Tag Archives: Wi-Fi

Do You Understand Your Chokepoints?

Almost every network has chokepoints. A chokepoint is some place in the network that restricts data flow and that degrades the performance of the network beyond the chokepoint. In today’s environment where everybody is trying to coax more speed out of their network these chokepoints are becoming more obvious. Let me look at the chokepoints throughout the network, starting at the customer premise.

Many don’t think of the premise as a chokepoint, but if you are trying to deliver a large amount of data, then the wiring and other infrastructure at the location will be a chokepoint. We are always hearing today about gigabit networks, but there are actually very few wiring schemes available that will deliver a gigabit of data for more than a very short distance. Even category 5 and 6 cabling is only good for short runs at that speed. There is no WiFi on the market today that can operate at a gigabit. And technologies like HPNA and MOCA are not fast enough to carry a gigabit.

But the premise wiring and customer electronics can create a choke point even at slower speeds. It is a very difficult challenge to bring speeds of 100 Mbps to large premises like schools and hospitals. One can deliver fast data to the premise, but once the data is put onto wires of any kind the performance decays with distance, and generally a lot faster than you would think. I look at the recent federal announced goal of bringing a gigabit to every school in the country and I wonder how they plan to move that gigabit around the school. The answer mostly is that with today’s wiring and electronics, they won’t. They will be able to deliver a decent percentage of the gigabit to classrooms, but the chokepoint of wiring is going to eat up a lot of the bandwidth.

The next chokepoint in a network for most technologies is neighborhood nodes. Cable TV HFC networks, fiber PON networks, cellular data networks and DSL networks all rely on creating neighborhood nodes of some kind, a node being the place where the network hands off the data signal to the last mile. And these nodes are often chokepoints in the network due to what is called oversubscription. In the ideal network there would be enough bandwidth delivered so that every customer could use all of the bandwidth they have been delivered simultaneously. But very few network operators want to build that network because of the cost, and so carriers oversell bandwidth to customers.

Oversubscription is the process of bringing the same bandwidth to multiple customers since we know statistically that only a few customers in a given node will be making heavy use of that data at the same time. Effectively a network owner can sell the same bandwidth to multiple customers knowing that the vast majority of the time it will be available to whoever wants to use it.

We are all familiar with the chokepoints that occur in oversubscribed networks. Cable modem networks have been infamous for years for bogging down each evening when everybody uses the network at the same time. And we are also aware of how cell phone and other networks get clogged and unavailable in times of emergencies. These are all due to the chokepoints caused by oversubscription at the node. Oversubscription is not a bad thing when done well, but many networks end up, through success, with more customers per node than they had originally designed for.

The next chokepoint in many networks is the backbone fiber electronics that delivers bandwidth to from the hub to the nodes. Data bandwidth has grown at a very rapid pace over the last decade and it is not unusual to find backbone data feeds where today’s data usage exceeds the original design parameters. Upgrading the electronics is often costly because in some network you have to replace the electronics to all nodes in order to fix the ones that are full.

Another chokepoint in the network can be hub electronics. It’s possible to have routers and data switches that are unable to smoothly handle all of the data flow and routing needs at the peak times.

Finally, there can be a chokepoint in the data pipe that leaves a network and connects to the Internet. It is not unusual to find Internet pipes that hit capacity at peak usage times of the day which then slows down data usage for everybody on the network.

I have seen networks that have almost all of these chokepoints and I’ve seen other networks that have almost no chokepoints. Keeping a network ahead of the constantly growing demand for data usage is not cheap. But network operators have to realize that customers recognize when they are getting shortchanged and they don’t like it. The customer who wants to download a movie at 8:00 PM doesn’t care why your network is going slow because they believe they have paid you for the right to get that movie when they want it.

Home Automation as a Carrier Product

Savant Home Automation Control Media Room

Savant Home Automation Control Media Room (Photo credit: Gramophone Maryland)

As a gadget guy I am interested in home automation. I stayed in the Hyatt in the Dallas airport last year which has automated rooms. I spent a great hour playing with the blinds, lighting and temperature from my bed. For a gadget nut this hotel gained a wow.

And a lot of people are interested in automating their homes to some degree. The problem they run into is that once they start investigating home automation they find a ton of different devices on the market, almost all from brands that they never heard of. And so they have no idea how to get started.

And this is why there is a product for carriers. As you probably know from reading this blog, I think that if you are a full-service provider that you need to take every opportunity to get into your customer’s homes. Meeting and talking with your customers benefits you in many ways. First, every time you meet them is an opportunity to upsell them. Second, they are able to put a face with your company so that you are not just another person they send monthly checks to. And this leads to loyalty from customers and less churn.

