WiFi seems to be the "it" kid on the block these days. Yes, there is talk of whether cable operators will find the magic bullet, so to speak, to blow a hole in the cellular carriers' mobile dominance. (See Consolidation Creates Cable Wireless Opportunity) And indeed, improvements in WiFi technology - 802.11ac and multi-radio WiFi, for example, as well as initiatives like Hotspot 2.0 - are turning the heads of operators and telcos alike toward the concept of offloading more traffic from cellular networks to WiFi. But using WiFi to extend a consumer's broadband reach outside of the home also is providing a compelling use case for helping operators meet demand and monetize networks.
For starters, recent research conducted on behalf of Amdocs (NASDAQ:DOX) indicated that 77% of respondents in the United States and Canada said they would consider replacing their mobile voice/data plan with a WiFi-first plan.
"What you will see over time is already happening," said Jay Bestermann, senior director, service provider WiFi, for ARRIS (NASDAQ:ARRS). "People are using more of their data [] presence on WiFi where maybe 60% of people's data consumption is on a WiFi network from a smart phone vs. 40% where it is truly mobile .... We used to talk about offloading cellular to WiFi. This is turning around. (Traffic will be carried) most of the time on WiFi and will fall back to a cellular use case."
From the residential broadband side, the Amdocs report indicated that consumers in the United States and Canada would pay 9.5% more per month for broadband Internet if it included carrier-grade WiFi access outside the home. "Carrier grade WiFi" is defined by good connection speed, seamless connection across WiFi access points, automatic handoff to cellular networks and automatic login.
"Residential subscribers are expecting more from their service provider, and always-on connectivity is a churn reduction angle ... but also could be a way to monetize the network," Bestermann said.
Customers are asking and service providers are responding to the demand. Separate research from IHS Infonetics (NYSE:IHS) indicated the global carrier WiFi market growing 16% in 2014, compared to the previous year. However, the firm expects an enormous jump this year and predicts 88% growth in 2015, compared to 2014.
There are many components to the WiFi puzzle, however, and companies like ARRIS are happy to help put them all together. ARRIS' Service Provider WiFi Systems Design and Integration combines technology from Aptilo Networks, Benu Networks and Ruckus Wireless to join services like Authentication, Authorization and Accounting (AAA); policy enforcement; Web portals; wireless access gateways; access point controllers; and access points in a unified platform.
With the right integration, a platform could feasibly allow operators to offer a wide variety of WiFi scenarios beyond offloading or broadband extension. For example, one small business owner may want to provide a standard click-through for its customers to utilize WiFi services, but another might prefer a more complicated system. The business could give the customer a voucher with purchase to ensure people are buying something in the store and not just there for the Internet access.
"There are all kinds of use cases," Bestermann said. "This is where the complexity lies .... We can go to the customer and really accelerate time to market."