wi-fi for a connected world towards next generation networks

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Wi-Fi has established itself as one of the most popular and widespread technology today reaching millions of homes, schools, enterprises and hotspot locations worldwide. Communication has become an essential part of our lives. The ever-growing Wi-Fi networks combined with integrated Wi-Fi chipsets into thousands of devices has matured and ensured that hundreds of millions of users worldwide now make regular use of Wi-Fi to access the Internet. The following white paper, discusses the Wi-Fi effects of connectedness shifting from people to people into the connecting a billion of devices. Today’s network consists of multiple access network technologies playing a different role in different contexts. In the race to smart next generation networks, secondary markets in embedded mobile is beginning to garner attention with greater ambitions into tertiary markets of cloud-based solutions, where anything and almost everything will be connected, regardless of geographical boundaries with the ultimate aim of cost effective development and implementation.

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Page 1: Wi-Fi for a Connected World Towards Next Generation Networks

w w w . g r e e n p a c k e t . c o m

Wi-Fi FOR A CONNECTED WORLDTOWARDS NEXT GENERATION NETWORKS

WHITEPAPER

Page 2: Wi-Fi for a Connected World Towards Next Generation Networks

Abstract

The next generation networks that we envision to be would be unimaginable with multitude of new generation of services, connected devices value chain and emerging embedded systems like telematics and automation gaining momentum in vertical industries. Mobile devices have transformed communication and Internet access. Wireless technology has enabled the concept of mobility and connectivity to expand beyond the days of laptops. Most people if not all, have ownership of a smart device that is voice, data and Wi-Fi capable. At this very moment of reading this and downloading the paper, you would potentially be running an application.

The following sections of the paper, discusses the Wi-Fi effects of connectedness shifting from people to people into the connecting a billion of devices. Today’s network consists of multiple access network technologies playing a different role in different contexts. In the race to smart next generation networks, secondary markets in embedded mobile is beginning to garner attention with greater ambitions into tertiary markets of cloud-based solutions, where anything and almost everything will be connected, regardless of geographical boundaries with the ultimate aim of cost effective development and implementation. This will help open doors to attractive new services that reflect the consumer’s desire for solutions that they will be willing to pay for a premium.

Wi-Fi is vendor neutral technology and potentially more effective alternative to operators building high bandwidth data networks without dependency on spectrum licensing. Wi-Fi as a complementary technology can help ease traffic by 20% with substantial impact of freeing up spectrum, when implemented strategically. By delivering multiple service bundles of voice, data, video, contents similar to quad-play can create “stickiness” and improve the overall user experience. Of course, pulling together devices, network services and applications creates complexity for operators and solution providers. In particular, the following barriers need to be addressed by operators and solution provider from the point of view of devices, integration, scalability and TCO relevant to building strong business models.

Whichever the motivation for deploying Wi-Fi, be it value proposition in terms of price sensitivity, market leadership, interoperability or scalability, operators are quick to embrace faster time to market solutions to grow its business model. Similarly, consumers benefit from a connected society that brings them closer to families, enriching their lives and making it more efficient.

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Page 3: Wi-Fi for a Connected World Towards Next Generation Networks

Contents

Overview 01

Where is Wi-Fi 02

Pervasive Connectivity: From Billions of 04People to Billions of Things

Getting Wi-Fi Right

Maximize Capacity, Minimize Costs with Wi-Fi 06

Wi-Fi Usage- What is the User Expectation – Performance and Capacity- Where is the Spends- Business Model – Consumer or Enterprise

Key Takeaways of Wi-Fi

Conclusion 12

Think Forward with Wi-Fi 14

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Page 4: Wi-Fi for a Connected World Towards Next Generation Networks

1Source : WBA/ Informa Telecoms & Media industry survey

Overview

Wi-Fi has established itself as one of the most popular and widespread

technology today reaching millions of homes, schools, enterprises and

hotspot locations worldwide. Communication has become an essential part

of our lives. The ever-growing Wi-Fi networks combined with integrated

Wi-Fi chipsets into thousands of devices has matured and ensured that

hundreds of millions of users worldwide now make regular use of Wi-Fi to

access the Internet.

