MY WIFI VENDO MACHINE BUSINESS SET UP WITH P2P SET UP

HAT IS PISOWIFI VENDO?

The PisoWiFi Vending Business: Architecture, $\text{AAA}$ Model, and Regulatory Compliance

The PisoWiFi model is a micro-entrepreneurial system prevalent in the Philippines that monetizes local internet bandwidth through a self-service coin-operated vending machine. The business's viability relies heavily on the integration of specialized hardware and proprietary captive portal software to manage user sessions, a system that must also navigate local telecommunications and business regulations.

I. Technical Architecture: Hardware and Software Integration

The PisoWiFi unit is a custom-built, embedded system that fuses networking components with a financial transaction interface.

1. The Core Components

2. The $\text{AAA}$ Framework (Authentication, Authorization, Accounting)

The PisoWiFi system uses a form of $\text{AAA}$ management via the captive portal to ensure proper service delivery:

Authentication: The $\text{Coinslot}$ 's electrical pulse is authenticated by the $\text{MCU}$ 's software, which immediately grants access. Alternatively, a printed voucher $\text{code}$ acts as the login credential.
Authorization: The software authorizes the user's connection with a specific set of rules, such as a session $\text{timeout}$ (e.g., $10$ minutes) and bandwidth limits ( $\text{e.g.,} \text{ 5}$ $\text{Mbps}$ upload/download), often enforced through $\text{QoS}$ $\text{Quality}$ $\text{of}$ S $\text{Service}$ ) policies.
Accounting: The system actively monitors the session time, data consumption, and $\text{coin}$ $\text{tally}$ , logging all transactions to a database, often accessible to the owner via a Network $\text{Management}$ $\text{System}$ $\text{NMS}$ ) cloud dashboard for remote monitoring.

II. Regulatory Landscape and Legal Compliance (Philippines)

Operating a $\text{PisoWiFi}$ business intersects with several Philippine regulatory frameworks. Operating without proper authorization can lead to legal complications, particularly regarding the re-sale of bandwidth.

1. Required Business Permits

For legal operation, the entrepreneur must secure the standard micro-enterprise permits:

$\text{DTI}$ ( $\text{Department}$ $\text{of}$ $\text{Trade}$ $\text{and}$ $\text{Industry}$ ) $\text{Registration}$ (for sole proprietorships).
$\text{Barangay}$ $\text{Clearance}$ (local community approval).
$\text{Mayor's}$ $\text{Permit}$ ( $\text{Business}$ $\text{Permit}$ ) from the $\text{LGU}$ .
$\text{BIR}$ ( $\text{Bureau}$ $\text{of}$ $\text{Internal}$ $\text{Revenue}$ ) $\text{Registration}$ for taxation and issuance of official receipts.

2. Telecommunications and $\text{Data}$ $\text{Regulations}$

$\text{NTC}$ $\text{National}$ $\text{Telecommunications}$ $\text{Commission}$ ): While micro-operations often exist in a grey area, large-scale deployment or operations that go beyond personal scale may require registration as a $\text{Value}$ - $\text{Added}$ $\text{Service}$ ( $\text{VAS}$ ) $\text{Provider}$ under the $\text{Public}$ $\text{Telecommunications}$ $\text{Policy}$ $\text{Act}$ .
$\text{Data}$ $\text{Privacy}$ $\text{Act}$ $\text{of}$ $\text{2012}$ $\text{R.A. No. 10173}$ ): Operators must ensure that any data logged ( $\text{MAC}$ addresses, usage times, etc.) is handled and secured in compliance with the $\text{Data}$ $\text{Privacy}$ $\text{Act}$ , protecting user information.

III. Profitability and Market Dynamics

The profitability of a $\text{PisoWiFi}$ unit is determined by the $\text{ROI}$ ( $\text{Return}$ $\text{on}$ $\text{Investment}$ ) formula, which is highly dependent on location-specific factors:

\text{ROI} = \frac{\text{(Revenue} - \text{Operating} \text{Costs})}{\text{Initial} \text{Investment}}

Location: The primary driver. High-density areas with low mobile data signal or limited access to budget-friendly fiber plans yield the highest revenue (Source 2.5).
Operating $\text{Costs}$ : The main recurring cost is the fixed monthly internet subscription (Fiber/ $\text{LTE}$ plan) and electricity.
Competition: The market is facing increased competition from the wider rollout of $\text{4G}$ and $\text{5G}$ networks and the entry of low-cost fiber internet providers, causing some operators to report reduced daily earnings (Source 2.5). Success increasingly relies on providing a more stable, low-latency experience than mobile data.

WHAT IS POINT TO POINT?

