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Wi Fi Offloading Why v3

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48 views26 pages

Wi Fi Offloading Why v3

Uploaded by

Javier
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Wi-Fi Offloading,

Why?
WHITE PAPER

enea.com
WI-FI OFFLOADING, WHY?

Table of Contents

Click on the chapter of interest

01. Executive Summary 02

02. What Is Wi-Fi Offloading? 04

03. Top Five Myths About Wi-Fi 05

04. The Drivers for Wi-Fi Offloading 08

05. How To Get a Wi-Fi Network Footprint


for Wi-Fi Offloading 13

06. The Captive Portal Is Dead –


Long Live the Captive Portal 16

07. "We Have Overcapacity -


No Need for Wi-Fi Offloading" 17

08. Wi-Fi Offloading Return on Investment (ROI) 18

09. “But We Must Deploy 5G Indoors Anyway?” 21

10. Two Very Different Use Cases 22

Click on the Enea logo at the bottom left of the page to go return back to the Table of Contents
and also learn more about Enea's Wi-Fi Offloading solution by clicking enea.com

Wi-Fi Offloading, Why? enea.com 1


CHAPTER 01

Executive Summary

In 2024, providing reliable and high-


speed cellular coverage indoors is
a significant challenge, particularly
with the emergence of 5G.

Using higher frequencies in 5G while offering the


potential for faster speeds also means a reduced
ability to penetrate buildings.

This challenge is heightened by modern energy-


efficient construction practices, resulting in
buildings that block or weaken cellular signals.
As a result, mobile operators (MNOs) must invest
in densifying their networks to compensate or
potentially implement dedicated indoor solutions.
However, this comes at a time when the business
case for 5G is under pressure, as anticipated new
revenue streams have not fully materialized.

Wi-Fi offloading presents a compelling solution


to these challenges, ensuring superior indoor
connectivity without the prohibitive costs
associated with densifying 5G infrastructure. By
leveraging existing Wi-Fi networks or deploying
new ones within buildings, operators can offload
data traffic from cellular networks, alleviating the
demand on their cellular networks while providing
an unbroken user experience.

Through the provision of managed Business-to-


Business (B2B) guest Wi-Fi services to venues,
communications service providers (CSPs) will not
only be able to expand their indoor Wi-Fi footprint
for offloading but also generate revenue, making
Wi-Fi offloading a financially attractive strategy for
improving indoor coverage.

Wi-Fi Offloading, Why? enea.com 2


Wi-Fi Offloading is the only indoor coverage
solution that can leverage an existing profitable
service—managed B2B Guest Wi-Fi. With a
minimal investment, a separate Wi-Fi SSID can be
added specifically for offloading.

Still, some service providers are not capitalizing


on the hidden cost savings and revenue potential
the technology can deliver. Many are not even
picking the lowest-hanging fruit. Often, we’ll find
that the fixed broadband unit within a CSP already
provides a Wi-Fi footprint, an existing asset
overlooked for mobile offload services.

The introduction of Wi-Fi 6 was a paradigm


shift for carrier Wi-Fi and Wi-Fi Offloading. This
version and Wi-Fi 6E and 7 provide a deterministic
user experience in dense areas with many
users. Previous Wi-Fi versions (Wi-Fi 4 and 5)
deteriorated speed and latency when the number
of users increased. So, today's Wi-Fi is not only
the “best effort”; it uses the same scheduling
mechanisms as cellular (OFDMA). In the case of
Wi-Fi Offloading, Wi-Fi is always secure, with the
traffic encrypted over the air.
Mobile operators can, for instance, decide to roam
Looking ahead, the integration of 5G and Wi-Fi only with OpenRoaming networks that deliver
Offloading is poised to become more ubiquitous, a certain quality of service.
thanks in part to developments like OpenRoaming.
For over a decade, Enea has delivered SIM More has happened in Wi-Fi technology in the last
authentication technology to our mobile operator few years than in the previous decade. With these
customers, allowing devices to automatically new developments, the potential for truly integrated
authenticate and securely connect to their Wi- mobile and Wi-Fi networks becomes increasingly
Fi networks or third-party Wi-Fi footprint. With tangible. This promises a future where the
OpenRoaming, mobile operators can extend this complementary strengths of both technologies
seamless connectivity to include the millions of are leveraged to deliver a superior, seamless
Wi-Fi hotspots globally participating in the fast- connectivity experience indoors and out.
growing OpenRoaming federation. This technology
not only facilitates a smoother transition between
cellular and Wi-Fi networks, enhancing user Don't miss our companion white
experience by providing constant, uninterrupted paper - Wi-Fi Offloading, How?
access to the best available network, but it This paper focuses on the business aspects
also opens new avenues for the adoption and of Wi-Fi offloading. For readers interested
implementation of Wi-Fi Offloading strategies. in a deeper technical understanding,
download our companion white paper,
Wi-Fi Offloading, How?, which covers the
technical details comprehensively.

Download

Wi-Fi Offloading, Why? enea.com 3


CHAPTER 02

What Is Wi-Fi
Offloading?
Mobile Data Offloading, Wi-Fi Offloading, and Wi-Fi Offload: The industry has
given many names for the same thing, but none are good. If we could decide, we
would have called it “right-loading,” as offloading is kind of a negative notion.

It is not about trying to get rid of the cellular traffic.


