Five Predictions for the Future of Wi-Fi and Mobile

New devices, changes in customer behaviors, and technological advances are rapidly changing the mobile market and consumers’ expectations of mobility.  A recent Cisco study of mobile consumers reveals how much, and how quickly the world of mobility is changing.  The survey uncovers some startling revelations about what consumers are doing on their mobile devices, how and where they are using them, and how they are connecting them to the Internet.  Highlights of the research are revealed in my recent blog Discover What Consumers Want from Wi-Fi and Mobile.
The majority of devices are now Wi-Fi-enabled, and the fastest-growing category is “nomadic” devices like tablets and eReaders.  We now need to speak of the “mobile home,” as the home is by far the most popular location for consumers to use their mobile devices. Surprisingly, Wi-Fi is the network connection of choice for most consumers for all of their devices.  Public Wi-Fi is now a big part of mobile life.

Consumers are generally satisfied with their public Wi-Fi experience, but they want it to be faster, more secure, better quality, and most of all, available in more places.  Consumers are anxious for enhanced personal mobile experiences that can be delivered by unlocking the inherent business value hidden in the Wi-Fi infrastructure.  

While it is never easy to foresee the future, we are making five predictions for key changes in the

mobile industry over the next two years based on insights from the Cisco mobile consumer research:

5 Predictions for the Future

1. Mobile devices will become even more home-based.

In the next two years, daily use of mobile devices in the home will equal the use of TVs (average 5 hours)

2. Wi-Fi will become the predominant access technology for smartphones.

Within the next two years:

Ø  Close to 100 percent of smartphones will use Wi-Fi.

Ø  Smartphone owners will use Wi-Fi at least 50 percent of the time to connect to the Internet.

3. Public Wi-Fi use will continue to grow.

Within the next two years:

Ø  Eighty percent of all mobile consumers will use public Wi-Fi.

Ø  Seventy-five percent of all public Wi-Fi users will use this technology at least weekly in some locations.

4. Public Wi-Fi will be used more often, in more places.

      In the next two years, 40 to 50 percent of all public Wi-Fi users will use Wi-Fi at least weekly in restaurants, coffee shops, retail and outdoor locations.

5. Public Wi-Fi will become mainstream for delivering mobile entertainment.

In the next two years:

Ø  Sixty percent of public Wi-Fi users will access social media

Ø  Forty percent of public Wi-Fi users will stream music or video.

 
Full results of the survey can be found at Discover What Consumers Want from Wi-Fi and Mobile

Read the blog on Cisco.com

Discover What Consumers Want from Wi-Fi and Mobile

Consumers have a true love of mobile devices, as evidenced by recent Cisco mobile consumer research.  Significant percentages of respondents reported using everything from laptops, smartphones, and tablets to eReaders and mobile gaming devices. Americans now own an average of three mobile devices each, up from 2.6 devices in the 2012 Cisco mobile consumer study.  Perhaps more significant, our findings show that the number of smartphone users has grown by 21 percent in just one year, now reaching 68 percent of the population, at the expense of basic phones. Most remarkable is that the number of tablet owners has expanded by over 90 percent in just one year, with close to four out of ten consumers possessing one of these new devices.

The insatiable demand for mobile devices and new applications that use large amounts of bandwidth is generating staggering volumes 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. Most mobile operators now realize that offloading data traffic to Wi-Fi can, and must, play a significant role in helping them avoid clogged networks and unhappy customers. Many service providers are now constructing extensive networks of public Wi-Fi hotspots for use by their mobile or home broadband customers. The networks allow mobile offload and help enhance and differentiate their offerings. In addition, service providers are struggling to understand new business models for making money from Wi-Fi.  However, very little is currently known about how consumers are actually using public Wi-Fi and how they view the overall experience. Nor is there much information about mobile users’ appetite for these new services, their willingness to use them, or their privacy or security concerns surrounding these data-based services.

To learn more, Cisco conducted a survey of 620 U.S. mobile users to understand their needs and behaviors, use of devices, applications and mobile access technologies, and how they have changed since our 2012 mobile consumer study.

