Cisco Confidential 1© 2010 Cisco and/or its affiliates. All rights reserved.
Service Provider Wi-FiWhy Fi?
Cisco Knowledge Network
June 7th 2011
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
• 0.95 billion registered cars in use
• 1.15 billion landlines
• 1.4 billion PCs of any kind in use
• 1.5 billion Credit Card holders
• 1.6 billion TV homes
• 1.8 billion Internet users
• 4 billion FM radio users
• 5.2 billion mobile phone subscriptions
3.7B unique users, 75% global per addressable capita penetration
• 6.8 billion people on the planet
Source : Tomi Ahonen
?
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
More Broadband
New Pricing
New Devices
New Applications
Video will be 2/3 of mobile traffic by 2014
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
95+% revenue from voice
Consumption charged Internet
Voice is free
More and more for same price
Flat Internet
Faster and faster
Point to point business model
1900 1990 2011
100 years of Fixed telecoms
95+% revenue from voiceConsumption charged Internet
Voice is free
More and more for same price
Flat InternetFaster and faster
Point to point business model
30 years of Mobile telecoms
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
Source: Agilent
1000
100
10
1
1990 1995 2000 2005 2010 2015
Gro
wth
Spectrum
Average
Macro Cell
Efficiency
Macro
Capacity
39x
Growth
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
For Business For Consumer
Services for Business:
– Voice & Unified Communication
– Video call & VOIP Services
– VPN & IPSEC Security
– Seamless connectivity
– Corporate access & VDI / VxI
– Cloud computing
Services for Consumer:
– Video call & VOIP services
– WiFi Offloading
– Cloud computing
– Pushed banner pack
– Entertainment
– Gaming
Computing
for humansTake
anywhere
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco PublicBRKSPM-1002_C1 9
Percent of U.S. Mobile Internet Usage Taking Place in Each Location
At Home
In an Office
On the Go
2/3 of mobile usage is in the two easiest places to offload
Base: U.S. Mobile Internet users
43 minutes
33 minutes
46 minutes
EmailSearchMapsIMWeb BrowsingEntertainment
34% 35%
10%27%
56%38%
Infrequent User Everyday User
Source: Cisco IBSG, 2009
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
• Optimization – increases network capacity and reduce 3G data traffic overload by offloading traffic with SP Wi-Fi.
• Monetization – creates new revenue streams by taking advantage of advanced technology that provides secure delivery of location-based services to mobile devices
• Churn Reduction – expand a physical footprint with a cost-effective Wi-Fi solution to keep customers on the service provider network as they move from home to the train to the office.
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
Residential
Enterprise
3rd party Hotspot
Indoor Hotspot
Outdoor Hotspot
Biggest impact
Encourage users to configure it
Possible client
Strategically important
Linked in with wider Enterprise play
Used for Time to Market
Limited suitability for offload
Key for Macro offload in busy cells
Key for Macro offload in busy cells
Possible use for fixed broadband
Residential
Enterprise
3rd party Hotspot
Indoor Hotspot
Outdoor Hotspot
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
• ―3G Offload‖ is ready today for :Standalone WiFi (with 3G/4G roaming)
Trusted or untrusted 3G/4G core integration
e2e architectures tried and tested
• The business case is clearSmall cells are REQUIRED for capacity
WiFi has that capacity at the right price (802.11n + Cisco CleanAir)
Device WiFi chipset penetration is at critical mass
• Why Wi-Fi ?Optimising infrastructure costs & reducing cost of delivery
Creating & monetising new business opportunities
Increasing average user experience and .. happiness
Jim Tavares, DirectorStrategy & Business DevelopmentCisco Services
May, 2011
Service Provider Wi-Fi
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
Metro/Hotspot Access
Residential Access
Client Centric/Un-trusted Access
Converged Subscriber
Control
AAA Captive
PortalWCS
Cloud Services, Applications, & Operations
DHCP Policy
MgmtSvcs
Reporting
