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Wi-Fi use to grow, ARPU to plummet

CAMBRIDGE, U.K.-Global Wi-Fi use will grow at a record pace, reaching 707 million users by 2008, according to predictions from Pyramid Research. However, the research firm expects Wi-Fi prices to fall at an equally rapid pace, with average revenue per user dropping from $30 per month this year to $3 per month in 2008.

Pyramid further believes consolidation will happen soon, with established infrastructure providers like Ericsson, Alcatel and Lucent acquiring nascent Wi-Fi software and device manufacturers. Meanwhile, standalone Wi-Fi businesses will likely disappear or possibly partner with carriers to help solve roaming, support and billing issues. Pyramid also believes carriers will approach Wi-Fi as an add-on service to strengthen customer loyalty.

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