Top 10 Research Findings

 

1.    It’s all about the home.

2.    Wi-Fi is the connection of choice for all mobile users.

3.    LTE is a complement to Wi-Fi, not a substitute

4.    Public Wi-Fi is now a big part of the mobile life.

5.    Consumers are communicating and surfing at established hotspots.

6.    Public Wi-Fi needs to be faster, more secure, and in more locations.

7.    Users are generally satisfied with public Wi-Fi, but have concerns with some locations.

8.    Mobile users are interested in localized, personalized, and enhanced experiences when using Wi-Fi.

9.    Consumers are willing to surrender personal data for a better experience.  But they want control.

10.  Small cells provide an opportunity to improve mobile quality and coverage and reduce churn.

The complete results can be found at Discover What Consumers Want from Wi-Fi and Mobile.

Cisco mobile consumer research clearly demonstrates that consumers are using a greater number of mobile devices to do a greater number of things. As demand for mobile devices and network connectivity continues to grow, Wi-Fi, small cells, and traditional macro mobile networks will all be critical to meeting the needs of mobility-enabled consumers. Service providers are in the enviable position of being able to successfully integrate these networks and deliver new sources of value.

This white paper is part of a series presenting 2013 Cisco mobile consumer research findings.  Previous blogs and white papers have highlighted What Mobile Consumers Want from Public Wi-Fi, Understanding the Changing Mobile User and Unlocking Wi-Fi Enabled Value-Added Services.  

 

Read the blog on Cisco.com

Observations from the 2014 Consumer Electronics Show

I am just back from attending the 2014 Consumer Electronics show in Las Vegas where I was meeting with customers and visiting the massive show floor. CES is an intriguing blend of extremes and contrasts: biggest and the smallest; connected and unconnected; wired and wireless; high tech – low tech.  As personal and business technologies converge through the “consumerization of technology”, CES provides an exciting window into the current and future world of technology. 
 

As with every show, there are things which are the same, more advanced or completely new from the previous year.   The following are my personal observations and extrapolations from the show based on my conversations with customers, colleagues and walking the floor. 

1. Internet of Everything – Not only are all things (machines, sensors, devices) being connected to the Internet but so are people and data, creating the Internet of Everything.  IoE is a fitting overall theme for CES – everything at the show is connected to everything else.  As Cisco CEO John Chambers stated in his keynote speech "IoE is bigger than anything that's ever been done in high tech."  

2. New Next Generation TV… Again – You could be mistaken for thinking that CES is really the TV show.  Televisions are everywhere and every company seems to produce one.  Manufacturers are still promoting 3D television, but it has taken a back seat to the next big thing – spectacular ultra high-definition or 4K TVs – four times the resolution of typical HD TVs.

3. The World is Curved – The other big thing in TVs, that we didn’t know that we needed, is curved screens.  The curved screens are meant to offer a more immersive cinema-like experience.  But it is not just TVs that being bent, there were also curved smartphones and computer monitors. 

4. My Home is My Connected Castle – Finally one can readily, and reasonably inexpensively, remotely control your home heating, open and close doors and monitor security cameras from your smartphone without engaging an engineering firm.  And homes now have connected entertainment systems, piping music and video in every room from personal collections and Internet content. 

5. Bluetooth Comes Alive – Bluetooth is no longer just used to connect ear pieces to mobile phones.  It is now the connection technology of choice to connect everything from speakers, headphones, watches, cameras and even batteries to other devices and the Internet. 

6. Digital Health And Fitness – There are now some very interesting, usable and well-designed devices to track and promote fitness (e.g., heart rate, running/cycling route, steps), in addition to specific devices to monitor and improve our overall health (e.g., blood sugar and pressure). The floor space and the number of show visitors in the health and fitness section have exploded since last year. 

7. Big Data Gets Personal – Whether you are monitoring your heart beat, steps taken, the temperature in your home, or the contents of your refrigerator, all of these new devices seem to be generating and storing huge amounts of personal data that can be analyzed to your heart’s content.  Companies are selling apps and services to extract value from all of this data and to create your own personal log of your digital life.

8. My Coffee Maker Calls My Toaster – CE companies continue to try to connect all of our home devices.  But now appliances are getting in on the act.  There were lots of examples of connected refrigerators, ovens and washing machines, but it now seems that all household appliances are connected. Coffee machines, toasters and even beds are now connected to the Internet and each other – bringing new meaning to breakfast in bed. 

9. My Smartphone Runs My Life – The smartphone is quickly becoming your personal “mission control.”  Every element of the Internet of Everything seems to be connected to, and through, the smartphone.  You can monitor and analyze your personal fitness, receiving messages of congratulations or encouragement.  You can control how your clothes are washed or your food is cooked from the comfort of your couch with a smartphone.  There is even a sensory-backed toothbrush that sends and stores data about your brushing habits to a smartphone. 

