Project Navigator:Harnessing the Quest for Viral WiFi: Project Navigator: Harnessing the Quest for Viral WiFi Spring 2003


Project Navigator: Project Navigator Project Navigator will be an easy to use software application that will enable users to share, manage and securely control their high speed WiFi wireless networks. The application will aggregate shared WiFi Networks into a widespread community of Navigator users and access points. Project Navigator users will be able to utilize shared wireless networks wherever other willing Project Navigator users reside.


WiFi Overview: WiFi Overview First mainstream wireless networking technology Based on 802.11 IEEE standard for wireless LANs Various specifications B – operates up 11 Mbps in the 2.4 GHz spectrum A – operates up to 54 Mbps in the 5 GHz spectrum G – operates up to 54 Mbps in the 5 GHz spectrum; backward compatibility with the B specification Operates as extension to standard Ethernet networks


WiFi Overview: WiFi Overview Roaming Enabled by opening public Wireless or WiFi Access Point (“WAP” or “Hotspot”) Any 802.11 NIC and WAP can interoperate Cross-network authentication impossible without third party authentication Weak and difficult security makes open (roam-able) WAPs either open or closed


WiFi Ecosystem: WiFi Ecosystem Internet Service Provider Laptops Apple Sony HP IBM Toshiba Dell PDAs Palm HP Sony Toshiba Dell WiFi Network Equipment Enterprise Cisco Lucent HP Consumer Linksys Netgear Dlink HP ISP Enterprise Telcos Worldcom Level 3 Consumer DSL RBOCs Earthlink Cable Comcast Time Warner Cox Inside the Home or Workplace Wireless Internet Service Provider Outside Work or Home Infrastructure WISPs Cometa Wayport T-Mobile Surf and Sip Aggregators/ Resellers Boingo Joltage Sputnik


WiFi Overview: WiFi Overview Market – Large and Quickly Growing 20-30% of laptop users have adopted WiFi Estimated 3,600 public WiFi Hotspots today. 1.2 million active WiFi users in the US currently Growing quickly 30% growth in users Top 5 most popular electronic products at Amazon.com are WiFi network gear WiFi equipment sales topped $2B in 2002 growing to over $6B by 2007.


WiFi Device Adoption: WiFi Device Adoption Source: Gartner Group WiFi crosses mainstream market penetration threshold in 2003 for Laptops 20% Mainstream Threshold


Commercial WiFi Service Market: Commercial WiFi Service Market Commercial WiFi Service Market is projected to grow substantially despite limited commercial location penetration Projected 21 million subscribers in 2007 40,000+ Public WAP Hotspots (out of potential 800,000 restuarants, 100,000 hotels, and other publics places)


WiFi Demographics: WiFi Demographics Laptops are currently Primary Access Device PDAs will grow considerably 40% of businesses with 500 PCs or more have deployed WiFi 71% of business will have deployed within 18 months. 70% of deployments will be made available to entire workgroups or organizations 3% of all Homes have WiFi 20% of Broadband Enabled Homes 14% of Homes famaliar with WiFi plan on acquiring WiFi in the next 12 months Source – Taylor Nelson Sofres Intersearch


WiFi Use Drivers and Barriers for Businesses: WiFi Use Drivers and Barriers for Businesses Drivers Standards based Easy to deploy Cheap especially compared to wiring business or home with Cat5 wiring Enhanced computing environment and productivity Flexibility Cons Security Difficult to manage Source – Taylor Nelson Sofres Intersearch


WiFi Use Drivers and Barriers for End Users: WiFi Use Drivers and Barriers for End Users Drivers Cheap Widely supported by computer OEMs and OS developers Easy to install Open standard Popular Source – ???


WiFi Consumer Drivers: WiFi Consumer Drivers Source – Taylor Nelson Sofres Intersearch


Consumer WiFi Problems Today: Consumer WiFi Problems Today Security Limited options today require high techinical capabilities Network Administration Proprietary extensions on 802.11 standards by various WiFi Hardware OEMs Limited Roaming Coverage High Price for Roaming Limited Providers Especially limited geography Silo or Island effect – need accounts with multiple providers for best coverage Source – ???


Competitive Landscape: Competitive Landscape WISPs Infrastructure – Own Public Hotspots (Publically accessible WAPs) Aggregator/Resellers – Resellers of Infrastructure WISPs to roaming subscribers Broadband ISPs Currently consumers are not licensed to resell or share their broadband DSL or Cable Internet service Cellular High speed data services not on the near term horizon with delayed 3G buildouts Free “community” WiFi networks (Warchalking) Public utiliy model - local government owned and operated free systems proposed in locales like Long Beach, CA Free user based networks in San Francisco, Seattle, and New York Limited security, coverage and support Network Management Application Providers Market is currently enterprise oriented


Commercial Wireless ISPs (WISPs): Commercial Wireless ISPs (WISPs) Two primary models – infrastructure or virtual Infrastructure WISPs build out publicly accessible WiFi networks (aka Hotspots) Buildouts with high fixed cost per location $50,000 per airport or hotel $5,000 - $7,000 per retaurant or single room facility Limited to subscribers who can access network Uncertain ROI timeframe Virtual Bundle multiple infrastructure WISPs to create larger network Manage customer acquisition, authentication, support and billing Use client and backend software to aggregate physical WISP hotspots Applications are targeted at commercial users


WISPs: WISPs


WISPs: WISPs


WISPs: WISPs


Community-Free WISPs orWarchalkers: Community-Free WISPs or Warchalkers Public works model – local government organization builds out WiFi network for public use in downtown or other high density areas Warchalkers Individuals or businesses who are willing to share their private WAP with others Refers to chalk mark on side walks that signify open WAP available at this location Grass roots organizations emerging to organize Warchalkers Groups in San Francisco, New York and Seattle Promote available locations Demonstrates interest in low cost means of sharing WiFi access amongst the general public


