Forrester Research Inc.’s new report
Their data indicate that 76 percent of Wi-Fi users are accessing the Internet from home, 26 percent from work and just 5 percent at outdoor spaces such as those that are typically served by muni networks. But that snapshot of current use does not consider the handheld devices pouring into the market–namely, the iPhone and Wi-Fi enabled BlackBerry–that are likely to impact demand for public Wi-Fi very soon.
Forrester’s observation about the consumer ROI of muni Wi-Fi networks is consistent with recent moves we’ve seen among providers to insure the ROI will be there when they enter a market. EarthLink, for instance, is focusing on markets of high household densities. But the coming influx of devices could change all that as access shifts from the home to the hand.
Forrester notes that most consumers have not yet tried muni wireless access. It will be interesting to watch what happens when they do‚Äö?Ñ?Æand after they begin to find ways to incorporate it into their daily lives. The killer apps for muni Wi-Fi, the ones that will drive critical mass in the consumer market, are very likely to be device-driven. Esme made this argument in her recent column about how muni WiFi is driving the concept.
This weekend I was talking with Jonathan Baltruch, president of MRI, consultants on the Ocean City, N.J., plan for a muni deployment. His take on the role that devices will play in the future of muni networks is forward-looking and worth sharing.
Jonathan estimates that, today, about 95 percent of the devices accessing the Internet wirelessly are laptop or desktop computers and only about five percent are handheld devices. In two years, he estimates, we’ll see the reverse and “that changes the parameters very significantly. Most people don’t understand the impact that is going to have.”
Wi-Fi-enabled VoIP telephone devices have been on the market for about a year now. The ripple in demand that the created is poised to grow to tsunami proportions with last month’s introduction of the iPhone.
If the market success of its predecessor, the iPod, is any indication, the iPhone promises to raise demand for free mobile Wi-Fi service a generous notch upward.
And Apple is not the only major device manufacturer getting on board with Wi-Fi. In May, RIM announced intentions to release a Wi-Fi enabled BlackBerry that should hit the market late this year. At the time of the announcement, RIM’s co-CEO Jim Balsille, no early advocate of Wi-Fi, said he now believes Wi-Fi devices have come of age as a compliment to mobile data services. Last week the FCC approved the Wi-Fi enabled BlackBerry.
Dell, too, is headed to market with a family of Wi-Fi enabled devices. While devices like the Wi-Fi BlackBerry will grow the demand for Wi-Fi access among urban professionals, general consumer devices like the iPhone enhance demand across demographics. Look how commonplace the iPod has become. Do you know anyone under 40 who does not own one?
The trend will be interesting to watch. Consumer demand for ubiquitous Wi-Fi appears to be just around the corner. We invite your opinion and observations on it.–
Click here to access the executive summary of the Forrester report.
It is a statement of the obvious that appliances will drive the demand for connectivity. We don’t need a report to tell us that. What will become the deciding factor on what get’s done on a muni wifi network will be the quality of the connection. Multiple hop networks with high latencies will obviously not support a good VoIP connection and noise intolerant systems that have packet loss will not provide good VPN or really good speed. So the question becomes now one of quality and not just availability. Don’t be surprised to find that a number of “pioneer” deployments will not cut it for these new application driven appliances.
As a company that deploys, supports and believes in such networks I merely wish to raise the notion of a “carrier class” network that we in the industry should strive for.
Thanks for the space,
Joe McCoy, P.E.
President
WavHost Corp.
Just as important as the devices themselves is how open they are to applications developers. I think people will want to use their devices (iPhone in particular) the way they use their laptops. They want to be able to install any application they find useful. If they are not able to do that, as is the case with many mobile phones today including the iPhone, they won’t use the device and the network as intensively. This version of the iPhone is compelling enough for me not only because I can’t put my favorite apps on it, but because it’s locked to one provider (AT&T).
“…one of quality and not just availability.” I just love it when someone like this (Service Provider) with actual experience, free from Vendor and some Muni spin, hits the nail on the head. Simple and sweet Joe, thanks.
Jacomo