We are currently experiencing a significant increase in mobile data traffic, which is expected to grow sevenfold by 2021 according to the latest Cisco Visual Networking Index (VNI) report. The continued increase in the number of smartphone users, widespread use of mobile applications, network speed improvements, and massive mobile video consumption, are some of the key contributing factors to this explosion in data traffic.
A similar trend can be seen when we consider WiFi. Since its birth in 1985, the WiFi industry has grown exponentially. Nowadays, WiFi’s use is ubiquitous, and there are staggering predictions about the number of connected devices that will soon be in action: For example, ABI Research predicts that by 2020 there will be 41 billion active wireless connected devices. By the same year, Qualcomm estimates that the average number of WiFi connected devices per four-person household will grow from 8 to 50.
Demand for wireless isn’t being driven by people alone: The role of WiFi is increasingly being extended, moving away from being a simple method of connectivity to playing a strategic role as a support for communications between a wide range of devices. The IoT presents a significant opportunity for WiFi, which will be the dominant access technology to support implementation due to it’s superior suitability. From the perspective of carriers, IoT deployments are likely to provide new monetization opportunities, so it isn’t surprising that approximately 60 percent of operators have already deployed or planned to develop strategies in IoT by the end of 2017.
WiFi to the rescue
Soon, more people will be using mobile phones (5.5 billion) than bank accounts (5.4 billion), running water supplies (5.3 billion), or lines of fixed telephony (2.9 billion). In order to keep up with the dizzying demand for connectivity, we have already witnessed significant convergence of cellular and WiFi: In fact, this year it is expected that more than 60 percent of global mobile data traffic will be offloaded over WiFi networks, according to Juniper Research’s report called Mobile Data Offload and Onload.
WiFi-based services are already widely offered by many mobile operators. Not only could WiFi lead to considerable cost savings, but it can also can open up new sources of monetization. Operators can generate additional revenues by offering WiFi connectivity to anyone who needs it (even non-subscribers) in public spaces such as transportation hubs, sports arenas, public squares, and even wholesale WiFi access to other businesses looking to keep their customers connected. WiFi has the potential to improve connectivity experiences for end-users thanks to increased coverage, leading to a boost in customer loyalty and reduced churn.
These benefits are already being experienced by operators around the globe. In the UK, BT decided to deliver WiFi services with the objective of renewing the brand’s image, positioning the leading telecoms as an innovative “first mover”, but also to meet increased connectivity demands from foreign visitors by offering access to WiFi on a pay-per access approach. The company saw great results: Tens of thousands of daily passes are sold per month, customers use over 6GB of monthly data on average, and new customers even state that BT’s WiFi network is one of the key reasons behind their choice to join BT.
Cosmote, the unified commercial brand for all OTE Group fixed, mobile, Internet & pay TV products and services, has experienced positive results. The company implemented WiFi with the intention of gaining market share, achieving brand recognition as modern, dynamic and innovative, and offering a full convergent experience, matching connectivity requirements whilst avoiding huge investments in 3G/4G. Thanks to this strategy, the Cosmote achieved better brand recognition, with 2 out of 3 users claiming the reason they stay with COSMOTE is the WiFi service. Furthermore, 80 percent of users consider COSMOTE to be modern, dynamic and innovative due to their WiFi service.
Delivering an “always-best-connected” experience
It’s clear that WiFi has to be an integrated and customer-centric technology. Unfortunately, many operators that already offer WiFi-based services are frequently failing to get the most out of their deployments and missing the opportunity to provide an optimal user connectivity experience.
In order to leverage the full potential of WiFi deployments, operators must first guarantee that they’re offering clients a connectivity experience that is similar in quality to, or better that of a cellular network. Failure to do so is likely to have a negative impact on service performance, and possibly even the reputation of the company.
Operators must strive to assure that users are always connected to the best network without impacting their experience: In other words, in order to avoid poor connections, users should not have to make any changes to the network configuration on their devices manually.
To guarantee this type of high-quality connectivity experience, operators need advanced technology that is capable of identifying the best available networks, and connecting a user to them accordingly. Instead of automatically connecting a user’s device to the closest WiFi network in range, this type of technology will only do so if the quality is high enough. And if not, the user device will remain connected to either a better WiFi network available, or even a cellular network.
It’s time for operators to adopt this approach, if they haven’t already done so: It will enable them to unlock the full potential of WiFi to offer better services and experiences to customers, while also reducing churn, increasing loyalty, and optimizing costs through offloading. Otherwise they will be missing out on the opportunities offered by this technology.
Alex Puregger, CEO at Fon