Internet
Application
Partners
SMB Managed AP
Stadium / Large Venue Indoor Hotspot
Metro WiFi
Residential
Managed AP
WiFi
Controller
&
Backhaul
Cloud
TR-069
CMTS
DSL
Fiber
Own or 3rd
party
broadband
access
CUWN
WLC
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16
WiFi broadband connectivity free to all 40,000 seats
350 x 802.11N AP Deployed
3G Offload for all ATT iPhone and BB devices through transparent authentication
On-net video instant replay live during game or show
Serving 40,000 Fans
SF Giants ATT Park
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17
SSID = optimum WiFi
SSID = Xfinity (Comcast)
SSID = TWC WiFi
One AP for 3 MSOs
Cisco Aironet 1260
Wi-Fi broadband connectivity free to 3 MSOs (TWC, Comcast, Cablevision) –
More than 5M subs
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
• People activating the service at home can connect on other residential hotspots
• Large Scale Requirements (Million of APs, Million of IP addresses)
• Security requirements for private / public traffic segregation, fraud prevention and billing
• Roaming requirement between APs
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
• Carrier-Grade
• Unified Architecture
• Seamless Experience
• Converged Packet Core
• Intelligent & Secure Access Radio
3G/4G
Macro Site
SMB
Managed AP
Stadium / Large
Venue
WLC for
On
Premise
Content
Indoor
Hotspot
Metro WiFiIP Core
CAR/CNR
UCS
Wireless LAN
Controller (WLC)
Wireless Control
System (WCS)
Cisco
ASR 5000
IP
Backhaul
Partner
Network
Internet
MSP
Credentials
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
Industry Proven Devices at Every LayerReliable
Hardware
Wireless LAN
ControllerRoot Access
Point
Mesh Access
PointWireless Control
System (WCS)
• Wireless Mesh
Management
System enables
network-wide
policy
configuration and
device
management\
• SNMPv3,
Syslog, IPSec,
AAA, etc
• Handles RF
algorithms and
optimization
• Seamless L3
Mobility
• Security and
Mobility control
• Image
Management
• Serves as ―Root‖
AP to the wired
network
• Typically located
on roof-tops or
towers
• Connects up to
35 Mesh APs
using 802.11a
• 802.11b/g client
access
• Connects to Root
AP via 802.11a
• AC/DC power;
PoE capable
• Ethernet port for
connecting
peripheral
devices
Service Control
• Bandwidth
Monitoring and
Management
• Policy
Definitions
• Subscriber
Database
Management
• Billing and
OSS Systems
WLC
WCS
CAR/CNR
ASR 5000
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
Best in class RRM coupled with ―legacy beamforming‖to deliver focused power to clients.
Improves Network Throughput and Coverage
Sophisticated ―Spectrum Intelligence‖ to monitor the airwaves, detect, locate & classify interference, alert IT and automatically reconfigure the network to avoid.
Improves Network Reliability
Optimized RF utilization by moving 5 GHz capable client out of the congested 2.4 GHz channels.
Improves Network Throughput
ClientLink
CleanAir
Band
Select
Extends reliable multicast into the wireless network by converting multicast to unicast at the AP
Efficient Video over WLANVideo
Stream
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22
• Provisioning – Image download automatically
• Self-configuring, Zero-touch configuration
• Operational management through CAPWAP standard interface. WCS used for operational view and reporting.
• RF Management , RRM and Clean Air
Controller
Increased network visibility, stability and end user performance
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23
802.11
Apple
Airport
Web Auth
WISPr 1.0
WISPr 2.0
1999 2003 2010 2011
UsernamePassword
UsernamePassword
Portal PageAuto
Portal Page
UsernamePassword
EAP-SIM
AutoPortal Page 802.1x
802.11i
EAP-FASTEAP-SIMEAP-TLS
Untrusted WiFi NetworkWeb based Auth / No Encryption
Mostly Hotspot side business
Trusted WiFi Network
802.1x / 802.11i3G Offload
1997 2007
AppleiPhone
HS2.0
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24
Europe:
British Telecom (Chair)
Orange (Co-chair)
Portugal Telecom
APAC:
KT
True
Tata
Americas:
ATT
Boingo
Deutsche Telekom
Vendor:
Cisco
open
open
Board of Directors
Operators VendorsClearinghouses,
Aggregators, etc.