It is all about enhancing indoor coverage for cellular But who are we to set
subscribers and adding capacity cost-effectively
the terminology?
to the MNO network in the right places.
For the rest of this white paper, we will use
In our book, three criteria need to be fulfilled
the least bad name - Wi-Fi Offloading.
to be called Wi-Fi Offloading:

1. A cellular subscriber is onboarded seamlessly


to the Wi-Fi network using the Mobile device’s
Using EAP-SIM/AKA/AKA', SIM Authentication is
SIM credentials.
all about a seamless and secure user experience.
2. An MNO Wi-Fi Connection Profile in the device The user device is automatically connected to the
enables automatic access to the Wi-Fi network. encrypted (802.1x) Wi-Fi network(s) defined in
the MNO Wi-Fi connection profile. A SIM
3. The Wi-Fi network is securely encrypted over authentication server, such as the one in Enea
the air (802.1x) and managed by the MNO, Aptilo SMP, integrates with the mobile core's
a third party, or a roaming partner. user identity database (HLR/HSS/AUSF) to
authenticate and authorize the user.
If a user accesses their home Wi-Fi network or logs
in to a public Wi-Fi hotspot through a captive portal,
the data traffic is offloaded to Wi-Fi, but this is not
considered Wi-Fi Offloading.

SIM Auth.
Server
HSS

HLR
 server RADIUS
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AUSF Gateway Wi-Fi AP
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EAP Authentication Request


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Authentication Request encapsulatied in RADIUS


(o

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AN

Authentication Answer with Encryption keys for secure


shield-check
wifi
authentication vectors Wi-Fi sent to AP

Upon successful authentication, the vectors are used to create encryption keys for secure Wi-Fi Secure Wi-Fi (802.1x)

Wi-Fi Offloading, Why? enea.com 4


CHAPTER 03

Top Five Myths


About Wi-Fi
Rumors tend to stay for a long time. It does not help much that
strong forces in our industry are trying to spread the old or wrong
picture of Wi-Fi technology. This is why we feel obliged to do some
“myth-busting” about Wi-Fi.

When speaking with mobile operators, their primary concern regarding the use of Wi-Fi for indoor
coverage and additional capacity is the Quality of Experience (QoE) for their subscribers. While this
concern is understandable, it can also be seen as somewhat irrational—and even ironic. Many of
these same operators have already implemented Wi-Fi Calling, which utilizes any available Wi-Fi
network for voice services. This means they are willing to deliver voice—one of the most latency-
sensitive services—over Wi-Fi networks that they do not control. Yet, they remain hesitant to use
secure Wi-Fi networks under their own management for services like web browsing, downloads, and
video streaming, which are far more tolerant of variable network conditions.

In fact, the need to backhaul traffic to the mobile core for session continuity has diminished as
devices and applications have become more adept at maintaining a positive user experience when
transitioning between Wi-Fi (with local traffic breakout) and cellular networks. For instance, if you
step out of the range of your home Wi-Fi during a Microsoft Teams session, you might experience a
brief disruption as the device switches to the mobile network. This minor interruption is similar to
what can happen during a cellular call when the user moves between different base stations.

The simple explanation may lie in the


differing perspectives: while devices—and
So, why does this reluctance
many users—operate in a Wi-Fi-first world,
toward Wi-Fi persist among mobile operators naturally adopt a cellular-
many mobile operators? first mindset. They fear that a user could
unintentionally switch to a Wi-Fi network with
a lower quality than the cellular network they
previously connected to. Another reason could be that mobile operators are less concerned about Wi-
Fi Calling, as it utilizes external networks, they neither manage nor fund. In such cases, we recommend
leveraging the free Wi-Fi networks available through the OpenRoaming federation for Wi-Fi offloading.
These networks are managed by reputable Wi-Fi access providers, offering reliable connectivity.

Furthermore, the Quality of Experience (QoE) that used to be stated about Wi-Fi was once upon
a time partly correct, but the technology has moved on at an incredible speed since then. New
generations of Wi-Fi are coming out at a much faster pace than cellular today. As we’ve just gotten
used to the terms Wi-Fi 6 and Wi-Fi 6E, vendors are starting to roll out Wi-Fi 7 equipment.

At Enea, we have never understood why there is a fight between Cellular and Wi-Fi. They each have
their sweet spots. Cellular radio technology excels when users are outdoors and on the move.
Wi-Fi is for indoors, and cellular and Wi-Fi technologies coexist perfectly in the zones in between.

Wi-Fi Offloading, Why? enea.com 5


Below, we will address and correct the five most common myths about Wi-Fi as technology

 Myth 1: Wi-Fi is Insecure


“Wi-Fi is insecure; the traffic is not encrypted over the air as in the case of cellular,
and users are not securely authenticated and authorized to access the network.”
This can be true, but never for Wi-Fi Offloading. As discussed, a prerequisite for Wi-Fi
Offloading is that the user is securely authenticated (EAP-based authentication) and
authorized for the secure Wi-Fi network that is encrypted over the air (802.1x).

 Myth 2: Wi-Fi is Only Best Effort


with a Bad User Experience
This was once true. Previous Wi-Fi generations (e.g., Wi-Fi 4 and 5) were like cocktail
parties where everyone talked at the same time; the more people, the greater the
challenge to get the message across. As a result, many "re-sendings" of messages
were required. The diagrams below show that the critical parameters for a good user
experience, latency and data throughput, quickly deteriorate when you add more
users to the same Wi-Fi access point in Wi-Fi 4 and 5.

Linear VOICE delay Consistent DATA throughput

2.4 GHz

5 GHz
Thoughput (Mbps)
Latency (ms)

5 GHz
2.4 GHz

2.4 GHz 2.4 GHz

Increasing #users Increasing #users

802.11n 802.11ac 802.11ax Source: Cisco


4 5 6
wifi

wifi

wifi

This degradation does not occur for the latest Wi-Fi 6/6E and Wi-Fi 7 releases because
Wi-Fi 6 introduced Orthogonal Frequency-Division Multiple Access (OFDMA), the
same scheduling mechanism used in cellular networks. Today's Wi-Fi is more like
a choir where the conductor decides when a singer can sing. Wi-Fi 6/6E and Wi-Fi
7 brings a deterministic user experience to Wi-Fi. Wi-Fi is running on an unlicensed
spectrum, but unlicensed is also considered for cellular. These are the reasons why
Wi-Fi is gaining more respect and acceptance also from 3GPP advocates.

