Free WLANs for the Masses

Free WLANs for the Masses
Private vs. Commercial WLAN Networks
or
Searching for Cheap Wireless Bandwidth
Jan Michael Hess @ 20C3, 29.12.03, Berlin – [email protected]
www.mobileeconomy.de | www.mobiliser.org | www.freifunk.net
12/30/2003
© - free ;-)
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Content
ˆ
Free networks & freifunk.net
ˆ
Quoting WLAN industry insiders & interesting WLAN players
ˆ
The WLAN-powered Mobile Economy Triangle
ˆ
MNOs (Mobile Network Operators) in UMTS dilemma blocking WLAN-powered devices
ˆ
Pricing of mobile data - SMS - GPRS - UMTS - CDMA2000 1x (EV DO)
ˆ
Overview of commercial hotspot pricing
ˆ
A (simple) commercial hotspot business case
ˆ
Cost sharing in private WLAN networks
ˆ
Key issues in managing interconnected private WLAN networks
ˆ
Purchasing community
ˆ
UMTS vs. Wi-Fi
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WLAN network case studies in Berlin and Denmark
12/30/2003
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www.freifunk.net - the German website for free networks
12/30/2003
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What is freifunk.net?
freifunk.net is a non-commercial project which fosters the idea of free networks in
cooperation with existing groups and organisations.
frei (free) means:
ˆ
Publicly accessible, non-commercial, owned by the community, uncensored
Vernetzung (networking) means:
ˆ
Communication between people using digital media (computers, networks)
freifunk.net is a voluntary team from different backgrounds.
freifunk.net summer convention @ c-base, 12.-14. September 2003, was successful.
My next flat will have fast DSL and rooftop access for joint WLAN fun.
12/30/2003
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WLAN networks unite/interconnect
12/30/2003
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www.freenetworks.org - for international free network enthusiasts
12/30/2003
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www.mobileaccess.de - German DB for free and commercial hotspots
12/30/2003
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Quoting WLAN industry insiders
ˆ
"24Mbps ADSL from DoCoMo's big brother NTT costs this author about $30 a month for
unlimited access." – Paul Kallander, Tokyo Correspondent, Wireless Watch Japan
ˆ
"Our 250 hotspots have anything between 0 to 100 users/day and 10% are profitable
(average 5 to 10 connections/day)." – Robert Lang, VP Bus Dev, Swisscom Eurospot
ˆ
"Our target group are business travellers with laptops." – Robert Lang
ˆ
"It's not a problem of high prices but of user awareness." – would-be WLAN manager @ Eplus
ˆ
"With X % of the UMTS license money we CAN Wifi-enable Y % of Germany." –
Jan Michael Hess -> see below ...
12/30/2003
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www.linksys.com - cheap WLAN hardware, now a division of Cisco
12/30/2003
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www.dlink.com - more cheap WLAN hardware
12/30/2003
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www.schlund.de - fast, multi-user DSL flat rate with 1.536 kbps at € 79,90/month
12/30/2003
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www.swisscom-eurospot.com - 1500 locations under contract, over 300 live
12/30/2003
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www.boingo.com - WLAN hotspot aggregator in USA, 5000 locations under contract, 2100 live
12/30/2003
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www.excilan.com - hotspot roaming & payment -> hotshop
12/30/2003
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MNO + Wi-Fi: Roaming & payment -> hotshop
TAP (Transferred Account Procedure) =
Standardised Account Data Exchange Format
12/30/2003
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www.ipass.com - global Internet network including over 2.800 Wi-Fi hotspots & 1.200 Ethernet venues
12/30/2003
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www.brainheart.com - Swedish VC hot on WISP and WLAN
12/30/2003
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www.ipwireless.com - TD-CDMA TDD - optimal for data, suboptimal for voice, voice = data
12/30/2003
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www.airdata.ag - "Portable DSL", WLL license for 120 cities, IPWireless, Stuttgart live, portable hotspot
12/30/2003
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www.sentech.co.za - Mobile Broadband ISP in South Africa, IPWireless, launch in 01/04
12/30/2003
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www.flarion.com - more fast mobile broadband technology, but proprietary
12/30/2003
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www.meshnetworks.com - mesh networking tech originating from the US military
12/30/2003
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www.4g-systems.de - Linux-based Mesh AP hardware & more
12/30/2003
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www.airgonetworks.com - next generation WLAN tech with lots of press coverage
12/30/2003
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www.colligo.com - group sharing software - for ad-hoc WLAN parties?
12/30/2003
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www.sipphone.com - buy 2 SIPphones for $ 129 and make free VoIP calls forever!
12/30/2003
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www.skype.com - free P2P telephony – 4.702.831 downloads and counting ...