Virtually every smartphone in the market is Wi-Fi enabled. In 2010 alone,

more than 1,9501 device models supporting Wi-Fi were certified by the

Wi-Fi Alliance, including almost 250 Wi-Fi enabled smartphones.

Connections to Wi-Fi networks were historically dominated by the nomadic

device such as laptops, but the rise of smartphones haven taken

precedence as the primary device connecting to public Wi-Fi networks, as

more and more people are connecting to the Internet conveniently, anytime

and anywhere. With the penetration of smartphones, tablets and other

connected devices, operators are driven to enter the Wi-Fi domain at some

level to remain competitive. Internet connectivity has gone beyond

conventional communication for business processes. Increasingly, it has

permeated into the lifestyles of people, ranging from more than one aspect

of M2M, NFC, telematics, healthcare, automation that directly impacts how

and when interactions govern inter-connectedness.

In this new era of explosive mobile data growth, rapid rise in mobile

broadband services, rich digital content such as video streaming, online

gaming, social networking and a plethora of web2.0 applications are

contributing to unprecedented level of stress on mobile networks and

disruption to operator business models with the arrival of iconic devices

such as the Apple iPhone, Google Android devices and iPad; leaving

network operators in anxiety and incapable to respond to the deluge of data.

Overview - 01WHITEPAPER Overview - 01WHITEPAPER

Page 5: Wi-Fi for a Connected World Towards Next Generation Networks

2Note: WBA Industry Report 2011, Global Developments in Public Wi-Fi

3Source: Cisco Visual Networking Index: Forecast and Methodology, 2010–2015

4Source: http://www.gartner.com/it/ page.jsp?id=1848514

Where is Wi-Fi - 02WHITEPAPER Where is Wi-Fi - 02WHITEPAPER

Where is Wi-Fi

According to a recent report by WBA2, the unprecedented growth in Wi-Fi

hotspot deployments is predicted to rise 350% by 2015. It found that 58%

of operators - including 47% of mobile operators - believe Wi-Fi hotspots

are either very important or crucial to enhance their customers’ experience;

offload busy mobile broadband networks; and provide a value-added

services platform.

Improvement in connection speeds and innovative consumer devices,

applications and content has driven an exponential growth in demand,

especially for data consumption. As operators roll out or upgrade to LTE,

this improvement in connection speed and capacity as we know, will drive

even greater bandwidth consumption; eventually outpacing LTE

deployments and filling up very quickly. The overall data traffic projection is

expected to increase by an annual CAGR of 32%3 from 2010 to 2015.

As the world migrates inevitably and substantially towards LTE for wireless

connection of both voice and data, the question beckons whether Wi-Fi has

a value proposition in a LTE world. True enough, Wi-Fi is embedded in

virtually every mobile Internet device and common hotspot services have

formed to fill the gap in ensuring effective coverage for today’s service

providers worldwide that offer smartphones. A total of 440.5 million devices

sold in 3Q11, of which 115 million were smartphones4 evident that demand for

connectivity is real. In a nutshell, Wi-Fi is here to stay for the foreseeable future!

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Figure 1 : Global Public Hotspots, 2009-2015Source : Informa Telecoms & Media

Page 6: Wi-Fi for a Connected World Towards Next Generation Networks

Overview - 01WHITEPAPER Where is Wi-Fi - 03WHITEPAPER

As a measure to reduce congestion on their network, several tier 1 operators

have discontinued unlimited data plans and launched tiered plans to ensure

network performance, in a similar move by AT&T in the US. At the same

time, operators do not want to risk losing a significant growing market of

smartphone users that are looking for value added services. With greater

foresight and methods, operators are turning to mobile data offloading to

relieve the network congestion and to monetize their 3G and 4Gnetworks

more effectively. Some operators aggressively build-out extensive networks,

whereas some choose to build partnerships via Wi-Fi aggregators such as

Boingo and iPass. Whichever way, operators are now seeing their strategies

to pragmatic practice to strengthen its market position.

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Figure 2 : Global Public Hotspots, 2009-2015Source : Informa Telecoms & Media

Page 7: Wi-Fi for a Connected World Towards Next Generation Networks

Pervasive Connectivity:From Billions of People to Billions of Things

Wi-Fi is an enabler to transcend connectivity to the Internet of Things.

