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Abstract
Continued aggressive growth in data trafc fuelled by increase in smartphones, video and application usage has created an urgent need for faster and efcient networks. Figuring an approach to make systems extensible and scalable is important to the success of effective data ofoad strategies that bridge the gaps of disparate systems. This paper will describe the Wi-Fi ofoad approach from the perspective of modeling the trafc model, impacts on the CAPEX and OPEX costs within network infrastructure, managing and integrating multiple access technologies. We examine the ofoad trend amongst Wi-Fi and small cells landscape of femtocells. The emerging trends in key geographical regions, supporting technologies, infrastructure requirements and product portfolio are discussed. Rapid proliferation of smartphones and the popularity of value added services have increased the data trafc signicantly. As the penetration of smartphone devices ranging from entry level to mid-level and high-end market increases further, new opportunities exist for carriers to further monetize advanced Wi-Fi services to overcome the threat of over the top applications eroding their market share.
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Contents
Overview 01
Mobile Me, Creating a Compelling Experience Hybrid Mobile Devices Optimized Experience
02
Building a Successful Offload Strategy Data Ofoad Study Designing Ofoad Trade-Off between Macro Cell Densication and Wi-Fi Wi-Fi Ofoad Simplied Wi-Fi Ofoad Observations
05
Wi-Fi or Femto Scalability Standardization Subscriber Management Policy Meets Revenue Opportunity
11
Greenpacket Mobile Data Offload Solution Seamless Data Ofoad Dynamic Data Ofoad Wi-Fi Experience Management
14
Conclusion
17
19 20
References
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Overview - 01
Overview
The explosion of data trafc was not an overnight phenomenon. Wi-Fi entered the wireless scene much earlier in the early 2000s, but was deemed too niche in the initial stage. The detractors saw Wi-Fi as a poor cousin to cellular technology that had strict security and QoS measurements necessary to deliver voice centric services at that time. Fast forward to 2010, the telecoms landscape has evolved and transformed into a 2nd generation of end-users that demand more than voice services. The take-off of HSPA between the years 2006-2008 was a turning point in the adoption of data-centric services. The impact of mobile data hit hard on mobile operators, when AT&T launched the iPhone in 2007. Undoubtedly, the signing of higher revenue customers that used smartphones was welcomed. However, the network was embroiled in apologetic customer relations in the aftermath of frustrated customers for dropped calls, spotty services, delayed text and voice messages and drastic download speeds in densely populated areas. There were up to 4121 HSPA networks globally deployed, responding to the mobile broadband explosion. The once dominant voice and SMS services were then reduced to the basic fundamental services that an operator provides, with little excitement, as the price competition drove down even further the revenues. It was the plethora of web 2.0 applications that were engaging, new and interesting which kept the end-users excited and thus operators are nding it hard to keep up their bandwidth. Despite the efforts of AT&T to x the network inefciencies, and doubling capacity, it did not stop customers backlash and switch to a rival carrier. Smart devices like iPhones, iPads and tablets can be disruptive, if the operator cannot handle the trafc that is generated. In order to mitigate the negative sentiments that impacted growth rates, reduction of high revenue customers and loss of brand value; AT&T embarked on improving its service delivery with alternative data ofoad approach and communicate those investments by deploying over 29,000 Wi-Fi hotspot to allow its customers to access its services complementary to the cellular network.
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Hybrid type devices will dominate in coming years, as more multi development and delivery allow applications and content developers to extend their reach over open APIs to be included into devices. In terms of the multi-touch interfaces, it will have even greater sensitivity and processing ability to run faster and more intensive through HTML 5 support. These new generations of smart devices will become a component of other end products and systems. For example, the iPad is now already used popularly in conjunction with PoS terminal for providing inventory, billing and ordering systems.
