Smarter Wi-Fi Offload for Smartphones

- Steve Shaw of Kineto Wireless looks at how Smartphones can use Wi-Fi to offload data from the cellular network and give more effective use of their capabilities.

Data has changed the telecommunications landscape, opening a new channel of revenue for operators and enhanced services for users. The flood of smartphones hitting the market has led operators to introduce all-you-can-eat data packages to motivate consumers to adopt innovative services and applications. However, these unlimited packages are failing to generate increased revenue equal to exponential data growth.

The rate of data traffic growth is staggering, and a predicted twenty-fold increase is expected by 2014. Mobile broadband is stretching network capacity, with data traffic overtaking voice for the first time in the mobile industry's history. This is due to smartphones being adopted as web access devices. Gartner predicts by 2013 combined installed base of smartphones and built-in browser enhanced feature phones will be greater than the installed base of PCs.

Operator's ability to capitalise on the data market is threatened by the deterioration of services caused by this data overload. In June 2010, O2 announced it will cut unlimited data plans to ensure network performance, following a similar move by AT&T in the US. Operators are faced with the choice of making costly investments in network infrastructure, which will not guarantee returns, heightening data prices to discourage users, or using Wi-Fi for offload.

Many operators are not ready to make costly investment in networks. Although there is a lot of hype around next generation networks, such as LTE, the most optimistic prognoses admits it will be years until they materialise.

Despite axing unlimited data packages, data caps will not slow down demand for data and increased smartphone sales. Restriction to services is a dangerous approach for operators to take, as they risk losing their target market - smartphone users looking to deploy value added services.

Quickly Wi-Fi emerges as a viable solution to the capacity crunch. With a massive installed base, particularly in consumer's homes and their places of work, Wi-Fi is proving to be a natural complement to the mobile network.

For mobile phones to overtake PCs, the market will need to offer improved access to mobile internet through functions such as coverage, capacity and data throughput. The success of data and voice revenue depends on mobile operators' capacity to provide an enhanced user experience.

Wi-Fi for Mobile Network Offload

Wi-Fi has emerged as a natural technology solution for operators struggling to adapt to the surge towards mobile internet services. Though Wi-Fi adoption in smartphones started slowly, it is building momentum and is expected to penetrate all smartphones as a standard feature. Competition between operators is fierce and consumers demand improved coverage, increased speeds and lower latency, but do not expect to pay premium prices for data services typically associated with the macro network. Wi-Fi enables operators to offer a cost-effective solution and reduce network load.

To take advantage of web services, it is imperative operators provide strong coverage in areas subscribers spend most of their time: at home and in the office. A recent European Union Commission study of EU households showed more than 50% of homes have Wi-Fi installed. And it's difficult to find an enterprise not deploying Wi-Fi . Wi-Fi offload allows operators to use existing Wi-Fi to deliver mobile services, offering improved indoor coverage and freeing up spectrum for outdoor users.

However, traditional Wi-Fi offload is only using the most basic capabilities of Wi-Fi, failing to create a complete solution to the data challenge. Today, when connected to a Wi-Fi hotspot, smartphones only route web-based services (e.g. Facebook, Twitter, YouTube) over Wi-Fi but continue to rely on the cellular network for mobile operator services (Voice, SMS, MMS, IMS, video, etc.).

Here operators fail to extract the full benefit of Wi-Fi to address capacity and coverage challenges for all services. In fact, in situations where Wi-Fi offers stronger coverage then the cellular network, operators risk users turning to internet based calling and messaging services, threatening their main source of revenue.

A recent Zoomerang survey of 330 mobile subscribes with smartphones showed that 43% of users used Wi-Fi every day, stating it was cheaper, offered greater coverage and faster than the cellular network. Consumer awareness and acceptance of Wi-Fi, especially among smartphone users, is extremely high.