Wi-Fi Offloading, Why? enea.com 6


 Myth 3: Devices Tend to Hang onto
Bad Wi-Fi Connections
This is true to an extent, but it is now mainly a problem of the past. Like any device,
mobile phones can sometimes struggle to switch between networks, especially if
the current connection is weak or unstable. This can lead to situations where the
phone remains connected to a poor Wi-Fi signal a bit too long rather than switching
to a better-performing network. However, modern smartphones are getting better
and better at handling this issue and are designed to constantly evaluate network
conditions and switch to better connections when available.

 Myth 4: Wi-Fi is Not Seamless


“Wi-Fi means cumbersome onboarding through Captive Portals.” Yes, this is what
often meets us in public spaces such as hotels, shopping malls, and airports. But this
is not true for Wi-Fi Offloading, where the user is always seamlessly onboarded to the
secure Wi-Fi network. Many Wi-Fi hotspots served by captive portals today will also
change to seamless onboarding with the advancement of more Wi-Fi networks joining
the OpenRoaming federation.

 Myth 5: Wi-Fi Networks are Isolated Islands


This was true not so long ago. Since then, the Wireless Broadband Alliance (WBA) has
launched a fast-growing OpenRoaming federation with millions of hotspots globally.
For the first time, enterprises and venues can use Wi-Fi to roam with service providers
seamlessly. As discussed later in this White Paper, OpenRoaming may become the
“silver bullet” for neutral host Wi-Fi Offloading.

Wi-Fi Offloading, Why? enea.com 7


CHAPTER 04

The Drivers for


Wi-Fi Offloading
As a leader in solutions for offloading cellular traffic to Wi-Fi, we have
recently experienced a surge in global interest among communications
service providers (CSP) for Wi-Fi Offloading. It’s like 2013 all over again.

High

"Contact us" Interest


Low

Wi-Fi has Become More Carrier-Class


and Provides Additional Spectrum
As discussed in myth #2 above, Wi-Fi 6 brings
deterministic performance to Wi-Fi for the first time. Why this sudden surge in interest?
The Wi-Fi 6/6E and 7 technology is superior, especially Several trends jointly drive this
in dense areas with many devices. This is another development in the operator community.
reason why this latest generation of Wi-Fi (Wi-Fi 6/6E Here, we will review some of the
and 7) is perfect for service providers. It keeps the most important ones.
latency down and the speed up when the number
of users increases.

Moreover, Wi-Fi 6E, which is Wi-Fi 6 for the 6 GHz


band, does almost triple the available spectrum for
Wi-Fi (depending on national spectrum regulations).

Wi-Fi Offloading, Why? enea.com 8


7

wifi
30
Enterprise Grade Wi-Fi AP Shipments

25
6E
6
20

wifi
6
(millions)

15 Wave 2 802.11ax
5
802.11ac

wifi
10
Wave 1

5 4
802.11n
wifi

and earlier

0
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024
Wi-Fi 7 is around the corner. It offers latency below So, the argument that Wi-Fi is not carrier-grade and
5 ms and theoretical speeds above 30 Gbps, making only best effort does not hold anymore. The realization
it a viable complement or alternative to private 5G. It that Cellular and Wi-Fi isn’t a matter of one or
runs on 2.4, 5, and 6 GHz bands, and for the first time, the other, but both, has finally caught up with
traffic can be run on both the 5 GHz and 6 GHz bands the most pragmatic and forward-thinking mobile
on the same mobile device for optimal performance operators. They will need all the bandwidth and
(pending device support). spectrum available to meet future challenges.

The Energy Crisis and 5G


Make Indoor Coverage
Even Harder
Reaching indoor users with a good-quality signal
using outdoor macro-cell base stations has always
been challenging. Already, with the lower frequencies
used by 4G, 20% of buildings in the United States are
struggling with proper indoor coverage. According
to crowd-sourced data, 33% of the UK and Northern
Ireland buildings have no cellular connectivity for
50% of the spaces. In colder climates, three-pane
windows make indoor penetration even harder.
Along with energy costs and environmental concerns,
buildings are rapidly being upgraded with triple-glazed
windows and more insulation in geographical areas
previously not considered.

Wi-Fi Offloading, Why? enea.com 9


3G/4G 5G

 Signal
eye
Signal need
  line of sight

20% of US buildings Coverage only directly


are struggling inside an untreated glass

600 2.0 10.0 28.0 37.0


MHz GHz GHz GHz GHz

With 5G running on higher frequencies, indoor To keep their margins, mobile operators must find
penetration will become more demanding than 4G. more cost-effective solutions to bring high-capacity
Building penetration is 100 times worse on 95% of the indoor coverage for their subscribers, and this
5G frequency bands. So, two trends work together to is where Wi-Fi Offloading comes in.
make indoor cellular coverage a nightmare: the higher
The good news is that many CSPs have a fixed
frequencies in 5G and the energy cost concerns.
operation/service arm deploying B2B Wi-Fi. It is just
As a result, 5G should trigger a need for a massive a matter of breaking organizational silos to make the
investment in the densification of base stations and most of these assets. Having one team mounting an
indoor 5G deployments. The challenge for mobile indoor cellular solution and another deploying B2B
operators is that 5G is, to a large extent, still a solution Wi-Fi at the same venue is not the most cost-effective
looking for a problem. Most users are more than approach in most locations. In addition, it will not
happy with the speeds that 4G brings and may not support the operator’s sustainability agenda.
be prepared to pay extra for 5G unless there is a clear
value-add. The new enterprise use cases for 5G with
network slicing and IoT, etc, are still in their infancy and
may never happen to the extent predicted.