12/30/2003
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The WLAN-powered Mobile Economy Triangle
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Success factors: Utility, usability & pricing
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WLAN Apps: IM, Email, WWW, File Sharing, MMOG, VoIP, Streaming
Content, Applications & Services
Devices
Networks
ˆ
Cost of data < price of data
ˆ
Laptops, PDAs, Smartphones, Dataman, ...
ˆ
Mobility vs. cheap broadband? UMTS vs. WLAN?
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The killer WLAN device by ... Apple!
12/30/2003
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Cool devices, no WLAN - Do MNOs really want WLAN?
12/30/2003
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Wanted: Dream WLAN devices at affordable prices
ˆ
Form factor: Phone, PDA or smartphone with(out) keyboard/keypad/pen
ˆ
Multi-mode: GSM, GPRS, UMTS/W-CDMA, CDMA2000 1x EVDO
ˆ
Multi-band: All frequencies for multi-modes and various countries
ˆ
Shortrange connectivity: Bluetooth/IrDA/WLAN ...
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Display: Colour with maximum screen size & high resolution
ˆ
Camera: Megapixel!
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Design: Small, lightweight, personalisation, style, fashion (e.g. Chinchin/straps)
ˆ
Storage: Removable memory cards, external microdrive, ...
ˆ
Processor: Fast! (www.arm.com powers 75% of devices)
ˆ
OS: Open, stable, multi-tasking (Symbian vs. Microsoft vs. Palm vs. Linux)
ˆ
Multimedia: MIDI, JPEG, MPEG 3/4, 2D & 3D, Flash, voice control, ...
ˆ
Application runtime environment: J2ME, BREW or OS-specific
ˆ
Positioning: Cell-based and GPS
12/30/2003
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MNO success factor: Pricing of Mobile Data Bandwidth
Pricing per MB (MegaByte):
ˆ
SMS de:
1.356,98 €
140 Bytes = 1 SMS = 0,19 €
Ö 7.142 x 140 Bytes = 999,88 KB ~ 1 MB
ˆ
i-mode jp:
Ö 0,19 € x 7.142 = 1.356,98 €
21,80 €
128 Bytes = 0.3 Yen = 0,00279 € (100 Yen = 0,93 €)
Ö 7.812 x 128 Bytes = 999,94 KB ~ 1 MB
Ö 0,00279 € x 7.812 = 21,80 €
ˆ
i-mode de:
10,- €
ˆ
GPRS de:
5,- € to 25,- € (plus subscription fees)
ˆ
UMTS de:
< 0,50 € (target, in Germany no prices announced so far)
Costing per MB:
Network Cost
Network Cost per Month (200MB data/user)
ˆ
GPRS
0,48 € (0,42 $)
96 € (84 $)
ˆ
WCDMA
0,08 € (0,07 $)
16 € (14 $)
ˆ
CDMA2000 1x
0,07 € (0,06 $)
14 € (12 $)
ˆ
CDMA2000 1xEV 0,02 € (0,02 $)
4 € ( 4 $)
Ö Qualcomm: "CDMA better positioned than any other mobile cellular technology to deliver low cost bits"
Ö Sufficient margins with mobile data flat rates possible!
12/30/2003
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Hotspot pricing – not for the masses!
ˆ
Vodafone Germany:
30 min = 3,95 €
2 h = 9,95 €
24 h = 24,95 €
2 h = 9,50 €
24 h = 29,- €
7 days = 69,- €
30 days = 129,- €
365 days = 949,- € ~ 2,60 € / day
ˆ
ˆ
Swisscom Eurospot:
T-Online Germany:
1 min = 0,16 €
ˆ
30 min = 4,80 €
24 h = 230,40 € (joking?)
Boingo USA:
2 Connect Days = 7,95 $
additional days = 7,95 $ each
Flat: < 12 months = 21,95 $ / month
> 12 months = 39,95 $ / month
-> No fun unless company pays and employee doesn't care!
