Wi-Fi: The Better, Smarter, Faster Network
by David Fraser, CEO
8/5/2009
While smartphones have provided remarkable flexibility and freedom for their users, they have also changed the game for OEMs and service providers around the world. Streaming video, online gaming, daily email and general downloads have created a significant strain on 3G networks -- and it comes at a cost to service providers. As demand for wireless data services grows, service providers are hoping to kick start a trend toward widespread Wi-Fi adoption -- a less-expensive alternative to 3G that also provides a better user experience.
Smartphones as a Reflection of Societal Trends
Ours is a society requiring instant gratification: We want what we want, when we want it (usually right now). This attitude is reflected in the trend toward smartphones. In an increasingly mobile and connected society, we simply expect to be able to access email, Facebook or Youtube videos from our phones. These devices have thus found a niche in our society because they provide us with these "necessities"away from home -- anytime, anywhere.
Market research behemoth Gartner recently underscored the popularity of smartphones with some timely data. Although mobile phone sales fell by 8.6 percent to 269.1 million units in the first quarter of 2009, smartphone sales grew by 12.7 percent to 36.4 million units. According to Carolina Milanesi, research director for mobile devices at Gartner, this was "the biggest quarter-on-quarter contraction since Gartner began monitoring the market on a quarterly basis in 2001."
In addition to raw market numbers, handset manufacturers are also racing to enter the smartphone market. RIM, Nokia and Palm are against the gun to deliver smartphones so they can adequately compete against Apple's iPhone.
Why Wi-Fi?
With the growing popularity of smartphones and subsequent data downloads, 3G networks are bowing under the burden. Consider a recent analysis by Alcatel-Lucent of North America: wireless network use during the midday hour on one day revealed that Web browsing consumed 32 percent of data-related airtime but 69 percent of bandwidth. (By comparison, the study found that e-mail used 30 percent of data airtime but only 4 percent of bandwidth.) While 3G was acceptable before the ubiquity of smartphones, it is now unable to handle such demands. The resulting strain on 3G networks is costing service providers significantly: constant network capacity expansion to keep pace with demand for rich media and downloads amounts to $6 billion annually. Because the amount of money service providers are supposedly making from every customer won't increase dramatically with new data revenue (at least, not like it used to by adding new customers), this $6 billion expenditure is a problem.
Given this financial strain, service providers are reevaluating their approach to servicing their customers: Is 3G really the most logical network to meet consumer demand for rich data? Is there a more cost-effective alternative that can also provide a better customer experience? Wi-Fi looks to be an obvious answer.
The first advantage Wi-Fi offers over 3G is its cost. Whereas 3G networks require licensed spectrum, cell towers and complex cell planning to deliver robust, wireless service to subscribers, Wi-Fi embraces unlicensed spectrum, low-cost APs and ad-hoc deployments to deliver the same service. Still, many service providers view Wi-Fi as a complement to -- rather than replacement of -- 3G. In this case, "load balancing" is the preferred approach. By load balancing, service providers can move consumers off their 3G networks and onto Wi-Fi. Additionally, they can create new revenue streams by providing more services to their customers.
Wi-Fi also is becoming the preferred choice of consumers. According to the "Devicescape Wi-Fi Report,"82 percent of smartphone users polled expect service providers to offer Wi-Fi as part of their overall cellular/data packages. Furthermore, an overwhelming majority (81 percent) of those same smartphone users prefer using Wi-Fi over 3G for browsing Web sites, downloading data, performing Google searches and sending e-mail. Why? Recent "SpeedTests"conducted by Xtreme Labs, Inc. show that worldwide 3G average download speeds were clocked at 956 Kb/s vs. upload speeds of 153 Kb/s and a 484 ms latency. In comparison, average free Wi-Fi network speeds were clocked at 2,502 Kb/s download, 774 Kb/s upload and 205 ms latency. This clearly demonstrates the superiority of Wi-Fi network performance and supports the Devicescape findings.