Wi-Fi Offloading, Why? enea.com 10


MVNOs are Building Their Own 5G Core
A Mobile Virtual Network Operator (MVNO) is a cellular operator that provides services
by buying network capacity from one or multiple Mobile Network Operators (MNOs).

The value an MVNO brings can range from simply reselling the MNO’s service under
their name to being a full or “thick” MVNO managing everything but the radio access
network. In contrast, a “light“ or “thin” MVNO does not run its own mobile core and
is only differentiated from the reseller MVNO by adding SIM management.

      file-invoice  megaphone
RAN Core Voice / Data Regulatory / Roaming SIM / Device Charging / Customer / Marketing
(Radio+ (Subscriber Services Numbering / Inter- Billing Support & Sales
Mobility) & Session connection
Management Management)

Improving visibility and user experience


Reseller MVNO

Light (Thin) MVNO

Service Provider MVNO

Full (Thick) MVNO

Hybrid MVNO

With the cloud-native 5G architecture, it has become By building their own 5G core, MVNOs will get more
easier for an MVNO to step up in the value chain and control over the quality of service they provide to their
take over more functions from their MNO partner(s). customers. They can also offer new services and
features tailored to their specific customer needs,
More cost-effectively than ever, they can become
which is essential in the highly competitive 5G market.
a full (thick) MVNO operating their own mobile core.
Some MVNOs in the United States have even moved Many MVNOs, such as cable operators or MSOs,
one step further, becoming Hybrid MVNOs already have a vast Wi-Fi network utilized for mobile
by deploying parts of the radio networks themselves data offloading. This significantly reduces the cost
in the unlicensed CBRS band. per GB delivered to customers. Consequently, these
MVNOs are highly competitive in the market, even
towards the mobile network operator (MNO) they
partner with.

Wi-Fi Offloading, Why? enea.com 11


So, the telecoms industry is in a state of flux. Cable and Mobile Operators in the US are
eating each other’s lunch. According to the financial analysts at New Street Research,
both companies offer each other’s core products at the same price. Mobile operators are
growing rapidly in Fixed Wireless Access (FWA) broadband based on 5G backhaul, and
Cable operators are gaining market share in cellular subscriptions as MVNOs.

2024

Better in selecting the


best network 2020 7

2020
Wi-Fi 7

2019 Higher Speed &


6E
OpenRoaming Lower Latency

2012 Seamless Global


6
Wi-Fi 6E Roaming

Spectrum for
Wi-Fi 6 Wi-Fi tripled

Deterministic
Passpoint Wi-Fi in areas
with many
devices
Seamless and
Secure Wi-Fi
Access

More accepted
by 3GPP people

Finally, all the technology stars are now perfectly We will mention the new 3GPP standard Access
aligned for convergence. We have already discussed Traffic Steering, Switching, and Splitting (ATSSS)
the new Wi-Fi 6 and upcoming Wi-Fi 7 technologies. here for completeness, but it is not a prerequisite for
But so much more has happened in our industry. Wi-Fi Offloading, nor will it happen anytime soon.
In fact, more has happened only in the last few As we covered in our Enea Insights post ATSSS - the
years than in the previous decade. Future of Wi-Fi and Cellular Convergence, the ATSSS
function in the 3GPP standards may become the ‘holy
As discussed under Myth #3, devices have also
grail’ of mobile data offloading. ATSSS will give mobile
become smarter when assessing whether to move
operators more granular control. Still, its complexity
from the cellular network to Wi-Fi and vice versa.
means it will likely take many years to market.
Passpoint (previously known as Hotspot 2.0) has been However, fulfilling this standard depends on the
around since 2012. Now, with WBA OpenRoaming, adaptation by the mobile device vendor eco-system.
Passpoint is starting to happen for real. OpenRoaming Similar 3GPP initiatives, such as ANDSF,
already has a global network of 3 million+ Wi-Fi access never materialized due to the lack of device support.
points (April 2024) and counting, making it
easier for mobile operators to integrate a third-party
Wi-Fi footprint.

Wi-Fi Offloading, Why? enea.com 12


CHAPTER 05

How To Get a Wi-Fi Network


Footprint for Wi-Fi Offloading
The vast majority of data communications happen indoors. However,
regulators worldwide generally only impose outdoor coverage obligations
on mobile operators. According to crowd-sourced data, 33% of UK
buildings have no cellular indoor coverage for 50% of the space.

At the same time, many publicly available Wi-Fi


networks deliver great user experiences but are So, how do you, as a mobile
underutilized because the onboarding of users
operator, create a Wi-Fi footprint
is cumbersome.
for the purpose of offloading?
As discussed, Wi-Fi technology is more
It can be created in several ways,
ready than ever to deliver a carrier-class user
as shown in the figure below.
experience; more has happened to that end in
the last few years than in the previous decade.

Wi-Fi Service Wi-Fi AP


PASSPOINT
GEAR Management
Software
& Gateway
Hardware
WIFI
 Managed B2B Guest Wi-Fi OPERATOR
AUTO Subsidized at flagship sites

 cloud B2B Cloud Guest Wi-Fi OPERATOR CUSTOMER


Needed for full coverage OPERATOR
Add
secure
802.1x  Community Wi-Fi (Homespot) OPERATOR
SSID

 Roaming / Third-party Wi-Fi OPERATOR PARTNER

3 million+ hotspots (Mar 2024)

As such, the methods are independent and are often used in combination. Today, the Enea
Aptilo Service Management Platform (SMP) serves operator customers using several methods
concurrently to build a Wi-Fi footprint.

Operators can use this footprint and add a secure Wi-Fi connection (SSID) for their subscribers.
This enables operators to monetize indirectly by offloading subscribers securely and seamlessly
to Wi-Fi and boosting indoor coverage while getting additional capacity.

