WiFi: A disruptive asset in the competitive battle

Many of today’s major telco players are increasingly turning to WiFi strategies. Initially, WiFi was offered exclusively by fixed operators and WISPs in customers’ homes, businesses or public spaces. Now, we are starting to see all kinds of operators, whether they be fixed, mobile or convergent, offering WiFi based services.

Examples of this trend can be observed worldwide: BT, Vodafone, SFR or Cosmote in Europe; Telstra in Australia; Comcast, AT&T and T-Mobile in the US; Softbank or China Mobile in Asia… and the list goes on.

But what is the motivation behind this trend? The reason is that WiFi can be used as a disruptive asset in today’s increasingly competitive telco market, in which lines blur between different kinds of competitors. In the past, mobile and fixed operators only found competition amongst themselves. Today’s environment illustrates a more complex scenario: Now, competition also comes from OTT players, media providers, and most importantly, convergent operators. Customers are influenced by experience, not by access technology or provider.

While these lines are blurred, end-users’ demands are clear: WiFi is a must in every context of their ever-connected lives. Need proof? Download our report on WiFi’s undisputed success and discover how WiFi has remarkably stimulated wireless communications in our always-connected society.

In light of this context, operators have realized they must step beyond their traditional access propositions and offer WiFi as a complement that will give customers what they are asking for: WiFi everywhere, a best-connected experience, and added value services.

In return, operators can benefit from these services, differentiating themselves from competitors and achieving their business goals: From an enhanced customer experience which drives loyalty and churn reduction, to decreased costs based on WiFi calls and offloading strategies, and, most importantly, new sources of revenue. In fact, consumers are willing to pay 20%[1] more to providers that offer an improved network and digital experience. Last but not least, WiFi is also a powerful asset when targeting the business segment, especially regarding guest WiFi solutions and the future IoT ecosystem explosion.

Want to learn more about how the Fon WiFi Service Management Solution aligns with operator goals? Click here.

Don’t forget to follow us on LinkedIn and Twitter  and stay tuned for future posts! We will delve deeper into how convergent, fixed and mobile operators can complement their proposition with WiFi and achieve their business goals.

[1] Source Bain&company “Ending the telecom price wars in Europe”” 2015 survey