If We Build it, They Will Come
The importance of building Wi-Fi into the product (or allowing for downloadable Wi-Fi applications) so service providers can offer 3G and Wi-Fi to the consumer is critical. One example is the Apple/AT&T partnership. iPhone users download games, video and other Web data at two to four times the rate of other smartphone users, according to market research company comScore, Inc. And aside from restricting certain activities, like file sharing, AT&T doesn't limit how much data can be downloaded. In this scenario, a strictly 3G network would be severely overtaxed. However, the iPhone supports both Wi-Fi and 3G, so significant downloads of rich media are essentially a nonissue from a bandwidth perspective. Moreover, according to the "Devicescape Wi-Fi Report,"86 percent of smartphone users polled expect manufacturers to build Wi-Fi capabilities into their smartphones anyway.
Well aware of the Apple/AT&T success, and with urging from consumers, an increasing number of handset manufacturers are building smartphones that support Wi-Fi.
Clearing the Path to Wi-Fi Adoption
With Wi-Fi becoming more readily available and OEMs building devices that support both 3G and Wi-Fi, widespread Wi-Fi adoption seems like a "no-brainer.". Yet there's one more hurdle to overcome: effortless setup and seamless connectivity for the consumer. Unfortunately, easy access to Wi-Fi networks historically has been very elusive: given all the user names and passwords users have had to remember -- and type in to their devices -- the consumer has often chosen to bypass Wi-Fi even when its free. Therefore, the need to make Wi-Fi access effortless and seamless for the consumer is critical. The ball now falls in into the court of the OEM and service provider.
In steps Devicescape
Devicescape, for example, offers Devicescape Easy Wi-Fi -- software that enables instant, secure and reliable Wi-Fi connectivity in hotspot. By integrating this software into smartphones (or laptops, netbooks or any Wi-Fi enabled device), OEMs are not only enabling flexibility for the user, they are driving down development costs, decreasing time to market and leveraging award-winning software for their end-user designs. For the smartphone user, connecting and staying connected to a Wi-Fi network is as easy as pushing a few buttons.
Service providers are also taking advantage of this new technology for another reason. They are leveraging the same software to create their own "Locked Easy Wi-Fi"application, which automates access only to their own network and roaming partners and subsequently delivers a hassle-free experience to their customers. Devicescape has already released "locked"versions of its Easy Wi-Fi for several major networks, including AT&T, T-Mobile US and Trustive.
Wi-Fi Ubiquity
Like it or not, we're moving toward a completely connected world. In fact, most respondents (84 percent) in the "Devicescape Wi-Fi Report"want citywide Wi-Fi, and surprisingly, many are willing to pay for it (56 percent).5 Answering this demand -- and because of undue stress on 3G networks as well as the service providers' wallets -- service providers and OEMs recognize that a change must be made soon. With the right technology in place, OEMs, service providers and Wi-Fi experts can work together to make Wi-Fi ubiquity a reality.
About the Author
David Fraser came to Devicescape from Wind River Systems, the leading company in embedded platforms, operating systems and development tools. At Wind River he held a variety of executive positions including CMO, Senior VP/GM Product Business, VP/GM of Networking and VP of Engineering. In these roles he was instrumental in driving the company through industry-changing milestones including the release of many award-winning products, the transition to subscription business models, and ultimately the embrace of Linux. His previous experience over a 20-year career include marketing and engineering positions at Unisys/Convergent, Hewlett-Packard and Racal Electronics. David received a BSc (Honours) in Computing Science from Glasgow University, Scotland.
About Devicescape
Devicescape is the leader in Easy Wi-Fi. The company has worked with device manufacturers and service providers since its inception and has hundreds of design wins in the best Wi-Fi products. Its market-specific solutions - Easy Wi-Fi for Handsets, Easy Wi-Fi for PCs and Easy Wi-Fi for Devices -- allow for the creation of superior products which are powerful, yet easy to use and compatible with a global network market. Headquartered in San Bruno, California, the company is privately held and backed by leading venture capital companies including Kleiner Perkins Caufield & Byers, August Capital, Enterprise Partners, and JAFCO.
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