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Cisco Confidential 1 © 2010 Cisco and/or its affiliates. All rights reserved. Service Provider Wi-Fi Why Fi? Cisco Knowledge Network June 7 th 2011

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Page 1: 129 06-07-11 Ckn Wifi Europe Final

Cisco Confidential 1© 2010 Cisco and/or its affiliates. All rights reserved.

Service Provider Wi-FiWhy Fi?

Cisco Knowledge Network

June 7th 2011

Page 2: 129 06-07-11 Ckn Wifi Europe Final

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2

• 0.95 billion registered cars in use

• 1.15 billion landlines

• 1.4 billion PCs of any kind in use

• 1.5 billion Credit Card holders

• 1.6 billion TV homes

• 1.8 billion Internet users

• 4 billion FM radio users

• 5.2 billion mobile phone subscriptions

3.7B unique users, 75% global per addressable capita penetration

• 6.8 billion people on the planet

Source : Tomi Ahonen

?

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4

More Broadband

New Pricing

New Devices

New Applications

Video will be 2/3 of mobile traffic by 2014

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5

95+% revenue from voice

Consumption charged Internet

Voice is free

More and more for same price

Flat Internet

Faster and faster

Point to point business model

1900 1990 2011

100 years of Fixed telecoms

95+% revenue from voiceConsumption charged Internet

Voice is free

More and more for same price

Flat InternetFaster and faster

Point to point business model

30 years of Mobile telecoms

Page 6: 129 06-07-11 Ckn Wifi Europe Final

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6

Source: Agilent

1000

100

10

1

1990 1995 2000 2005 2010 2015

Gro

wth

Spectrum

Average

Macro Cell

Efficiency

Macro

Capacity

39x

Growth

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8

For Business For Consumer

Services for Business:

– Voice & Unified Communication

– Video call & VOIP Services

– VPN & IPSEC Security

– Seamless connectivity

– Corporate access & VDI / VxI

– Cloud computing

Services for Consumer:

– Video call & VOIP services

– WiFi Offloading

– Cloud computing

– Pushed banner pack

– Entertainment

– Gaming

Computing

for humansTake

anywhere

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© 2010 Cisco and/or its affiliates. All rights reserved. Cisco PublicBRKSPM-1002_C1 9

Percent of U.S. Mobile Internet Usage Taking Place in Each Location

At Home

In an Office

On the Go

2/3 of mobile usage is in the two easiest places to offload

Base: U.S. Mobile Internet users

43 minutes

33 minutes

46 minutes

EmailSearchMapsIMWeb BrowsingEntertainment

34% 35%

10%27%

56%38%

Infrequent User Everyday User

Source: Cisco IBSG, 2009

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10

• Optimization – increases network capacity and reduce 3G data traffic overload by offloading traffic with SP Wi-Fi.

• Monetization – creates new revenue streams by taking advantage of advanced technology that provides secure delivery of location-based services to mobile devices

• Churn Reduction – expand a physical footprint with a cost-effective Wi-Fi solution to keep customers on the service provider network as they move from home to the train to the office.

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11

Residential

Enterprise

3rd party Hotspot

Indoor Hotspot

Outdoor Hotspot

Biggest impact

Encourage users to configure it

Possible client

Strategically important

Linked in with wider Enterprise play

Used for Time to Market

Limited suitability for offload

Key for Macro offload in busy cells

Key for Macro offload in busy cells

Possible use for fixed broadband

Residential

Enterprise

3rd party Hotspot

Indoor Hotspot

Outdoor Hotspot

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12

• ―3G Offload‖ is ready today for :Standalone WiFi (with 3G/4G roaming)

Trusted or untrusted 3G/4G core integration

e2e architectures tried and tested

• The business case is clearSmall cells are REQUIRED for capacity

WiFi has that capacity at the right price (802.11n + Cisco CleanAir)

Device WiFi chipset penetration is at critical mass

• Why Wi-Fi ?Optimising infrastructure costs & reducing cost of delivery

Creating & monetising new business opportunities

Increasing average user experience and .. happiness

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Jim Tavares, DirectorStrategy & Business DevelopmentCisco Services