Wi-Fi Offloading, Why? enea.com 13


B2C or Managed Community Wi-Fi
B2B Guest Wi-Fi (Homespot)
In this case, the operator owns and manages Homespots or community Wi-Fi means that Wi-Fi-
everything, including the on-premise Wi-Fi capable residential gateways (terminating fiber, DSL,
infrastructure, gateways, and related services. or cable connections in the home) are configured
They can deploy Wi-Fi networks at strategic venues to to double up as public Wi-Fi hotspots in addition to
deliver Business-to-Consumer (B2C) Wi-Fi services fulfilling their primary role of delivering residential
with Wi-Fi Offloading. An example of a B2C Wi-Fi Wi-Fi services. Such schemes require the operator
network of this type is Telkom Indonesia, a giant telco to ensure the residential user is prioritized to get the
operating some 400,000 Wi-Fi access points serving service they have paid for. The excess capacity allows
more than 70 million users. Telkom Indonesia has been the operator to build a substantial public Wi-Fi
using Enea Aptilo SMP for ten years and counting. hotspot network spanning perhaps millions of
locations overnight.
Wi-Fi Offloading is the only indoor coverage solution
that can leverage an existing profitable service— After mergers and acquisitions in the telecom
managed B2B Guest Wi-Fi. With a minimal investment, industry, there are still operators that are not utilizing
a separate Wi-Fi SSID (802.1x) can be added this potential, having the mobile and broadband
specifically for offloading. operations acting as separate silos.

Good examples of effective operator-managed B2B The Homespot concept is ideal for broadband
Wi-Fi service offerings include the B2B Wi-Fi services providers that are also MVNOs. There is a massive
of our clients NOS Portugal and Swisscom. gain in having as little traffic as possible on the cellular
network. Spectrum Mobile—the MVNO services arm
Mobile operators can also offer competitive pricing by
of US cableco Charter Communications—uses this
subsidizing B2B Wi-Fi at venues that are important for
scheme to keep its subscribers connected on
Wi-Fi Offloading.
Charter-owned homespots as much as possible.

B2B Cloud Guest Wi-Fi


Here, the operator provides cloud-based Software-
as-a-Service (SaaS) Wi-Fi service management –
to operate a B2B customer’s Guest Wi-Fi service.
At the same time, the B2B customer owns and
retains their Wi-Fi access infrastructure.

This approach is required when operators want to


extend their footprint and business scope simply
because many venues and enterprises already own
and operate a Wi-Fi network. In this case, the operator
can ask the venue to add a secure Wi-Fi SSID
(802.1x) for Wi-Fi Offloading as part of the
Guest Wi-Fi service deal.

Conversely, in some cases, our clients have acquired


the Wi-Fi network equipment belonging to specific
important customers and locations to convert the
service to a fully operator managed B2B Wi-Fi.

Wi-Fi Offloading, Why? enea.com 14


Third-Party Wi-Fi Services and OpenRoaming
Operators can also partner with third-party Wi-Fi networks to provide connectivity for international travel or
at specific domestic locations. Mobile operators can do Wi-Fi Offloading without deploying a single Wi-Fi
Access Point. Enea’s customer Three UK is an excellent example, providing Wi-Fi services in the London
Underground using a third-party network.

The OpenRoaming initiative within the Wireless Broadband Alliance (WBA) will further facilitate using
third-party Wi-Fi networks. The vision is to make global Wi-Fi roaming as seamless and secure as cellular
roaming. There are already (April 2024) more than 3 million Wi-Fi hotspots and growing enabled in the
OpenRoaming federation. OpenRoaming may become the ‘silver bullet for neutral host Wi-Fi Offloading.’

Take a shopping mall as an example of a neutral host operating as an ANP in OpenRoaming.

MNO 1
 AAA @ Access Network
Provider (ANP)
WBA issues


OpenRoaming
MNO 2 Certificates Shopping Mall

SIM Authentication 
MNO n
  USER USER USER
AAA @ Identity Provider (IDP)

They can make bilateral commercial agreements with Open may sound scary, as in “uncontrolled,” but you
multiple mobile operators acting as IDPs. When the can fully control the characteristics of your roaming
users come within range of the Wi-Fi network at the partners. For instance, you may choose to only roam
shopping mall, they will be automatically and securely with Wi-Fi networks that deliver a specific quality of
onboarded to the OpenRoaming service through SIM service (QoS) level.
authentication with their mobile operator.
Mobile operators planning to deploy Wi-Fi Offloading
The shopping mall can even prioritize the mobile on their own Wi-Fi footprint should consider doing
operators’ subscribers over other users if they comply so through OpenRoaming, even if they initially only
with the advertised QoS level for all other users. This allow OpenRoaming Wi-Fi access to their own
will make it possible for the shopping mall to charge subscribers. By deploying a SIM and Passpoint-based
more for the offloaded users. OpenRoaming profile on all devices, subscribers
will enjoy automatic and secure onboarding to
It is not a problem that the user may have multiple
the operator’s Wi-Fi network and others in the
installed OpenRoaming profiles on the device, such as
OpenRoaming federation, filling their criteria for
one from the mobile operator and one from the device
being a good Wi-Fi network.
manufacturer. The shopping mall can utilize the Home
Service Provider preference functionality defined in Download our All You Need to Know about
Passpoint to prioritize the mobile operators over OpenRoaming white paper to learn more.
other IDPs.

