Light Reading

Wi-Fi: Taking the Strain for Cellular

Light Reading
LR Mobile News Analysis
Light Reading
12/21/2012
50%
50%

Three companies long involved in the Wi-Fi business are here to tell us why 802.11 can still take the strain for cellular even in an age of 4G.

Blazin' Wi-Fi
Towerstream Corp., which traditionally offers a WiMax-based last-mile service to business customers, wants to build up its carrier business, leasing Passpoint-ready Wi-Fi nodes to operators. CEO Jeff Thompson won't name the company's carrier customers thus far for Wi-Fi, but the company has two contracts with "national" carriers and a trial under way with a third.

For some time now, Towerstream executives have been of the belief that Wi-Fi and 3G and cellular would be deployed side-by-side. This was confirmed when they heard operator presentations at the WBA Wi-Fi Global Congress in November. "It's interesting now to see Wi-Fi in five-year business models when they're doing network planning," Thompson says.

Certainly for the major carriers, entire network architectures are going through a fundamental shift. Engineers at Sprint, for example, are getting surgical about small cells, using them to pump up data capacity to preserve scarce spectrum.

Wi-Fi has a crucial role to play in all of this change, according to Towerstream. "We're at the point now where Wi-Fi is not going away," Thompson says. The majority of a consumer's smartphone data usage is done via Wi-Fi and it's the one common technology on handsets that transcends HSPA+, LTE and other flavors of wireless, he notes.

In Thompson's eyes, Wi-Fi offload is not that different from what carriers have been doing for years. For a long time, they wanted to own the towers and rooftops but discovered it was more economical to let the tower companies do that. Granted, operators still need to do some of their own site acquisitions, but more often, they're looking at getting these types of services from someone else.

"The cheapest way to grow your revenue is to lower churn," Thompson notes, adding that the cheapest way to acquire spectrum is to use offload.

Alternative for roaming
In addition to making the most of licensed spectrum, Wi-Fi is one of the more economical ways to deliver international roaming, especially as the industry moves to LTE and needs to figure out how to make all those disparate frequencies talk to one another.

Boingo Wireless Inc., which manages more than 600,000 hot spots worldwide, has an agreement to supply global roaming for an unnamed U.S.-based Tier 1 carrier. Boingo expects to see the results of that deal reflected in its bottom line toward the end of 2013 and into 2014. It's still in the early stages, but President and CEO David Hagan is hopeful that, along with Boingo's agreement with the Competitive Carriers Association (CCA), it will lead to more carrier deals in the future.

The purpose of the CCA agreement is two-fold, said Christian Gunning, vice president of corporate communications at Boingo. First, the carriers in CCA tend to be more spectrum constrained and therefore they can use the offload capabilities of the Wi-Fi network. Second, because their footprints are smaller than the Big 4 U.S. carriers, they're spending a lot on roaming. Offloading onto Wi-Fi gives them an economical alternative.

Boingo's relationship with operators goes beyond Wi-Fi, however, and that's another reason company executives think they have a leg up. Boingo considers itself the second-largest distributed antenna systems (DAS) operator in the U.S., second only to Crown Castle International Corp.. Hagan has stated that he believes carrier Wi-Fi will be much more like the DAS business, where traffic moves back and forth without the consumer's intervention.

Different strokes
In the same general category as Boingo is another company, iPass. But where Boingo's offerings include a service direct to consumers, iPass has been focused on the enterprise and doesn't target consumers, explains Steve Livingston, iPass's senior vice president of carrier development. It also doesn't position its carrier services as something to use for Wi-Fi offload. Instead, the company sells a solution for operators to offer international roaming to their customers under a white-label arrangement.

The selling point of iPass for businesses is its ability to work out all the variations between networks, like authentication, and present a connection as a single seamless entity to its customers.

iPass expects to finish this year with between 15 and 20 roaming deals. None of them so far involves a U.S. carrier but according to the company it is early days yet.

"These are the early adopters around the world who are going to take a service to the market and we'll see how disruptive they are," Livingston said. "We're in the first and second inning of a whole new market."

— Monica Alleven , special to Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
CraigPlunkett
50%
50%
CraigPlunkett,
User Rank: Moderator
1/15/2013 | 5:52:23 AM
re: Wi-Fi: Taking the Strain for Cellular
I'm in the SF area, and it turns out that Towerstream's net here is also publishing a MetroPCS splash page too. -áSo lots going on for Carrier Wi-Fi offload!
ASHARDIE
50%
50%
ASHARDIE,
User Rank: Light Beer
1/9/2013 | 2:55:33 PM
re: Wi-Fi: Taking the Strain for Cellular
Jose - I think it will be more relevent.-á New spectrum is nice - but its still more expensive than WiFi will be.

Great article overall - but a good follow-up note would be to identify the Metro Ethernet providers who see PassPoint 2.0 as an enabler for them to gain entrance to the off load market.
joset01
50%
50%
joset01,
User Rank: Light Beer
1/5/2013 | 2:03:13 AM
re: Wi-Fi: Taking the Strain for Cellular


With the FCC opening up the airwaves to allow 4G LTE roaming between carriers does that make Wi-Fi roaming more or less relevant?

