New, Innovative Business
Models for Service Providers
The insatiable demand for smartphones, tablets, and other
connected devices is generating staggering amounts of mobile data. In parallel,
the use of Wi-Fi for Internet access is exploding as more mobile devices are
Wi-Fi enabled, the number of public hotspots expands, and user acceptance
grows. Service providers (SPs) now realize Wi-Fi must be an important part of
their strategy to manage growing data loads on their networks and meet increased
customer expectations. While operators are learning to accept the role of
Wi-Fi, they still struggle with ways to turn a cost of doing business into
profitable business models. .
Cisco Internet Business Solutions Group (IBSG) has consulted
with leading SPs from around the world to develop and evaluate sixteen new,
innovative Wi-Fi business models that can provide a reasonable return on
investment (ROI). Opportunities for monetization fall into four broad
categories: (1) business effectiveness, (2) end-user services, (3)
inter-carrier wholesale, and (4) value-added services.
This paper describes and categorizes each model, quantifies the
business value delivered, and aligns business models with industry segments. Most important, it arms SPs with guidelines
for setting priorities and determining which approach is best for making money
without wires.