Wi-Fi Offloading, Why? enea.com 15


CHAPTER 06

The Captive Portal Is Dead –


Long Live the Captive Portal
The Wi-Fi industry has worked hard for years to avoid specification has reached a critical mass in device
captive portal-based unencrypted Wi-Fi hotspots. support, the Captive Portal API (RFC 8908, 8910) can
be used as it also features a Venue portal URL.
At the same time as the industry has promoted secure
Wi-Fi Offloading and Passpoint-based Wi-Fi such as After a successful automatic login, a message appears
OpenRoaming, many venues do not want users to either on the mobile device lock screen, as a system
seamlessly access a secure Wi-Fi network without the message, or on the network details page (device-
possibility for user interaction. They want to engage dependent). The Venue Portal URL is displayed with
with users to promote offers and give information. the message, and clicking the link will send the user
to the brand or location-specific portal.
However, contrary to common belief, engaging with
users and providing them with location-based offers
is also possible when they are seamlessly onboarded
to the Wi-Fi Network. The Enea Aptilo SMP supports Engage Users Through
everything from SIM-based Authentication to Wi-Fi
marketing with user consent management. Email / SMS
Users can also be engaged by sending them
an SMS or email:

Engage Users Through • T o a user automatically onboarded to the


Venue Portal Wi-Fi network while entering the venue.

• T o a user dwelling for a specific time


The Wi-Fi hotspot Captive Portal is still a popular
at a particular Wi-Fi hotspot.
vehicle for engaging with users online. It can present
banners and video adverts or capture user profiles • 
To a user who has visited a hotspot
through short surveys. on a particular day and time.
The automatic and secure onboarding of Wi-Fi users
in Wi-Fi Offloading eliminates the need for Captive
Portals. The users are already authenticated and Getting Users’ Consent
authorized, so there is no need to stop them from
accessing the Internet. This can be a showstopper for for Marketing
Wi-Fi Offloading or indoor cellular solutions at some
It is good practice, and in many countries a legal
venues. They may instead build their own captive
requirement, to ensure proper user consent and
portal-based Wi-Fi network.
personal data management, such as the one offered
Standardization bodies have recognized that the need with Enea Aptilo SMP. Look for a consent and personal
for brand or location-adapted portals has not vanished. data management solution compliant with the
Passpoint Release 3 specifies using a Venue Portal European GDPR, as Europe has implemented one of
URL to engage with end-users. Until the Passpoint R3 the most robust privacy regulations in the world.

Wi-Fi Offloading, Why? enea.com 16


CHAPTER 07

“ We Have Overcapacity –
No Need for Wi-Fi Offloading”
This is what you will hear asking the more technical part of
your organization about the prospect of using Wi-Fi Offloading.
They are not lying. You probably have overcapacity in your
cellular network, but most likely only on an average level.

UX Churn Zone


Cell Sites Capacity Utilization


100%  Selective
wifi Wi-Fi
 Average Offloading

50%  

0%

1 100 200 300 400 500 n

Cell Sites

As discussed extensively in this paper, Wi-Fi


Offloading is primarily about providing indoor
coverage. But it also plays a role in adding capacity
at the right locations. Take a mobile operator
stating they have overcapacity with only 60%
utilization. No matter how well they plan their
network, there will always be congested cell sites.
We call this the “churn zone,” as users may be
frustrated and find a competitor that provides
better coverage and capacity.

We suggest that mobile operators do selective


Wi-Fi Offloading at those locations to provide
the best possible user experience.

Wi-Fi Offloading, Why? enea.com 17


CHAPTER 08

Wi-Fi Offloading Return


on Investment (ROI)
A general ROI calculation model for Wi-Fi Offloading is very challenging
as there are many different parameters to consider, and the mobile
operators' monetization of the actual offloading is always indirect.
This indirect monetization revolves around cost savings and satisfied
subscribers, reducing churn.

A more granular ROI modeling needs to be run for each mobile operator because conditions differ for
different markets, the system integration capabilities differ between operators, the cost and revenue-share
arrangements between the operator and the location/venue may vary, etc. However, the success of Wi-Fi
Offloading spans from operators that rely entirely on third-party Wi-Fi networks to operators that deliver
fully managed Wi-Fi services to their business-to-business (B2B) customers.

Managed B2B Wi-Fi Drives Wi-Fi Offloading ROI

End-Users Business B2B Consumer Network


@ Venue Customers Sales Businesses Operations

WIFI FREE  sack Indirect Monetization

 %
 B2B
  
 

Carrier Class Marketing Profitable Reduced Churn Indoor


Wi-Fi & Analytics Service Coverage

CUSTOMERS M N O D E PA RT M E N TS

An operator-managed B2B Wi-Fi service in a Wi-Fi Offloading context is a Win x 5:

1. 
End-users get secure and seamless 3. The opereator B2B sales get a profitable service.
Wi-Fi connectivity (free of charge).
4. 
The operator consumer business department
2. B
 usiness Customers get analytics and the get reduced churn.
opportunity to engage with end-users.
5. Network operations get indoor coverage.

Wi-Fi Offloading, Why? enea.com 18


As discussed, B2B Wi-Fi services complemented
with an additional SSID for Wi-Fi Offloading is the only
Indirect Monetization
mobile indoor coverage solution that is a profit center of Wi-Fi Offloading
rather than a cost center. Generally, the industry
sentiment is that Wi-Fi is cheaper per delivered GB Although a more granular ROI calculation is required
indoors and more energy-effective. But, even though for each individual case, analyzing publicly available
the initial cost (CAPEX) and the cost of the daily data can give a hint of the general ROI potential of
operation (OPEX) in some scenarios can be more or Wi-Fi Offloading. Some of the data points below
less the same for cellular indoor solutions and Wi-Fi, it are old now, but we still think they have aged well,
is hard to escape the fact that cellular only drives cost, and nothing significant has happened in the market
whereas Wi-Fi can drive direct revenue. that would change this.