May, 2011

Service Provider Wi-Fi

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15

Metro/Hotspot Access

Residential Access

Client Centric/Un-trusted Access

Converged Subscriber

Control

AAA Captive

PortalWCS

Cloud Services, Applications, & Operations

DHCP Policy

MgmtSvcs

Reporting

Internet

Application

Partners

SMB Managed AP

Stadium / Large Venue Indoor Hotspot

Metro WiFi

Residential

Managed AP

WiFi

Controller

&

Backhaul

Cloud

TR-069

CMTS

DSL

Fiber

Own or 3rd

party

broadband

access

CUWN

WLC

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16

WiFi broadband connectivity free to all 40,000 seats

350 x 802.11N AP Deployed

3G Offload for all ATT iPhone and BB devices through transparent authentication

On-net video instant replay live during game or show

Serving 40,000 Fans

SF Giants ATT Park

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17

SSID = optimum WiFi

SSID = Xfinity (Comcast)

SSID = TWC WiFi

One AP for 3 MSOs

Cisco Aironet 1260

Wi-Fi broadband connectivity free to 3 MSOs (TWC, Comcast, Cablevision) –

More than 5M subs

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18

• People activating the service at home can connect on other residential hotspots

• Large Scale Requirements (Million of APs, Million of IP addresses)

• Security requirements for private / public traffic segregation, fraud prevention and billing

• Roaming requirement between APs

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19

• Carrier-Grade

• Unified Architecture

• Seamless Experience

• Converged Packet Core

• Intelligent & Secure Access Radio

3G/4G

Macro Site

SMB

Managed AP

Stadium / Large

Venue

WLC for

On

Premise

Content

Indoor

Hotspot

Metro WiFiIP Core

CAR/CNR

UCS

Wireless LAN

Controller (WLC)

Wireless Control

System (WCS)

Cisco

ASR 5000

IP

Backhaul

Partner

Network

Internet

MSP

Credentials

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20

Industry Proven Devices at Every LayerReliable

Hardware

Wireless LAN

ControllerRoot Access

Point

Mesh Access

PointWireless Control

System (WCS)

• Wireless Mesh

Management

System enables

network-wide

policy

configuration and

device

management\

• SNMPv3,

Syslog, IPSec,

AAA, etc

• Handles RF

algorithms and

optimization

• Seamless L3

Mobility

• Security and

Mobility control

• Image

Management

• Serves as ―Root‖

AP to the wired

network

• Typically located

on roof-tops or

towers

• Connects up to

35 Mesh APs

using 802.11a

• 802.11b/g client

access

• Connects to Root

AP via 802.11a

• AC/DC power;

PoE capable

• Ethernet port for

connecting

peripheral

devices

Service Control

• Bandwidth

Monitoring and

Management

• Policy

Definitions

• Subscriber

Database

Management

• Billing and

OSS Systems

WLC

WCS

CAR/CNR

ASR 5000

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21

Best in class RRM coupled with ―legacy beamforming‖to deliver focused power to clients.

Improves Network Throughput and Coverage

Sophisticated ―Spectrum Intelligence‖ to monitor the airwaves, detect, locate & classify interference, alert IT and automatically reconfigure the network to avoid.

Improves Network Reliability

Optimized RF utilization by moving 5 GHz capable client out of the congested 2.4 GHz channels.

Improves Network Throughput

ClientLink

CleanAir

Band

Select

Extends reliable multicast into the wireless network by converting multicast to unicast at the AP

Efficient Video over WLANVideo

Stream

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22

• Provisioning – Image download automatically

• Self-configuring, Zero-touch configuration

• Operational management through CAPWAP standard interface. WCS used for operational view and reporting.