Smarter Wi-Fi

There is a smarter approach for mobile operators to use Wi-Fi. Based on 3GPP GAN (Generic Access Network) standards, Wi-Fi becomes an extension of the mobile radio access network - not just offloading web traffic, but improving mobile coverage and increasing network capacity.

A Smart Wi-Fi system combats limitations in basic Wi-Fi by automatically connecting to the Wi-Fi network, seamlessly integrating with existing user interfaces to allow for voice calls over Wi-Fi, and hibernating the cellular network whilst Wi-Fi is in use to prolong battery life.

Smart Wi-Fi automatically connects to the Wi-Fi network when detected, therefore eliminating the annoyance caused by actively selecting the Wi-Fi network. Smart W-Fi seamlessly integrates with the smartphone's existing user interface so subscribers receive exactly the same experience when connected over the Wi-Fi or the cellular network. Users therefore have access to all internet based and operator services either over Wi-Fi or the cellular network.

In normal Wi-Fi operation, smartphones currently run both networks (Wi-Fi and cellular) simultaneously, causing the battery to drain quickly when users enable their web browsers. A Smart Wi-Fi system improves battery life by hibernating the cellular radio when Wi-Fi is in use.

Smart W-Fi allows mobile operators to optimise use of network capacity. Turning existing Wi-Fi access points into seamless extensions of mobile operator's networks, enabling users to receive data and voice services over Wi-Fi. By offloading data traffic onto Wi-Fi, the mobile operator can offer improved coverage indoors and keep devices off the macro network, freeing up valuable spectrum for outdoor users and providing an overall improved user experience.

Conclusion

Operators have begun to recognise the opportunities Smart Wi-Fi offers. In May, 2010, AT&T announced the launch of an AT&T Wi-Fi "hotzone" in New York City's Times Square, providing coverage for AT&T customers who use Wi-Fi enabled smartphones. This pilot scheme aims to determine the use of Wi-Fi to provide an additional mobile broadband option in areas with consistently high 3G traffic and mobile data use. In May, Deutsche Telekom also announced Wi-Fi offload plans in the struggle to alleviate capacity on its 3G networks.

Smart Wi-Fi technology has been adopted by T-Mobile US, the first major carrier offering Wi-Fi Calling in the US. T-mobile logs 1.6 million Wi-Fi calls per month, making "this service available from open Wi-Fi access points across the globe, helping organisations (...) reduce domestic and international wireless minute usage, which may result in significant cost savings".

Investment in Wi-Fi for offload is necessary in order to meet consumer demand for superior services at lower prices. It is imperative that operators respond to market demands without jeopardizing revenue generating services. Traditional Wi-Fi Offload fails to address the growing threat from mobile VoIP clients downloaded onto smartphones. Smart Wi-Fi allows operators to develop low-cost Wi-Fi calling to incentivise consumers to use their mobile service rather than a competitive offer.

Mobile operators have changed their views on Wi-Fi in order to stay ahead in a competitive market. Operators must embrace a Smart Wi-Fi solution to compete with internet based services offering cheaper calls. Operators do not have unlimited spectrum resources to offer consumers and must ensure they re-address the balance to avoid network deterioration.

Steve Shaw is vice president of corporate marketing for Kineto Wireless and is responsible for the market development and corporate communication strategies of Kineto's product lines. A frequent speaker, blogger and general evangelist for mobile services over IP, Mr. Shaw has nearly 20 years experience in product, marketing, and business development roles with telecommunications companies.. Steve holds a bachelor of science in computer science from the University of Southern California.

Kineto is a privately held, venture-backed company committed to enabling mobile operators to fully embrace the cost and performance advantages of IP-based broadband access networks. Kineto Wireless has created a Smart Wi-Fi Application currently available for US Android operating systems, and due to be launched on an array of handsets. The app can be preinstalled or downloaded onto smartphones. The app enables operators to extend coverage, reduce the load on the 3G macro network, and acts as a customer enticement in a highly competitive market..