I have one client who has already seen the wisdom of installing home automation systems. He did his research and he picked a platform that is able to handle a number of devices and that looks expandable into the future. But this is the early days of home automation and he is not wedded to that system and he will consider a better one of it comes along.

And here is how he sells it. He will sell the equipment directly to a customer, but he would prefer that they lease it over time by signing a term contract. He makes more money on the lease and customers find it easier to pay over time. He then charges a fee to install the system to cover his technician’s time. Finally, he offers a monthly fee that will cover the labor cost of adding additional devices onto the system later. This fees basically lets the customer pay you to have you come and sell them more hardware in the future.

So what does he automate? There are a few obvious things. You connect this to the thermostat so that customers can easily change the temperature by time of day for comfort and to save money. And there is the old standby of putting light switches on the system so that they can be set to turn on and off when you wish.

But with a good home automation you can also tie in to security systems, irrigation systems, audio-visual systems, and a host of other devices like alarm clocks, smart door locks, blinds, coffee pots, you name it. With the advent of the Internet of Things, more and more devices in your house are going to have a WiFi or bluetooth interface.

A home automation system can save customers money. For instance, along with controlling the thermostat a customer can tie the system into smart blinds. The blinds can raise and lower at pre-set times to welcome the day, but more importantly to save energy by selectively blocking or letting in the sun depending upon the time of day and time of year.

You can also use motion detectors in the system so that a room responds when you enter by turning on the lights and playing your streaming Frank Sinatra. The number of options for a customer is almost unlimited and this is what homeowners find intriguing but also what they find daunting.  There are a ton of home automation systems on the market that will easily do stuff like automate the lights. But it takes programming to do the more complicated (and fun!) stuff. It’s a little more complicated if you want your house to remind you that tomorrow is your anniversary.

And the systems can all be accessed from the customer’s smart phone. The beauty of this is that you can also pre-set alarms. For instance, a customer can have the house tell them if the temperature goes warmer or colder than the pre-set temperature range. They can have the house send them a text every time somebody comes to the front door. They can check in to see that the pets or the kids aren’t killing each other just yet.

Not all home automation is serious. There are silly devices available that can be tied into these systems. Just last week I saw an egg tray that will tell you how many eggs you have left in the fridge. Doesn’t make sense to me, but if a customer wants that, then let’s make it work!

New and Better WiFi

Wi-Fi Signal logo

Wi-Fi Signal logo (Photo credit: Wikipedia)

There are two new standards for WiFi that will be hitting the market in the next few years. The standards are 802.11ac and 802.11ad. The two new standards use different spectrum with 802.11ac at 5 GHz and 802.11ad at 60 GHz. Both new Wifi standards will be able to deliver up to 7 gigabits per second, compared to today’s WiFi that tops out at 600 megabits per second.

Looking at basic spectrum characteristics there are four major differences in the way these two standards will use the spectrum:  bandwidth available, propagation characteristics, antenna size and interference.

The maximum data speed that can be delivered by any radio spectrum is limited by the amount of spectrum used and the signal-to-noise ratio. This limit is defined by the Shannon-Hartley Theorem. The 802.11ac at 5 GHz can use about 0.55 GHz of spectrum. The 802.11ad at 60 GHz can use up to 7 GHz. 802.11ac has channels that are 160 MHz wide while 802.11 will have channels that are 2,160 MHz wide. But the channels in 802.11ac can be bonded which will allow it to deliver almost as much bandwidth as 802.11ad.

802.11ac will use the same 5 GHz spectrum that is used by today’s Wifi and will have similar propagation characteristics. But the 802.11ad spectrum at 60 GHz will not travel through bricks, wood or paint and thus this technology will be most useful as an in-room technology.

For these spectrums to achieve full potential they need to be able to transmit multiple signals, meaning that they need multiple antennas. Antenna size is proportional to the wavelength being transmitted. A 5 GHz antenna has to be about an inch long and spaced at least an inch apart to be effective. But 60 GHz antennae only need to be 1/10 inch long and apart. This is going to make it easier to put 802.11ad into handsets or into any small device.

Finally is the issue of interference. There is already a lot of usage in the 5 GHz band today. In addition to being used for WiFi the spectrum is used for weather Doppler radar. There are also a few other channels in the band that have been allowed for other uses. And so 802.11ac will have to work around the other uses in the spectrum. The 60 GHz spectrum range is mostly bare today, and since this will go such short distances there should be very few cases of interference. However, multiple 801.11d devices in the same room will interfere with each other to some extent.

The 80211.ac standard is pretty much set but won’t be fully certified until 2014. However, there are already devices being shipped that include some of the features of the standard. For example, it’s included in the Samsung Galaxy S4 and MacBooks. But today’s version uses beamforming to send the signal to one device at a time. Beamforming means that the signal is sent to one device from each separate antenna in an array, but at slightly different times.

