Data traffic is expected to grow sevenfold by 2021 according to the latest Cisco Visual Networking Index (VNI) report, driven by the continued increase in the number of smartphone users, widespread use of mobile applications, network speed improvements, massive mobile video consumption, and internet of things. Soon, more people will be using mobile phones (5.5 billion) than bank accounts (5.4 billion), running water supplies (5.3 billion), or lines of fixed telephony (2.9 billion).
Wi-Fi has a crucial role to play in the face of this explosion of data usage, as it will carry most of this traffic. In fact, globally more than 60% of mobile data traffic will be offloaded over Wi-Fi networks this year, according to Juniper Research’s “Mobile Data Offload & Onload” report.
Telecommunications operators must begin to consider Wi-Fi as an integrated technology if they haven’t already done so. Not only can this lead to high cost savings and new sources of monetization, but Wi-Fi also improves the connectivity experience for end users through increased coverage. All these benefits translate into a truly differentiated offer for service providers and, in many cases, an increase in revenue.
We are at a point of inflection within the industry, as carrier-grade hotspots will shortly outnumber “best-effort” access points installed. This will be one of the main drivers of growth in the industry over the next few years so managed Wi-Fi is going to be a necessity.
Qualcomm estimates that the average number of Wi-Fi connected devices per four-person household will grow from 8 to 50 by 2020. As we already know, the IoT is a key driver behind the increase in mobile data traffic, but it also presents a significant opportunity for Wi-Fi which will be the dominant access technology to support implementation. From the perspective of carriers, IoT deployments are likely to provide new monetization opportunities, so it isn’t surprising that approximately 60% of operators have already deployed or planned to develop strategies in IoT by the end of 2017.