• RF Management , RRM and Clean Air

Controller

Increased network visibility, stability and end user performance

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23

802.11

Apple

Airport

Web Auth

WISPr 1.0

WISPr 2.0

1999 2003 2010 2011

UsernamePassword

UsernamePassword

Portal PageAuto

Portal Page

UsernamePassword

EAP-SIM

AutoPortal Page 802.1x

802.11i

EAP-FASTEAP-SIMEAP-TLS

Untrusted WiFi NetworkWeb based Auth / No Encryption

Mostly Hotspot side business

Trusted WiFi Network

802.1x / 802.11i3G Offload

1997 2007

AppleiPhone

HS2.0

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24

Europe:

British Telecom (Chair)

Orange (Co-chair)

Portugal Telecom

APAC:

KT

True

Tata

Americas:

ATT

Boingo

Deutsche Telekom

Vendor:

Cisco

open

open

Board of Directors

Operators VendorsClearinghouses,

Aggregators, etc.

ATT

Aircel

British Telecom

CSL

China Mobile

Comcast

Deutsche Telekom

Du

FON

Freedom4

Gowex

KDDI

KT

IND SAT M2

Meteor Network

Aicent

Accuris

Boingo

Comfone

Connection Services

Devicescape

iPass

MACH

QuickConnect

Starhub

Syniverse

Aruba

Bel-Air

Broadhop

Cisco

Google

GreenPacket

Intel

Meru

Ruckus

Skype

NTT Communications

NTT DoCoMo

Orange

PCCW

Softbank

Tata

Telecom Italia

Telefonica

Tomizone

TTNet

True Telecom

Turk Telecom

Verizon Wireless

Vex

YTL Solutions

WBA is becoming ―GSMA of Wi-Fi‖

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25

Visited SP

3GSP name

HS 2.0

HS2.0 Roaming

SP Name

3G

Phone or MID

HS2.0 Home SP

Dynamic

Icon Bar

Web

Service

Secure, universal roaming on par with cellular Leapfrog cellular with context-aware

Context-Aware Services3G-Like Experience

SP name

HS 2.0

SP name

HS 2.0

SP name

HS 2.0

SP name

HS 2.0

802.11u

802.1xUniversal Credentials:

EAP-SIM EAP-TLS EAP-FAST

Roaming Agreements:

WRIX

802.11u

Cisco MSAP

Associated

Technologies

MSAP: Mobility Services Advertisement Protocol

Associated

Technologies

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 26

Beacon (Interworking, Roaming Consortium)

GAS-Initial-Resp (NAI Realm List)

GAS-Initial-Req (NAI Realm List)

MN AP/WLC AS

Authentication (open, status)

Authentication (open)

Mobile

decides to

associate

with WLAN

Association Response

Association Request

EAP exchange (EAPOL)

4-Way Handshake

EAP exchange (Radius)

802.11

security

association

setup

802.11u

doesn’t

change

anything

after this

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 27

• This element is in beacons and probe responses

• Network type:

One of: {private | private with guest access | chargeable | free}

STAs can selectively scan for desired network type

• Internet: set to 1 if SSID provides internet access

• ASRA (additional authentication step required): set to 1 if Web-auth/WISPR configured on this SSID

• ESR (emergency services reachable): set to 1 if emergency services are reachable on this SSID

• UESA (un-authenticated emergency services accessible): set to 1 if emergency services are accessible for terminals not having valid security credentials on this SSID

B0 - B3 B4 B5 B6 B7

Element ID LengthNetwork

TypeInternet ASRA ESR UESA

Venue Info

(optional)

HESSID

(optional)

Octets: 1 1 0 or 2 0 or 6

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 28

• Venue information: extensive table of venue groups and venue types to aid client in culling list of candidate networks

Venue Group: {Assembly, Business, Educational, Factory, Mercantile, Residential, etc.}

Venue Type:

{Assembly [Arena, Stadium, Passenger Terminal, Restaurant, Coffee Shop, Bar, etc.],

Business [Attorney’s office, Bank, Doctor’s office, R&D facility, unspecified, etc.]