677.18
235.69
318.32
2010
2011
2013
2014 Smartphone
2015
Figure 2 : Forecast shipment of media tablets and smartphones 2010-2015 Source : Gartner
Consumer behaviors are driven in part by the usability and simplicity of the device to bring out the experience. Similarly, operating systems and platforms are a blend of functional utilities. Optimization of the applications and development tools are changing compression techniques from settings that were impractical or that were restricted in traditional approaches into optimized support. This largely, helped reinvent the approach to deliver the web-centered approach surrounding application and media consumption. The convergence of IT and the cascading effect on the consumer electronics industries has had a shift in IT innovation from large businesses direct to the consumer. Likewise, many mobile application priorities are being re-invented for various areas. CIOs and CTOs of organizations are recognizing the commercial benets of combining the powerful delivery mechanism of Wi-Fi with mobile applications, of which include connectivity, mobility of B2C or B2B2C that cuts across consumers and enterprise models, context-aware ability and M2M collaboration.
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penetration losses. In the ofoad case, it primarily benets the carrier, although the subscribers data experience becomes more compelling because of the higher data speeds. Both Wi-Fi and femtocells approach can help ofoad indoor trafc. The early focus of Wi-Fi indoor ofoad has been based on user deployed, self-managed Wi-Fi. However, there is an alternative approach that integrates indoor unlicensed radios into an end-to-end carrier Wi-Fi architecture which is gaining popularity with the near ubiquitous availability of Wi-Fi in smartphone devices.
Designing Ofoad
Traffic Model The busy hour trafc parameter is used to measure the occurrence of heavy trafc, at a given point of time. The shift of busy hour trafc shows a greater tendency to be present during late evenings, at home and primarily utilized indoors over data intensive applications such as video streaming on smartphones and tablets. Not forgetting, the spike of busy hour also applies during the day where users are on-the-go between workplaces during mid-day. The busy hour is a key indication of network utilization that drives carrier cost and determines when to invest in new RAN capacity upgrade. Typically, when the busy hour threshold is exceeded, the carrier will add more carriers (multi-carrier) or introduce cell splitting and thus contributing towards the total cost of ownership; where every byte of data ofoaded via Wi-Fi during the busy hour will have a direct impact on the reduction of macro network CAPEX and OPEX costs. Capacity Model A typical macro cell in an urban area can have hundreds of concurrent users (depending on varying averages of Mbps/user for a given point in time) and cell capacity is shared. If one subscriber does not use the capacity, the underlying cost of operating the capacity can be allocated to the other subscribers that are actually using it. For example, a 3G carrier can deliver average throughput per cell of 14.4Mbps. Under non-busy hour condition, the node B can support up to 14 subscribers at the average 1Mbps per user. Given that busy hour trafc reaches 70% utilization, the number of active subscribers supported per node B drops to halve. As more concurrent subscribers consume more capacity, it gets more expensive for the carrier to provide the extra capacity requirements to all the users at the same time.
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For a given Wi-Fi cell, the average cell throughput is 11Mbps4. With greater channel bandwidth of 22MHz and 3 non-overlapping channels, Wi-Fi achievable throughput can reach up to 33Mbps. The subscribers supported per Wi-Fi cell is approximately 20 given the same busy hour utilization. The cost to service the increased capacity demand remains roughly the same throughout for Wi-Fi since the device cost is already xed regardless of whether the subscriber uses it or not and, most often purchased by the subscriber. In addition, Wi-Fi uses unlicensed spectrum. Network Cost The network cost model is useful to estimate the CAPEX and OPEX of a carriers macro cell case by considering capacity estimate like the radio access base stations, RNC, core network (SGSN and GGSN) and backhaul. In effect, the total cost per Mbps capacity is the sum of CAPEX and OPEX for each of the network elements over the busy hour usage. Given that the cost model considers CAPEX elements are amortized between 8 to 10 years, depending on the equipment type while Wi-Fi access points are amortized over a shorter lifecycle of 2-3 years. For simplicity of study, carrier Wi-Fi implementation is integrated and therefore CAPEX already accounts for access gateways, security gateways and aggregation gateways. The OPEX element includes site rental, power, site maintenance, leasing of backhaul and data centers applicable to macro cell and to a lesser extent on Wi-Fi deployment. Other macro network cost elements include spectrum and cell site leasing of up to 20 years or more. Wi-Fi assumes the access points are in the range of $60-$150, without site leasing and power is provided by subscriber and backhaul via the Internet Service Provider which is more appealing. When the output of the cost comparison is plotted between macro cell and Wi-Fi relative to the different user types of bronze, silver and gold, it will arrive at a point where the clarity of which technologies are better suited to different trafc demands.