ATT
Aircel
British Telecom
CSL
China Mobile
Comcast
Deutsche Telekom
Du
FON
Freedom4
Gowex
KDDI
KT
IND SAT M2
Meteor Network
Aicent
Accuris
Boingo
Comfone
Connection Services
Devicescape
iPass
MACH
QuickConnect
Starhub
Syniverse
Aruba
Bel-Air
Broadhop
Cisco
GreenPacket
Intel
Meru
Ruckus
Skype
NTT Communications
NTT DoCoMo
Orange
PCCW
Softbank
Tata
Telecom Italia
Telefonica
Tomizone
TTNet
True Telecom
Turk Telecom
Verizon Wireless
Vex
YTL Solutions
WBA is becoming ―GSMA of Wi-Fi‖
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25
Visited SP
3GSP name
HS 2.0
HS2.0 Roaming
SP Name
3G
Phone or MID
HS2.0 Home SP
Dynamic
Icon Bar
Web
Service
Secure, universal roaming on par with cellular Leapfrog cellular with context-aware
Context-Aware Services3G-Like Experience
SP name
HS 2.0
SP name
HS 2.0
SP name
HS 2.0
SP name
HS 2.0
802.11u
802.1xUniversal Credentials:
EAP-SIM EAP-TLS EAP-FAST
Roaming Agreements:
WRIX
802.11u
Cisco MSAP
Associated
Technologies
MSAP: Mobility Services Advertisement Protocol
Associated
Technologies
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 26
Beacon (Interworking, Roaming Consortium)
GAS-Initial-Resp (NAI Realm List)
GAS-Initial-Req (NAI Realm List)
MN AP/WLC AS
Authentication (open, status)
Authentication (open)
Mobile
decides to
associate
with WLAN
Association Response
Association Request
EAP exchange (EAPOL)
4-Way Handshake
EAP exchange (Radius)
802.11
security
association
setup
802.11u
doesn’t
change
anything
after this
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 27
• This element is in beacons and probe responses
• Network type:
One of: {private | private with guest access | chargeable | free}
STAs can selectively scan for desired network type
• Internet: set to 1 if SSID provides internet access
• ASRA (additional authentication step required): set to 1 if Web-auth/WISPR configured on this SSID
• ESR (emergency services reachable): set to 1 if emergency services are reachable on this SSID
• UESA (un-authenticated emergency services accessible): set to 1 if emergency services are accessible for terminals not having valid security credentials on this SSID
B0 - B3 B4 B5 B6 B7
Element ID LengthNetwork
TypeInternet ASRA ESR UESA
Venue Info
(optional)
HESSID
(optional)
Octets: 1 1 0 or 2 0 or 6
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 28
• Venue information: extensive table of venue groups and venue types to aid client in culling list of candidate networks
Venue Group: {Assembly, Business, Educational, Factory, Mercantile, Residential, etc.}
Venue Type:
{Assembly [Arena, Stadium, Passenger Terminal, Restaurant, Coffee Shop, Bar, etc.],
Business [Attorney’s office, Bank, Doctor’s office, R&D facility, unspecified, etc.]
Mercantile [Grocery Market, Retail store, Shopping Mall, unspecified, etc.]
etc.}
• HESSID: Globally unique network identifier—SPs can now uniquely identify each of their networks
Used in conjunction with SSID
SSID can be set by user to anything (e.g., how many ―Linksys-g‖ SSIDs are out there?)
HESSID value is assigned to be one of the MAC addresses of an AP in the network/ESS
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 29
• This element is in beacons and probe responses
• Client scans & receives beacon having this element and can quickly determine if there are any Wi-Fi networks for which it has valid security credentials
• Each SP or consortium of SPs must register with IEEE to obtain OI
• Element gives OI for top 3 SPs (or consortium of SPs) having roaming agreements with Wi-Fi access network provider; remainder available via GAS-ANQP query
• Number of GAS-ANQP OIs provides number of additional OIs which will be returned on a GAS-ANQP query (see subsequent slide)
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 31Cisco Confidential 31Cisco Confidential 31© 2010 Cisco and/or its affiliates. All rights reserved.