Mercantile [Grocery Market, Retail store, Shopping Mall, unspecified, etc.]

etc.}

• HESSID: Globally unique network identifier—SPs can now uniquely identify each of their networks

Used in conjunction with SSID

SSID can be set by user to anything (e.g., how many ―Linksys-g‖ SSIDs are out there?)

HESSID value is assigned to be one of the MAC addresses of an AP in the network/ESS

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 29

• This element is in beacons and probe responses

• Client scans & receives beacon having this element and can quickly determine if there are any Wi-Fi networks for which it has valid security credentials

• Each SP or consortium of SPs must register with IEEE to obtain OI

• Element gives OI for top 3 SPs (or consortium of SPs) having roaming agreements with Wi-Fi access network provider; remainder available via GAS-ANQP query

• Number of GAS-ANQP OIs provides number of additional OIs which will be returned on a GAS-ANQP query (see subsequent slide)

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 31Cisco Confidential 31Cisco Confidential 31© 2010 Cisco and/or its affiliates. All rights reserved.

Access Offload and Convergent Access Network Strategy

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 32

Residential

(Private SSID)

Radio

Access

Network

Metro

Aggregation

Network

SGSN GGSN

HLR/

HSS

Mobile

Packet Core

User selects private SSID and associates with the Wi-Fi access

Authentication is done at WLAN access level (WEP, WPA…)

Direct Traffic Offload, Mobile operator is loosing control over the

offloaded traffic

Cellular

Network

Walled Garden

Internet

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 33

Radio

Access

Network

Metro

Aggregation

Network

SGSN

HLR/

HSS

User selects eligible SSID and associates with Wi-Fi

Authentication is done via a EAP (e.g. EAP-SIM/AKA) at the access

network level

Requires centralized address management and high end scaling of

the residential gateway aggregation (SP-WIFI architecture)

Optionally, operator may enforce some policies (QoS, DPI, etc.) and

allow walled garden access

Residential

(802.1x SSID)

Public Hotspot

(802.1x SSID)

Cellular

NetworkGGSN

Mobile

Packet CoreWalled Garden

Internet

ISG

AAA/PCRF

RADIUS

MAP

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 34

Residential

(private or open

SSID)

Public Hotspot

(private or open

SSID)

Radio

Access

Network

Metro

Aggregation

Network

SGSN GGSN

(PGW)

HLR/

HSS

Mobile

Packet Core

User selects open SSID and associates with Wi-Fi

Authentication is done via a EAP-SIM/AKA over IKEv2

User device establishes IPSec TTG, PDG or ePDG

GTP or PMIPv6 provide network based mobility

GGSN/PDG/PGW provides access to mobile Internet services &

enforces policies

IPSEC

Walled Garden

Internet

TTG

(ePDG)

AAA/PCRF

RADIUS

DIAMETER

MAPGTP

(PMIPv6)

Cellular

Network

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 35

• Overlay Models

Session Anchoring in Mobile Packet Core

Fixed Broadband BNG not involved (from session mngmt perspective)

Models :

- Client Centric : IWLAN, S2b, S2c with TTG/PDG/ePDG/PGW in MPC

- Network Centric : S2a with MAG in Residential Gateway

• Cooperative Models

Session Anchoring in Mobile Packet Core

Fixed Broadband BNG involved as first hop device

Leverage Cisco Adaptive Intelligent Routing (AIR)

Models :

- Client Centric : S2b, S2c with ePDG/LMA on BNG – Edge Gway

- Network Centric : S2a with MAG on BNG

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 36

BNG performs Mobile Access Gateway function and interworks with PGW (with PMIP) or GGSN (with GTP) through S2a intf.

