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Local WiFi nears tipping point [ITWeb]
[September 23, 2014]

Local WiFi nears tipping point [ITWeb]


(ITWeb Via Acquire Media NewsEdge) WiFi is becoming more sophisticated, as services offered over the technology diversify.

WiFi is far from dead, with a tipping point in the offing on the local front and ample opportunity for companies to leverage the wireless Internet access technology, given the right strategies and models.

This is according to industry observers and comes after Dimension Data yesterday announced (../index.php?option=com_content&view=article&id=137863&A=MAW&S=Business&O=E&E=3-279538) the creation of a new company, WirelessCo, which will build and operate an open access carrier-grade WiFi network. It also follows a number of WiFi moves made this year by local entities, including Project Isizwe (../index.php?option=com_content&view=article&id=136945:Free-WiFi-projects-fast-facts&catid=260), the SA National Taxi Council (../index.php?option=com_content&view=article&id=135312), Orange (../index.php?option=com_content&view=article&id=72452) and MWeb (../?id=70510:SA-embraces-WiFi-sharing).



Initially conceived as a wireless alternative for the modest office network, WiFi has – contrary to expectations – emerged as a disruptive technology that has grown by stealth to dominate the global wireless data domain, says BMI-TechKnowledge (BMI-T). And the domestic market is now tracking this global WiFi evolution.

BMI-T director Brian Neilson says SA is close to a tipping point, with 2016 – or even 2015 – likely to be "the year of WiFi".


Business models Ellie Hagopian, CEO of French WiFi giant Nomosphere's local branch, says WiFi is a powerful medium that can be used to alert mobile loyalty or coupon applications of the presence of a registered consumer in a physical space at a specific time – a reality that is giving rise to a whole new set of business models.

She says service providers need to rethink their approach to public WiFi. "It's not about selling data bundles anymore. The service providers that will win are those that understand how to unlock the value in using smartphones and connectivity to communicate with consumers based on their location, preferences and privacy settings." Ian Keene, vice-president of communication service provider technology at Gartner, says WiFi is undoubtedly a growing market worldwide, largely because of the potential it has for mobile operators to offload traffic from their 3G networks and because customer-facing businesses have recognised the value of keeping customers in their stores at the relatively low cost of offering free WiFi.

On the local front, says Keene, there is an impression that SA lags behind the rest of the world, and there is a great opportunity for those who get the offering right. "It is not about charging consumers for WiFi services anymore. I cannot think of any leading mobile operator in West Europe that isn't investing in WiFi. They are investing in long-term evolution as well, but realise people still want WiFi." Monetisation Keene notes that, while mobile operators may have previously seen WiFi as threatening to their bottom line, that impression is changing. Neilson says, done right, the provision of WiFi services can be a lucrative business. "I don't think anyone knows right now just how big this monetisation is going to be [but] location-based services and analytics have huge potential." Ovum analyst Richard Hurst says the WiFi opportunity must not be seen as a standalone service, but regarded in the greater context of other more dominant services across the country. He says there is value to be derived from the ubiquity of smartphones and the ability to deliver services in location-specific areas, but the challenge will be the monetisation of services – with the consumer expecting the service to be bundled with existing mobile data services.

ICT veteran Adrian Schofield notes WiFi has, in certain instances, been seen as necessary for competitive advantage. "You can see the rationale for WiFi provision in coffee shops, clubs, universities, airports, taxis – where the Internet service is procured for the core business and the WiFi access is the incentive for customers to spend more time and money on the premises." In a recent review of the local smartphone market, BMI-T noted there were close on 8 000 active hotspots and more than 30 000 locations for hotspots across SA.

"The demand for data will soon outstrip supply if current trends continue and there is no resolution regarding the assignment of access spectrum, including digital dividend spectrum. Simply put, consumers have developed an addiction to lower-cost bandwidth, and network operators will need to cater for this demand through innovative mechanisms with carrier WiFi being a prime candidate." (c) 2014 ITWeb Limited. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

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