Competitive Landscape: Competitive Landscape Boingo Price Reliability Navigator Wayport T-Mobile Boingo Price Coverage Navigator Wayport T-Mobile Boingo Reliability Coverage Navigator Wayport T-Mobile Boingo Infrastructure Virtual Navigator Wayport T-Mobile Sputnik Boingo Enterprise Consumer Navigator Wayport T-Mobile Sputnik Warchalker Warchalker Warchalker Warchalker Warchalker


Aggregating End Users to Share WiFi: Aggregating End Users to Share WiFi Current aggregation software difficult to use and requires additional hardware Not a simple add-on to typical end user environment (device/WAP/Router/Broadband Modem) Requires technical networking know-how Always on computer attached to network Users and groups can not establish independent rules Free vs Sometimes Free vs Charge Friends & Family vs. Strangers Broadband ISP Cooperation Current applications do not verify broadband connection for end users Current solutions promote freeloaders Broadband ISPs need to have interest in selling more subscriptions protected


Navigator Solution : Navigator Solution Software application that resides on end user devices and WAPs and enables easy to use, low cost network management and sharing without additional hardware requirements.


Slide23: WiFi Share App WiFi Share App WiFi Share App Broadband Provider Broadband Provider Broadband Provider Internet WiFi Share App Authen- tication Network Admin Billing Security Regulation Navigator Networks WiFi User/ Device WiFi Share App WiFi User/ Device WiFi Share App


Navigator Requirements: Navigator Requirements No new hardware Works with no PC attached to the network Software only Multiple Rule Scenarios (Share, Charge, Manage, etc) Local Network Management (Authentication, Regulation, & Security)


Navigator Business Model: Navigator Business Model Distribute Software for Free Low cost provider of WiFi Roaming Restrict Sharing to those who have broadband ISPs Partner with Broadband ISP Charge for Services Network Management for Businesses Roaming Fees Revenue Share


Navigator Value Proposition: Overall: Navigator Value Proposition: Overall Managed Large scale trusted community of wireless users Easy to use personal wireless network management tools for security, sharing and configuration.


Navigator Value Proposition: Consumers: Navigator Value Proposition: Consumers Inexpensive WiFi Sharing & Roaming Easy to use personal wireless network management tools for security, sharing and configuration


Navigator Value Proposition: Small Businesses (Third Places): Navigator Value Proposition: Small Businesses (Third Places) Cost control Easy to use, outsourced solution for managing costumers/users Access regulation Potential revenue generation


Navigator Value Proposition: Broadband ISPs: Reduce Freeloading Increase subscriber sales Regulate sharing and potential for increase incremental revenue per subscriber Additional revenue without increased network utilization Makes home network management easier Reduced customer support through easy to use network management software from Project Navigator Navigator Value Proposition: Broadband ISPs


Navigator Value Proposition: WiFi Hardware OEMs: Sell More Units – increased end user benefits Reduced Firmware Development expenses with third party Project Navigator Firmware Co-Development on future products Navigator Value Proposition: WiFi Hardware OEMs


Navigator Business Model: Provide free software application Monthly subscription fees for upsell services WiFi Roaming Enhanced Network Management Features Private user clubs (small business customer lists) Navigator Business Model


Navigator Business Model: WiFi Roaming Free for early adopters until critical mass of affiliated WAPs provides effective network coverage Charge low monthly fee $4.95 up sell to existing broadband ISP monthly subscription fee Revenue share – split 50/50 with broadband ISP Navigator Business Model


Navigator Business Model: WiFi Roaming Critical Mass The notion of needing enough affiliated WAPs with enabled sharing in an area to provide effective roaming coverage Number of affiliated WAPs required Assuming 100ft coverage radius per WAP Assuming population density of x Need x per major metropolitan area Navigator Business Model


Navigator Competitive Positioning: Low cost WISP Network effect switching costs Broadband ISP relationships WAP software Economics of Scaling The more you pay to buildout WAPs, the more expensive your network is and the lower your ROI Navigator Competitive Positioning


Competitive Buildout Costs: Competitive Buildout Costs Assumes $10 per WAP Assumes $5,000 per WAP


Navigator Financial Model: Navigator Financial Model


Navigator User Potential: Navigator User Potential


Navigator Use Case: Navigator Use Case End User Roaming Sharing WiFi network with trusted community Friends and Family Gaming Preferred Member Club Coffee shops Clubs or other organizations


Navigator Use Case:End Users: Navigator Use Case: End Users Automated Network Configuration Setup WiFi Network for regulation, security and sharing Solves the problem of the default open to the world configuration of WiFi networks Sharing Allow the network to be used by a defined community of known users Allow the network to be shared by other broadband connected WiFi networks Solves the problem of open vs shared (commons problem) Roaming Use wireless connectivity outside the home Leverages existing infrastructure for low cost solution


Startup Requirements: Startup Requirements Staff Management 1-2 founders Network Engineers 1-2 Software Developers 3-5 Facilities Office Development Computers/ Test Environment Colocation Authentication/Registration/Network Management Software


Funding Requirements: Funding Requirements Phase 1 (12 to 18 months) Milestones Proof of Concept – 90 days Alpha Service – 120 days Beta Service/Application – 6 months Recruitment of critical mass of users – 12 months Phase 2 (1.5 to 3 years) Milestones Profitability Largest network of users and WAPs


Critical Path Issues: Critical Path Issues Broadband ISP Relationships WiFi Equipment OEM Relationships Multi OEM Device Compatibility WAP interference management Development Team Sr. Development Manager Firmware Developer