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Solving operators’ “capacity crunch” has been a primary goal of mobile data offloading to Wi-Fi networks. Even with the expansion of 4G networks such as LTE and WiMAX, the benefits of mobile data offloading to a carrier-class Wi-Fi network are extremely compelling: reduced costs, faster expansion, better indoor coverage and lower subscriber churn.
While some mobile operators urgently need a cost-effective way of satisfying the ever-increasing hunger for more bandwidth and others just want to make sure that they stay ahead of the curve, these are not the only drivers for mobile data offloading. Building a carrier-class Wi-Fi service has become a strategic direction for many mobile operators whether they have a need for offloading or not. Why is that?
The short answer is – “because devices and users love Wi-Fi!”
Today’s mobile devices are designed to perform better in Wi-Fi networks (with speeds up to 300 megabits per second). With Wi-Fi capability already built in, these smartphones, tablet computers and more automatically try to move over to Wi-Fi networks whenever they are available. Speeds are fast and some applications like FaceTime and many of the iCloud services are only available through Wi-Fi.
The number of new Wi-Fi-enabled devices produced will more than double over the next few years with a stunning 2.1 billion Wi-Fi chipsets produced in 2015 alone. The subscribers have several Wi-Fi enabled devices, but not all of them have 3G/4G capabilities. Providing a carrier-class Wi-Fi service will make those subscribers more “sticky” to the operator and thus reduce churn.
Apart from the fact that it is often more cost-effective to deliver additional capacity with Wi-Fi than 3G/4G, it is also easier to build the right capacity in dense areas and to get indoor coverage. It can be a very challenging task for a 3G/4G macro network in a sports arena if thousands of people want to send a picture of the latest goal or touchdown at the same time. Having a setup with a grid of Wi-Fi access points where each AP covers a smaller number of individual users makes it easier to build the required capacity over the radio link.
At the recent Mobile World Congress in Barcelona, Spain, it was very clear that Wi-Fi now has been widely accepted as a complement to the 3G/4G macro network. The good news is that it is easy to know where to build Wi-Fi capacity as the 80/20 rule also applies here. Some 80% (or more) of the data traffic is running through only 20% of the macro base stations in most cellular networks. We have for instance seen operators build Wi-Fi networks proactively in areas with heavy mobile broadband usage such as universities – and reap the rewards of reduced cost and lower churn due to a better user experience.
For years mobile (cellular) telephony subscribers have been accustomed to mobile broadband at an affordable price, in many markets even for a flat fee per month regardless of usage. That worked well until the beginning of the “iPhone era.” By offering Wi-Fi in addition to 3G/4G, operators can offer users a variety of ways to grab the content (such as high-definition video) they want – from anywhere, at any time.
Going from 3G to 4G is not very different from the move from 2 Mbps to 24 Mbps connections in fixed broadband. What we learned from that move was that no matter how much more bandwidth users have, they consume the majority of the additional bandwidth. The congestion in some parts of the macro radio network will not disappear just because capacity is increased by 4G technology.
Additionally, with certain solutions, operators can follow their users into the Wi-Fi network to monitor usage, conduct billing and provide the same exceptional service their customers expect.
The conclusion from all this is that even if deployments of Wi-Fi among mobile operators is often labeled “offloading,” the Wi-Fi service stands strong on its own merits and can be seen as just another 3GPP network. It is really about “right loading,” i.e. optimizing the 3G/4G traffic and utilizing Wi-Fi where it makes sense. Offloading mobile data to a carrier-class Wi-Fi network is a must-have for a successful operator strategy today, tomorrow and beyond.