Operators that deliver managed B2B guest Wi-Fi


services can compete effectively with other players
delivering Wi-Fi services as the indirect monetization
Wi-Fi Services Reduce
of Wi-Fi Offloading is so great that they do not need as Subscriber Churn
high margins on the B2B guest Wi-Fi service as their
Gaining new subscribers is costly, and losing them
competitors do. As discussed, it could even make
is even more expensive. Wi-Fi has become the last
sense to subsidize the Wi-Fi service at self-cost at
piece of the operator’s customer retention puzzle. In
some critical locations. So, when using B2B Wi-Fi as a
2014, Shaw Communications’ CEO, Brad Shaw, said,
vehicle for Wi-Fi Offloading, the worst-case scenario
"The percentage of customers discontinuing their
is that it will be a cost-saving compared to building
subscription is 35 percent lower among customers
indoor cellular coverage. For most sites, the B2B Wi-Fi
who have signed up for Shaw Go Wi-Fi than among
service will be profitable. You will be paid to get indoor
those who haven’t.”
coverage for your subscribers.
This number also agrees well with a 2023 study from
Ericsson Consumer Labs, which states that there is a
threefold higher probability of users churning if they
Take a Holistic have had a bad connection at indoor locations such
Customer Approach as airports or entertainment venues.

It may, of course, make sense to provide both cellular


and Wi-Fi indoor coverage. But if you have to choose,
Wi-Fi has the advantage of covering more use cases.
The venue may need connectivity for other things, such
as computers, servers, billboards, payment terminals,
and printers. Looking at the guest experience, many
devices, such as laptops, tablets, and smartwatches,
have no cellular connectivity, while all mobile
phones have Wi-Fi support. This dynamic makes
Wi-Fi connectivity necessary for a holistic customer
approach and happy users.

Wi-Fi Offloading, Why? enea.com 19


Cost of Customer
Acquisition and Retention
A 2016 study by analyst Tefficient shows that,
on average, mobile operators in mature markets
spend 15-20% of service revenues on subscriber
acquisition costs (SAC) and subscriber retention
costs (SRC).

Since most of these mature market operators didn’t


grow and still have low single-digit growth numbers,
another way to put it is that it costs 15-20% of
service revenues every year to more or less stand
still, i.e., close the year with the same number of
customers as at the beginning of the year.

Calculating the Indirect


Monetization of Wi-Fi Offloading
If we believe that Wi-Fi services can reduce churn by
35% and that the cost of customer acquisition and
retention is 15-20% of revenues, then the potential
indirect monetization of Wi-Fi Offloading would be
5-7% of a mobile operator’s revenues.

This would potentially translate into hundreds


of millions of USD yearly for an average mobile
operator.

Do you not believe


in this calculation?
This is a volume game, so even if you
reduce the input parameters to what
makes sense to your situation, it will
still translate into considerable savings.

Wi-Fi Offloading, Why? enea.com 20


CHAPTER 09

“But We Must Deploy


5G Indoors Anyway?”
Understandably, mobile operators' knee-jerk reaction is to deploy indoor
5G solutions, preferably everywhere they have 4G coverage today.

Let us challenge that! The 5G operators are currently


facing two issues that together form a perfect storm What About Emergency Calls?
for poor profitability:
Wi-Fi Calling can be used for emergency
1. T he higher frequencies in 5G, in combination calls in places with only Wi-Fi coverage.
with the increasingly energy-optimized buildings, Modern devices will give the correct GPS
require heavy investment to achieve indoor coordinates for emergency calls even if the
5G coverage in more places. user has disabled location services.
2. Subscribers are generally not prepared to pay Furthermore, for indoor locations with
more for the service just because it is 5G; they existing 4G coverage, there is no need to
have more than enough speed in 4G. At the same add 5G for emergency calls.
time, the promised new use cases of 5G have
not materialized enough.

In other words, the cost will increase without enough


revenue to support it. This is why mobile operators What We Suggest
must reconsider their options for indoor coverage. The
To conclude, mobile operators are advised to
answer is to utilize Wi-Fi Offloading at more locations.
reconsider indoor 5G coverage and utilize Wi-Fi
This is especially true for operators with excellent Offloading as a more cost-effective option. When
Wi-Fi footprint, perhaps in other parts of the selling Wi-Fi B2B services or using an existing
organization. Again, operators must tear down operator's Wi-Fi footprint, indoor coverage will provide
organizational silos and utilize all their assets to direct monetization opportunities instead of driving
optimize profitability. Furthermore, building duplicated costs. A third-party Wi-Fi footprint will most likely
infrastructure (5G and Wi-Fi) where it is not be more cost-effective than building 5G coverage.
needed does not support the operator’s ESG agenda. But it is a question of both, not either or. There will be
locations where creating 5G indoor coverage makes
As we have discussed, operators without Wi-Fi business sense.
services may also use Wi-Fi Offloading through secure
third-party Wi-Fi networks. This possibility will only
increase with the advancement of Wi-Fi networks
joining the OpenRoaming federation.

Wi-Fi Offloading, Why? enea.com 21


CHAPTER 10

Two Very Different


Use Cases
Let’s pick two Enea customers to illustrate two very different use
cases and deployment models of Wi-Fi Offloading. Swisscom has built
an extensive Wi-Fi service, including B2B Wi-Fi. Three UK is utilizing a
third-party Wi-Fi network to make selective Wi-Fi Offloading.

Using B2B Wi-Fi To The Challenge


Create Indoor Footprint To cater to a rapidly growing market of small and large
businesses, some of them utilizing their own Wi-Fi
Swisscom is a major telecommunications player
access equipment, Swisscom needed to create a
headquartered in Switzerland. Its public Wi-Fi service,
flexible and competitive Wi-Fi service that would:
known as PWLAN (Public Wireless LAN), is a large-
scale service covering 6,200 hotspots with 70,000 • A
 llow them to roll out new services
access points and has been in operation since 2002. in minutes instead of weeks.
Swisscom is widely regarded as a pioneer, launching
• 
Be competitively priced for smaller
the world’s first commercial service utilizing SIM
businesses and startups.
authentication in 2004. In 2013, Enea (Aptilo) replaced
a few critical components in Swisscom’s Wi-Fi Core • Be agile enough to adjust and adapt in real-time.
system. Swisscom went “all-in” with us in 2019 when
the Enea Aptilo Service Management Platform (SMP) • B
 e less dependent on hardware and
replaced the three existing Wi-Fi Core system vendors. instead use software-defined functions.