BNG provides L2, IPSEC or PMIP connectivity on customer side to aggregate Residential Gateway Open-WiFi service

In that case BNG performs a MAG function as defined at IETF netlmn

IP Aggregation

And CoreMobile Packet

Core

Wifi RG

Wifi Zone

Internet

And

Walled GardenPGW

AAA / BCRF AAA / PCRF

BNG

MAG

PMIPv6/S2a

Collaborative Model

Trusted Access – S2a

GGSN

GTP/S2a

L2

PMIPv6

Interworking

IPSEC

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 37

IP Aggregation

And CoreMobile Packet

Core

Wifi RG

Wifi Zone

Internet

And

Walled GardenPGW

AAA / BCRF AAA / PCRF

BNG

TTG-ePDG

PMIPv6

Collaborative Model

Untrusted Access – S2b

GGSN

GTP

Interworking

IPSEC / IKEv2

BNG performs Mobile Access Gateway function and interworks with PGW (with PMIP) or GGSN (with GTP)

BNG provides IPSEC / IKEv2 connectivity on customer side to aggregate end users

In that case BNG performs TTG or ePDG functions as defined at 3GPP

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 38

IP Aggregation

And CoreMobile Packet

Core

Wifi RG

Wifi Zone

Internet

And

Walled GardenPDG/ePDG

PGW

AAA / BCRF AAA / PCRF

BNG/CMTS

Overlay Tunnel

(PMIP)

Overlay Model

Overlay Tunnel

(IPSEC)

Residential Gateway or End User device interwork with Mobile Packet Core without any assistance from the fixed network except IP connectivity

RG based model : Residential Gateway setup a PMIPv6 tunnel towards the PGW/ePDG

Client centric based model : UE setup an IPSEC/IKEv2 tunnel towards the PDG/ePDG

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 40

IP Aggregation

And CoreMobile Packet

Core

Wifi RG

Wifi Zone

Internet

And

Walled GardenGGSN/PGW

AAA / BCRF AAA / PCRF

BNG

Traffic Tromboning to Mobile

Packet Core

Traffic

IP Aggregation

And CoreMobile Packet

Core

Wifi RG

Wifi Zone

Walled

Garden

GGSN/PGW

AAA / BCRF AAA / PCRF

BNG

Local Breakout to the Internet

Traffic

Internet

Local Breakout

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 41

• The select rules for offload/upload traffic can be scoped at different levels. However, in practical terms only few options make sense and can be supported

Filter Scope

Destination Prefix Operator value added services

IP Flow Tuple src/dst address, src/dest port

Application Granularity Application identifiers (Dest Port or IP Address)

Access Network Identifiers SSID

APN (PDN Identifier) With single APN support for WLAN access, not

an option for IPv4

Location MAG IP Address

{ Except-Offload-All Rule } The approach of VPN Split Tunneling

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Cisco Confidential 42© 2010 Cisco and/or its affiliates. All rights reserved.

• The offload policy is applied on the input interface of the MAGinterface, facing the access network.

• The output interface for each IP flow from the mobile node, if its towards internet or packet core is based on the policy

• Initially use of NAT for IPv4 is necessary, use of multiple prefixes and IP source address selection needed for IPv6

InternetPacket

Core

MAG

Interface-1

Offload policy Enforced

on input interfaces

Flow Selector Input

Interface

Output

Interface

F1 VLAN-0 Tunnel-0

F2 VLAN-1 Interface-1

Tunnel-0

Access

VLAN-0 VLAN-1 (802.1q)

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 43

IP Aggregation

And CoreMobile Packet

Core

Wifi RG

Wifi Zone

Internet

And

Walled GardenGGSN/PGW

AAA AAA / HLR

BNG/CMTS

Interworking Tunnel

(PMIP)

IP Aggregation

And CoreMobile Packet

Core

Wifi RG

Wifi Zone

Internet

And

Walled GardenPDG/ePDG

PGW

AAA / BCRF AAA / HLR

BNG/CMTS

Overlay Tunnel

(IPSEC)

Wi-Fi Access Authentication

IKEv2 Mobile Packet Core

Authentication

EAP/RADIUS

EAPOL

EAP/IKEv2EAP/RADIUS

802.11i

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 44

Mobile Packet

Core

PGW

Network Based Mobility

Tunnel (IPSEC, MIP)Home IP

Address (constant)

Content /

Application

Visited IP

Address (changing)

Mobile Packet

Core

PGW

Application Based Mobility

Visited IP

Address (changing)

Content /

Application

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Cisco Confidential 46© 2010 Cisco and/or its affiliates. All rights reserved.

