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Wi-Fi Business Models: Best Practices and Disruptive Trends

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Wi-Fi Business Models: Best Practices and Disruptive Trends

Summary

"Wi-Fi Business Models: Best Practices and Disruptive Trends", a thematic research report by GlobalData, provides an examination of Wi-Fi business models worldwide through insightful case studies of eighteen (18) Wi-Fi service providers including mobile network operators as well as MVNOs and Internet companies. The report identifies best practices for Wi-Fi network options and monetization and describes the five key business models for Wi-Fi and their fit by operator type.

The installed base of Wi-Fi enabled devices continues to grow, driven in large part by the growth of smartphones. The technology has developed to better support operators and opened the door to multiple business models, enabling lower costs, new revenue streams and improved services.

The report is structured as follows -
- Section 1: Case studies. This section provides case studies of eighteen (18) Wi-Fi service providers worldwide, examining their Wi-Fi network and go-to-market strategies.
- Section 2: Key findings and recommendations. This section examines Wi-Fi business models from the perspective of their fit for different operator types, best practices and disruptive trends and recommendations on Wi-Fi network evolution and business models.

Scope

Key findings of the report include -
- Wi-Fi supports multiple business models for operators. There are five broad Wi-Fi business models available to network operators which can and should be used in combination (they are not mutually exclusive), though not all are relevant to all operator types. Integrated (fixed-mobile) and fixed-MVNO operators can benefit from all the different business models available while mobile first operators are more limited.
- The investment and operational costs of Wi-Fi must be kept low because the revenue upside is limited. There are multiple partnership opportunities which can help to keep costs down including joint ventures, roaming, wholesale, OTT providers, Wi-Fi specialists, venue owners, advertisers, payment providers etc.
- Wi-Fi network revenue upside must be maximized and thus sold across the organization from the consumer and business facing departments to advertising/media and wholesale divisions.

Reasons to buy

- The report provides a comprehensive examination of operator business models in the global market to help executives fully understand market dynamics, determine what works and what doesn’t, formulate effective product development plans and optimize resource allocation and return on investments.
- Each business model is analyzed to highlight notable approaches as well as how different types of operators, whether fixed only, fixed-mobile or mobile only are leveraging the technology to suit their particular context.
- Eighteen case studies illustrate the findings of the report, providing insights into particular situations in varied markets; this will help the reader understand both the challenges confronted in the real world and the strategies employed to overcome those challenges.
- The report highlights innovative and progressive approaches from operators around the world, including both developed and developing regions.
- The report discusses concrete opportunities for Wi-Fi, providing a number of actionable recommendations for operators and vendors.

TABLE OF CONTENTS

Table of Contents
Table of contents 3
List of exhibits 5
Executive summary 7
Section 1: Case Studies 9
Airtel India 10
AT&T, US 12
BT, UK 14
China Mobile, China 16
Comcast, US 18
Free, France 20
FreedomPop, US 21
Google Project Fi, US 22
Internet Solutions, South Africa 23
KDDI, Japan 25
KT, South Korea 27
O2, UK 29
Oi, Brazil 31
Proximus, Belgium 33
Republic Wireless, US 35
T-Mobile, US 37
Virgin Media, UK 39
Key Findings and Recommendations 41
Appendix 48
Acronyms and definitions 49
Companies mentioned 50
About the authors 51
Related research 52
About GlobalData 53
Contact information 54

List Of Tables

Exhibit 1: Airtel India overview 10
Exhibit 2: Airtel quarterly ARPU and data consumption/user 10
Exhibit 3: Facebook Express Wi-Fi and Google Station 11
Exhibit 4: AT&T overview 12
Exhibit 5: AT&T powers McDonalds’ Wi-Fi 12
Exhibit 6: LAA aggregation 13
Exhibit 7: BT (and EE) overview 14
Exhibit 8: BT Digital Kiosk, Inlink 14
Exhibit 9: EE 4G subscriptions and as a percentage of total, 2012-2017 15
Exhibit 10: China Mobile overview 16
Exhibit 11: Number of Wi-Fi hotspots, 2012-2017 16
Exhibit 12: Percentage of wireless traffic and revenue Wi-Fi, 2012-2016 17
Exhibit 13: Comcast overview 18
Exhibit 14: Comcast customers, YE 2016 18
Exhibit 15: Comcast Wi-Fi hotspot network 2014-2017 19
Exhibit 16: Free France overview 20
Exhibit 17: Free Mobile market share 2011-2016 20
Exhibit 18: FreedomPop overview 21
Exhibit 19: FreedomPop Wi-Fi coverage 21
Exhibit 20: Comparison of Project Fi and MNOs 22
Exhibit 21: Internet Solutions overview 23
Exhibit 22: Alwayson airtime converter 23
Exhibit 23: Data pricing comparison by volume in South Africa 24
Exhibit 24: KDDI overview 25
Exhibit 25: KDDI subscriptions by type, March 2017 25
Exhibit 26: Percentage of mobile data offloaded onto Wi-Fi, 2012-2016 26
Exhibit 27: KDDI overview 27
Exhibit 28: KT Giga LTE architecture 27
Exhibit 29: Korea Telecom network evolution from 4G to 5G 28
Exhibit 30: O2 UK overview 29
Exhibit 31: O2 Wi-Fi services 29
Exhibit 32: O2 Wi-Fi partners 30
Exhibit 33: Oi Brazil overview 31
Exhibit 34: Oi - Fon Wi-Fi partnership 31
Exhibit 35: Oi Wi-Fi propositions and benefits 32
Exhibit 36: Proximus Belgium overview 33
Exhibit 37: Proximus churn rates by bundle, Q3 2017 33
Exhibit 38: Proximus consumer subscriptions breakdown 34
Exhibit 39: Republic Wireless overview 35
Exhibit 40: Republic Wireless plans and smartphones 35
Exhibit 41: Sprint overview 36
Exhibit 42: Sprint free Wi-Fi calling 36
Exhibit 43: Sprint Wi-Fi first MVNOs 36
Exhibit 44: T-Mobile overview 37
Exhibit 45: T-Mobile Personal Cellspot 37
Exhibit 46: Portion of calls over VoLTE, Q3 2015 - Q3 2017 38
Exhibit 47: Comcast overview 39
Exhibit 48: Virgin Wi-Fi 39
Exhibit 49: Virgin Media managed & wholesale Wi-Fi 40
Exhibit 50: Network assets and approaches by selected Wi-Fi providers (I) 42
Exhibit 51: Network assets and approaches by selected Wi-Fi providers (II) 43
Exhibit 52: Business models of selected Wi-Fi providers (I) 44
Exhibit 53: Business models of selected Wi-Fi providers (II) 45

List Of Figures

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