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The key considerations behind unlocking WiFi revenue

By Dr Dawie de Wet (PhD Electronic Engineering), CEO at Q-KON.

Dawie de Wet (PhD Electronic Engineering), CEO at Q-KON.
Dawie de Wet (PhD Electronic Engineering), CEO at Q-KON.

According to internationally recognised research, WiFi is increasingly becoming an indispensable part of many consumers' lives and already accounts for a growing proportion of their wireless usage.

A January 2013 report by "the Analyses Mason on WiFi adoption in mobile networks", reveals a number of thought-provoking statistics, including that an estimated 75% of smartphone users in the US and selected European countries use WiFi.

Overall, the percentage of smartphone data carried via WiFi is already over 50% in Europe and the US, with Ericsson predicting 65% of laptops using WiFi as preferred connectivity. Most operators are responding to users' data consumption needs by deploying WiFi; 70% of the operators already have a WiFi proposition in place, and those that have not yet deployed WiFi generally plan to do so in the next 12 to 18 months, says Dr Dawie de Wet, CEO at Q-KON.

While the need to deploy WiFi infrastructure is clear for most service providers, it is the formulation and structuring of a viable business case and successful deployments that are the missing elements.

Most current large-scale WiFi deployments are motivated from a "traffic offload" perspective rather than unlocking additional revenue by implementing a WiFi-centric business model.

Those service providers that have succeeded in defining profitable business models for WiFi services have been prepared to view WiFi as a strategic initiative with a specific corporate focus.

They effectively integrated the technology, market demand, corporate strategy and delivery capability to address this focused market. For most large-scale mobile operators, it is an inherent challenge to provide a niche service such as WiFi, to apply the focus and resources needed while at the same time taking care of the mainstream core business.

Furthermore, the successful deployment of WiFi networks to service large-scale public areas such as shopping malls, residential gated communities, hotels and other high-density areas requires specialised engineering skills and products specifically developed for outdoor networks.

Since WiFi is widely used as an indoor access medium, it is generally perceived as a "plug-and-play" technology and service providers often underestimate the special engineering and product requirements needed for outdoor environments.

In order to successfully develop profitable WiFi service offerings, it is proposed that service providers acknowledge WiFi for what it is today, a mainstream specialised application. Overcoming this paradox will be the key in unlocking future revenues from WiFi networks. It is, and will become more and more, a medium used and preferred by the mass consumer market while it still requires specialised strategic, business and engineering skills to plan, implement and operate these networks.

Service providers that want to capitalise on this emerging market would do well to partner with specialist companies that can provide the integrated business consulting and engineering expertise required for successful implementation and operation of WiFi networks.

Leveraging specialised skills will allow operators to capture WiFi market share while at the same time maintain their focus on core business functions.

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Q-KON

Q-KON is a South Africa-based engineering group that provides turnkey solutions and managed network services to the African and South African telecommunications industries. The company focuses on the delivery of innovative wireless, satellite and VOIP (voice over IP) solutions.

This technology is expertly designed to meet increasing demands for connectivity and enhanced telecommunications capabilities within these developing economies. For 23 years, Q-KON has followed successful strategies to establish advance technologies in challenging environments to unlock real business benefits for all.

Since inception, the company has distinguished itself in the solutions and services it provides and has conquered many business impossibilities. Q-KON's engineering achievements throughout its target markets are underwritten by sound business practices and long-term ethical relationships.

Editorial contacts

Liza du Plessis
MicroZone PR
(082) 445 5541
liza@micro-zone.co.za
Dawie de Wet
Q-KON
(+27) 12 665 0052 ext 202