Welcome!

Agile Computing Authors: Liz McMillan, Pat Romanski, Elizabeth White, Yeshim Deniz, ManageEngine IT Matters

Blog Feed Post

How Service Providers Can Monetize Wi-Fi

The insatiable demand for smartphones, tablets, and other connected devices is generating staggering amounts of mobile data and placing a crushing burden on networks. One barometer is the recently released Cisco Visual Networking Index (VNI), which predicts that global mobile data traffic will increase 13-fold from 2012 to 2017, reaching 11.2 exabytes per month. In parallel, the use of Wi-Fi for Internet access is also exploding, as more mobile devices are Wi-Fi enabled, the number of public hotspots expands, and user acceptance grows.

The two trends are intersecting in crucial ways.

 

Until recently, most technologists and mobile-industry executives viewed Wi-Fi as the “poor cousin” to licensed mobile communications. And they saw little role for it in mobile networks or their business. The upsurge of mobile-data traffic has changed all of that. Most mobile operators now realize that offloading data traffic to Wi-Fi can, and must, play a significant role in helping them to avoid clogged networks and unhappy customers.

 

Mobile operators understand the business case behind off-loading data traffic to cheaper Wi-Fi—deferring significant capital expenditures for further build-out of the licensed network. However, they ask, is there more to Wi-Fi than just data offload? And, more appropriately, can they actually make money from Wi-Fi—turning a cost of doing business into profitable business models? The simple answer is, yes. In fact, the Cisco® Internet Business Group (IBSG) has identified and built business cases with service providers around 15 additional ways to benefit from Wi-Fi, beyond data off-loading.

 

IBSG’s white paper, Profiting from the Rise of Wi-Fi, describes these business models in more detail, but the 15 business models basically fall into four different categories:

 

  1. Business Effectiveness—using Wi-Fi access networks to decrease operational costs or improve customer retention and service differentiation
  2. End-User Services—solutions for business and consumer end users using Wi-Fi for internet connectivity for their devices (e.g., smartphones, tablets, laptops)
  3. Intercarrier Wholesale—providing Wi-Fi-based services to other service providers, (e.g., cellular network operators, Wi-Fi providers)
  4. Value-Added Services—enhancing basic Wi-Fi access with additional services and alternative funding models



As the pervasiveness and customer adoption of Wi-Fi continue to grow exponentially, these new business models are providing real and meaningful opportunities for service providers. For example, we are seeing home broadband providers improve their customer retention by 10 to 15 percent through bundling free public Wi-Fi access with their broadband service. In addition, we believe that by offering a Wi-Fi enabled “Business Anywhere” service, operators can generate $10‑15 per business user per month. In the retail setting, delivering enhanced, value-added services will bring an incremental $100-150 per store; this is on top of the $50-250 that operators charge per wireless access point to run a managed Wi‑Fi service for retailers. 

 

But don’t take our word for it. End users tell us that they want these new Wi‑Fi business models and see great value in them. Unique mobile-customer research by IBSG (What Do Consumers Want From Wi-Fi) revealed that mobile users appreciate the lower cost and unlimited data usage of Wi-Fi and greatly value the flexibility and convenience that it offers. In particular, customers were interested in the national/international roaming business models and the Wi-Fi value-added retail offerings. These, consumers believed, would make them more efficient, save them money, and enhance their shopping experiences. Among U.S. broadband subscribers who identified that free public Wi-Fi was part of their subscription, a remarkable 61 percent told us that the inclusion of Wi-Fi was very or extremely important in their choice of broadband provider.  The inclusion is not only a good way to attract subscribers; it is also a good way to keep them. 

 

Of course, not all business models are attractive to all service provider segments.  Business models will need to be aligned to the different industry segments, while priorities are set and a starting plan created. We feel that our research, insights, and recommended approach will arm SPs with guidelines for setting priorities and determining which strategy is best for making real money from Wi‑Fi.

 

About the Author

Stuart Taylor's further industry research, insights, and perspectives can be found at his blog, The Connected Life

Follow Stuart Taylor on Twitter: @STaylorCisco

Read the original blog entry...

More Stories By Deborah Strickland

The articles presented here are blog posts from members of our Service Provider Mobility community. Deborah Strickland is a Web and Social Media Program Manager at Cisco. Follow us on Twitter @CiscoSPMobility.

@ThingsExpo Stories
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
SYS-CON Events announced today that EnterpriseTech has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effic...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and ...
SYS-CON Events announced today that CHEETAH Training & Innovation will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CHEETAH Training & Innovation is a cloud consulting and IT training firm specializing in improving clients cloud strategies and infrastructures for medium to large companies.
SYS-CON Events announced today that Datanami has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datanami is a communication channel dedicated to providing insight, analysis and up-to-the-minute information about emerging trends and solutions in Big Data. The publication sheds light on all cutting-edge technologies including networking, storage and applications, and thei...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...