Emerging wireless networking technologies—and the ability to embed

connectivity to these networks in virtually all types of devices—are creating

a new connected future. The tremendous expansion and evolution of

wireless technologies together with growing user demand for ubiquitous

voice and data access has encouraged a new generation of smart devices

– giving new meaning to connected world.

Transforming customer experience is obviously a huge challenge. If the

customer interaction isn’t smart, fast and effective, it will fall short of

expectations. Transactions become more immediate and the entire

experience more cohesive and visible. It’s common for a user to juggle a

smartphone, a personal phone, a laptop and a tablet, depending on the

task at a given time. As such, users are becoming more productive in the

way the conduct work. Much attention has been focused on the

convenience and productivity associated with the flexibility of mobility and

ultimately leads to cost reduction for operators to deliver its services.

Where is Wi-Fi - 02WHITEPAPER Pervasive Connectivity - 04WHITEPAPER

Handset Unit Sales Per Region, 2011

Figure 3 : Smartphone Handset Sales 2011Source : Pyramid Research, except from UBM TechWeb’s Light Reading Communications Network

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Page 8: Wi-Fi for a Connected World Towards Next Generation Networks

Where is Wi-Fi - 02WHITEPAPER Pervasive Connectivity - 05WHITEPAPER

As operators modernize their networks to address its business needs,

it presents opportunity for re-shaping old approaches to build and deliver

new value add service by exploiting the various usage models around Wi-Fi.

In order to further monetize their next-gen networks, operators have to

move from simply providing access to creating new revenue streams from

subscribers, verticals and advertisers for a broader role in the wireless

communication value chain.

Getting Wi-Fi Right

The perceived network performance on offer, as well as perceptions of

usability, security and privacy, will be focused on delivering access in key

venues with high traffic demand, such as airports, hotels and urban

hotspots. Users continue to show willingness to pay for Wi-Fi services,

wherever there lacks any form of connectivity. The direct relationship of

equating the usability and quality of experience will be the determining

factor on the adoption of Wi-Fi as a genuine wireless data technology that

is compelling and seamless user experience, regardless of the location or

delivery mechanism.

Connectivity has transformed the way consumers and enterprises interact

with their devices and assets. The following trends have led industry players

and end-users across the value chain toward embedded connectivity:

• Consumers demand a compelling customer experience.

• Consumers demand connectivity at all times.

• Device manufacturers can target new segments of the consumer population.

• Network providers can monetize new services.

• Businesses can gain a competitive advantage over their peers.

The world is changing for Operators as they offer an ever increasing array of

services and intelligence in smartphones. While these advances have great

income potential for the Operator, they also bring a whole array of

responsibilities. Users expect a level of protection as they use applications like

mobile banking or mHealth where privacy and personal data need to be

secured. The users whether a consumer or enterprise, expects a user

experience where they are protected under any and all circumstances. The

stakes are high since users will churn if they don't feel confident of the service.

Page 9: Wi-Fi for a Connected World Towards Next Generation Networks

Maximize Capacity,Minimize Costs with Wi-Fi

One of the more significant hurdles operator deal with when considering

connected device solutions is building a business case. On one side,

operators are looking toward connectivity as a way to widen additional

business models both internally and externally. On the other side

meanwhile, operators are challenged with reducing TCO for their

connected device investments.

From a business case perspective, most successful implementations begin

with an objective of focusing on either the customer service-oriented

benefits or internal cost-efficiencies. By focusing on a key internal or

external pain point, companies can identify KPIs that will drive ROI.

However, the benefits derived from connected device implementations is

subject to both internal and external (customer) metrics.

Wi-Fi Usage

Many if not all operators are jumping onto the Wi-Fi space to strengthen

and protect its market position. Integrating Wi-Fi within the cellular network

today can more effectively leverage on the advantage of capacity increase

that Wi-Fi brings in a unified framework. In the likely scenario of operator

requiring capacity boost needed in the near term, along with the flexibility

and compact form factor needed for highly-localized deployments in

high-traffic environments, overlaying Wi-Fi over existing 3G/4G networks

would be a viable option.