🔗 Point-to-Point ( $\text{P}2\text{P}$ ) Communication: Dedicated Links and Protocol Architecture

Point-to-Point ( $\text{P}2\text{P}$ ) communication describes a dedicated, exclusive, and unshared connection between exactly two endpoints (nodes). This communication method is fundamental in network and telecommunications architecture, providing maximum bandwidth allocation and minimal latency by avoiding the overhead of multi-device coordination and media access control ( $\text{MAC}$ ) contention.

I. Architectural Distinction: $\text{P}2\text{P}$ vs. $\text{P}2\text{MP}$

The key feature of $\text{P}2\text{P}$ is the dedicated link, which contrasts sharply with Point-to-Multipoint ( $\text{P}2\text{MP}$ ) architectures.

1. Channel Capacity Allocation

In $\text{P}2\text{P}$ links, the focus shifts from media access arbitration to optimizing the data flow itself.

2. $\text{Multiplexing}$ in $\text{P}2\text{P}$ Telecommunications

Even though the link is dedicated, multiple conversations (channels) can be transmitted over a single physical $\text{P}2\text{P}$ path (like a fiber optic cable) using multiplexing techniques:

$\text{Time}$ $\text{Division}$ $\text{Multiplexing}$ ( $\text{TDM}$ ): Used primarily for digital signals, it grants each channel recurring, exclusive time slots to use the entire bandwidth, as seen in traditional T1/E1 digital carrier lines.
$\text{Frequency}$ $\text{Division}$ $\text{Multiplexing}$ ( $\text{FDM}$ ): Used historically for analog signals (and in modern $\text{DWDM}$ optical systems), it divides the total bandwidth into non-overlapping frequency channels, allowing simultaneous transmission.

II. $\text{Layer}$ 2 $\text{Protocols}$ for $\text{P}2\text{P}$

In the $\text{OSI}$ model, $\text{P}2\text{P}$ communication is managed by specific $\text{Layer}$ 2 (Data Link) protocols designed for serial communication:

1. Point-to-Point Protocol ( $\text{PPP}$ )

$\text{PPP}$ is the standard protocol used to establish a P2P connection over various physical media (including dial-up, serial, and modern broadband):

Link Control Protocol (LCP): This component is responsible for establishing, configuring, and testing the data link. It negotiates options like maximum packet size and error detection before the connection is accepted.
Network Control Protocol ( $\text{NCP}$ ): Once the link is established, $\text{NCP}$ (e.g., $\text{IPCP}$ for $\text{IP}$ packets) configures and enables the $\text{Layer}$ 3 (Network) protocols to run over the link (e.g., assigning an I $\text{IP}$ address).
Authentication: $\text{PPP}$ incorporates authentication mechanisms like $\text{PAP}$ ( $\text{Password}$ $\text{Authentication}$ $\text{Protocol}$ ) or $\text{CHAP}$ ( $\text{Challenge}$ $\text{Handshake}$ $\text{Authentication}$ $\text{Protocol}$ ) to verify the identity of the two communicating peers.

2. $\text{HDLC}$ and $\text{PPPoE}$

$\text{HDLC}$ ( $\text{High}$ - $\text{Level}$ $\text{Data}$ $\text{Link}$ $\text{Control}$ ): An older, bit-oriented protocol primarily used for synchronous serial links between routers. It is often the default encapsulation method for Cisco serial interfaces.
$\text{PPPoE}$ ( $\text{PPP}$ $\text{over}$ $\text{Ethernet}$ ): A derivative that encapsulates $\text{PPP}$ frames within standard $\text{Ethernet}$ frames. This is widely used by $\text{ISPs}$ (Internet Service Providers) to authenticate and manage individual customer sessions over a shared $\text{Ethernet}$ -based broadband infrastructure (like $\text{DSL}$ or Fiber).

III. Applications in $\text{WAN}$ Backbones

$\text{P}2\text{P}$ is critical in $\text{Wide}$ $\text{Area}$ $\text{Networks}$ $\text{WANs}$ ) where reliability and security are paramount:

Dedicated $\text{Leased}$ $\text{Lines}$ : Businesses use $\text{P}2\text{P}$ leased circuits (e.g., T1/E1 or $\text{OC}$ $\text{levels}$ ) to establish permanent, non-switched digital connections between two branch offices. This ensures consistent, dedicated bandwidth for mission-critical traffic.
Microwave $\text{Backhaul}$ : In wireless networking, $\text{P}2\text{P}$ microwave or $\text{Millimeter}$ $\text{Wave}$ ( $\text{MMW}$ ) links are used to connect distant cellular base stations or enterprise buildings to the core network. This requires highly directional antennas to ensure the dedicated path and minimize interference.

MY WIFI VENDO MACHINE BUSINESS SET UP WITH P2P SET UP

The PisoWiFi Vending Business: Architecture, $\text{AAA}$ Model, and Regulatory Compliance