standard
In order to quantify the amount of trafc that is traversing over Wi-Fi networks, carriers use various methods to analyze the trafc usage patterns of its mobile network and sets a baseline to benchmark additional capacity; when and how it could be mitigated either by macro sites or Wi-Fi ofoad.
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Wi-Fi Ofoad Observations
Cost to Deliver
Add Wi-Fi
HSPA
From a cost perspective, Wi-Fi is much more cost effective on a dollar per Mbps basis than the macro cell. The conventional macro cell densication increases capacity by packing more cells within the same area. This approach can be effective, but suffers from diminishing returns as trafc grows. High-trafc areas in urban centers prove to be challenging, where deploying and operating a cell site is more expensive as site leasing can be difcult to secure. And as the density of macro cells increases, interference become more difcult to manage, with per-sector throughput declining as a result. A single sector in a macro cell can have a comparable capacity to a Wi-Fi access point, but coverage is greater, resulting in lower capacity density. Wi-Fi on the other hand, is limited by range and the impact of interference is reduced while capacity density is increased.
Coverage
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Given the study of capacity in busy hour, there is little impact on the cost to deliver data to the bronze users, as the demand for capacity is far below the busy hour threshold shown in Figure 3. The intersecting point where the macro cell and Wi-Fi begin to show distinct cost savings advantage is clear, when the busy hour capacity is reached. This effect is more obvious, when a large number of silver and gold users are introduced into the network. These are the premium users which carry a higher degree of service level. The areas of device subsidies and depreciation of assets whether minimal or otherwise can inuence the decision for macro cell densication or Wi-Fi ofoading strategy. Other long term OPEX6 costs such as maintenance, site leasing and carrier-upgrade can draw the differential cost. The key to delivering a cost-effective mobile broadband service is to understand when the trade-off becomes more attractive for an operator to deploy Wi-Fi ofoad solution over densication of macro RAN capacity, as well as the differences between licensed and unlicensed Wi-Fi ofoad solutions.
and Internet backbone and international ber connectivity is not considered in this discussion.
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Wi-Fi or Femto - 11
Wi-Fi or Femto
Which is the best t for ofoad? It does not have an absolute approach, as demonstrated by various carriers. The issue of data ofoading must be assessed from the aspects of suitability, readiness, integration of existing infrastructure, cost effectiveness, pain points and a host of indirect costs related to customer expectations, loyalty and brand awareness. As mobile data congestion become greater, carriers are using all tools including tiers and caps to survive the low yield data revenues through bandwidth management. The on-going challenge is not without mixed results. According to Informa Telecoms and Media market report, there are more than 2.3 million femtocells deployments in 2011, which is small and relatively weak in comparison to the 1.3 billion Wi-Fi hotspots globally. Although femtocells provide benets to the user in terms of full bar coverage and higher mobile capacity, it typically is dependent on a xed line to backhaul. The key advantage for users is it supports existing 3G terminal, but technical aspects add to the challenges of spectrum, as femtocells are deployed over the same licensed spectrum of macro networks and can potentially cause interference. Wi-Fi on the other hand, specically addresses the issue of data trafc ofoad that represents carriers immediate challenge, and highly suited for indoor coverage. Wi-Fi can be a complementary proposition for mobilizing broadband. It can help manage cost by ofoading trafc, while offering a cost-effective high-bandwidth service at home as well as in many heavily-used public locations such as airports, stadiums, cafes, hotels and so forth. Given the installed base, it is likely that security, voice services over Wi-Fi, and seamless handover will be added to Wi-Fi to strengthen (all of these being efforts that are already addressed in some way or another) ofoad strategies alongside femtocells. Several key issues that will emerge from the success of the network are scalability and manageability. Ultimately, carriers want to create a unique mobile experience that is uid between Wi-Fi and 3GPP networks.
