Internet service providers (ISPs) face a challenge in meeting customer expectations of reliable connectivity given the proliferation of next-generation applications that demand low latency, such as high-quality video streaming and cloud gaming.
This is especially true in markets that are further along in migrations to advanced fixed access networks. While many ISPs and suppliers are committed to driving the adoption of the latest Wi-Fi standards, there is a long way to go before even Wi-Fi 6 - the latest Wi-Fi generation introduced in 2019 - outpaces older Wi-Fi standards in the home.
Speedtest Intelligence data shows that Wi-Fi 4 and Wi-Fi 5 remain the prevalent generation supported by routers, with Wi-Fi 6 representing just under 10% as of February 2023, and Wi-Fi 7 showing very few samples. The share of samples from Wi-Fi 4 routers has fallen by 6 ppts year-over-year, while Wi-Fi 5’s share of samples has marginally increased.
Regardless, the performance gap between Wi-Fi and ethernet doesn't need to be as wide as is the case in many markets today. Although Wi-Fi will always trade at a deficit to ethernet, the gap between these connectivity experiences should be closing over time. While various factors are at play - including smartphone support, router vendor developments and spectrum allocation - ISPs are overwhelmingly responsible in the eyes of consumers for improving Wi-Fi performance.
To Wi-Fi 6 and beyond
A 2022 Parks Associates study demonstrates that ISPs are the main driver behind the market penetration of new Wi-Fi standards, finding that 52% of US consumers acquired their routers from their ISP. However, even the most developed fixed broadband markets show significant variations in the adoption of Wi-Fi 6. Asian markets are leading the charge - Speedtest data recorded 42% adoption of Wi-Fi 6 in China and Hong Kong.
The European fixed market lags behind respective markets when it comes to the adoption of Wi-Fi 6, and the UK ranks particularly low at just 13%, despite Ofcom releasing the lower portion of the 6 GHz band for unlicensed use in 2020. While BT has sought another route to improve Wi-Fi coverage, prioritising whole-home coverage over Wi-Fi 6E with its BT Complete Wi-Fi (mesh) offer, the fact remains that penetration of advanced WiFi standards within the UK remains low.
Countries must allocate 6 GHz spectrum for unlicensed use if they are to capture the full performance benefits of Wi-Fi 6E and Wi-Fi 7. However, the decision to allocate 6GHz for unlicensed use needs to balance the spectrum requirements of future Wi-Fi networks, but also the mid-band requirements for 5G and in the future 6G networks. This allocation would enable Wi-Fi devices to access a broader frequency range and higher capacity spectrum, thereby facilitating advanced Wi-Fi technologies’ utilisation of wider channels.
Wi-Fi 7 on the horizon
Wi-Fi 7 is the next significant milestone on the horizon for wireless networking technology, with Wi-Fi 7 routers and smartphones having launched at the end of last year. Major silicon vendors like Broadcom, Qualcomm and Mediatek have already updated their solutions to support the emerging Wi-Fi 7 standard, and hardware vendors have followed suit.
Despite this, Speedtest data shows that consumer adoption of Wi-Fi 7 was minimal in Q1 2023, with the prices of early compatible routers posing a barrier to entry for many. ISPs will ultimately drive the penetration of Wi-Fi 7 routers, as is the case with the penetration of Wi-Fi 6 and increasingly 6E.
Regardless of the generation, the general direction of Wi-Fi advancements is good for consumers, but needs to accelerate. This is essential to Wi-Fi’s support for lower latency performance in addition to higher throughput, enabling higher quality video streaming, cloud gaming and future use cases linked to concepts such as the Metaverse and other uses of extended reality (XR).
Wi-Fi 6E - a happy medium?
Samsung and Apple, the two largest smartphone vendors globally, have clearly shied away from support for Wi-Fi 7 in their latest releases, instead prioritising Wi-Fi 6 and 6E. Samsung’s decision to release its Galaxy S23 device range in February without Wi-Fi 7 support marked a deliberate prioritisation of the most recent Wi-Fi technology most commonly found in homes today. Apple continues to lag behind on support for more advanced Wi-Fi, only including Wi-Fi 6E in its Pro line of the recently launched iPhone 15. For the other major Android OEMs, China’s allocation of a key part of the 6GHz spectrum band for IMT use, with a view to supporting 5G and in the future 6G network capacity, is also significant and appears to have cooled Wi-Fi 6E support among its leading smartphone manufacturers.
With smartphone sales forecast to decline to their lowest point in a decade, it’s clear that consumer smartphone replacement cycles will continue lengthen. For now, at least, it’s clear to us that ISPs should keep in step with stakeholders and prioritise the rollout of Wi-Fi 6/6E among their customer bases rather than considering leapfrogging to Wi-Fi 7.
The outlook is clear
ISPs must work to narrow the gap between Wi-Fi and ethernet performance in the home. Rolling out routers that are compatible with more advanced Wi-Fi technology generations is only part of the puzzle - albeit an important one.
The success of such rollouts doesn't just depend on prioritising the right generation, it also depends on using the right network monitoring solution. ISPs with access to live measurements from consumer devices are best placed to get an accurate picture of their network, including where it is and isn’t performing well, and prioritise accordingly.
For now, a combination of more advanced Wi-Fi 6E technology, combined with mesh solutions that extend Wi-Fi performance across homes via nodes remain the most promising way to halt and reverse the growing gap between Wi-Fi and ethernet connectivity in the short-to-medium term.
