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May 29, 2013

Predictions for the Future of the Carrier Wi-Fi Market

The Carrier Wi-Fi market is on the rise, according to a report from Mobile Experts. As Wi-Fi networks continue to converge with mobile and cable networks, the demand for the technology will keep on climbing, until it reaches $4 billion in 2018.

The report has not only predicted when the market will reach $4 billion, but also how the Carrier Wi-Fi market and mobile networks will grow together. It’s a simple matter of converging evolution, starting with Hotspot 2.0 using SIM authentication, followed by the improved billing, policy control, and interoperability of carrier Wi-Fi networks, and ending with advanced network intelligence that uses multiple air interface modes to provide the best experience and efficiency.

According to the projections, during each “phase” of the aforementioned steps, the market will continue to rise. From now until a year or so later, the market will be going through the first phase of the merging networks, and the Carrier Wi-Fi network revenue will linger around $1.5 billion. During the second phase, starting around 2015 and continuing on through 2017, it will continue to steadily rise, nearly doubling by the end. The third phase will begin around 2016-2017 and will be completed in 2018 with revenue of $4 billion.

Furthermore, the market study includes forecasts for other aspects of the market. This includes the market shares for each segment, as well as the transformation of controllers to cloud controllers and network integration. Mobile Experts expects a rapid adoption of 802.11ac technology, which in turn will drive 5 GHz radios in handsets.

"Wi-Fi is much cheaper than LTE in terms of cost per bit delivered,” said Joe Madden, principal analyst for Mobile Experts. “Some mobile operators are investing heavily in Wi-Fi to take advantage of rapid deployment and very low cost. As the small cell market matures, we are tracking multiple projects that combine small cells and Wi-Fi, with interesting combinations in DAS networks and other variations as well. This study illustrates the complexity of a heterogeneous network in terms of combined radio nodes, changes in the user devices, and changes to the core network and controller architectures to make everything play together. Our approach in this study was to scour the Wi-Fi market from one end to the other, to make sure that we had a complete view. In the end, we see a clear path to a run rate of 5 million APs per year."

Of course, these are all predictions, so there’s no telling what will come out of left field and change the market. But as it is now, it’s a safe bet with intelligent predictions about the future of the Carrier Wi-Fi market. Wi-Fi is constantly in growing demand, but mobile and cable networks won’t be left out; they will adapt and evolve to meet the needs of their customers.




Edited by Alisen Downey


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