India-based Wi-Fi network operator Ozone Networks will offer Wi-Fi offload services to Reliance Communications, using the Ericsson “Small Cell as a Service” managed service capability.
Ericsson says it already has a significant managed services business supporting Indian mobile operators.
Wi-Fi offload to fixed networks obviously has business model impact. It functionally reduces need for mobile operator spectrum resources, and therefore affects the timing and capital intensity of tower investments.
For mobile virtual network operators, Wi-Fi offload of mobile traffic also reduces the amount of spending on leased capacity from network owners. Also, power is supplied by a third party, as well as the actual Internet access connection and backhaul.
Consider that tower investments are amortized over eight to 10 year periods, while Wi-Fi is amortized over two to three years. Then there is the additional cost of spectrum licenses.
In modeling, GreenPacket estimates Wi-Fi offload reduces operating expense by about 16 percent.
Carrier grade Wi-Fi also is on the agenda, as service providers want greater quality assurance for their voice and video services when used or viewed over Wi-Fi connections.
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