PDN Gateway

(HA/LMA)

Mobile Packet Core

Macro

Netw

ork

IPsec Gateway

(ePDG)

WCS

802.11 AP

802.11 AP

Mobile Packet Core

PMIPv6 (3GPP S2/b)

HO

TS

PO

T

ST

AD

IUM

RE

SID

EN

TIA

L

UN

-TR

US

TE

D

WIT

H IP

SE

C

(I-W

LA

N)

UN

-TR

US

TE

D

WIT

H C

LIE

NT

(DS

MIP

6)

PMIPv6 (3GPP S2/a)

DSMIPv6 (3GPP S2/c)

IPSec Access

Residential

CPE

Mo

bile

Pa

cke

t C

ore

MA

CR

O A

CC

ES

S

PMIPv6 (3GPP S2/a)

PMIPv6 (3GPP S2/b)

DSMIPv6 (3GPP S2/c)

Macro Cell

Access

DSL

Cable

Unique

Session

Management

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Cisco Confidential 47© 2010 Cisco and/or its affiliates. All rights reserved.

PDN Gateway

(HA/LMA)

Mobile Packet Core

Macro

Netw

ork

IPsec Gateway

(ePDG)

WCS

802.11 AP

802.11 AP

Mobile Packet Core

HO

TS

PO

T

ST

AD

IUM

RE

SID

EN

TIA

L

UN

-TR

US

TE

D

WIT

H IP

SE

C

(I-W

LA

N)

UN

-TR

US

TE

D

WIT

H C

LIE

NT

(DS

MIP

6)

PMIPv6 (3GPP S2/a)

IPSec Access

Residential

CPE

Mo

bile

Pa

cke

t C

ore

MA

CR

O A

CC

ES

S

PMIPv6 (3GPP S2/a)

PMIPv6 (3GPP S2/b)

DSMIPv6 (3GPP S2/c)

Macro Cell

Access

Home

Session

Management

Visited

Session

Management

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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 48Cisco Confidential 48Cisco Confidential 48© 2010 Cisco and/or its affiliates. All rights reserved.

Client Strategies

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Cisco Confidential 49© 2010 Cisco and/or its affiliates. All rights reserved.

Interfaces

Sate

llit

e

WiF

i IP

3G

IP

CD

MA

IP

WiM

AX

IP

Sa

tell

ite

IP

Eth

ern

et IP

Eth

ern

et

CD

MA

WiM

AX

WiF

i

3G

Base Client

Satellite

Ethernet

CDMA

WiMAX

WiFi

3GEvent Logic / Connection Policies Rules / PRE

HS 2.0

Lo

ca

l C

on

ne

ctio

n P

rofile

sId

en

titie

s

User/pwd

Dynamic

SIM

Certs

OS CM

API

Native CM GUI

OS

Power

API

Client

Provisioning

ANDSF

&

HS2.0

OS

Location

API

OS APIs

WISPR

QOS Network

MonitoringLogging

Applications

DB

DB

Native Interfaces

OS EAP

API

Page 50: 129 06-07-11 Ckn Wifi Europe Final

Cisco Confidential 50© 2010 Cisco and/or its affiliates. All rights reserved.

Interfaces

Sate

llit

e

WiF

i IP

3G

IP

CD

MA

IP

WiM

AX

IP

Sa

tell

ite

IP

Eth

ern

et IP

Eth

ern

et

CD

MA

WiM

AX

WiF

i

3G

Satellite

Ethernet

CDMA

WiMAX

WiFi

3G Event Logic / Connection Policies Rules / PRE

Lo

ca

l C

on

ne

ctio

n P

rofile

sId

en

titie

s

User/pwd

Dynamic

SIM

Certs

OS CM

API

Native CM GUI

OS

Power

API

Client

Provision

ing

ANDS

F/HS2.

