Wednesday, August 26, 2020

Wi-Fi Versus Mobile Internet Access Value Proposition is About to Change

Value propositions are a moving target. Consider Wi-Fi and mobile network speeds since the 3G era. In a number of countries where 5G is deployed, 5G offers much-faster speeds than Wi-Fi. That also was the case for 4G, since about 2018, Opensignal reported.


In 2008, Opensignal notes, Wi-Fi was faster than mobile almost all of the time, and had been since 2G and 3G. That was true of U.S. 4G and Wi-Fi speeds in 2014, for example. 


It is hard to remember, but the first Apple iPhone relied on 2G networks for internet access. When 3G was launched, people routinely switched back to Wi-Fi in public places, for example, as Wi-Fi was typically faster than 3G. 


Then there is cost per bit, which “always” has been higher for mobile, lower for fixed network access. 


Also, mobile data, up to this point, has cost much more than fixed network bandwidth, and public Wi-Fi cost was “essentially free.” If for no other reason, it continues to make sense to default to Wi-Fi, for reasons of cost (not depleting a mobile data usage allowance), if not speed advantages. 


source: Opensignal


All that appears likely to change as 5G networks are used to support home broadband services. Internet service providers have every incentive to price and package mobile-delivered home broadband at prices, terms and conditions similar to that offered by fixed network ISPs. 


That is a big change in value proposition for mobile-delivered home broadband.


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