New wireless standard Hotspot 2.0 faces hurdles: Analysts: Page 2 of 2
By Edwin Yapp July 25, 2014
No clear business case
Despite some of Hotspot 2.0's innovative features, one key issue that could impede its widespread use in today’s increasingly mobile world is how service providers would be able to monetise their services effectively, given that there are already so many free WiFi hotspots available today.
Also complicating the matter is the fact that cellular service providers are beginning to be more competitive with their data roaming deals, offering flat rates.
Ruckus Wireless' Wright readily acknowledges this, but notes that as with the case with existing public WiFi providers, there will be numerous Hotspot 2.0 monetisation models – some direct, while others will be indirect.
Arguing that businesses today can’t afford not to have WiFi services as this would put them at a competitive disadvantage, he says that once the public is familiar with the automatic and secure connection experience of Hotspot 2.0, there will be growing demand for it at all public WFi venues.
He argues that unlike cellular roaming, WiFi roaming can be done between mobile network operators, hotels, convention centres, department stores, football stadiums, coffee shops, and basically anywhere with a WiFi infrastructure.
“Large web and social media companies may offer such services in order to promote WiFi connectivity for the consumption of their content, and to gain high-level analytical information about their users.
“With these roaming consortiums in place, users can easily roam across the street, across town, or even from the other side of the world,” Wright says.
However, Dimitris Mavrakis (pic), principal analyst for intelligent networks at research firm Ovum, believes that it’s still early days for Hotspot 2.0, noting that the biggest trials today are provided by players such as Boingo and only in some US-based airports.
He says the next step would be to invite mobile operators to allow their subscribers to use the Hotspot 2.0 network.
“Hotspot 2.0 is likely to be very popular in the advanced markets of South Korea and Japan, with other markets to follow,” he tells DNA via email.
“The evolution and adoption of the Hotspot 2.0 standard is likely to follow global adoption, and South-East Asia is likely to be in line with other advanced markets, including North America and Western Europe,” he adds.
Mavrakis says to spur the take-up of Hotspot 2.0, there must be an incentive for service providers to partner and offer the service free to end-users.
Service providers also need to ensure that the service is easy to use and that the technology supports all major computing and mobile platforms, especially Android, he adds.
Asked what the potential pitfalls for Hotspot 2.0 are, Mavrakis says the technology must be seen as a complementary technology to existing networks, and that service providers must not seek to monetise Hotspot 2.0 but make the user experience easier first.
“They should make the user experience great and espouse the benefits of the technology to ensure that service providers partner with others in the ecosystem to provide a ubiquitous and consistent user experience,” he adds.
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