10. In My Car – Aside from the pleasant weather in Vegas, you could be confused in thinking that you were at the Detroit Auto Show, rather than CES.  The car has become the new “connected home.”  Many of the car companies (e.g., Ford, Audi, Mercedes, GM) had booths, with lots of sleek and cool cars (including mind-blowing concept cars), showing off all of the great electronics in their vehicles and demonstrating how you are no longer off-line when you are behind the wheel.

11. The Robots Are Coming – Robots are becoming personal, consumer items.  In additional to older robotic vacuum cleaners, you can now buy personal drones, R2D2-type servants, pets and games to keep you entertained and make your life easier.  There were also several examples of video screen-enabled, remotely controlled robots that roam the floors of offices or hospitals, making a distant colleague or doctor feel as if he is standing beside you.   

12. The New Sound – It finally seems to be recognized that to truly enjoy music you might need a better listening device more than ubiquitous ear buds.  There were lots of updated versions of 70s and 80s style big speakers with massive woofers.  Not to mention, wireless speakers and music systems.  And, every major electronics company was showcasing an impressive portfolio of high quality old school headphones.

Read the blog on Cisco.com

Unlocking Wi-Fi Enabled Value-Added Services

Competing with the virtual, e-commerce world is becoming increasingly challenging for real-world businesses. Traditional retailers have long envied the massive amounts of valuable data that online retailers have available to help them better understand customer behavior and implement winning marketing tactics. Online retailers know valuable information such as how frequently customers return, how long they spend on their sites, what the customers looked at but didn’t buy, and where they went before and after coming to the site. Businesses as diverse as hotels, banks, stadiums, airports, and large public venues are all looking for ways to get similar detailed data on customer activities in their facilities, so they can improve the customer experience and their bottom lines. The data and insights have not been available to bricks-and-mortar facilities, until now.

That situation is changing through the growing availability of Wi-Fi in business locations. Many retailers, hotels, and other businesses are increasingly offering Wi-Fi as a service that allows their customers to connect mobile devices to the Internet. Hidden in this valuable service is a vast amount of information and insight, which retailers and others can use to deliver tangible value to their bottom lines. Hypersensitive location information, device details, identification of returning customers, and sophisticated path analysis are just some of the customer data captured by Wi-Fi networks. Businesses are now realizing that the data and capabilities offer new ways to improve the customer experience and support a range of market-leading monetization models.

For many businesses, these new location-based experiences and monetization models offer new ways to compete with e-commerce. However, very little is currently known about mobile users’ appetite for these new services, their willingness to use them, or their privacy and security concerns surrounding these data-based services.
To learn more, Cisco conducted a survey of 620 U.S. mobile users to understand their needs and behaviors, use of devices, applications and mobile access technologies, and how they have changed since our 2012 mobile consumer survey.

The study revealed that consumers are very interested in new localized services and solutions that are delivered directly to their mobile devices.  Our findings show that consumers would embrace such services to enhance their experiences in retail locations, airports other large public venues, such as stadiums or shopping malls.  In addition to access to free Wi-Fi, mobile users value the convenience and efficiency of the service, the ability to locate themselves in the venue, and being offered personalized deals or coupons.  However, they are concerned about security on their devices and the use of their personal data.   

We explored these personal data concerns in much more detail.  The good news is that consumers are willing to sacrifice some of their privacy and personal data to derive the value of these personalized services, but they want to be in control.  They want to control what data can be used, when and where, and by whom, and they want to control the experience.  Our research revealed that consumers have a “data sharing threshold”.  Beyond this threshold consumers do not feel that the value of the benefit justifies the value, or intimacy, of the personal data that they are being asked to give-up.

Wi-Fi value-added services allow businesses to compete on more equal terms with the data-driven world of e-commerce, and the financial returns more than justify the investment in Wi-Fi infrastructure. Best of all, as our study shows, consumers want these enhanced mobile experiences and the value that they offer.  Of course, consumers have privacy concerns, but these concerns are not insurmountable and incompatible with the new localized services if the insights from the research are incorporated into the design of these services.