0

OS

Location

API

OS APIs

CiscoWISPR

QOS Network

Monitoring

Logging

Applications

DB

DB

Native Interfaces

OS EAP

API

Virtual Interface

Cisco Generic Interceptor /

Virtual Adapter– VPN / Mobile IP / PMIP / LISP

HS2.0

Routing Policies

VPN Logic

I-WLAN

Logic

MIP

Logic

OS PC/SC API

SIM Access

OS OMA-

DM API

OS MDM

API

Other GUI

VPN

Other GUI

I-WLAN

CDP

LLDP

RSVP

DRM

WEBEX

Video Client

CSF

SCTP

IMS

Voice

ScanSafe

LISP

Logic

Page 51: 129 06-07-11 Ckn Wifi Europe Final

Jim Tavares, DirectorStrategy & Business DevelopmentCisco Services

May, 2011

Femto and Wi-Fi Offload Models

Page 52: 129 06-07-11 Ckn Wifi Europe Final

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 52

• Networks are (and have always been) sized for the busy hour

• Video has driven the busy hour into the evening (when subscribers are home)

• This movement allows femto & wifi small cells to directly offload macro network costs in the busy hour

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0 2 4 6 8 10 12 14 16 18 20 22

Load

Load

Hour

Page 53: 129 06-07-11 Ckn Wifi Europe Final

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 53

Macro Network

A very expensive asset from a capex and opexperspective, but…

It is fully utilized in the busy hour

Femto & WiFi Small Cells

A very inexpensive asset from a capex and opexperspective, but…

it may only be partially utilized in the busy hour

Macro Cost ($/Mbps) Femto & Wi-Fi Cost ($/Mbps)

Opex & Capex

Max Theoretical Busy Hour Capacity

Opex & Capex

Actual Busy Hour Usage

Page 54: 129 06-07-11 Ckn Wifi Europe Final

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 54

Macro is a ―pay as you go‖ model

$

Busy Hour Mbps

$/GB

Gigabytes per month

Femto and Wi-Fi are ―all you can eat‖ models

$

Busy Hour Mbps

$/GB

Gigabytes per month

Page 55: 129 06-07-11 Ckn Wifi Europe Final

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 55

Three cost models each for Femto/Wi-Fi radios

Carrier Purchased (multi-year amortization)

Carrier Purchased (immediately expensed)

Subscriber Purchased

Two architectural models each for Femto/Wi-Fi radios

Optimized

Un-optimized

Three models for Macro*

One Carrier

Two Carrier

Three Carrier

* We modeled the Macro at 100% busy hour utilization, which in truth is rarely seen

Page 56: 129 06-07-11 Ckn Wifi Europe Final

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 56

$/Month

0

5

10

15

20

25

30

Bronze User (300MB/month) Silver User (1.5GB/month) Gold User (5 GB/month)

Mo

nth

ly C

ost

($)

Macro 1 Carrier

Macro 2 Carrier

Macro 3 Carrier

Femto/WiFi 1 year depreciation

Femto/WiFi 3 year depreciation

Femto/WiFi subscriber purchase

Page 57: 129 06-07-11 Ckn Wifi Europe Final

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 57

• Macrocells and Small Cells have very different cost models

• Macro is ―pay as you go‖

• Small cells are ―all you can eat‖

• $1.5 GB per month in subscriber useis the common cost crossover point for small cells and macro cells

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 57

Page 58: 129 06-07-11 Ckn Wifi Europe Final

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 58

• ―3G Offload‖ is ready today for :Standalone WiFi (with 3G/4G roaming)

Trusted or untrusted 3G/4G core integration

e2e architectures tried and tested

• The business case is clearSmall cells are REQUIRED for capacity

WiFi has that capacity at the right price (802.11n + Cisco CleanAir)

Device WiFi chipset penetration is at critical mass

• Why Wi-Fi ?Optimising infrastructure costs & reducing cost of delivery

Creating & monetising new business opportunities

Increasing average user experience and .. happiness

Page 59: 129 06-07-11 Ckn Wifi Europe Final

Thank you.