Monetizing WiFi
Post on 07-May-2015
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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
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