WiFi Hotspots Boom in U.S. May Hurt Wireless Operators

Zacks

Thriving WiFi networks throughout the U.S. has become a major concern for large wireless operators. A recent study conducted by Adobe Systems Inc. (ADBE) revealed that currently more than 50% data transmission by smartphone users is taking place over WiFi networks.

If this trend continues, it may spell doom for national wireless service providers, who have invested significantly for the installation of high-speed 4G LTE networks.

Large business enterprises generally have point of presence throughout the world. A strong and robust wireless network is mandatory for these companies to always remain connected with its remote sites.

Cloud-managed WiFi network has become the most efficient technology for these large business houses. This technology offers several advantages including central manageability, smaller physical footprint and linear scalability.

In Apr 2014, large cable MSOs (multi service operators) together with several major IT firms and telecom organizations have formed an alliance to free up spectrums in order to expand the WiFi support network.

The major participants in this alliance called “WifiForward” include cable MSO Comcast Corp. (CMCSA), Time Warner Cable Inc. (TWC) and Charter Communications Inc. (CHTR), IT firms Google Inc. and Microsoft Corp., as well as telecom organization Consumer Electronics Association, among others.

“WifiForward” aims to strengthen existing unlicensed spectrums, free up new spectrums to use at several different frequency bands and establish rules to encourage growth and deployment of WiFi networks.

Earlier, research firm WeFi Inc. had reported that the number of commercial WiFi hotspots is expected to reach 10.55 million in the U.S. by 2018. WeFi further stated that the amount of mobile data offloaded in WiFi networks had surged an astounding 875% in the U.S. in 2013.

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