Mobile operators are increasingly embracing WiFi as an integral part of their mobile broadband networks. Over the next few years, WiFi is expected to become a fully integrated component of small cell networking and heterogeneous networks. Major equipment vendors have begun offering carrier-grade WiFi solutions that allow for seamless authentication and roaming between WiFi and LTE networks. As LTE is deployed, mobile users will be able to roam between WiFi and LTE networks seamlessly and potentially use both networks simultaneously. WiFi hotspots will effectively function as a new type of small cell in mobile networks.

1. STRATEGY ANALYTICS INSIGHT
Wireless Operator Strategies
12 March 2012
WiFi Hotspots will be Small Cells in Mobile Broadband Networks
by 2015
Snapshot
The last month has seen a dramatic change in the role of WiFi for mobile operators.
• On February 15th Alcatel Lucent added WiFi to its lightRadio™ Femtocell and Metrocell systems.
• On February 21st. Ericsson announced the acquisition of BelAir Networks to add carrier grade WiFi
as an element in its 3GPP compliant heterogeneous networks (HetNets).
• On February 23rd. the Wireless Broadband Alliance (WBA) announced the successful completion of
Next Generation Hotspot (NGH) trials with eleven operators - AT&T, BT, China Mobile, NTT
DoCoMo, Orange, PCCW, Portugal Telecom, Smart Communications, Swisscom, TeliaSonera and
True.
• On February 28th. at Mobile World Congress Cisco announced the industry's first standards based
'Small Cell' NGH Solution with strong industry support. And PCCW promptly announced its first
commercial deployment in Hong Kong.
WiFi has transitioned from a useful unlicensed wireless option for ‘offloading’ excess mobile video traffic to an
intelligent, managed network where subscribers can roam securely. Over the next few years we expect an
increasing number of operators to embrace WiFi as part of their LTE network deployment strategy; and to
incorporate it fully into their 3G and 4G traffic calculations. We expect WiFi to become a fully integrated part
of small cell networking and HetNet design by 2015.
Analysis
In a new report "WiFi Offload - Roadmap to Seamless Mobile Interoperability" Strategy Analytics identified six
levels of WiFi integration requirements and analyses solutions: We expect six key levels over next 3-4 years.
1. WiFi Auto Detection – with IWLAN and ANDSF to the Nearest Hotspot or Registered WLAN
2. Client Authentication with AAA Radius and EAP
3. SIM Authentication with Mobile Network Service Profile
4. Seamless Roam Out i.e. 3G /4G TO WiFi with Operator visibility
5. Seamless Roam Out and Roam In i.e. WiFi back TO 3G/4G - with Signaling Routed to GGSN/Packet Core
6. Seamless Application Session Continuity over Mobile and WiFi
US Headquarters: European Headquarters:
199 Wells Avenue, Suite 108, 171 Midsummer Boulevard,
Newton Centre, MA 02459 USA Milton Keynes, MK9 1EB. UK
Tel : 617.614.0700 Fax: 617.614.0799 Tel: +44 1908 423 600 Fax: +44 1908 423 650
© Strategy Analytics 2012

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3. Operator Requirements for WiFi include the need to:
1. Add WiFi Capacity Rapidly to Current 3G Network
2. Add Instant WiFi Turnkey Global Roaming Service
3. Offer Simple Client for IT based Server WiFi Authentication and Monitoring
4. Provide SIM Authentication and Roaming on WiFi
5. Provide SIM Authentication and Fixed Operator WiFi for Mobile Devices
6. Enable Seamless Pre-Standard 3GPP WiFi with Session Control
7. Enable Seamless WiFi Interoperability in Next Generation Networks and LTE
These requirements are then mapped to the detailed solutions analyzed in the first report.
Strategy Analytics report also reviews the WiFi solutions that Mobile Operators are currently providing
including:
• Current Vendors
• Standards: 3GPP and IEEE and other standards
• Degree of Required Infrastructure integration
• Risks and issues of chosen approach
• Benefits of chosen approach
• Associated business models to monetize WiFi in conjunction with mobile services and
• Investment approaches
Implications
Mobile operators have been deploying public WiFi hotspots for several years to complement mobile coverage
and provide extra capacity for mobile broadband data users. Now they can give mobile users an enhanced
Quality of Experience (QoE) with bundled data plans that roam automatically over to WiFi as part of the
operator’s branded service. In a few years as LTE is deployed these users will be able to roam back and forth
seamlessly; and eventually use bandwidth on both networks simultaneously. WiFi is about to become a seamless
interoperable element of mobile networking with WiFi hotspots operating as a new type of small cell at
different frequencies and with a different protocols as part of a macrocellular HetNet.
Forthcoming Report
As follow-up report on ‘Small Cell and Backhaul Economics’ will be published shortly.
Contact Information
To explore this topic in more detail or to hear how our solutions, subscription services, presentations, and
consulting engagements etc. can support you please contact us www.strategyanalytics.com/solutions.html
The author of this Insight, Sue Rudd Director Service Provider Analysis can be reached at
srudd@strategyanalytics.com. Or contact Phil Kendall Director Wireless Operators Strategies can be reached
at PKendall@strategyanalytics.com.
US Headquarters: European Headquarters:
199 Wells Avenue, Suite 108, 171 Midsummer Boulevard,
Newton Centre, MA 02459 USA Milton Keynes, MK9 1EB. UK
Tel : 617.614.0700 Fax: 617.614.0799 Tel: +44 1908 423 600 Fax: +44 1908 423 650
© Strategy Analytics 2012