12/30/2003
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Target group business travellers can make you rich
Commercial Hotspot Business Case
worst
Revenues
Users/day
ARPU/user/day
ARPU/user/month
Revenues/day
Revenues/month (30 days)
Revenues/year
9,50
285,00
9,50
285,00
3.420,00
Costs
Access Point (AP)
DSL Setup
1.536 kbit/s DSL flat/month
1.536 kbit/s DSL flat/year
Marketing, Billing & Admin/month
Marketing, Billing & Admin/year
Sum
Gross Profit
50 % Share Location Owner
12/30/2003
middle
5
€
€
€
€
€
10
9,50 €
285,00 €
95,00 €
2.850,00 €
34.200,00 €
1 AP
200,00 €
150,00 €
80,00 €
960,00 €
150,00 €
1.800,00 €
3.110,00 €
2 AP
400,00 €
150,00 €
80,00 €
960,00 €
300,00 €
3.600,00 €
5.110,00 €
3 AP
600,00 €
150,00 €
80,00 €
960,00 €
450,00 €
5.400,00 €
7.110,00 €
310,00 €
155,00 €
11.990,00 €
5.995,00 €
27.090,00 €
13.545,00 €
© - free ;-)
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€
€
€
€
€
best
9,50
285,00
47,50
1.425,00
17.100,00
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Enough hotspot users = less € than DSL, not free but cheap
Private Hotspot Business Case
worst
Revenues
Users/day
ARPU/user/day
ARPU/user/month
Revenues/day
Revenues/month (30 days)
Revenues/year
4,00
120,00
4,00
120,00
1.440,00
Costs
Access Point (AP)
DSL Setup
1.536 kbit/s DSL flat/month
1.536 kbit/s DSL flat/year
Marketing, Billing & Admin/month
Marketing, Billing & Admin/year
Sum
Gross Profit
50 % Share ... freifunk.net e.V. ...
12/30/2003
middle
5
€
€
€
€
€
10
0,60 €
18,00 €
6,00 €
180,00 €
2.160,00 €
1 AP
250,00 €
150,00 €
80,00 €
960,00 €
0,00 €
0,00 €
1.360,00 €
2 AP
500,00 €
150,00 €
80,00 €
960,00 €
0,00 €
0,00 €
1.610,00 €
3 AP
750,00 €
150,00 €
80,00 €
960,00 €
0,00 €
0,00 €
1.860,00 €
80,00 €
40,00 €
550,00 €
275,00 €
300,00 €
150,00 €
© - free ;-)
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€
€
€
€
€
best
1,20
36,00
6,00
180,00
2.160,00
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Key issues in managing WLAN Networks
ˆ
Hotspot roaming: Pico Peering Agreement or something similar
ˆ
Payment method for cost sharing: Excilan MNO-dependent; better: Paypal, bank
transfer, ...
ˆ
User management: Software needed to block bad or non-paying users
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Community support: People with WLAN Know-how help those without
ˆ
Viral Marketing: Invite neighbours and friends
ˆ
Multi-channel hotspot DB: Hotspots easy to find with PC or mobile device
ˆ
Purchasing: Find best deal for equipment and connectivity, collect orders in the
community for joint purchases enjoying volume discounts
12/30/2003
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Purchasing Community = "Einkaufsgemeinschaft"
ˆ
Develop website with cool community and viral marketing tools
ˆ
Spread the message -> "Power to the People!" = powerful PR
ˆ
Collect orders for WLAN equipment & connectivity over X months
ˆ
Test best and cheapest equipment in the market
ˆ
Negotiate volume discounts & place collective order at best suppliers
ˆ
Receive & install equipment, sign Pico Peering Agreement, ...
ˆ
Enjoy cheap wireless broadband access in thousands of hotspots
12/30/2003
© - free ;-)
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UMTS vs. Wi-Fi – And The Winner is ...
UMTS vs. Wi-Fi - Total Coverage
worst
middle
best
Revenues
Users/day/Hotspot
Total Hotspots
Total Users
ARPU/user/day
ARPU/user/month
ARPU/user/year
Total Revenues/year
1
5
10
500.000
1.000.000
1.500.000
500.000
5.000.000
15.000.000
3,50 €
1,00 €
0,50 €
105,00 €
30,00 €
15,00 €
1.260,00 €
360,00 €
180,00 €
630.000.000,00 € 1.800.000.000,00 € 2.700.000.000,00 €
Costs
Access Point (AP)
No. of APs in Germany
Total AP Cost (without discounts)
DSL Setup
1.536 kbit/s DSL flat/month
1.536 kbit/s DSL flat/year
No. of DSL Connections in Germany
Total AP Cost (without discounts)
Community Website Management
Sum
250,00 €
500,00 €
750,00 €
500.000
1.000.000
1.500.000
125.000.000,00 €
500.000.000,00 € 1.125.000.000,00 €
150,00 €
150,00 €
150,00 €
80,00 €
80,00 €
80,00 €
960,00 €
960,00 €
960,00 €
500.000
1.000.000
1.500.000
480.000.000,00 €
960.000.000,00 € 1.440.000.000,00 €
12.000.000,00 €
12.000.000,00 €
12.000.000,00 €
617.000.000,00 € 1.472.000.000,00 € 2.577.000.000,00 €
Gross Profit
50 % Share ... freifunk.net e.V. ...
