Monetizing WiFi

Dr. Mazlan AbbasMIMOS Berhad

Wi-Fi Strategy for Content Players

Building an Educational Eco-System

Business Models for Enterprise Connectivity

Physical & Digital Advertising Avenues

Summary

The Commercial Wi-Fi Ecosystem

- Superior indoorconnectivity

InternationalRoaming

- Cheap & convenientinternet access forforeign nationals

(Digital/Physical)- Popular hangout joints areattractive avenue foradvertisers- A combination of physical/digital advertising is moreimpactful

Device Partners- Wi-Fi provides superiorvideo/browsingexperienceover smart devices- Most appropriatechannelto push in-housecontent/apps

ContentPartners

- Touch-points foraccessing content eco-systems- Promoting specificapps/content- Attracts users by

THE COMMERCIAL WI-FI ECOSYSTEM

Data Offloading- Freeing up 2G/3G airwaves

- High-speed connectivitycompared to 2G/3G

Commercial Models For Telecom Operators

• Operators can effectively offload mobile traffic ontoWi-Fi networks, thereby freeing up capacity in theirstrained 3G/LTE networks

• Combines Wi-Fi hotspot plans with homebroadband subscriptions enables consumers toexperience smooth internet connectivity while onthe go

• Enables users to roam seamlessly & enjoy high speedWi-Fi connectivity as they travel from one country toanother

Model 1:Data Offloading

Model 2:Home & Away

Model 3:International

Roaming

Telecom operators can therefore provide premium services to customers withoutworrying about regulatory or cost limitations.

COMMERCIAL MODELS FOR TELECOM OPERATORS

Due to spectrum constraints for 3G & lack of 4G enabled devices, telecomoperators are gearing up for big Wi-Fi play through:

Example: The O-Zone & Aircel Partnership

Aircel, a leading telecom operator with 65 million subscribers, partnered with O-Zone in2011 to promote Aircel Wi-Fi hotspots

The objective of the partnership wasto enable seamless 3G/Wi-Fi

offloading, thereby creating aflawless customer experience

Example: The O-Zone & Airtel Partnership

Airtel, India’s biggest telecom operator tied up with O-Zone to enable its customers toaccess home & public hotspot Wi-Fi in a reliable & convenient way

Wi-Fi Strategy for Device Players

Problems Identified

• High demandfor databut noproperchannelto supportit

• Competitionfrom Operatorcontent& apps

• Low cost device playersintensifycompetition

Desired Result

• EnhancedCustomerExperience

• Long term CustomerRelationship

• IncreasedSales &MarketShare

Proposed Solution

• Cheaper,faster , betterin-building connectivity channelwhich compliments3G

• Extensive Wi-Fi network inareasof high adoption& highcontentusage

WI-FI STRATEGY FOR DEVICE PLAYERS

Device Players can leverage Apps & Content ecosystem through the public Wi-Finetwork with bundled in Wi-Fi plans, thus creating a customer engagement platform

Wi-Fi vouchersbundled with LGOptimus phones

Purchases smartphone

LG Wi-Fi Cycle

Voucher brandingenables recall &customer retention:completes the loop

Visits O-Zonehotspots, accesses free

Wi-Fi

Word of mouthcreatesawareness

Example: O-Zone & LG Bundled In Wi-Fi Plans

Wi-Fi Strategy For Content Players

By reaching out to innumerable users across O-Zone’s extensive Wi-Fi network, contentcompanies can directly increase subscribers, content usage & stickiness

Problems Identified

• Low Usage

• Lack of CustomerRetention

• Mass Players

Desired Result

•IncreasedSubscriber Base

•IncreasedUsage

•Increased Stickiness

Proposed Solution

• Additionaldistributionnetworkwhich compliments3G

WI-FI STRATEGY FOR CONTENT PLAYERS

Customer visits O-Zonehotspot with Google

Takes, edits & uploadsphotos to share withfriends on GooglePlus.

Is re-directed topage below

above to getfree access toG+

Example: O-Zone & Google Wi-Fi Campaign

displays

The 3 month campaignresulted in approx. 1.1million log ins on thenetwork

Clicks on ad

Building an Educational Ecosystem

Proposition

University Public Wi-Fi

Cafeteria

Common Room

Dorms

Building an Educational Ecosystem

Wi-Fi deploymentacross the campus

Classrooms

O-Zone’s Value

Educational tabletdevices to access Wi-Fi

Revenue earnedthroughmandatory perstudent fee

Commercial Models for Enterprise Connectivity

Model 1:Creating PrivateNetworks•Multiple Private networks are

created for commercial buildings

• The builder may lease out thesenetworks to tenant companies fortheir enterprise needs.

•Revenue Opportunities:•System integration fee for building

the network•Maintenance fee for managing it

Model 2:Guest Wi-FiSolution•Guests/visitors can access Wi-Fi

while waiting for meetings inreception areas.

•Separate Guest Wi-Fi SSIDs arecreated for guests/visitors.

•Revenue Opportunities:•Management fee for creating &

managing Guest network•Voucher Sale

Model 3:Public Wi-FiHotspot•Public Wi-Fi hotspots created

in common areas like lobbyareas, coffee shops

•Roaming in hotspots withinbuilding & public hotspots

• Revenue Opportunities:• Mandatory Subscriber Fee

per employee• Ad Revenue

COMMERCIAL MODELS FOR ENTERPRISE CONNECTIVITY

Physical & Digital Advertising Avenues

PHYSICAL ADVERTISING AVENUES

O-Zone has secured exclusive physical Wi-Fi marketing rights across its hotspots

Example: During Google’s Wi-Fi campaign, revenuegenerated through advertising was shared equallywith hotspot owners

TentCardsPosters

DIGITAL ADVERTISING AVENUES

Potential advertisers may also advertise on O-Zone’s landing page, displayed across all ourhotspots

Example: Revenue generated through Google’s digital ad campaign was shared equallywith hotspot owners

SUMMARY

Revenue Models based solely on ad-hoc users walking into a hotspotdonot exist

Operator Driven Standalone Wi-Fi retail business is also complex toSustain long term

However,

Lucrative Business Opportunities do arise when a WISP builds theecosystem of operators,devices, content, advertising etc.

Worldwide Tsunami of Data & Video can generate huge revenues for aneutral WISP charging per megabit, enabling it to ride the wave!

References

• “Creating a Continuous Monetized Wi-Fi Network”, Bobby Sarin, WiFi World Summit 2012

THANK YOU

EMAIL: mazlan@gmail.comTWITTER: mazlan_abbasFACEBOOK: www.facebook.com/drmazlanabbasLINKEDIN: my.linkedin.com/in/mazlan/SLIDESHARE: www.slideshare.net/mazlan1