The complete results can be found at Unlocking Wi-Fi Enabled Value-Added Services

This white paper is part of a series presenting 2013 Cisco mobile consumer research findings. Previous blogs and white papers have highlighted What Mobile Consumers Want from Public Wi-Fi and Understanding the Changing Mobile User.  

Read the blog on Cisco.com

The Next Generation of Wi-Fi Debuts in Beijing

I recently had the honor to speak at the Wi-Fi Global Congress in Beijing. As evident by the more than 400 people in attendance, the importance and relevance of Wi-Fi continues to grow.  The Wireless Broadband Alliance now has over 100 members, a doubling in less than 2 years.  The membership includes a mix of leading Wi-Fi, mobile, and broadband network operators; global service providers and media players; as well as technology providers and partners. 

I took away six key messages from this exciting conference:

1.    Next Generation Hotspots is Alive and Well.  One of the most exciting things at the conference was the launch of the live NGH Experience with China Mobile as the host operator and Cisco as the network infrastructure provider.  Attendees with a Samsung Galaxy or iPhone 5 could experience the first ever opportunity to seamlessly and automatically connect to the venue Wi-Fi.  Participants also received valuable conference information and services seamlessly delivered to their mobile device through NGH.  This is just the beginning.  With 15 major carriers (and growing) signed up to deploy NGH, mobile users throughout the world will be able to experience the next generation of Wi-Fi early in 2014.

2.    Wi-Fi Roaming is Becoming a Reality.  Several speakers described roaming as being where cellular roaming was 15 to 20 years ago.  However, with the successful launch and upcoming deployment of NGH, seamless roaming amongst carriers is now becoming a reality.  Indeed, the GSM Association recently approved a Wi-Fi Roaming Annex that will make it easy for mobile operators to support this.  As such, the WBA expects roaming to be fully automated across more than 80% of public Wi-Fi networks by 2018.

3.    Wi-Fi is an Important Part of the Mobile Network.  The world’ largest mobile operator, China Mobile, announced a statistic that made everyone in the audience gasp.  While their extensive Wi-Fi deployment only covers 1% of their geography, traffic over this network accounts for 50% of all of their mobile traffic.  A recent WBA report confirms the importance of Wi-Fi as part of the mobile network, estimating that 22% of all of the network capacity added by Tier 1 MNOs in 2013 will come from W-Fi.

4.    Monetization—Beyond Offload.  As Cisco recently identified in “Wi-Fi: New Business Models Create Real Value for Service Providers” operators are learning that, while mobile data offload is important, there are lots of other ways to monetize investments in Wi-Fi.  Many speakers described exciting new monetization opportunities based on advertising, location-based services and enhanced customer experiences.  Examples include, retailers who are using value-added Wi-Fi services to drive more sales and sporting venues using Wi-Fi to enhance the fan experience.

5.    Enterprises Are Becoming Mobile Operators.  Bob Friday of Cisco made the point that Bring Your Own Device (BYOD) and the consumerization of corporate IT are actually turning enterprises into mobile operators.  They now have to ensure mobile connectivity and services to their employees both inside and outside of the office.  As a result, enterprises are now trying to figure out how their Wi-Fi networks integrate or interact more broadly with the SP’s mobile networks.

6.    A New Mobile Network.  Mike Roudi of Time Warner Cable described how, as a non-mobile operator, Wi-Fi offered TWC the opportunity to build a new form of mobile network.  Through building an extensive public Wi-Fi network TWC could now extend its customer relationship outside of the home.  Customers are definitely happy with this new strategy and TWC has the quantifiable evidence of this in reduced customer churn in its core broadband and video services.

 
The Wi-Fi Alliance predicts that the world will have 7 billion new Wi-Fi enabled devices in the next 3 years.  The Alliance’s CEO summed up the implication of this fact and the phenomenal future of Wi-Fi up best for everyone:  “This is only the dawn.”

View the blog on Cisco.com

Understanding the Changing Mobile User

The mobile market continues to evolve at a blindingly fast pace. It seems that new faster, sleeker, and more powerful mobile devices are launched every day, with new device categories created almost overnight. The number of available applications to run on these revolutionary new devices is staggering, numbering in the millions. Now you can do everything, from banking and controlling your home thermostat to shopping, entertainment, and printing a boarding pass, all from the palm of your hand. In addition, we now have faster ways to connect these devices to the Internet using 4G/LTE or Wi-Fi technologies.

