WBA Panel: Using Wi-Fi to Maximize Coverage and Revenue
Tuesday, July 3rd, 2012 Steve Livingston, Sr. Vice President of Carrier Development
Last week I participated in a panel at the WBA Wi-Fi Global Congress in Seoul, Korea. Other panel members included representatives from Accuris Networks, AT&T, Oi WiFi, and Strategy Analytics. We discussed how to maximize international data roaming revenue and coverage through Wi-Fi. I found the dialogue fascinating, particularly due to my familiarity with this topic; iPass specializes in providing this opportunity to mobile operators through our Open Mobile Exchange (OMX).
The global mobile computing market that the panel members work in is experiencing a period of significant change. With subscriber penetration at 100% or above in the developed world, mobile operators must target not only subscribers, but their multiple devices. The average traveler today carries 2.8 devices, and consumes increasing amounts of data due not only to the number of devices, but new apps coming to market daily. A carrier with a proposition to connect all devices, including Wi-Fi only devices, will provide valuable services that the consumer craves, and at a more affordable price. Consequently, large carriers are putting together compelling offers and propositions which will result in 2012 being the year that Wi-Fi roaming for the consumer will begin in a meaningful way.
The real jewel for a mobile operator offering an international Wi-Fi roaming proposition is to provide domestic customers with a proposition that their competitors do not offer. By differentiating with this capability, carriers are able to address the high value customers, the most critical to retain and attract. Bundling these domestic services in the right way delivers higher ARPU (average revenue per customer) and customer loyalty.
One European carrier forecasts that for every subscriber they have today in their entire base, by adding an International Wi-Fi roaming proposition they will recognize €9/subscriber per year. Extrapolating, a carrier with 10 million subscribers could potentially increase revenue by €90 million per year, a substantial amount for any company. Why wouldn’t a mobile operators take advantage of this lucrative business model?
Tags: carriers, cost management, enterprise mobility, internet access, mobile network, wi-fi access
