Friday, November 12, 2010

Note: This proposal has been submitted already, but I'm posting this to my blog in case someone needs this. Ideas become useful when they are shared to everyone.

A Profitable Method of Accelerating WiMAX Adoption via Revenue Sharing


Idea
Enable customers to easily create hotspots that would resell YTL's bandwidth via WiFi.

When WiMAX is rolled out, most mobile devices won't be able to connect to WiMAX since they only have WiFi support. These devices will need to connect to a WiFi hotspot before they can connect to YTL's WiMAX network. The need to connect to WiFi can be utilized as another business opportunity.

WiMAX and WiFi are different technologies. As an analogy, WiMAX is to WiFi as a mobile phone is to a cordless phone. WiMAX is used for providing coverage to a wide area, while WiFi is used (though not always) for providing coverage to a small area only. Both technologies require different hardware.


How it Works
YTL will provide each WiMAX customer with a CPE (Customer Premise Equipment). This CPE will have both WiMAX and WiFi capabilities.

At the customer's option, the CPE can resell his WiFi connection to clients within his neighborhood. However, before the clients can connect, they must first log in to the CPE's portal. The clients will need to purchase access via prepaid top-up or via online payment.

The clients will have a choice of various bandwidth plans, which will be managed by the CPE's traffic shaper. This will ensure quality of service to the clients.

Profits earned from these clients will then be shared to the original WiMAX customer, creating a mutually beneficial situation.

This method is profitable to YTL because profits earned from the clients will be added on top of the normal profits earned from the WiMAX customer. In a worst case scenario, zero profits from clients will not affect YTL at all.


(see attached diagram for the proposed architecture or download it from http://goo.gl/zaCim)


Examples of Target Clients
  1. Tourists visiting tourist sites, hotels, and airports.
  2. Customers inside coffee shops and restaurants.
  3. Customers inside malls and other commercial establishments.
  4. Students inside schools and dormitories.

Advantages
  1. It attracts more customers without sacrificing quality and profits.
  2. It accelerates WiMAX adoption.
  3. It extends YTL's reach. It covers WiMAX dead spots inside buildings.

2 comments:

poeticnook said...

the issue with this is your connection speed is dependent on your country's infrastructure. so if i'm in new york trying to see my friend's page in cebu, it would be really slow - so connecting with people in countries with slow net speed would be a pain.

simoncpu said...

Hi poeticnook,

Thanks for visiting my blog. I've addressed this issue with a web cache. Visitors need not connect to the mobile phone all the time. :)

[ simon.cpu ]