Consumer interest in managed Wi-Fi services represents a $6.7 billion opportunity for service providers globally, a new study from XCellAir has revealed.
Data from a new survey of 1,000 consumers each in the US and UK reveals that on average, 15% of consumers would be willing to pay for their Wi-Fi service to be managed by their service provider or a third party. The survey also revealed that as many as 89% of consumers have completely unmanaged Wi-Fi.
According to XCellAir, the opportunity comes from revenue lost from consumers willing to pay for managed Wi-Fi services, as well as OPEX savings from a reduction in helpline calls and engineer visits. Using industry forecasts for installed Wi-Fi and the number of consumers willing to pay for managed Wi-Fi services as revealed in the survey, XCellAir calculates that service providers could miss out on $3.3 billion in additional revenue in 2018. OPEX savings from managed services, based on the average cost of customer helpline calls and truck rolls to configure or repair access points, could reach as much as $3.4 billion.
The survey revealed significant consumer reliance on their ISPs where 50% of consumers blame their internet service provider for problems with their Wi-Fi, regardless of who provided their router. It also shows that 80% of consumers surveyed experienced at least some issues with their Wi-Fi, with almost a third (31%) experiencing occasional or frequent Wi-Fi problems. As many as 19% of users in the US, and 10% in the UK, are willing to pay their service provider or a third party technical services firm, such as Geek Squad or Knowhow, to manage their Wi-Fi for them.
Todd Mersch, Co-Founder & EVP of Sales and Marketing, XCellAir
Our research reveals that there is nascent demand for managed Wi-Fi services, demand that they’re also willing to pay for. Against a backdrop of new uses for domestic Wi-Fi, from streaming media to smart home devices, it is remarkable that almost everyone surveyed had completely unmanaged Wi-Fi. Consumers are going to look to ISPs to provide and manage their Wi-Fi as more connected devices fill the home.