Still to come is the best feature of 80211.ac, which is to support separate sessions with different devices, different priorities and different power needs. This feature is called multi-user MIMO and it will revolutionize the way that WiFi is used. For example, you will be able to make a WiFi voice call while simultaneously downloading a video from another device. Your WiFi chip will determine the location of each device you will be talking to and will initiate a prioritized session with each. In this example it can give priority to the voice call.

The fully deployed 80211.ac will be the first generation wireless that is getting ready for the Internet of Things. It will be able to communicate with multiple devices in the environment at the same time. It will turn smartphones and tablets into workhorses able to gather data from sensors in the environment.

802.11ad is going to be far more limited due to its inability to pass through barriers. The most likely use for the spectrum will be to create very high-speed wireless data paths between devices, such as connecting a PC or laptop to a wireless network. It should be able to achieve speeds approaching 7 Gbps with only one device and one path in play.

One would expect by 2016 or 2017 for devices using these two technologies will become widespread. Certain in the telecom industry an upgrade to 802.11ac will allow carriers to deliver more bandwidth around a home or office and be able to handle multiple sessions with wireless devices. This new technology is a fork-lift upgrade and is not backwards compatible with earlier WiFi devices. This means it will take some time to break into the environment since all of the local wireless devices will need to be upgraded to the new standard. One would expect first generation 802.11ac routers to still include 802.11n capabilities.

Why Aren’t You in the Security Business?

Security camera

Security camera (Photo credit: Wikipedia)

The security business is booming. Both residents and businesses want security cameras and other monitoring devices to keep an eye on their property when they aren’t there. Everybody with a wireline network should be considering offering security services of some type. There are a number of different ways to approach the security business, as follows:

Security Cameras. Your customers are interested in security cameras. They may want them for the traditional purpose of watching their business. But they now want them for a whole lot of other reasons. Farmers want them to keep an eye on livestock and on expensive farm machinery. Residents want to keep an eye on the babysitter, the pets or the kids when they aren’t at home. People want to be able to see who is at the front door before they answer it.

Your customer can go to Walmart or Radio Shack and pick up a run-of-the-mill camera. But given a choice, your customers probably want a quality HD camera, professionally installed. There is a huge difference in the picture quality between an older analog security camera and the new HD cameras. It’s the difference between being able to see that there is somebody in your home and the ability to read the name tag on the pocket of their shirt.

Most of your customers are not going to be comfortable with or have the knowledge needed to install an HD camera properly. Ideally cameras ought to be installed on coaxial cable rather than using WiFi so that it will work if the WiFi gets knocked out. To be effective a camera also ought to be on some kind of backup power if the customer wants to be able to see what is happening if the power to the premise is cut. You will want to choose cameras that come with the ability to let the customer see what the camera sees using their cell phone.

Why is this a business opportunity? I have been advocating in this blog that telecom businesses need to decide if you are going to be a full-service provider or a dumb-pipe provider going into the future. If you are going to be a full-service provider then you should look for opportunities to go into customer’s homes and businesses. Services like installing security cameras are not going to drive a lot of revenue. Instead, it will pay for a few hours of your installer’s time, but it will give you a chance to get to know your customers better, to upsell them on other services and to create loyalty since you are the provider who will take the time to visit and listen to them.

Recording. While there isn’t a lot of money to be made in installing cameras, you can sell a monthly service to record what the cameras see. This requires you to establish a high-speed connection to the camera and to have recording devices capable of storing and retrieving video. Ideally you will only record a camera when there is something to record. This can be done by including a motion detector that will trigger the recording. Any recordings you save should also record a time stamp so that you know when the recording was made.

There are off-the-shelf systems for recording video in this manner and you don’t have to reinvent the wheel. But investing in this kind of product line means that you will need to do the math and figure how many customers you will need to justify getting into the business. The normal pricing for this service would consist of a monthly fee to record the images plus a fee when customers want to retrieve recordings over some set limit of times.

Monitoring. The next level of security involves monitoring and this gets into the area of more traditional burglar alarms. There are a number of well-known nationwide brands of security monitoring like Frontpoint, ADT, Vivint, Pinnacle and Life Shield.

How can you compete against the nationwide firms? The burglar alarm business has two components – selling / leasing the hardware and the monitoring function. You can buy the same security system hardware used by any of the nationwide firms. There is a wide array of different systems available. The nationwide companies make a lot of money on the hardware and the installation. They generally advertise a low price but then quickly try to upsell customers to get additional hardware. You should be able to compete and beat the pricing that these firms offer on hardware. And you can offer this without the somewhat sleazy sales tactics that many of them use. Tout yourself as the ‘honest’ firm and many people will be interested.

