WISP Roaming, Single Subscription, Global Reach
About this title:
Roaming is absolutely central to the future of W-LAN public access markets. Wireless internet users must be able to move seamlessly between networks without reconfiguring their laptops or handheld pcs - knowing they will only ever receive a single bill for wireless data services. If they cannot do this, then chaos and confusion will dog the hotspot sector and severely curtail take-up of services.
Roaming is the glue that can turn the jigsaw of disparate hotspot locations into a powerful and ubiquitous service offering. It is, arguably, even more important to the public access W-LAN industry than it was to the mobile sector.
In this report BWCS builds on core research carried out by BrainHeart Capital during late 2002 and early 2003. The BrainHeart research was supported by major industry players including Intel Capital, Linklaters, Megabeam, Service Factory, Symbol, Swisscom Mobile and Wificom. In the research process close to 70 roaming enablers, mobile operators and WISPs have been interviewed. The interviews have in most cases been conducted with the CEO or senior representatives at similar level.
This report will clarify and present:
· Where WISP roaming is today and what challenges lie ahead.
· Existing and soon to be available solutions to those challenges.
· The views of the wireless world on WISP roaming.
Roaming today is still in its infancy and few WISPs have any agreements in place. Those that do exist are simply basic free access bilateral agreements, where clearing and settlement of revenue are not involved. The focus with roaming has so far been on enlarging the hotspot footprint, rather than to increase revenue. Bilateral agreements are the norm, simply because multilateral platforms have not reached a commercial breakthrough yet, and the benefit of using one is therefore limited.
The reason that roaming has not taken off is largely due to the insecurity that still exists on how the WISP industry will develop in general. As WISPs become comfortable with the idea of having relations with each other, it will be natural to reach roaming agreements with a larger number of partners.
BrainHeart's research shows a great disinterest from WISPs in technical solutions such as SIM based authentication and seamless network handover. The focus in the industry at the moment lies rather to simplify and drive adoption rather than enhance the experience for the already converted public W-LAN users. As hotspot coverage moves beyond tier-one locations such as airports and major hotels the hotspot operators will increasingly rely on roaming revenues to maintain profitability at more marginal locations. Unlike the cellular industry national roaming will be of equal, if not more importance, than international roaming to players in the public W-LAN industry.
Roaming is at the top of the agenda of all major WISPs in the world at the moment. When the ball starts moving a rapid development will be seen in this area. The speed of this progress however is dependent on consensus being reached on a number of mainly commercial issues.
Other wireless titles from BWCS:
- Play Away: The Future of Mobile Entertainment
- Mobile Location Based Services: Where's the Revenue?
- The Saviour of 3G: The Leading 100 Mobile Application and Content Providers
- Wireless in the Enterprise
- MVNOs - Their Strategies and Role in the Mobile Communications Value Chain
- Wireless LANs and the Threat to Mobile Revenues
Who are BWCS?
BWCS are the world leaders in Wireless LAN market analysis. We were the first company to publish a major report on the global market in 2001, which has become the benchmark for strategy and business planners in the W-LAN space.
"I had to wait until July 2001 before I found a report dedicated to the WISP opportunity. Wireless LANs and the Threat to Mobile Revenues by BWCS helped all of us who tried to understand and quantify the WISP opportunity", Magnus Melander, Brainheart Capital.
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