Press Releases
Wi-Fi®/Mobile Convergence Benefits Would Entice Many Subscribers to Switch Wireless Carriers and Abandon Landlines
AUSTIN, TEXAS - March 27, 2007 - One in four U.S. wirelesssubscribers would switch cellular carriers for access to the benefits of Wi-Fi/ Mobile Convergence, according to a new independent study conducted by ABIResearch and released by the Wi-Fi Alliance. Nearly one in three subscribers would discontinue their traditional homephone service in order to access two of the key benefits of convergence: strongin-home signal coverage and reduced pricing for calls made from home.
Wi-Ficonnectivity in a converged mobile phone can offer as much as five times the throughputversus 3G networks, as well as improved indoor coverage. When using a converged phone, the subscriberis handed off from a cellular to a Wi-Fi network when one becomes available. Carrierscan leverage Wi-Fi to efficiently manage scarce licensed spectrum resources byallowing subscribers to connect through a combination of licensed and unlicensedspectrum. Carriers worldwide arelaunching Wi-Fi / Mobile Convergence service plans which include a combinationof benefits including reduced voice and data pricing, delivered over Wi-Finetworks at home and in hotspots.
The ABI Researchstudy, conducted in March 2007, surveyed 1,223 U.S. wireless subscribers from anationally-balanced and demographically representative sample of adult consumers. Respondents were asked to indicate whether avariety of listed benefits, typical of converged Wi-Fi / Mobile Convergence phoneofferings, would compel them to switch carriers now or in the future. Among the most attractive benefits were:
- Reduced prices for mobile data services at home (25%would switch)
- Better signal coverage in my home (25% would switch)
- Reduced prices on voice calls made from my home (24%would switch)
- Reduced prices for data services at Wi-Fi hotspots (21%would switch)
- Reduced prices for voice calls made from public Wi-Fihotspots (21% would switch)
"Convergencepresents carriers with a compelling opportunity to build subscriber loyalty andmigrate more users to mobile applications such as email, Web surfing, andmultimedia downloads," said Philip Solis, principal analyst at ABIResearch. "We expect to see a number of U.S. carriers launching convergenceprograms over the next 12 months."
"It'smeaningful, though not surprising, that so many people are interested in Wi-Fi /Mobile Convergence phones though they are just now becoming available in theUnited States," said Frank Hanzlik, managing director of the Wi-FiAlliance. "Wi-Fi technology has quicklybecome a ‘must have' feature for users who value the throughput, affordability,security and ease of use, in addition to the flexibility it brings. When you ask whether they'd like to see it apart of mobile phones, it's an easy decision."
Sales forecasts of converged handsetsreflect the anticipation of widespread availability of Wi-Fi / Mobile Convergence services. ABI Research forecasts thatin 2011, more than 325 million converged Wi-Fi / cellular phones will beshipped. This represents a 183% annualgrowth rate from the 2006 shipment total of 1.8 million. Wi-Fi / MobileConvergence is expected to be a significant part of the Wi-Fi industry in thenext few years, as the industry in total continues to grow at an estimated 25%per year.
About theWi-Fi Alliance
TheWi-Fi Alliance is a global, non-profit industry association of morethan 300 member companies devoted to promoting the growth of wirelessLocal Area Networks (WLANs). With the aim of enhancing the user experience formobile wireless devices, the Wi-Fi Alliance's testing and certificationprograms ensure the interoperability of WLAN products based on the IEEE 802.11specification. Since the introduction of the Wi-Fi Alliance'scertification program in March 2000, more than 3,400 productshave been designated as Wi-Fi CERTIFIED™, encouraging the expanded useof Wi-Fi products and services across the consumer and enterprise markets.
Mediacontact: Edelman for Wi-Fi Alliance: Michael Diamond,michael.diamond@edelman.com, +1 650-429-2772.
About ABI Research
Founded in 1990 and headquartered in New York, ABI Researchmaintains global operations supporting annual research programs, intelligenceservices and market reports in broadband and multimedia, RFID &contactless, M2M, wireless connectivity, mobile wireless, transportation andemerging technologies. For information visit www.abiresearch.com,or call +1.516.624.2500.