Second, you can now buy monitoring services on a wholesale basis. There are security monitoring centers that will act as your back office to monitor the alarms and dispatch fire and police as needed. You can easily mark-up their fees and still make a nice monthly margin for monitoring a customer.

Many customers have been through the mill with the nationwide firms since many of them deploy high-pressure sales tactics. Customers are going to prefer to go with somebody they know and trust and who gives them what they need for an affordable price without the high-pressure sales.

The Full Deal. There are also upper-end security systems available that come with the latest high-tech monitoring devices. There is a wide array of different sensors available today that let a business test for all kinds of events. The upper end systems typically are for businesses that want to do a better job of monitoring both security and safety at their premise.

Any carrier can obviously get into the high-end security businesses because anybody can buy the systems used. But my word of caution is that this business line requires a lot of research and the companies you will compete with know what they are doing.

Should you Build a WiFi Network?

Free Wireless (WiFi) Minneapolis Hotspot in Su...

Free Wireless (WiFi) Minneapolis Hotspot in Sumner Field (Photo credit: Wikipedia)

For years I have had clients who have been building WiFi networks and then trying to figure out ways to make money with them. For the first time I think there is now enough opportunity to sufficiently monetize a WiFi network to make it look like a good investment. The following are some of the ways that other carriers are making money from WiFi. A good business plan will probably need to combine several of these together to make a viable business.

Cellular Data Upload. The biggest use of WiFi is becoming the uploading of cellular data to the network. Most cellular carriers sell data plans with low caps and they want and expect their customers to use WiFi to keep data traffic off the cellular networks. In most places the cellular networks are not nearly robust enough to handle all of the data they would need to carry if it wasn’t for WiFi. There are two different possible ways to monetize this.

If your service area has enough customers of one or more of the major cellular companies, the carriers might be interested in buying wholesale access into your WiFi network. This is something that is happening in big cities, and in many places the cellular carriers are deploying the WiFi directly. But there are now a number of markets where cellular carriers are buying bulk WiFi access from other carriers.

However, deals with cellular carriers are not yet something that has been commoditized, and the alternate plan is to sell data plans directly to cellular customers in your town for their smart phones. Many cellular customers already have WiFi in their homes, but with a city-wide WiFi network they could then get the WiFi benefits anywhere in town. Statistics say that 85% of cellular data is used in the home territory and you can sell data for less than the cellular carriers and make good money at it.

MVNO Wireless. Even better than selling cellular data to others is consider offering your own wireless plans using an MVNO. In this scenario you buy bulk cellular minutes, text messaging and cellular data and then package them your own cellular plans. If you have a city-wide WiFi network you have a big advantage because you can make sure that your cellular customers use your network for both voice and data when that is possible. This means that you can charge them cellular-level pricing for traffic that you are delivering at landline costs. The margins on MVNO wireless are already decent, but combining it with a robust WiFi network really enhances the bottom line.

Broadband Alternative. There are now a significant number of customers who don’t want traditional broadband delivered by wireline. In addition to smartphone users, there are many customers who now use pads and laptops instead of traditional PCs. So you can sell WiFi business plans as an alternative or as an adjunct to your existing data plans. WiFi-only plans can be priced similarly to traditional low-level landline plans and you might sell a ‘portability’ additive plan to your normal landline data customers. Finally, you can sell hourly, daily and weekly WiFi to visitors or occasional users.

VoIP / Local Only Phone. In every market there are customers who almost never leave town and with a WiFi network you can give them a much lower cost portable phone alternative than using a traditional cellphone carrier. This essentially is a cordless phone that will go anywhere in the town. You also can use WiFi to give local phones to kids and others for low prices, saving parents the cost of pricey cellular family plans.

Public Safety. Most towns and cities would be interested in using your network for public safety and public works. With a citywide WiFi network you can give all city employees access to data anywhere in town, making it easier for police and fire to operate using pads but also improving the productivity for inspectors and other city workers who are mobile in the town. You should be able to sell bulk access to the city and local utilities, particularly if you will arrange a QOS arrangement to give public safety a priority for the network when they need it.

Workforce Needs. And of course, a city-wide WiFi network will also increase your own productivity since your own installers and salespeople can always be connected to the network with a pad or smartphone. This is not a revenue opportunity but rather can save you money.

There certainly some issues to consider and it would make sense to pre-sell to the larger WiFi users before you build the network. But if you can sign up a cellular carrier or the City government as anchor tenants then you can build knowing that these other revenues will materialize if the network is built with good coverage.

Like any business there are operational issues to consider. For instance you will want to insure that only people who are paying for your service use the network so you will want a secure system to validate users and be prepared to boot off customers who give away passwords to others.

From a technical and cost perspective it has never been easier to get into the WiFi business. The price of equipment has dropped and it has become more science and less art to keep the network functioning well.