Access Offload and Convergent Access Network Strategy
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 32
Residential
(Private SSID)
Radio
Access
Network
Metro
Aggregation
Network
SGSN GGSN
HLR/
HSS
Mobile
Packet Core
User selects private SSID and associates with the Wi-Fi access
Authentication is done at WLAN access level (WEP, WPA…)
Direct Traffic Offload, Mobile operator is loosing control over the
offloaded traffic
Cellular
Network
Walled Garden
Internet
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 33
Radio
Access
Network
Metro
Aggregation
Network
SGSN
HLR/
HSS
User selects eligible SSID and associates with Wi-Fi
Authentication is done via a EAP (e.g. EAP-SIM/AKA) at the access
network level
Requires centralized address management and high end scaling of
the residential gateway aggregation (SP-WIFI architecture)
Optionally, operator may enforce some policies (QoS, DPI, etc.) and
allow walled garden access
Residential
(802.1x SSID)
Public Hotspot
(802.1x SSID)
Cellular
NetworkGGSN
Mobile
Packet CoreWalled Garden
Internet
ISG
AAA/PCRF
RADIUS
MAP
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 34
Residential
(private or open
SSID)
Public Hotspot
(private or open
SSID)
Radio
Access
Network
Metro
Aggregation
Network
SGSN GGSN
(PGW)
HLR/
HSS
Mobile
Packet Core
User selects open SSID and associates with Wi-Fi
Authentication is done via a EAP-SIM/AKA over IKEv2
User device establishes IPSec TTG, PDG or ePDG
GTP or PMIPv6 provide network based mobility
GGSN/PDG/PGW provides access to mobile Internet services &
enforces policies
IPSEC
Walled Garden
Internet
TTG
(ePDG)
AAA/PCRF
RADIUS
DIAMETER
MAPGTP
(PMIPv6)
Cellular
Network
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 35
• Overlay Models
Session Anchoring in Mobile Packet Core
Fixed Broadband BNG not involved (from session mngmt perspective)
Models :
- Client Centric : IWLAN, S2b, S2c with TTG/PDG/ePDG/PGW in MPC
- Network Centric : S2a with MAG in Residential Gateway
• Cooperative Models
Session Anchoring in Mobile Packet Core
Fixed Broadband BNG involved as first hop device
Leverage Cisco Adaptive Intelligent Routing (AIR)
Models :
- Client Centric : S2b, S2c with ePDG/LMA on BNG – Edge Gway
- Network Centric : S2a with MAG on BNG
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 36
BNG performs Mobile Access Gateway function and interworks with PGW (with PMIP) or GGSN (with GTP) through S2a intf.
BNG provides L2, IPSEC or PMIP connectivity on customer side to aggregate Residential Gateway Open-WiFi service
In that case BNG performs a MAG function as defined at IETF netlmn
IP Aggregation
And CoreMobile Packet
Core
Wifi RG
Wifi Zone
Internet
And
Walled GardenPGW
AAA / BCRF AAA / PCRF
BNG
MAG
PMIPv6/S2a
Collaborative Model
Trusted Access – S2a
GGSN
GTP/S2a
L2
PMIPv6
Interworking
IPSEC
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 37
IP Aggregation
And CoreMobile Packet
Core
Wifi RG
Wifi Zone
Internet
And
Walled GardenPGW
AAA / BCRF AAA / PCRF
BNG
TTG-ePDG
PMIPv6
Collaborative Model
Untrusted Access – S2b
GGSN
GTP
Interworking
IPSEC / IKEv2
BNG performs Mobile Access Gateway function and interworks with PGW (with PMIP) or GGSN (with GTP)
BNG provides IPSEC / IKEv2 connectivity on customer side to aggregate end users
In that case BNG performs TTG or ePDG functions as defined at 3GPP
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 38
IP Aggregation
And CoreMobile Packet
Core
Wifi RG
Wifi Zone
Internet
And
Walled GardenPDG/ePDG
PGW
AAA / BCRF AAA / PCRF
BNG/CMTS
Overlay Tunnel
(PMIP)
Overlay Model
Overlay Tunnel
(IPSEC)
Residential Gateway or End User device interwork with Mobile Packet Core without any assistance from the fixed network except IP connectivity
RG based model : Residential Gateway setup a PMIPv6 tunnel towards the PGW/ePDG
Client centric based model : UE setup an IPSEC/IKEv2 tunnel towards the PDG/ePDG
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 40
IP Aggregation
And CoreMobile Packet
Core
Wifi RG
Wifi Zone
Internet
And
Walled GardenGGSN/PGW
AAA / BCRF AAA / PCRF
BNG
Traffic Tromboning to Mobile
Packet Core
Traffic
IP Aggregation
And CoreMobile Packet
Core
Wifi RG
Wifi Zone
Walled
Garden
GGSN/PGW
AAA / BCRF AAA / PCRF
BNG
Local Breakout to the Internet
Traffic
Internet
Local Breakout
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 41
• The select rules for offload/upload traffic can be scoped at different levels. However, in practical terms only few options make sense and can be supported
Filter Scope
Destination Prefix Operator value added services
IP Flow Tuple src/dst address, src/dest port
Application Granularity Application identifiers (Dest Port or IP Address)
Access Network Identifiers SSID
APN (PDN Identifier) With single APN support for WLAN access, not
an option for IPv4
Location MAG IP Address
{ Except-Offload-All Rule } The approach of VPN Split Tunneling
Cisco Confidential 42© 2010 Cisco and/or its affiliates. All rights reserved.
