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Monetizing WiFi

Special Talk - How to Monetize WiFi with an Example

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Monetizing WiFi

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  1. Monetizing WiFi Dr. Mazlan Abbas MIMOS Berhad

  2. Wi-FiStrategyforContentPlayers BuildinganEducationalEco-System BusinessModelsforEnterpriseConnectivity Physical&DigitalAdvertisingAvenues Summary

  3. TheCommercialWi-FiEcosystem

  4. THE COMMERCIAL WI-FI ECOSYSTEM Data Offloading -Freeingup2G/3Gairwaves -High-speedconnectivity comparedto2G/3G -Superiorindoor connectivity Content Partners -Touch-pointsfor accessingcontenteco- systems -Promotingspecific apps/content -Attractsusersby International Roaming -Cheap&convenient internetaccessfor foreignnationals Device Partners -Wi-Fiprovidessuperior video/browsingexperience oversmartdevices -Mostappropriatechannel topushin-house content/apps (Digital/Physical) -Popularhangoutjointsare attractiveavenuefor advertisers -Acombinationofphysical/ digitaladvertisingismore impactful

  5. CommercialModelsForTelecomOperators

  6. COMMERCIAL MODELS FOR TELECOM OPERATORS Duetospectrumconstraintsfor3G&lackof4Genableddevices,telecom operatorsaregearingupforbigWi-Fiplaythrough: •Operatorscaneffectivelyoffloadmobiletrafficonto Wi-Finetworks,therebyfreeingupcapacityintheir strained3G/LTEnetworks •CombinesWi-Fihotspotplanswithhome broadbandsubscriptionsenablesconsumersto experiencesmoothinternetconnectivitywhileon thego •Enablesuserstoroamseamlessly&enjoyhighspeed Wi-Ficonnectivityastheytravelfromonecountryto another Model1: DataOffloading Model2: Home&Away Model3: International Roaming Telecomoperatorscanthereforeprovidepremiumservicestocustomerswithout worryingaboutregulatoryorcostlimitations.

  7. Example:TheO-Zone&AircelPartnership Aircel,aleadingtelecomoperatorwith65millionsubscribers,partneredwithO-Zonein 2011topromoteAircelWi-Fihotspots Theobjectiveofthepartnershipwas toenableseamless3G/Wi-Fi offloading,therebycreatinga flawlesscustomerexperience

  8. Example:TheO-Zone&AirtelPartnership Airtel,India’sbiggesttelecomoperatortiedupwithO-Zonetoenableitscustomersto accesshome&publichotspotWi-Fiinareliable&convenientway

  9. Wi-FiStrategyforDevicePlayers

  10. WI-FI STRATEGY FOR DEVICE PLAYERS Desired Result • EnhancedCustomer Experience • LongtermCustomer Relationship Proposed Solution • Cheaper,faster,betterin- buildingconnectivitychannel whichcompliments3G • ExtensiveWi-Finetworkin Problems Identified • Highdemandfordatabutno properchanneltosupportit • CompetitionfromOperator content&apps areasofhighadoption&high contentusage • IncreasedSales& MarketShare • Lowcostdeviceplayers intensifycompetition DevicePlayerscanleverageApps&ContentecosystemthroughthepublicWi-Fi networkwithbundledinWi-Fiplans,thuscreatingacustomerengagementplatform

  11. Example:O-Zone&LGBundledInWi-FiPlans Wi-Fivouchers bundledwithLG Optimusphones Purchasessmartphone VisitsO-Zone hotspots,accessesfree Wi-Fi LGWi-FiCycle Voucherbranding Wordofmouth creates awareness enablesrecall& customerretention: completestheloop

  12. Wi-FiStrategyForContentPlayers

  13. WI-FI STRATEGY FOR CONTENT PLAYERS Desired Result •IncreasedSubscriberBase •IncreasedUsage •IncreasedStickiness Proposed Solution •Additionaldistribution networkwhichcompliments 3G Problems Identified •LowUsage •LackofCustomerRetention •MassPlayers ByreachingouttoinnumerableusersacrossO-Zone’sextensiveWi-Finetwork,content companiescandirectlyincreasesubscribers,contentusage&stickiness

  14. Example:O-Zone&GoogleWi-FiCampaign Isre-directedto pagebelow CustomervisitsO-Zone hotspotwithGoogle displays The3monthcampaign resultedinapprox.1.1 millionloginsonthe network Clicksonad Takes,edits&uploads photostosharewith friendsonGoogle Plus. abovetoget freeaccessto G+

  15. BuildinganEducationalEcosystem

  16. BuildinganEducationalEcosystem Wi-Fideployment acrossthecampus Classrooms O-Zone’sValue Proposition Cafeteria Dorms Common Room Revenueearned through mandatoryper studentfee Educationaltablet devicestoaccessWi-Fi University PublicWi-Fi

  17. CommercialModelsforEnterpriseConnectivity

  18. COMMERCIAL MODELS FOR ENTERPRISE CONNECTIVITY Model 1: CreatingPrivate Networks •MultiplePrivatenetworksare createdforcommercialbuildings •Thebuildermayleaseoutthese networkstotenantcompaniesfor theirenterpriseneeds. •RevenueOpportunities: •Systemintegration feeforbuilding thenetwork •Maintenance feeformanagingit Model 2: GuestWi-Fi Solution •Guests/visitors canaccessWi-Fi whilewaitingformeetingsin receptionareas. •SeparateGuestWi-FiSSIDsare createdforguests/visitors. •RevenueOpportunities: •Management feeforcreating& managingGuestnetwork •Voucher Sale Model 3: PublicWi-Fi Hotspot •PublicWi-Fihotspotscreated incommonareaslikelobby areas,coffeeshops •Roaminginhotspotswithin building&publichotspots •RevenueOpportunities: •MandatorySubscriberFee peremployee •AdRevenue

  19. Physical&DigitalAdvertisingAvenues

  20. PHYSICAL ADVERTISING AVENUES O-ZonehassecuredexclusivephysicalWi-Fimarketingrightsacrossitshotspots Posters TentCards Example:DuringGoogle’sWi-Ficampaign,revenue generatedthroughadvertisingwassharedequally withhotspotowners

  21. DIGITAL ADVERTISING AVENUES PotentialadvertisersmayalsoadvertiseonO-Zone’slandingpage,displayedacrossallour hotspots Example:RevenuegeneratedthroughGoogle’sdigitaladcampaignwassharedequally withhotspotowners

  22. SUMMARY RevenueModelsbasedsolelyonad-hocuserswalkingintoahotspotdo notexist Operator DrivenStandalone Wi-Firetailbusinessisalsocomplexto Sustain longterm However, LucrativeBusinessOpportunitiesdoarisewhenaWISPbuildsthe ecosystemofoperators,devices,content,advertisingetc. WorldwideTsunamiofData&Videocangeneratehugerevenuesfora neutralWISPchargingpermegabit,enablingittoridethewave!

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

  24. EMAIL: mazlan@gmail.com TWITTER: mazlan_abbas FACEBOOK: www.facebook.com/drmazlanabbas LINKEDIN: my.linkedin.com/in/mazlan/ SLIDESHARE: www.slideshare.net/mazlan1 THANK YOU

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