Transcript Economic Feasibility of Fixed Wireless Access Networks

Roaming considerations for the
Finnish public WLAN market
Timo Smura 29.03.2004
Outline
• Introduction
• Players in the public WLAN market
– Public WLAN value system
– Roles of the players
• WLAN roaming
– Roaming models
– Roaming architecture
• Public WLANs in Finland
– Sonera HomeRun, DNA WLAN, Vantaa Energy Wivanet
• Conclusion
Introduction
• WLANs are becoming increasingly popular
– In offices, homes, and public places
– Due to standardized, interoperable products and low
prices
• Public WLAN business emerging
– Primary target group: Mobile business users
– Interference issues
>> One network operator per site >> Need for roaming
• A variety of business models exists
– The profitable ones hard to find, of course 
– Fine grounds for academic research, also
Players in the public WLAN market
Site owner
Network
operator
1)
Site owner
2)
Site owner
WISP / wholesale
network operator
3)
Site owner
WISP / wholesale
network operator
Roaming
intermediary
Service
operator
WISP
WISP /
virtual WISP
Clearinghouse /
roaming broker
WISP /
Any operator
virtual WISP
Bargaining power of site owners?
Site owner
1)
Network
operator
Roaming
intermediary
Service
operator
Site owner WISP
2)
WISP / wholesale
Site owner
network operator
3)
WISP / wholesale
Site owner
network operator
WISP /
virtual WISP
Clearinghouse /
roaming broker
WISP /
Any operator
virtual WISP
WLAN roaming
• Benefits the whole value system
– end-users get more ubiquitous and convenient access
– operators get larger footprint and revenue base
– site owners can attract all customers equally
• Roaming models:
Roaming model
Bilateral model
Roaming broker
model
Clearing-house
model
Agreement type
Bilateral
Multilateral
Multilateral +
Bilateral
Cost of agreements
High
Low
Medium
Time-to-market
Slow
Fast
Medium
Control over roaming partners
High
Low
High
Control over roaming tariffs
High
Low
High
Control over technologies
High
Low
Low
Tariffs paid to intermediaries
None
Usage-based
Transaction-based
WLAN roaming architecture
Source: Intel 2003
Public WLANs in Finland
• Market in the hands of
mobile operators
– Sonera HomeRun
– DNA WLAN
• Innovative startups
are almost missing
– No ”greenfield” WISPs
– No site-owner WISPs
– City-wide hotzone
operators give colour
to the market
Hotspot type
Hotels
Sokos / Radisson SAS
Cumulus/Rantasipi/Ramada
Scandic
Others
Airports
Conference centers, business
parks etc.
Enterprise guest areas
Mobile phone stores
Ships
Restaurants, cafes
Other
Total
Sonera
HomeRun
(22.3.2004)
118
35/6
23/9/5
0
46
25
19
DNA WLAN
(1.3.2004)
36 (total)
3 (nonSonera)
8
5
5
20
236
6 (Finnet
offices)
36
0/0
1/1/5
14
15
1
14
0
0
6
2
65
Case 1: Sonera HomeRun
• Traditional WISP model
• Targets mobile business
users
• Time-based pricing
• Wide international
coverage through
roaming agreements
• No national roaming
Pricing:
Service
Sonera Company Data 1
GPRS and EDGE
High-speed data, 1 channel
High-speed data, 2-4 channels
HomeRun WLAN service
Sonera Company Data 2
GPRS and EDGE < 100 MB
GPRS and EDGE > 100 MB
HomeRun WLAN service
Separate Sonera HomeRun service
€/
month
3.36
15
3.36
€/
minute
0.18*
0.26*
0.37
0.37
0.33
€ / MB
1.9456
0
1.4336
-
Roaming:
Operator
Telia HomeRun
Swisscom Eurospot
BT OpenZone
Orange
Metronet
Elion
Kubi Wireless
Countries
Sweden, Norway, Denmark
Belgium, France, Germany, Netherlands,
United Kingdom
United Kingdom
France
Austria
Estonia
Spain
Case 2: DNA WLAN
• Service launched after
TeliaSonera merger
• Traditional WISP
model
• Targets business users
• Although Hesburger
deal could mean a
change… ?
• Many pricing models
• No national roaming
Sweden
Finland
Telia
HomeRun
Sonera
wGate
Telia
HomeRun
Telia and Sonera merge,
DNA Finland buys Telia’s Finnish operations
Telia
HomeRun
Sonera
HomeRun
DNA
WLAN
Pricing:
Service
dna Corporate Subscription
High-speed data, 1 channel
High-speed data, 2-3 channels
dna Corporate GPRS
dna WLAN gold
dna WLAN silver
dna WLAN base
€/
month
6.50
13.648
90
40
5
€/
minute
0.096
0.205
0.25
€ / MB
0
0.05
-
Case 3: Vantaa Energy Wivanet
• An example of citywide WLAN operators
– A total of 7 operators in Finland, mostly energy
companies
• Targets a different market
– Fixed broadband access to households and SMEs
– Limited mobility and portability possible
• Over 50% of households in Vantaa covered
– 80% in the end of 2004
• Roaming possible between the 7 operators
– Although the subscribers are often fixed in location
Summary and conclusion
• Public WLAN business is growing
– Profitability of the business still unclear
• Finnish market dominated by mobile operators
– Greenfield and site owner WISP almost non-existent
• Possibility for innovative business models exists
– Although not made use of in Finland
• National roaming would benefit the whole market
– Technically feasible already
– Depends on the big players’ attitudes
Thank You! Questions?
[email protected]