WiFi services are fast becoming an important part of broadband service provider network strategy

But how long can the days of WiFi free be maintained? This is a huge question mark. Network operators have hinted that they want to create more revenue from their WiFi network.

Internet operators want to charge WiFi

A growing number of wireless and cable operators are deploying WiFi networks, according to a recent report by market research firm Analysys Mason. However, many of these service providers have considered the current free WiFi network for users as their future revenue-generating assets.

Most (89%) broadband service providers have deployed WiFi networks to divert their wireless traffic or expand their services, the report said. 40% of service providers say they think WiFi is not just a means to divert and dredge congested networks, but also a means of providing value-added services to their users.

Many operators are now starting to profit from their WiFi networks. In fact, according to the statistics, 57% of the service providers with WiFi networks say they have started making money in some form from WiFi networks.

So far, no large (cable or wireless) service providers have said they will charge their WiFi networks. But as network operators increasingly view WiFi networks as their strategic resources and add a variety of authentication and security services, there is speculation that service providers may be mulling charges or adding restrictions to WiFi networks.

For example, At&t offers thousands of unrestricted free WiFi hotspots in the United States and adds a free roaming service to the International Data program. However, unlike in the United States, At&t has set a monthly 1G data traffic limit for the international roaming WiFi network.

For the sake of fairness, at&t International Data program users can now obtain an additional 1G of data usage at a price of $60, which previously used the same price for only 300M of mobile data. However, At&t's practice of setting 1G traffic restrictions on WiFi networks suggests that the company has seen WiFi networks as valuable, not just as a tool for streaming data traffic.

The company did not say it would change its U.S. WiFi network policy. But wireless carriers have traditionally been keen to modify service plans to allow users to pay more for the services they use.

It's not easy to get users to pay.

"People need to understand that the price of services for wireless carriers is changing," he said. "We've seen this on the cellular network," said Chris Nicoll, chief analyst at Mason Corp. Early data service plans charge a low fee for wireless data and do not set any limits. When the user gradually becomes accustomed to the data usage, they start to take the classification plan or the multiple device plan to limit. ”

But David Reeder, vice president of Accuris NX, said it would not be easy to make users pay for the WiFi network. The company is providing certification services for At&t to enable WiFi networks to roam internationally.

As a short-range wireless technology, the inherent limitations of the WiFi network make it difficult to provide continuous quality services, Reid said. "Compared to mobile networks, it is difficult to provide quality services in a WiFi network environment." "I don't think it's going to be like a wireless network," he said. Wireless operators recognise this. ”

On the contrary, the analysis of Mason's nickel argues that wireless operators will take more creative steps to make money from WiFi networks. "Profitability does not mean charging users more. "he said.

For example, nickel thinks that wireless carriers can collect data from the WiFi network access endpoint and sell them to advertisers or marketers. Geographic information collected from WiFi hotspots may be more valuable than the information that wireless carriers currently collect from their cell phone towers, he said. The reason is that the WiFi hotspot has a smaller radiation radius, which makes it more accurate to determine the user's location. This makes it easier for some retailers in supermarkets to send ads and offers to users who are outside their stores. Cisco, the network equipment manufacturer, has added such analysis capabilities to its access endpoint devices.

Of course, WiFi users will have to participate in such programs. But even if the collected WiFi usage information does not involve specific user information, it is also important to marketers, says Nicole.

Although wireless carriers use unauthorized wireless spectrum to provide WiFi services, and their devices for building these WiFi networks are relatively inexpensive compared to mobile phone network devices, the cost of providing a powerful, stable WiFi network is negligible. "Although the spectrum is free, there are a lot of follow-up costs," he said. "said Nicole.

In fact, data repeaters for connecting Wi-Fi hotspots and wireless carrier core networks are not cheap. And nickel admits that wireless carriers may charge a higher fee for WiFi networks. But he says network operators are more likely to look for other ways to make money.

"Wireless operators understand that their users are not a bottomless pit for generating revenue." "Users have a bottom line about how much they pay to buy this kind of service," he said. Now they have paid a lot of money for data services. ”