7Note :
The congestion described in this literature exclude the study of wireless or ber backhaul connectivity. Informa Telecoms and Media
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Wi-Fi or Femto - 12
40% 20% 0% APAC High Positive Impact Low Negative Impact Europe Low Positive Impact High Negative Impact
40%
13%
29%
38%
Figure 4 : Wi-Fi Ofoad Impact on Subscriber Experience Survey Source : Senza Fili
Scalability
Wi-Fi has demonstrated its ability to provide cost effectiveness in terms of the cost per byte deployment. China Mobile, having one of the biggest subscriber base in the world, has big ambitions to deploy up to 1million10 hotspots by 2014 in its commitment to bring ubiquitous mobile services. Similarly, the device chain support has reached a maturity level that provides for improvement to support specications of EAP-SIM and drive down the cost by large volumes to make Wi-Fi a de-facto capability. For most parts, smartphones are designed ideally for Wi-Fi ofoad.
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The need for a unied framework to standardize authentication, security, roaming and inter-working between disparate access networks is necessary. The Wi-Fi ecosystem is maturing and it is anticipated, their role in bringing economies of scale by supplanting ubiquity. Data roaming prices are unattractive for the mass market, and as a result, customers tend to resist by switching off data roaming and relying on Wi-Fi. In the recent 2012 Mobile World Congress (MWC) in Barcelona, talks of carrier Wi-Fi was featured heavily among the industry carriers and analysts. With strong commitments from Wireless Broadband Alliance through the Next Generation Hotspot program and Wi-Alliance Hotspot 2.0 initiative encouraging trials amongst operators, the progressive development of Wi-Fi will see acceleration of co-operation to a wider ecosystem.
Wi-Fi or Femto - 13
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Mobile IP
3rd Party HA
Cellular
IPSEC Secured Tunnel
WLAN
Better Wi-Fi experience
Intouch Seamless Data Offload Client 3GPP-WLAN Interworking Seamless Authentication Consolidated Charging Unified Services Access
Figure 5 : Intouch Seamless Data Ofoad
Operators are increasingly looking at using Wi-Fi for ofoad as part of their mobile broadband strategies. However, it risks losing visibility over trafc policies that were congured for the user once it routes through Wi-Fi. What is lacking is a way for the network to communicate to users (applications and/or websites they are using) a real-time or predicted measure of the networks congestion levels. Greenpackets Dynamic Data Ofoad client is compliant to the dened 3GPP Access Network and Discovery and Selection Function (ANDSF), to enable dynamic network selection and switching based on various contextual ability such as cell location, device, peak hours and subscription plan. Operators can also opt to customize these policies based on application aware policy, device policy, subscriber policy and time-based policy to trigger data ofoad.
