More than 60% of tablet users rely on Wi-Fi connections rather than cellular, according to the latest market research from the NPD Group. As carriers struggle with the high cost of delivering mobile data, many are finding it hard to price data plans that can effectively compete with ubiquitous Wi-Fi, and NPD says most tablet users are deciding that these plans are not worth the cost. In addition, many tablet buyers already have a smartphone, so relying on Wi-Fi for their tablet does not leave them without access to data. Carriers are looking at data plans that would cover multiple devices, but no U.S. carrier has introduced such a plan.
“There are multiple reasons for greater Wi-Fi reliance,” said Eddie Hold, vice president of Connected Intelligence, which is part of the NPD Group. “Concern over the high cost of cellular data plans is certainly an issue, but more consumers are finding that Wi-Fi is available in the majority of locations where they use their tablets, providing them ‘good enough’ connectivity. In addition, the vast majority of tablet users already own a smartphone, which fulfills the ‘must have’ connectivity need.”
Many new tablets hitting the market, most notably the Kindle Fire, do not offer cellular connectivity, but the data used for NPD’s report comes mostly from Apple iPad users, because that tablet dominates the market. Apple sold more than a 11 million iPads in the second quarter and is expected to sell 12 million to 13 million during the current quarter. In contrast, sales of all other tablets were less than 1.3 million through October, according to NPD.
The Wireless Broadband Alliance predicts that there will be 5.8 million Wi-Fi hot spots in the United States by 2015, up from 1.3 million today. Currently, tablets account for just 10% of the connections to Wi-Fi hot spots, compared with 36% for smartphones. Laptops still account for the largest portion of Wi-Fi connections.
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RCR Wireless News will also be livecasting the Wi-Fi Alliance’s Hotspot 2.0 seminar Dec. 13. Details of the event can be found here. The Wi-Fi Alliance is a sponsor of RCR Wireless News.