• The offload policy is applied on the input interface of the MAGinterface, facing the access network.
• The output interface for each IP flow from the mobile node, if its towards internet or packet core is based on the policy
• Initially use of NAT for IPv4 is necessary, use of multiple prefixes and IP source address selection needed for IPv6
InternetPacket
Core
MAG
Interface-1
Offload policy Enforced
on input interfaces
Flow Selector Input
Interface
Output
Interface
F1 VLAN-0 Tunnel-0
F2 VLAN-1 Interface-1
Tunnel-0
Access
VLAN-0 VLAN-1 (802.1q)
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 43
IP Aggregation
And CoreMobile Packet
Core
Wifi RG
Wifi Zone
Internet
And
Walled GardenGGSN/PGW
AAA AAA / HLR
BNG/CMTS
Interworking Tunnel
(PMIP)
IP Aggregation
And CoreMobile Packet
Core
Wifi RG
Wifi Zone
Internet
And
Walled GardenPDG/ePDG
PGW
AAA / BCRF AAA / HLR
BNG/CMTS
Overlay Tunnel
(IPSEC)
Wi-Fi Access Authentication
IKEv2 Mobile Packet Core
Authentication
EAP/RADIUS
EAPOL
EAP/IKEv2EAP/RADIUS
802.11i
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 44
Mobile Packet
Core
PGW
Network Based Mobility
Tunnel (IPSEC, MIP)Home IP
Address (constant)
Content /
Application
Visited IP
Address (changing)
Mobile Packet
Core
PGW
Application Based Mobility
Visited IP
Address (changing)
Content /
Application
Cisco Confidential 46© 2010 Cisco and/or its affiliates. All rights reserved.
PDN Gateway
(HA/LMA)
Mobile Packet Core
Macro
Netw
ork
IPsec Gateway
(ePDG)
WCS
802.11 AP
802.11 AP
Mobile Packet Core
PMIPv6 (3GPP S2/b)
HO
TS
PO
T
ST
AD
IUM
RE
SID
EN
TIA
L
UN
-TR
US
TE
D
WIT
H IP
SE
C
(I-W
LA
N)
UN
-TR
US
TE
D
WIT
H C
LIE
NT
(DS
MIP
6)
PMIPv6 (3GPP S2/a)
DSMIPv6 (3GPP S2/c)
IPSec Access
Residential
CPE
Mo
bile
Pa
cke
t C
ore
MA
CR
O A
CC
ES
S
PMIPv6 (3GPP S2/a)
PMIPv6 (3GPP S2/b)
DSMIPv6 (3GPP S2/c)
Macro Cell
Access
DSL
Cable
Unique
Session
Management
Cisco Confidential 47© 2010 Cisco and/or its affiliates. All rights reserved.
PDN Gateway
(HA/LMA)
Mobile Packet Core
Macro
Netw
ork
IPsec Gateway
(ePDG)
WCS
802.11 AP
802.11 AP
Mobile Packet Core
HO
TS
PO
T
ST
AD
IUM
RE
SID
EN
TIA
L
UN
-TR
US
TE
D
WIT
H IP
SE
C
(I-W
LA
N)
UN
-TR
US
TE
D
WIT
H C
LIE
NT
(DS
MIP
6)
PMIPv6 (3GPP S2/a)
IPSec Access
Residential
CPE
Mo
bile
Pa
cke
t C
ore
MA
CR
O A
CC
ES
S
PMIPv6 (3GPP S2/a)
PMIPv6 (3GPP S2/b)
DSMIPv6 (3GPP S2/c)
Macro Cell
Access
Home
Session
Management
Visited
Session
Management
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 48Cisco Confidential 48Cisco Confidential 48© 2010 Cisco and/or its affiliates. All rights reserved.
Client Strategies
Cisco Confidential 49© 2010 Cisco and/or its affiliates. All rights reserved.
Interfaces
Sate
llit
e
WiF
i IP
3G
IP
CD
MA
IP
WiM
AX
IP
Sa
tell
ite
IP
Eth
ern
et IP
Eth
ern
et
CD
MA
WiM
AX
WiF
i
3G
Base Client
Satellite
Ethernet
CDMA
WiMAX
WiFi
3GEvent Logic / Connection Policies Rules / PRE
HS 2.0
Lo
ca
l C
on
ne
ctio
n P
rofile
sId
en
titie
s
User/pwd
Dynamic
SIM
Certs
OS CM
API
Native CM GUI
OS
Power
API
Client
Provisioning
ANDSF
&
HS2.0
OS
Location
API
OS APIs
WISPR
QOS Network
MonitoringLogging
Applications
DB
DB
Native Interfaces
OS EAP
API
Cisco Confidential 50© 2010 Cisco and/or its affiliates. All rights reserved.
