Wi-Fi is our Primary Wireless networkMarch 13, 2012 at 9:21 pm | Posted in Uncategorized | Leave a comment
Tags: Femtocell, Mobile Internet profitability, Wi-Fi, Wi-Fi Roaming
Wi-Fi is our primary network for connecting laptops, smartphones and tablets. You might be surprised to realize that Wi-Fi carries far more traffic than all 3G and 4G mobile networks combined, and will continue to do so in the future. Although mobile networks provides us with an umbrella of coverage, we tend to consume data when we are stationary, and typically Wi-Fi is available as our preferred choice of connection. Even as mobile networks expand their wide-area data capacity, Wi-Fi will expand its role as a compliment to cellular.Why? It is more efficient for us to use a nearby radio connection than one far away. Accordingly, it is more efficient for us to connect to a Local Area Network (Wi-Fi) than a Wide Area Network (3G or 4G Cellular). Mobile Operators increasingly speak of moving the network “closer to you,” and Wi-Fi is usually just a few meters away, which is nearly optimal. Mobile Operators want to deliver the best service to you, and so they are working to deliver small cells closer to you, and to take advantage of Wi-Fi (where it is available) that is even closer to you. Think about how much you use Wi-Fi today–in the house, in the office–and consider how much more traffic is carried over Wi-Fi than cellular. Why? Cost and Speed.
Although cellular is the ubiquitous network that we can (nearly) always count on, Wi-Fi is the preferred network that we use to carry our network through the Fixed Internet. Although Wi-Fi had humble beginnings (see reminiscing about the early move by Steve Jobs to introduce Wi-Fi into Apple laptops) to replace Ethernet cables, it has become our default network.
Of the different ways that we can connect to the Internet, Wi-Fi will carry an increasing percentage of mobile data: 50% more than Cellular in 2015 [per Juniper forecast]. Femtocells, in contrast, are not expected to play a large role. In fact, Wi-Fi will be the primary way for us to connect to the Internet, exceeding wired (Ethernet) connections (Cisco estimates that Wi-Fi is the leading connection in 2015, according to their annual VNI study).The original role of the femtocell, as “home base station,” has not been found as attractive as expected, especially due to interference with other cells that use the same spectrum. Subsequently, the femtocell technology has been repurposed into small cells (the Femto Forum renamed themselves as the Small Cell Forumthis February). Accordingly, the amount of traffic carrier by Femtocells is modest (although Small Cells are increasingly important and counted in the traffic carried by the Cellular network).
Wi-Fi will grow as a compliment to cellular Mobile networks, as Wi-Fi matures and acquires the best attributes of cellular: automatic, seamless, and secure (see “Wi-Fi, as easy to use as 3G mobile data“). Mobile Network Operators now recognize and embrace Wi-Fi for its benefits: Cost, Capacity, Coverage, Customer Experience. Mobile Operators particularly value Wi-Fi for its low Cost and high Capacity, as Mobile networks are simply unable to keep up with the demand (Capacity), and Operators are challenged to maintain the profitability as Revenue (for a unit of data) is falling faster than Cost (as Sue Rudd, of Strategy Analytics, has expertly deduced and illustrated), which reduces and eventually threatens profitability. Wi-Fi will help Operators to reduce their cost, and maintain the profitability of Mobile Internet for cellular operators