While the macro network will continue to provide essential wide area

coverage and support for high-mobility users, operators have started to

look at other solutions to increase capacity in high-traffic areas. Wi-Fi

offload is the most widely and successfully adopted solution in areas where

subscriber density and usage is high such as urban areas, and locations

such as airports, cafes, stadiums etc. Operators can gain incremental

revenue per connection but take on more customer service responsibility,

when strategically implementing Wi-Fi. Some of the more important

Overview - 01WHITEPAPER Maximize Capacity, Minimize Costs with Wi-Fi - 06WHITEPAPER

Page 10: Wi-Fi for a Connected World Towards Next Generation Networks

Where is Wi-Fi - 02WHITEPAPER Maximize Capacity, Minimize Costs with Wi-Fi - 07WHITEPAPER

considerations fall into usability, security, robustness and mobility when

deploying a WLAN network.

Mobile operators can further improve network utilization by actively

managing the traffic beyond the RAN within the core, using content

caching, mobile device management, tiered pricing, and policy

enforcement through intelligent analytics. These solutions do not increase

capacity per se, but make data transmission more efficient, allowing

operators to pack more content within the same network infrastructure.

What is the User Expectation –Performance and Capacity

How much data traffic deteriorates the network quality and upsets a user?

Can a user on 256kbps plan have the case to declare a network as

congested just because video streaming is slow? Would complaints be

justified when the user’s neighbor, also a subscriber to the same network,

enjoys uninterrupted instant messaging sessions with his girlfriend overseas?

There is never a perfect solution in network planning. What matters is to

deliver a throughput level that is justifiable to subscribers and a data rate

which is sufficient to satisfy subscriber usage with the correct definition of

service level agreement in place.

Where is the Spends

Simply put, Wi-Fi deployment into cost per byte investment to real

monetary gains is key. The cost savings can be demonstrated via the

optimization of RAN and core network as in Figure 4. Any such modeling is

very sensitive to many assumptions and situations in different regions,

affecting these underlying assumptions. However, with the fundamental

assumptions of backhaul is suffice, the network planning on direct capital

expenditure spends is one of the most significant hurdle operator encounter

when considering a business case to build Wi-Fi deployments.

Page 11: Wi-Fi for a Connected World Towards Next Generation Networks

Investments are often compared to the potential ROI and effectiveness of

the proposed solution to derive benefits both internally and externally.

Secondary to that, the critical questions beg to have a clear focus of

targeting a pain point. The likely high density demands occur in central

business districts, major shopping areas, commuting hubs, airports and

stadiums. There is periodic surge of activity which is fairly predictable and

manageable with the right fit of network planning by densification. Together

with association of service aware and subscriber aware mechanism,

operators can proactively execute policy enforcement and thus generate

enough business intelligence to dynamically control access and offload

based on the criticality level.

Maximize Capacity, Minimize Costs with Wi-Fi - 08WHITEPAPER

Figure 4 : Optimization of Radio Access through Wi-Fi offload and Smart Traffic ManagementSource : modified from IDATE Consulting and Research

Zero spectrum feeWi-Fi offload DPI / Policy Control

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Application andServices

Page 12: Wi-Fi for a Connected World Towards Next Generation Networks

The choice of densification of the cellular macro network by cell splitting and adding additional carriers can be useful to serve wide area coverage radius and mobility. Conversely, Wi-Fi hotspots can serve targeted capacity needs and applications that require burst data performance. Although Wi-Fi is limited in range of 100’s of meters in comparison to cellular range of 10’s of kilometers, there is considerable difference that arises in cost; the cost per bit or service charge of 3G is remarkably high, while Wi-Fi is almost free. As a matter of fact, spectrum is a rare resource. Wi-Fi being non-dependent on spectrum licensing is a significant advantage over cellular technology to deploy.

Most data usage occurs in indoors (i.e. home, office and public spaces). As with Wi-Fi hotspots, it provides the same capacity or even more than the macro cell at targeted locations and suitable for burst data, depending on the number of subscribers that concurrently accesses the AP. Macro networks is challenged by the physics of indoor penetration. By providing Wi-Fi hotpots it can significantly improve the performance, whereby macro cells take considerably longer due to zoning, approval permits, environmental issues and other factors. Not forgetting, the operating expenditure it takes to maintain the useful lifetime. Similarly, some operators may choose to deploy femtocells to enhance indoor coverage, depending on their business needs.

