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Wi Fi Beyond Offload
Wi Fi Beyond Offload
Monica Paolini
President, Senza Fili Consulting
Traffic
Network selection
Policy
Security
Traffic management
Very limited
Monetization
Differentiation
Figure 2: Monetization opportunities for mobile and fixed operators. Source: Senza Fili
Table 3. Security
Providers
Mobile operators: for mobile devices with cellular connectivity (e.g., smartphones)
Cable, DSL, and fiber operators; hotspot operators: for mobile devices without cellular
connectivity (e.g., Wi-Fionly tablets)
Services
End-to-end security: provide secure connectivity across all interfaces supported (e.g., 2G, 3G, LTE
and Wi-Fi)
Policy-based security: provide multiple security levels depending, for example, on network accessed
(e.g., tighter security for access to corporate network), application (e.g., video streaming may have
lower security requirements than video calls), interface type (e.g., no corporate access through thirdparty hotspots)
Targets
Enterprise users: operator can implement policy defined by enterprise consistently over different
wireless interfaces
Individual users: seamlessly protect subscribers regardless of interface used
2 - Cellular or Wi-Fi?
Flexibility and choice for a personalized service
For most of todays mobile devices, Wi-Fi and cellular connectivity coexist as parallel, but mostly
separately, functioning modes. When using Wi-Fi, data caps no longer apply and the throughput
increasesso most subscribers try to be in a location with Wi-Fi access when they want to use
Skype, Pandora or YouTube, or want to download software upgrades. Mobile operators also
encourage this approach; in some cases, they make Wi-Fi the default interface for services such as
upgrades.
The prevailing model is a user-driven pull, where the subscriber makes an active decision to switch to
Wi-Fi, with a possible exception when the subscriber is within the coverage area of a hotspot owned
by the mobile operator. This model is effective, because most subscribers have clear incentives
cost and performanceto switch to Wi-Fi. It does not, however, maximize the offload potential,
because most users use only a fraction of their mobile allowance, or may use applications like
email or social networking that require little bandwidth. In both cases, switching to Wi-Fi grants little
advantage, and turning Wi-Fi on shortens the battery life of the device. Many of these subscribers are
not likely to use Wi-Fi offload even when available.
With the introduction of faster LTE networks, the performance incentive to move to Wi-Fi will be
greatly reduced. Unless operators take a more active role, we may see a drop in the percentage of
Wi-Fi traffic where LTE is available.
With a user-driven pull model, mobile operators benefit from Wi-Fi access mostly as a cost-cutting
and customer-retention tool. With Wi-Fi offload, per-bit costs go down (especially when using private
access) and customer satisfaction increases (better performance for Wi-Fi users, less congestion for
everybody else). But the monetization opportunities are minimal, because Wi-Fi access is a free
add-on.
Operators can change this by switching to a nudge model that creates the appropriate incentives for
subscribers to use Wi-Fi where available, but eschewing a heavy-handed push model, in which the
operator automatically switches all subscribers to Wi-Fi where this is cost effective. Not only is a push
model unlikely to be well received by subscribers, it also would be ineffective at optimizing the use of
network resources (more on this in the next section).
Of course, charging subscribers for private Wi-Fi access is going to remain a difficult proposition,
because the subscriber owns the access point and pays for backhaul. (In the US, though, T-Mobile
charges for voice-over-Wi-Fi calls the same way it does for calls over the mobile network.)
A more effective approach is to avoid a tonnage-based charging model for Wi-Fi access, with
the exception of roaming, where we expect that access fees will continue to prevail, and move to a
policy-based, personalized approach to Wi-Fi access management that enables mobile operators to
more effectively segment the market and meet different preferences among its subscribers.
3 - Traffic management
Increasing the efficiency of network resources
The coexistence of mobile and Wi-Fi interfaces can be used to provide a personalized, flexible
service in which subscribers can choose the policy for Wi-Fi use that best fits their needs and
willingness to spend. At the same time, the choice between mobile and Wi-Fi networks is a very
important tool for operators to increase the utilization of network resources, when it is combined
with real-time traffic management across the network interfaces. The two approachesservice
personalization and network usage optimizationnicely complement each other: the operator can
prioritize traffic, finding the best tradeoff between subscriber preferences and availability of network
resources.
In most cases, todays Wi-Fi offload is driven by static policies that are not affected by location,
time of day, application, or, even more importantly, real-time traffic load of networks available to the
device. In an environment where Wi-Fi provides lower-cost, better-performance connectivity but
limited coverage, this is a simple, easy-to-implement approach that works reliably well.
As we move to new scenarios where the Wi-Fi network might be more overloaded than the cellular
network (as most subscribers move to the Wi-Fi network hoping for a faster connection) and where
cellular capacity might be much higher due to the use of wider LTE channels and/or small cells, the
current approach will quickly become insufficient for managing traffic effectively.
Operators will want to maximize the use of their cellular networks while avoiding congestion, and
encouraging Wi-Fi offloading might leave them with precious mobile capacity unused. Subscribers,
used to moving to Wi-Fi for better performance, might in fact find that the cellular network is now
preferable.
Of course, leaving subscribers in charge of network selection, as is the case today, eliminates the
opportunity to fully monetize the opportunity offered by multi-tier, multi-interface networks where
relative performance varies as a function of location, subscriber load, and infrastructure availability.
This is where the options presented in the previous section become more powerful. In addition
to providing choice, they also are a way to efficiently allocate network resources and maximize
revenues.
In the example on page 8, the operator would prioritize traffic to best-performance subscribers in
most cases, but keep an eye also to the freedom subscribers. So, for instance, voice calls can be
kept on the LTE network for both types of subscribers, but high-throughput video streaming from
a fixed location could be moved to a Wi-Fi network if there is sufficient capacity and the traffic flow
can be prioritized. At the same time, low-cost subscribers will be assigned to the network with the
best residual capacity after traffic from other subscribers is taken into account. As a result, these
subscribers can get as good a connection as higher-paying subscribers at off-peak times and
locations, but will experience slower connections when the Wi-Fi or mobile network is at capacity.
The adoption of integrated real-time traffic management across the Wi-Fi and mobile networks
will also widen the scope for dynamic pricing that allows operators to provide faster connectivity
or additional traffic allowances, charging fees that are determined by real-time traffic load (e.g.,
the operator could charge a premium during peak hours at congested locations, but provide free,
unlimited access during the lowest traffic hours in the middle of the night to encourage scheduling of
non real-time services such as downloads and software upgrades when capacity is virtually free).
ACRONYMS
2G - Second generation
3G - Third generation
3GPP - Third Generation Partnership Project
ANDSF - Access network discovery and selection function
BYOD - Bring your own device
CAGR - Compound average growth rate
DPI - Deep packet inspection
DSL - Digital subscriber line
IT - Information technology
LTE - Long Term Evolution
NGH - Next Generation Hotspot
PCRF - Policy and charging rules function
QoS - Quality of service
SIM - Subscriber identity module
VoIP - Voice over internet protocol
WPA2 - Wi-Fi Protected Access II
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