12/30/2003
13.000.000,00 €
6.500.000,00 €
© - free ;-)
328.000.000,00 €
164.000.000,00 €
123.000.000,00 €
61.500.000,00 €
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Kinzigstr. 9, Berlin - Ausgangslage
ˆ
1 Haus
ˆ
35 HausbewohnerInnen
ˆ
Im Haus gibt es eine Netzwerkverkabelung (CAT5)
ˆ
Breitband Internetanschluss soll aus Kostengründen geteilt werden
ˆ
Es sollen eigene Inhalte im Internet angeboten werden
ˆ
Sie wollen sich mit Freunden und Bekannten in der Umgebung vernetzen
ˆ
Menschen im lokalen Umfeld sollen ebenfalls ans Internet angebunden werden
12/30/2003
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Kinzigstr. 9, Berlin - Realisierung
ˆ
2 Accesspoints mit Antennen auf
dem Hausdach
ˆ
Eine Richtfunkantenne dient der
Anbindung an den Internetprovider
in ca. 1 Km Entfernung
ˆ
Für monatlich 100 Euro gibt es eine
512 kbit/s Flatrate mit eigener IP-Adresse
ˆ
Über eine Rundstrahlantenne können sich andere im Umkreis von ca. 700
Metern per WLAN mit dem Haus verbinden
ˆ
Verschlüsselung der Datenverbindungen und Schutz des hauseigenen Intranetz
erfolgt durch eine LINUX-Firewall mit einer sicheren VPN-Software (OpenVPN)
12/30/2003
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Kinzigstr. 9, Berlin - Fazit
ˆ
Alle 35 HausbewohnerInnen haben einen Internetzugang
für 4 Euro im Monat inkl. Umlage der Installationskosten
ˆ
3 benachbarte WGs aus der Umgebung sind mit ans
Internet angeschlossen
ˆ
kostenloser Datentausch zwischen dem Haus und den
benachbarten WGs ist möglich
Kosten
ˆ
Accesspoints, Kabel, Antennen, Netzwerkkarten,
Installationsmaterial, ein gebrauchter PC
-> ca. 700 Euro
12/30/2003
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BerlinBackBone (BBB) - die Idee
Vernetzung von Berliner Kulturstätten und Aufbau eines
stadtweiten Intranetz
ƒ Verschiedene Berliner Kultureinrichtungen werden zu WLANKnotenpunkten im lokalen Kiez
ƒ Die einzelnen Einrichtungen vernetzen sich untereinander
ƒ Es entsteht ein eigenes stadtweites Intranet mit lokalen Zugängen ins
Internet
ƒ Die Kultureinrichtungen können ihr eigenes Programm
(Communityradio, Streaming Media) im Intranetz anbieten
12/30/2003
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BerlinBackBone (BBB) - Skizze
In der ersten
Ausbaustufe sind
etwa 10 Projekte
an dem Aufbau
beteiligt.
Jedes Projekt bietet
lokalen Zugang
zum Internet und
die Anbindung an
das BBB-Intranet.
12/30/2003
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DjurslandS.net - digitale Spaltung in Europa
ƒ Dünn besiedelte Region im Nordosten Dänemarks (82.000 Einwohner)
ƒ Zunehmend von Streichungen im öffentlichen Haushalt betroffen
ƒ 1998 - Schließung des Fährhafens von Grenaa
ƒ 2002 - Schließung des einzigen Krankenhauses der Region
ƒ In Planung – Schließung des Flughafens und weiterer
Fährhäfen
ƒ Seit 2000 keine lokale Tageszeitung mehr
ƒ Die Versorgung der Region mit Breitband-Internet sei zu teuer, so die
Auskunft mehrerer Telekommunikationsanbieter
12/30/2003
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DjurslandS.net wird aktiv
ƒ Miete der nach der Schließung des
Krankenhauses brach liegenden
Glasfaser-Leitung
ƒ 8 Kreisstädte der Region werden
verbunden
ƒ Anschluss an den dänischen Internet
Backbone an beiden Enden
ƒ Verteilung der Bandbreite per Wireless LAN von mehreren Anschlusspunkten
aus bis in die entlegensten Winkel von Djursland
12/30/2003
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DjurslandS.net - der Baukasten
Das Starter Kit:
ƒ 1 Dosen-Antenne
ƒ 1 vorkonfigurierter Accesspoint
Kosten:
ƒ Einmalige Anschlussgebühr: 270 €
ƒ Monatliche Gebühr: 13,50 €
ƒ Flatrate von 1-2 Mbits
ƒ … bis zum Ende des Jahres 2003 werden etwa 3500
Haushalte angeschlossen sein.
12/30/2003
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