The usage of data is affected by the amount of byte (MBs, GBs) and the intensity it is used. For example, a user in the office consumes large amount of data ranging from emails, conference calls, file sharing applications and so forth. Similarly, a user at home which is streaming a youTube video would be consuming a lot of data. However, if the user is walking (i.e. mobile) the user may probably be using a navigation application, which is less data intensive and unlikely to be streaming video and watching it at the same time. Henceforth, the user is more likely to associate or describer their experience based on their behavior and the perceived benefit they gain from the using the device as opposed to the amount of bytes consumed. To this extent, the applicability of home and office usage reflects behavior that can be fairly predicted and provides a business case to reduce macro cellular traffic and offloading onto Wi-Fi, so that revenue and cost trade-off is balanced.

Through offload cost savings, it will benefit operators while it also benefits consumers as it may offer a higher quality of service (e.g. bandwidth) for the mobile data connection. Although residential Wi-Fi in the home (e.g. video, music, games, voice) do not contribute to much to chargeable bytes, it makes it appealing to consumers for reasons other than coverage and capacity. In enterprise Wi-Fi the office can provide a growing range of services (e.g. VPN, email, data sharing).

Maximize Capacity, Minimize Costs with Wi-Fi - 09WHITEPAPER

Page 13: Wi-Fi for a Connected World Towards Next Generation Networks

Maximize Capacity, Minimize Costs with Wi-Fi - 10WHITEPAPER

Central to the external factors of Wi-Fi, it is also important to consider the inter-network roaming among multiple networks of different standards. The various means of addressing this is already in practice if not fully endorsed yet, such as 3GPP based iWLAN, ANDSF specification that allows inter-working between WLAN networks and 3GPP based networks. With Wi-Fi Alliance and WBA driving the standardization of frameworks for the Next Generation Networks (hotpot 2.0), it will indeed represent a milestone feat, and is a vision that will motivate industry players even more. The real end-to-end (E2E) application of wireless broadband will emerge with technological maturity that will allow a single terminal to seamlessly roam.

Business Model – Consumer or Enterprise

The other issue being, the business model and ownership of network is commonly debated. Some operators choose to partner aggregators for various reasons of lack of support, coverage or purely for convenience. With variation of the level of connectedness, which will be the winning recipe for operators? There are several ways to incorporate Wi-Fi access into a mobile operators’ service mix and the choice of solution has long-term implications.

Data subscription plans and charging methods will need to adapt change from the current ones in offer. Operators know that revenues will not keep up proportionally with increased data traffic, and therefore have to come up with other alternatives. According to an ABI Research paper, data revenues will only grow at a CAGR of about 15 to 18 percent until 2015, while data traffic is expected to have a 42 percent CAGR rate.

From the perspective of mobile cloud computing, this is imperative. Users will always be sensitive to unexpected or unreasonable charges for data traffic exceeding their monthly limits. They are unlikely to accept the current pricing plans offered by operators that don’t support the expected performance and growth in data traffic. Nevertheless, it will be interesting to follow both how the mobile cloud will proliferate and how operators will adapt in this premature stage.

The business model for consumers and enterprise can be brought closer in terms of the moving up the content value chain. In the longer run, price factor will become less of a contributor, but the biggest differentiator between operators will be user experience, customer service and convenience. Together with cloud solutions, enterprise communication can diminish and reduce the fragmentation of siloed systems while at the same time give a reasonable level of operational efficiency to the operators and deliver by the same token of convenience and performance to the end-user.

Page 14: Wi-Fi for a Connected World Towards Next Generation Networks

Key Takeaways of Wi-Fi

Wi-Fi itself has evolved through the times from being merely a connector to

a key technology enabler of the Internet of Things in the last decade. Once

considered a poor cousin to the wireless technology, it is now a found in

almost all smart devices in the market.

Being an affordable and widely accepted in the wireless ecosystem, Wi-Fi

is becoming the favored alternative to address the ever growing consumer

needs to access data, applications, voice, OTT services wherever available

with most Operators bundling Wi-Fi as part of the mobile broadband

strategies. The obvious reason for adopting Wi-Fi has its benefits for both

the consumer and operator level.