While service providers are clearly benefiting from the rise of mobility and all the innovations in devices applications they are constantly trying to understand how consumers are using mobility and where the mobile market is heading. To continue to derive business value from mobility, service providers need to better understand mobility from the users’ perspective and translate what they discover into new sources of business value.

To learn more, Cisco conducted a survey of 620 U.S. mobile users to understand their needs and behaviors, use of devices, applications and mobile access technologies, and how they have changed since our 2012 mobile consumer survey.

The study revealed that Americans now own an average of three mobile devices each, up from 2.6 devices in the 2012 Cisco mobile consumer study. Our findings show that the number of smartphone users has grown by 21 percent in just one year to reach 68 percent of the population, at the expense of basic phones. Most remarkable is that the number of tablet owners has expanded by over 90 percent in just one year, with close to four out of ten consumers possessing one of these new devices.  Eighty percent of smartphone owners now use some Wi-Fi to connect to the Internet. In fact, the average smartphone user uses Wi-Fi 44 percent of the time to connect a device to the Internet – a remarkable increase from just one year ago, when one-third of the total smartphone data usage was through a Wi-Fi connection, rather than a mobile network.  Almost all consumers use their mobile devices at home, averaging more than 3.8 hours of usage in a typical day, almost double the time they spend using them at work.  Our research also indicates that LTE and Wi-Fi are not competitive, but that the two access technologies actually appear to be complementary and synergistic. A significant number of LTE smartphone users have actually increased both their total data usage and Wi-Fi usage, after they make the transition to LTE.   Thirty-six percent of LTE smartphone users reported that their total data usage across all devices increased, to some extent or significantly, after they moved to LTE.

The research findings are important, because they can help service providers better understand the rapid changes and emerging trends in the mobile market, identify new business opportunities, and develop robust strategies for winning in mobility.

The complete results can be found at “Understanding the Changing Mobile User?”

This white paper is part of a series presenting 2013 Cisco mobile consumer research findings.  Previous blogs and white papers have highlighted what mobile consumers want from public Wi-Fi.  Future blogs will present insights into opportunities to provide in new localized mobile services.

I look forward to learning more about the changing mobile user and the new world of mobile at the Wireless Broadband Alliance Global Congress in Beijing, November 18^th or 21^st.  Look out for my blog report from the conference.

Read my blog on Cisco.com

What Do Customers Want From Public Wi-Fi?

It seems that the iconic “Wi-Fi Here” badge is turning up everywhere these days. Once found on coffee shop windows to indicate that patrons could connect their mobile devices to the Internet, the symbol can now be seen in countless public venues. Wi-Fi can now be found everywhere from retail stores and hotels to airports, doctor’s offices, and even airplanes.

For many businesses and public locations, providing Wi-Fi to customers has almost become like electricity or water, a cost of doing business. Many service providers are now constructing extensive networks of public Wi-Fi hotspots for use by their mobile or home broadband customers. The intention is to enhance and differentiate their offering, with the goal of retaining their customers’ business. However, very little knowledge is currently available about how consumers are actually using public Wi-Fi and how they view the overall experience.

To learn more, Cisco conducted a survey of 620 U.S. mobile users to understand their needs and behaviors, current and future use of public hotspots, and unmet demands.

The study revealed that 70 percent of mobile users are now using public hotspots, with 57 percent of those users accessing one at least weekly – a significant increase from our 2012 mobile consumer survey.  Smartphones are the predominant mobile device used in public Wi-Fi hotspots.  Almost one-third of smartphone owners are connecting to hotspots in retail stores, outdoors, or other public locations, such as libraries or doctor offices, at least weekly.  Not only do consumers want more hotspots in the traditional public Wi-Fi locations, but they also expect hotspots to be available wherever they spend their lives outside the home, work, or school.  In general, mobile users are satisfied with public Wi-Fi but there is room for improvement in the areas of speed, security, and, of course availability.  Consumers also see room for improvement in the Wi-Fi offered in public outdoors and retail locations. 

The research findings are important, because they can help businesses and service providers understand the size of the opportunity, develop winning strategies, and optimize their Wi-Fi offerings and network deployments to derive greater business value.

The complete results can be found at “What Do Consumers Want fromPublic Wi-Fi?”

This white paper is part of a series presenting 2013 Cisco mobile consumer research findings.  Future blogs will present insights regarding changing mobile usage and consumer behavior, as well as opportunities in new localized mobile services.
 
View blog on Cisco.com