Wi-Fi/Cellular Convergence - Temporary Network Band-Aid or a Long-Term Network Crutch?
With AT&T and O2 talking up Wi-Fi for the iPhone and T-Mobile’s new HotSpot@Home service that allows you to make calls on your home’s Wi-Fi network, I’ve been wondering - why are cellular service providers suddenly pushing Wi-Fi/cellular integration? I mean, every call and data connection on Wi-Fi means less revenue for them (although T-Mobile is trying to get its customers to pay extra for the service). Why willingly cede revenue like that?
Then I realized that Wi-Fi is the perfect “Band-Aid” fix to these carriers’ bandwidth and network reach issues. Everyone knows that AT&T and O2’s EDGE networks are insufficient on their own to handle iPhone users’ data demands and that T-Mobile’s U.S. network provides less than stellar coverage. Adding a thousand Wi-Fi network access points instantly and significantly expands their network’s reach and capacity.
But at what cost? How much revenue will these carriers forfeit as a result of poorly planned networks and service introductions? And what do you think their customers are going to do once they’ve been conditioned to use Wi-Fi-based services when WiMax comes online, negating the need for cellular services in all but the most rural settings?
What do you think? Is Wi-Fi a necessary, but temporary Band-Aid or a longer-term crutch that is going to cripple the carriers?