Today, enabled by the Enea Aptilo SMP, the network • M


 ake the technology user-friendly
has nearly 3 million unique users, consuming roughly with easy-to-use dashboards.
3,000 terabytes of data monthly.
The company needed a cloud-native, software-defined
Providing a managed business-to-business (B2B) Wi-Fi deployment solution that could scale economically
service is the best way to build an indoor footprint of and streamline its B2B offerings.
public Wi-Fi for subscribers and mobile data offloading
while making money. Around 80% of the 40 million
monthly user sessions go through the SMP SIM
Authentication functionality, providing subscribers
with a seamless and secure user experience.
Swisscom works with various verticals, from single
sites to multi-branch corporations, and constantly
seeks the optimal footprint for its public Wi-Fi service.

Wi-Fi Offloading, Why? enea.com 22


The Solution The Result
Working with Enea, Swisscom could take a software- With this new cloud service powered by Enea,
defined network (SDN) approach and tailor it to appeal Swisscom is taking a leap in operator-managed
to businesses of various sizes in different industries. guest Wi-Fi for the masses, capable of successfully
Apart from the Wi-Fi and Wi-Fi Calling services competing with the many cloud services already
enabled by Enea, service options include WAN, LAN, on the market. Business customers now have
SIP trunks, hosted PBX, VoIP lines, Swisscom TV, seamless access to:
internet access, firewall, DDoS protection, remote
• Affordable managed Guest Wi-Fi.
access, and cloud access.
• A
 range of new services with the click
of a button via the services dashboard.

• R
 apid deployment of new services within
a matter of minutes.

• 
Real-time monitoring and usage statistics
via an enhanced analytics engine.

• W
 i-Fi calling guarantees the very best call quality
in areas with weak cellular reception.

Swisscom led the way into carrier Wi-Fi services.


Now, once again, they are taking the pole position
in the future of operator-managed Wi-Fi services.

"Enea deserves our trust after the flawless


operation of our Public Wi-Fi Core
functions since 2013. Merging all Public
Wi-Fi Core functions to Enea Aptilo SMP
has reduced risk, increased our operational
efficiency, and saved costs. We also get
more rapid growth in new functionality and
innovations as we share the same software
with many other leading operators.”
Goran Spirov, Product Manager, Swisscom

Wi-Fi Offloading, Why? enea.com 23


Utilizing Third-Party Wi-Fi Network
Three is the fourth-largest mobile network operator Three UK has been purchasing capacity in the London
in the United Kingdom, with about 10.3 million Underground since 2015, initially using captive portal-
subscribers as of May 2023. The company launched based end-user authentication through a Three UK-
on 3 March 2003 as the UK's first commercial 100% 3G hosted Enea Aptilo SMP.
network. It provides 3G, 4G, and 5G services through
In 2022, this solution was replaced by the Enea Aptilo
its own network infrastructure.
Wi-Fi Service Management Platform as a Service
The London Underground has almost no mobile (SMP-S). Enea Aptilo SMP-S is the industry’s first and
phone coverage. To provide mobile Internet access to only complete Software-as-a-Service Wi-Fi service
passengers, TfL ("Transport for London") has built an management solution for operators, hosted as a
operator-independent Wi-Fi network that covers all the customer-dedicated instance and managed by Enea,
stations and platforms of the London Underground. with a service availability above 99.99%.
Mobile operators may then lease capacity in the Wi-Fi
through the third-party intermediary - Boldyn Networks
(former BAI Communications).

Three UK leverages Wi-Fi Offloading to bring


connectivity to the London Underground without
deploying a single Wi-Fi Access Point (AP). They
leverage Boldyn’s Wi-Fi network and utilize Enea Aptilo
Service Management Platform (SMP) for seamless and
secure subscriber onboarding to the third-party Wi-Fi
network via SIM Authentication.

This strategy enables Three UK to provide their


customers with secure, reliable, automatic, high-
speed connectivity in a challenging environment on a
daily basis. The number of unique users in February
2024 was around 813,000, which aligns with the
average monthly user count over the last year.

The session count doubled compared to a year ago,


and data usage has increased by approximately 50
% during the past year to around 185 terabytes in
February 2024. Since the service is unavailable in
transit between stations, connectivity is spotty with
relatively short sessions. In February 2024, there were
over 40 million sessions.

Wi-Fi Offloading, Why? enea.com 24


About Enea

We are a world-leading specialist in advanced telecom and cybersecurity


software with a vision to make the world's communications safer and more
efficient. Our solutions connect, optimize and protect communications
between companies, people, devices and things worldwide. We are present in
over 80 markets and billions of people rely on our technology every day when
they connect to mobile networks or use the Internet.
Through acquiring Aptilo Networks in October 2020, Enea gained Wi-Fi
expertise, a leading software for large-scale Wi-Fi Service Management and
Wi-Fi Offloading, and an innovative cellular IoT connectivity control service.
Enea is headquartered in Stockholm, Sweden, and is listed
on Nasdaq Stockholm.

For more information: www.enea.com

Author
Johan Terve
Senior Director Marketing, Enea

Enea®, Enea OSE®, AdaptiveMobile™, Qosmos®, Qosmos ixEngine® and Openwave Mobility® are registered trademarks of Enea AB and its
subsidiaries. All other company, product or service names mentioned in this document are the registered or unregistered trademarks of their
respective owners.

Copyright © 2024 Enea AB. All rights reserved.

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