Interfaces
Sate
llit
e
WiF
i IP
3G
IP
CD
MA
IP
WiM
AX
IP
Sa
tell
ite
IP
Eth
ern
et IP
Eth
ern
et
CD
MA
WiM
AX
WiF
i
3G
Satellite
Ethernet
CDMA
WiMAX
WiFi
3G Event Logic / Connection Policies Rules / PRE
Lo
ca
l C
on
ne
ctio
n P
rofile
sId
en
titie
s
User/pwd
Dynamic
SIM
Certs
OS CM
API
Native CM GUI
OS
Power
API
Client
Provision
ing
ANDS
F/HS2.
0
OS
Location
API
OS APIs
CiscoWISPR
QOS Network
Monitoring
Logging
Applications
DB
DB
Native Interfaces
OS EAP
API
Virtual Interface
Cisco Generic Interceptor /
Virtual Adapter– VPN / Mobile IP / PMIP / LISP
HS2.0
Routing Policies
VPN Logic
I-WLAN
Logic
MIP
Logic
OS PC/SC API
SIM Access
OS OMA-
DM API
OS MDM
API
Other GUI
VPN
Other GUI
I-WLAN
CDP
LLDP
RSVP
DRM
WEBEX
Video Client
CSF
SCTP
IMS
Voice
ScanSafe
LISP
Logic
Jim Tavares, DirectorStrategy & Business DevelopmentCisco Services
May, 2011
Femto and Wi-Fi Offload Models
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 52
• Networks are (and have always been) sized for the busy hour
• Video has driven the busy hour into the evening (when subscribers are home)
• This movement allows femto & wifi small cells to directly offload macro network costs in the busy hour
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0 2 4 6 8 10 12 14 16 18 20 22
Load
Load
Hour
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 53
Macro Network
A very expensive asset from a capex and opexperspective, but…
It is fully utilized in the busy hour
Femto & WiFi Small Cells
A very inexpensive asset from a capex and opexperspective, but…
it may only be partially utilized in the busy hour
Macro Cost ($/Mbps) Femto & Wi-Fi Cost ($/Mbps)
Opex & Capex
Max Theoretical Busy Hour Capacity
Opex & Capex
Actual Busy Hour Usage
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 54
Macro is a ―pay as you go‖ model
$
Busy Hour Mbps
$/GB
Gigabytes per month
Femto and Wi-Fi are ―all you can eat‖ models
$
Busy Hour Mbps
$/GB
Gigabytes per month
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 55
Three cost models each for Femto/Wi-Fi radios
Carrier Purchased (multi-year amortization)
Carrier Purchased (immediately expensed)
Subscriber Purchased
Two architectural models each for Femto/Wi-Fi radios
Optimized
Un-optimized
Three models for Macro*
One Carrier
Two Carrier
Three Carrier
* We modeled the Macro at 100% busy hour utilization, which in truth is rarely seen
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 56
$/Month
0
5
10
15
20
25
30
Bronze User (300MB/month) Silver User (1.5GB/month) Gold User (5 GB/month)
Mo
nth
ly C
ost
($)
Macro 1 Carrier
Macro 2 Carrier
Macro 3 Carrier
Femto/WiFi 1 year depreciation
Femto/WiFi 3 year depreciation
Femto/WiFi subscriber purchase
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 57
• Macrocells and Small Cells have very different cost models
• Macro is ―pay as you go‖
• Small cells are ―all you can eat‖
• $1.5 GB per month in subscriber useis the common cost crossover point for small cells and macro cells
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 57
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 58
• ―3G Offload‖ is ready today for :Standalone WiFi (with 3G/4G roaming)
Trusted or untrusted 3G/4G core integration
e2e architectures tried and tested
• The business case is clearSmall cells are REQUIRED for capacity
WiFi has that capacity at the right price (802.11n + Cisco CleanAir)
Device WiFi chipset penetration is at critical mass
• Why Wi-Fi ?Optimising infrastructure costs & reducing cost of delivery
Creating & monetising new business opportunities
Increasing average user experience and .. happiness
Thank you.