CraigPlunkett
50%
50%
CraigPlunkett,
User Rank: Moderator
1/4/2013 | 1:17:14 AM
re: Wi-Fi: Taking the Strain for Cellular
Jeff may not be naming carriers, but Towerstream's Manhattan network has recently started broadcasting the "Sprint Wi-Fi" SSID. -áWi-Fi as a key component of het-nets will take off when the transparent authentication issue is solved in an efficient manner.
I'd also wager that once that happens, clusters of carrier class -áWi-Fi nodes will far outnumber cell sites and move far more data for happier users.

Metro Ethernet providers will also reap a bonanza of new customers and get into the managed Wi-Fi business themselves.
dan.mcbride
50%
50%
dan.mcbride,
User Rank: Light Beer
1/3/2013 | 10:56:03 PM
re: Wi-Fi: Taking the Strain for Cellular
Great article Monica, almost missed it due to the holiday break.

As a Wi-Fi gateway provider we can say that based on our recent operator conversations and trial activity, fixed and mobile operators alike are exploring many new approaches to Wi-Fi that will benefit them beyond cost reduction (i.e. Offload) to revenue generation.

In addition, I urge you to consider that your title could have been "802.11 can still take the strain for cellular 'especially' in an age of 4G."-á As consumer expectations evolve with a 4G experience and the 4G devices and users climb, there will be no going back, and Wi-Fi access will be an absolute requirement to supplement spectrum positions across the board.

Dan McBride
Stoke
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Interviews
In the Cloud With Telecom Italia

3|5|15   |   7:10   |   (0) comments


Light Reading CEO Steve Saunders sits down with Telecom Italia's Simone Battiferri at Mobile World Congress to discuss virtualization, agility and the economic advantages of the cloud.
LRTV Huawei Video Resource Center
New Ways of Working

3|5|15   |   4:24   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Hong Kong Telecom's Michael Yue explains how the transformation in its business has changed its customer relationships.
LRTV Huawei Video Resource Center
Bridging the Digital Gap

3|5|15   |   4:03   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Boingo's Dr. Derek Peterson explains how ICT can help telcos bring the physical and virtual worlds closer together.
LRTV Huawei Video Resource Center
Making the Internet of Things Affordable

3|5|15   |   2:42   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Telefonica's Dr. Mike Short explains how the Internet of Things demands a new low-cost approach to connectivity from telcos.
LRTV Huawei Video Resource Center
Evolution, Not Revolution

3|5|15   |   2:00   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Heavy Reading's Patrick Donegan explains why telcos can't be too hasty in their efforts to transform themselves.
LRTV Custom TV
Management & Orchestration Enablement Strategies Required for NFV Commercial Success

3|5|15   |   6:22   |   (0) comments


NFV commercial success rests on successful service orchestration strategies which can span heterogeneous physical, virtual, legacy and next-gen networks. Network data and security integrity are additional key aspects. Nakina provides a suite of orchestratable network integrity applications built on an open, scalable MANO enablement platform.
LRTV Huawei Video Resource Center
The Power of Five Convergences in OceanStor OS

3|4|15   |   6:24   |   (0) comments


OceanStor OS is Huawei's brand-new storage operating system. While inheriting the consistent high stability, reliability and performance from the company's previous storage products, OceanStor OS abounds in new converged storage features. Specifically, the new storage operating system achieves "five convergences" to lift storage convergence to a higher level.
LRTV Huawei Video Resource Center
4K Brings Extreme Video Experience

3|4|15   |   8:10   |   (0) comments


4K video is a hot topic in the video industry. It will certainly bring an extreme video experience to end users. At the same time, however, it will also pose a big challenge to operators. Check out this Huawei 4K experts' discussion about how operators can achieve success in 4K video service.
LRTV Interviews
DT's Virtualization Vision for Europe

3|4|15   |   10:23   |   (0) comments


Light Reading CEO Steve Saunders talks virtualization, cloudification and standards with Deutsche Telekom's Axel Clauberg at Mobile World Congress.
LRTV Custom TV
ZTE's Wireline at MWC 2015

3|4|15   |   6:35   |   (0) comments


Light Reading speaks with Jane Chen, ZTE's Senior VP of Wireline Business, about innovations in her product line at Mobile World Congress.
LRTV Custom TV
ZTE at MWC 2015

3|4|15   |   4:24   |   (0) comments


Dr. Dick Chen of ZTE USA gives Light Reading an overview of what's new at ZTE's pavilion at Mobile World Congress 2015.
LRTV Interviews
Ericsson CEO Talks Telco Data Center Tech

3|4|15   |   05:45   |   (1) comment


At Mobile World Congress, Ericsson CEO Hans Vestberg discusses telco data center technology, business models, small cells and more.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Internet Pioneers Decry Title II Rules
Carol Wilson, Editor-at-large, 3/2/2015
Wheeler: We'll Enforce Title II 'Case-By-Case'
Sarah Thomas, Editorial Operations Director, 3/3/2015
New CenturyLink CTO in Major Overhaul
Carol Wilson, Editor-at-large, 3/4/2015
Verizon Takes Radio Dot to Detroit, VoLTE Overseas
Sarah Thomas, Editorial Operations Director, 2/27/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders talks transformation and virtualization – including Light Reading's independent testing of the vendor's virtualization solutions – with Cisco CEO John Chambers at Mobile World Congress in Barcelona.
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.