• Savings

• Acquisition

• Retention

• Value Added Service Platform

• Enhanced User Experience

• Data Offloading

Wi-Fi offload is an appealing option for operators that are looking to

optimize its network, while maintaining a balance and check mechanism in

its investments.

Maximize Capacity, Minimize Costs with Wi-Fi - 11WHITEPAPER

Page 15: Wi-Fi for a Connected World Towards Next Generation Networks

Conclusion - 12WHITEPAPER

Conclusion

Cellular networks such as GPRS/EDGE/EVDO/HSPA/LTE offer broad

coverage, roaming capability, and high-speed mobility. While Wi-F is

suitable for high-rate and large volume indoor data services which is similar

to carrier-class quality. These technologies have specific core applications,

but they can be mutually supplementary.

For example, subscribers can expect lower cost and high speed Wi-Fi

access in the home, while Wi-Fi hotspot coverage is more suited for airports

or other places where broadband access needs to have a wider range and

guaranteed throughput. In areas that lack Wi-Fi, cellular networks can

maintain basic service availability. Undoubtedly, the resulting QoE will be

consistently high and seamless, and the intelligent combination of

technologies will be welcomed by subscribers. End users are most

concerned with the balance of price and quality, and the latter is mostly

judged by download rates. A convergence-oriented combination of

technologies is urgently required to satisfy subscribers’ increasing demands

on fees, performance, coverage, and mobility. Moreover, these demands

span multiple networks that are embraced by a range of different standards.

The convergence of technologies will become significant to synchronize

business processes, control and deliver services across multiple networks

is an integral part of the user experience. Also, evaluating device

management can profoundly impact the way consumers connect to

services. Virtualization of consumer web experience means, Operators

must quickly adopt social and mobile practices like Google, Amazon and

Apple. The human context i.e. user that is using the technology is driven

through mobile-centric applications and interfaces, while the business

context primarily driven by business opportunities to turn apps stores and

developer marketplaces into profitable ventures by bringing the most

talented designers. The application model of Wi-Fi is limitless, ranging from

delivering mobile centric applications and interfaces, contextual, personal

and social experiences. The evolving cloud computing architecture will

impact how and which applications are designed and linked and thus

encourage diversity in terms of the pricing models for consumers or

enterprises as part of broader mobile strategies including Wi-Fi.

Page 16: Wi-Fi for a Connected World Towards Next Generation Networks

Conclusion - 13WHITEPAPER

Operators are recognizing the need to responding to changing demands

from end users to drive the development of frameworks to further enhance

the Wi-Fi user experience. Based on common standards and interest of

industry players, WBA and Wi-Fi Alliance are harmonizing the Wi-Fi

ecosystem in a move towards Next Generation Hotspot and Hotspot 2.0

certification respectively. Wi-Fi serves as a powerful enabler of pervasive

wireless technology in terms of data traffic transmitted and transformation

of the wireless data business model in years to come. Whilst the world is still

in early stage development of high speed, high capacity networks, there will

continue to be a need for Wi-Fi infrastructure to manage both capacity and

cost of service delivery.

Ultimately, ability to keep up with achieving cohesive user experience

through robust networking is a competitive business advantage for bringing

high quality service and sustainability in the long run with no particular

technology platform and form factor dominance.

Page 17: Wi-Fi for a Connected World Towards Next Generation Networks

Think Forward with Wi-Fi - 14WHITEPAPER

Think Forward with Wi-Fi

Greenpacket welcomes you to embark on Wi-Fi solutions for optimizing your

network operations and drive revenue. At Greenpacket, we understand the

demands placed on Operators like you. Our solutions are designed to give

you the flexibility to constantly deliver cutting-edge offerings without

exhausting your capital and operating expenditures.

With Greenpacket, limitless freedom begins now!

Free Consultation

If you would like a free consultation on how you can apply Wi-Fi solutions,

feel free to contact us at [email protected]. Kindly quote the

reference code, SWPS1211-A when you contact us.

Page 18: Wi-Fi for a Connected World Towards Next Generation Networks

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