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WiFi Damocles sword dangles over mobile operator strategy

Posted By TelecomTV One , 11 March 2009 | 3 Comments | (0)
Tags: LTE skype WiFi hotspots smartphone iPhone

Nokia's apparent run-in with some of its carrier customers over the out-of-the-box inclusion of Skype on its top-end N97 highlights the on-going concerns carriers have about the possibility of revenue loss to alternative voice services.

It's not just that the right client software might make free or cheap calls over the 3G broadband channel an attractive option to mobile phone users (especially if they don't have to fiddle about installing client software to get it), but that they'll increasingly use WiFi (using Skype or other services) for voice calls as well as data-heavy applications (see Smart phone, dumb move).

The WiFi option could become habit-forming.

The fact is that while the telecoms industry is fixing its attention on the deployment of LTE, the WiFi segment is continuing to grow like a weed. While for most marks and measures in telecoms we're happy to creep into double digits in these recessionary times, much of the WiFi market is apparently still growing in the 20 to 40 per cent range.

There are both ever more hotspots blanketing the world's cities and increasing proportions of the world's gadgets are having WiFi built into them, at ever cheaper prices. Most disturbingly for the world's operators though, early adopter use of highly interactive gadgets like the iPhone is showing clearly that if you make WiFi easily available, people use it.. a lot.

First the numbers. According to data just released by ABI Research, WiFi is going gang-busters in both the consumer and enterprise segments. It expects access point shipments to pass the 70 million mark by 2010, nearly all of these generated by the small business and consumer markets. It says consumer electronics is also driving growth with TVs, gaming consoles and laptops using WiFi and pushing the process along.

The number of hotspots is also continuing to grow at a rapid clip.


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3 comments (Add Yours) - click here to sign in

(1) 11 March 2009 14:06:48 by Steve Barnett

It;s simple you cannot turn back the tide, or squeeze the Genie back into the bottle.

Nokia are right to offer it because if they don;t they will lose share. Good on them, shame on Apple for not including a native VoIP client on iPhone. Conversely, the service providers are right to resist and try to limit their exposure to the leakage of voice minutes, they have shareholders and jobs to protect. But, in the longer term the service providers must find a model that accommodates all aspects of ubiquitous and free Wireless Internet. I don;t know what the answer is; if I did I would be rich. But, I am not going to stop using my iPhone to call up other skype users. I use Fring by the way, it's very good.


(2) 11 March 2009 16:16:22 by Sheila Burpee Duncan

Other than the HTC Dream (aka T-Mobile G1)which devices would be contributing to Android's high WiFi usage rate?


(3) 12 March 2009 10:45:50 by Edsard Ravelli

Hi guys,
What the reports however does not state is that the growth of Hotspots is not the same as success. Hotspots don't make money. On average, a Hotspot has only 1 connection per day!So on the long term, Hotspots are not a threat to MNO's as they do not have a sustainable business model. IMHO WiFi is not a threat to an MNO. If make an international call at the office or at home, not while you are roaming on a 3G network. That is too expensive anyway. You will likely use Skype or Fring instead of a landline.