Wi-Fi Use Cases, Business Models Evolving

There are some important technical issues where it comes to bonding of Wi-Fi and mobile spectrum, as there have been--and continue to be--issues with every important commercial application related to the Internet.

There also are new business models, which always have been an issue with Wi-Fi. With a few salient exceptions, Wi-Fi services tend to use an indirect revenue model (app provider or device value--with the exception of Wi-Fi-enabled router sales--often is indirect as well).

Generally speaking, consumer business models are indirect. Wi-Fi access provides value for consumers who actually buy another product (fixed or mobile Internet access).

The exception are public hotspot networks primarily sold to business users who travel out of town. Some Internet service providers with substantial amounts of fixed infrastructure are wholesale providers.

But some new business models are emerging. Xfinity is among the first new nationwide consumer-focused roaming access services to emerge. The business model remains indirect for Xfinity Internet access customers, but non-customers can buy access much as they can buy service from Boingo.

But most of the newer use cases continue to use indirect monetization. Use of Wi-Fi for mobile data offload provides a chief example. Amenity Wi-Fi provides another example. Voice over Wi-Fi capabilities linked to mobile subscriptions also are emerging as an indirect business model.

The extent of Wi-Fi support for Internet of Things, its use for connected car services (inside the car communications) and full Wi-Fi access integration with mobile are some potentially big new use cases as well.

For the most part, monetization will remain indirect.