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iPass Differentiates with OMX WiFi Roaming and Offload Exchange for Service Providers Jul 11, 2011 | Mobility Services | Analyst: Kathryn Weldon Event Summary July 6, 2011 - iPass launches Open Mobile Exchange (OMX), a WiFi exchange for service providers to help alleviate problems with the high cost of roaming and network congestion as 3G data traffic skyrockets. It is positioned as a carrier-grade platform for operators to extend their core mobility offerings by integrating WiFi with 3G/4G. OMX takes advantage of iPass’ network of 500,000 APs and its authentication and infrastructure, but allows operators to exchange/resell other WiFi access to meet customer demand. | Read Press Release | Quick Take Analytical Summary • Current Perspective: Positive on iPass’ OMX service, because it fortifies its strategy to take advantage of its very large WiFi access network and infrastructure by offering them as components of an exchange service among operators that are concerned with network congestion and that also want to offer reduced global roaming costs to their business and consumer customers. The service is already in use by Deutsche Telekom’s wholesale group and so has a proven high profile reference customer. In addition, iPass has been looking for a path with which to go beyond its roots as a remote access aggregator for MNCs; it seems to have found a unique, solid and highly differentiated opportunity. • Vendor Importance: High to iPass as it has found a way to leverage its assets in an unexpected way. As remote access services continue both to commoditize and even shrink as a market opportunity for many providers, it has been essential for the service provider to come up with a new value proposition with significant upside revenue potential. The seemingly sudden resurgence of WiFi has given iPass a new position in the market, as mobile devices continue to include the technology (or in some cases only have WiFi built in, without cellular), as data traffic threatens to choke cellular networks, and as high global data roaming charges on cellular networks remains a big problem. • Market Impact: Moderate on the market, because there really aren’t many direct competitors with large commercial WiFi networks that are likely to want to or be able to offer a similar service. Cellular operators with whom iPass competes for enterprise business may actually want to join the exchange while those with or without their own WiFi assets may find OMX a very useful and cost-effective way to extend their reach and enhance their network performance. CLIENTS ONLY Current Perspective Competitive Strengths and Weaknesses Response & Recommendations Buyer Actions Analytical Perspective | Client access - Full report in Mobility Services | More information Top Top

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iPass Unveils Wi-Fi Exchange for Service Providers to Deliver Seamless Global Wi-Fi Roaming and Data Offload Services

iPass Open Mobile Exchange caters to the rapid growth of Wi-Fi devices such as smartphones, iPads and tablets, offering new revenue opportunities for service providers
Industry veteran Steve Livingston joins iPass from Microsoft to lead new service provider business

REDWOOD SHORES, Calif. — July 6, 2011 – iPass Inc. (NASDAQ: IPAS) today announced the iPass Open Mobile Exchange™ (iPass OMX™), a carrier-grade platform for service providers to extend core mobility and Internet offerings by integrating Wi-Fi with 3G and 4G, allowing providers to seamlessly connect customers to preferred Wi-Fi networks. The platform incorporates the world’s largest commercial-grade Wi-Fi network with a highly reliable authentication and transaction settlements infrastructure, allowing providers to introduce new services to capture the rapidly growing Wi-Fi enabled devices market.

With the introduction of iPass OMX, iPass also announced the addition of Steve Livingston as senior vice president of carrier development to lead sales and marketing for the company’s new service provider business. Livingston, a proven sales and marketing leader with deep industry experience, was previously Microsoft general manager of Windows Phone strategic partner marketing. He has also held key leadership positions at AT&T, mBlox and ByteMobile.

“The next wave of Wi-Fi is becoming a mobile operator phenomenon, and it is our business to help telecom operators enter the Wi-Fi business with speed to market and a reduced cost and risk profile, without a need for additional capital investment,” said Evan Kaplan, president and CEO of iPass. “By enabling operators to provide an integrated approach to mobility, iPass OMX positions them to participate in the second wave of Wi-Fi. With Steve Livingston at the helm of our OMX offering, I’m confident that iPass can extend its highly reliable Wi-Fi exchange service to operators worldwide.”

“A WiFi exchange has the prospect of offering network operators multiple opportunities to generate services, revenue and an ability to reduce signalling load and steer traffic onto WiFi at choke points in a cellular network,” said Dean Bubley of Disruptive Analysis. “Additionally, service providers can potentially monetise WiFi-only devices and on-loading of other operators’ customers.”

iPass OMX has already been adopted by Deutsche Telekom as part of its Wi-Fi Mobilize service, announced last month. Wi-Fi Mobilize is a new network services exchange for in-country and international roaming services, which can help numerous carrier partners of Deutsche Telekom across the globe to address the accelerating demand for data services on smartphone and tablet devices through Wi-Fi.

About iPass Open Mobile Exchange (iPass OMX)

iPass OMX combines a zero-click mobile data offload solution with Wi-Fi integrated services for both domestic and international data roaming. Service providers can deliver Wi-Fi connectivity that functions like mobile data roaming, automatically connecting users to preferred networks by leveraging the world’s largest commercial-grade network of half a million hotspots to create an ‘always best connected’ user experience.

iPass OMX enables service providers to merge Wi-Fi with 3G and 4G networks, and resell their own Wi-Fi networks to other operators within the exchange –- expediting the process of bilateral network connectivity, increasing speed to market and avoiding expensive build-outs of radio access (RAN) and core networks.

With iPass OMX service providers can:
• Reduce network and signaling congestion by offloading mobile data traffic to multiple Wi-Fi networks, including free Wi-Fi.
• On-board Wi-Fi-only devices to increase their addressable market size and revenue potential.
• Simplify the end-user connectivity experience and add new serving areas through Wi-Fi to broaden their geographic reach.
• Increase customer loyalty by making data roaming more cost-effective and deepen vital relationships with end-users on a global scale.
• Monetize their Wi-Fi network assets to other service providers and capitalize on the second wave of Wi-Fi with speed to market and a reduced cost and risk profile.