Policy Enforcer
SOAP
Intouch Dynamic Data Offload Client (Compliant to ANDSF) Device Information Usage Information Environment Information
Operator PCRF/ 3rd Party Policy Control Congestion Information Subscriber Profiles Usage Information
High Quality Experience to the Subscriber
1. Get Policy
Send Location Information (UE Location)
2. Receive Policy
No Policy/Prioritized Access/ Validity Areas/Time of Day/ Discovery Information
3. Apply Policy
APPLY and OVERRIDE DEVICE POLICY
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Conclusion - 17
Conclusion
The motivation of Wi-Fi ofoading is varied and dependent on the use cases of the carriers mobile strategy. One factor that ranks high amongst the C-level execs would be the return on investment for every dollar that is spent. Carriers today are faced with a challenging task to protect their ARPU and battle the changing behavior of tech-savvy users. The appetite for YouTube, Netix, Hulu skyrocketed, at the expense of the traditional carriers dumb pipes. The popularization of those platforms is not difcult to understand given its free-mium value while the carriers were struggling with licensing rights on their mobile TV offering and expensive charges passed down to the end-users. Carriers now have embarked on a task to bring value back to their subscribers. There can be debates on how to achieve greater degree of control surrounding issues of data ofoad such as when, how and which should be the right network at the right location and right time. Wi-Fi ofoad approaches should ideally give operators the exibility to route ofoad trafc back to their core network as well as directly to the Internet; Wi-Fi ofoad via iWLAN promises greater visibility and management control as part of the ofoad process. With many context-aware policy control and charging solutions in the market today, carriers can integrate Wi-Fi ofoad through a closer understanding of the underlying triggers of when, how, where and what drives data usage. Contextual experience brings together - mobile, social networks, location, payment and commerce that affects the user experience in a more meaningful and relevant state of engagement. As in Greenpackets Wi-Fi solutions, the device client supports both 3GPP-based iWLAN and ANDSF specications. Ideally, every byte of data ofoaded should have a positive impact on the ROI. The parameters that carriers pay great attention is the costs relevant to coverage area percentage and capacity to capture the maximum ofoad trafc over a given period. The TCO11 consists of varying CAPEX and OPEX components with dependency of achieving coverage by the density of access points per square kilometer versus the maximum achievable savings. The end goal is the direct result of reduction in additional macro cell by the placement of corresponding access point density over the same coverage area percentage. However, if the difference in TCO of Wi-Fi ofoad savings falls short of macro cell densication, the business case for ofoading will become less useful.
11Note : Total Cost of Ownership (TCO)
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Additionally, it needs to ensure compatibility and interoperability between the disparate systems. Roaming is a highly desirable feature for Wi-Fi. With cellular networks, data roaming charges are unattractive. To prevent bill-shock and disgruntled service experience, carriers have begun to implement notication and alerts, so that customers can disable data roaming. Data roaming, when dealt with the correct approach, can add value to the subscribers, i.e. making Wi-Fi accessible through roaming partner by offering discounted services proposition which are more competitive. Bundling of roaming services with voice, messaging and data services is a good alternative to keep the customers happy. As a result, the cost of roaming for the end-user is reduced and they continue to receive the same level of services they are used to without the frustration. One such example is the roaming bundle currently offered through Orange France; daily, weekly or even 30-day basis, available in France, UK, Poland and other European markets. Integrating mobile services in the fundamental user experience is important to create optimized access and services to win them back. Customers view value in the service experience; regardless of the device, network and conditions they work in. A number of Wi-Fi providers are already developing carrier-grade products designed to provide seamless handover from 3G/LTE networks while keeping down the associated network infrastructure cost and complexity.
Conclusion - 18
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Free Consultation If you would like a free consultation on how you can apply Wi-Fi solutions, feel free to contact us at marketing.gp@greenpacket.com. Kindly quote the reference code, SWPS1211-D when you contact us.
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References - 20
References
1. Gartner Emerging Technology Analysis: Mobile Business Intelligence 13 July 2011, ID:G00214124 by Bhavish Sood, Andreas Bitterer, James Richardson. 2. Gartner The M2M Market Evolution: Growth Attracts Everyone 3. Senza Fili Consulting Technology to drive wireless disruption, with service monetization mired in uncertainty by Monica Paolini 4. Wireless 20/20 Carrier Wi-Fi Ofoad by Randall Schwartz and Magnus Johansson
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