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Coffee Latte with A Serving of Wi-Fi, Please

Wi-Fi in Starbucks Credit: Starbucks

A shopping trip to a nearby mall tells me that the Wi-Fi may grow bigger than it is expected to. Authentication, passwords and some poorly designed landing pages aside, the well-recognized Wi-Fi symbol seems to beckon the customer way before the girl in the store says hi or before the waiter ushers you into the restaurant. Where there is a Wi-Fi symbol, the feet seems to follow right away.

By 2018, the number of global public Wi-Fi hotspots are expected to reach 5.8 million, said Informa while ABI Research expects the number of worldwide deployments of Wi-Fi to surpass 10.5 million by the end of that period. Looks like there is going to be a Wi-Fi hotspot around every corner in the next few years. 

Monetization of Wi-Fi services though remains a challenge. What we have today are merchant sponsored Wi-Fi Hotspots, which are definitely attracting more people into the premises and therefore, will continue to be offered for free. On the other hand, we have Operator Hotspots and now Cable - Multi Service Operator (MSO) Hotspots which are somewhat bundled into the primary service (fixed broadband, 3G/4G LTE or cable service) and is accessible for free or for a pre-agreed fee. With Hotspot 2.0, accessing operators Wi-Fi service either at home or while roaming abroad has just got a whole lot easier and seamless. Then we have the Global Hotspot Providers (aka the true Wi-Fi Kings) such as Ipass, Boingo and WeFi which provide Wi-Fi services to thousands of locations around the globe across airports, hotels, restaurants and cafes - all travellers have to do is purchase a pass and download the relevant apps on their mobile device. Todate, Ipass boasts more than 13 million Hotspots! 

However, the true test to the Wi-Fi service is whether it can be a standalone 'monetizable' service where customers purchase a Wi-Fi pass or subscribe to a Wi-Fi service that offers Wi-Fi access across a given geographical area, for example a town center, a surburb or even the entire city - covering the main streets, parks, schools, public amenities, malls, hospitals and commercial centers. Such Wi-Fi service (which will most probably require joint ownership by operators, premis owners or even the city council and delivered by a third party Wi-Fi service provider) must offer secure and simplified login, real-time usage updates and allow easy top-up and plan changes. With data-only devices, more specifically Wi-Fi-only devices becoming very popular (thanks to Wi-Fi at home and Wi-Fi in the office and now, Wi-Fi in the car), the subtly yet steadily growing demand for Wi-Fi service that is available everywhere, that is operator-agnostic and that can intelligently take over from cellular connection when the user walks into the Wi-Fi zone will push service providers to rethink their Wi-Fi strategy. In addition, the launch of Wi-Fi calling service this year by some operators and the introduction of handsets with built-in Wi-Fi calling functionality puts Wi-Fi on the path of becoming a full-fledged service by itself and a great alternative to existing voice and data services. With the much hyped smart-city and the digital lifestyle idea, not having Wi-Fi access that is available to everyone and available almost everywhere (especially in urban areas) is like not having a large piece of a puzzle - the connectivity puzzle, that is. 

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Author

Executive Editor and Telecoms Strategist at The Fast Mode | 5G | IoT/M2M | Telecom Strategy | Mobile Service Innovations 

Tara Neal heads the strategy & editorial unit at The Fast Mode, focusing on latest technologies such as gigabit broadband, 5G, cloud-native networking, edge computing, virtualization, software-defined networking and network automation as well as broader telco segments such as IoT/M2M, CX, OTT services and network security. Tara holds a First Class Honours in BSc Accounting and Finance from The London School of Economics, UK and is a CFA charterholder from the CFA Institute, United States. Tara has over 22 years of experience in technology and business strategy, and has earlier served as project director for technology and economic development projects in various management consulting firms.

Follow Tara Neal on Twitter @taraneal11, LinkedIn @taraneal11, Facebook or email her at tara.neal@thefastmode.com.

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