rendered Equipment cost
>700USD
• Terminal
• Shipment
• Installation
• Customs
• Recurring monthly fee >50USD
INDIVIDUAL PEOPLE
• Low average monthly income
per capita: From 10’s to a few
100’s USD
• Very short or no commitment for
service
• Used to pre-paid services
Wi-Fi HotspotsChanging the World
by Connecting the Unconnected
4
A Community Solution
A solution to this imbalance of supply and demand is to
create Wi-Fi hotspots that are reliable, easy to install and
– above all – affordable to the masses. Several business
models can emerge from this kind of deployment. One
example is to create a kind of micro business model for
Internet access provided on an access voucher basis. With
this low entry-barrier business model, hotspot owners such
as private shop owners invest in a satellite Wi-Fi hotspot
terminal and sell voucher-based access to consumers. After
the initial low investment, they do not have any recurring
costs, but receive commission from the network operator
on the revenues generated from access vouchers sold.
The main benefit of this model is that the end-user has
no investment and has no recurring service procurement
obligation, but will buy voucher based Internet access
based on their available finances.
Although the satellite Wi-Fi hotspot solution is slightly more
expensive from an initial investment perspective, the fact
that the investment is generating revenues from a large
number of end-users means the Total Cost of Ownership
per user represents just a fraction of the cost when
compared to a traditional-single user VSAT terminal.
Another model could see rural shops or service stations
provide Internet access as a service to their customers
within their normal local spending. This model is attracting
more business as there is an additional provided service
element.
As an example, there are currently shops in rural Africa that
provide electricity to their customers, who very often do
not have access to electricity in their homes to, for example,
charge their phones. Again, providing additional services
in the retail environment increases the economic activity at
the point of sale.
Community Wi-Fi will likely be an important delivery mechanism, not just for
initiatives like internet.org, but also for the LEO constellations
that are expected to deploy in the 2019-2020 timeframe and for
whom Middle East & Africa will be importants markets.
Wi-Fi HotspotsChanging the World
by Connecting the Unconnected
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Wi-Fi Hotspots on Newtec Dialog®
Adding a Wi-Fi service element to the Newtec Dialog®
platform extends its service range, enlarging market reach
and increasing service revenues for operators. The flexibility
of Newtec Dialog means that consumer Wi-Fi can be added
simply and cost-effectively by adding a Newtec Wi-Fi hotspot,
including the required OSS/BSS solution for end-customer
management.
Newtec has already delivered a significant number of its
Newtec Dialog platforms worldwide, with many opting for
the community Wi-Fi hotspot solution as part of the service
delivery.
WI-FI SOLUTION
NewtecWiFi Hotspot
Terminal
OSS/BSS
Wi-Fi HotspotsChanging the World
by Connecting the Unconnected
6
ConclusionThe number of end-user devices requiring Internet connectivity is increasing,
requiring a suitable and economical technology solution.
Creating community solutions that are reliable, easy to install and affordable is an
essential element for operators that are unable to justify investments in mobile
infrastructure, and also for those end-customers for whom individual VSAT
terminals and the associated recurring service procurements remain out of reach.
Community Wi-Fi hotspots such as those created on the Newtec Dialog platform
provide a central technological hub that can deliver a larger variety of services for
both business and residential users, while providing operators with a platform that
is flexible, scalable and efficient.
Wi-Fi HotspotsChanging the World
by Connecting the Unconnected
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SHAPING THE FUTURE OF SATELLITE COMMUNICATIONS
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