Thursday 16 March 2017

World without Wi-Fi

The Wi-Fi Icon – a dot with radio waves radiating outward – glows on nearly every internet – connected device, from the iPhone to thermostats to TVs. But it’s starting to fade from the limelight. With every major US wireless carrier now offering unlimited data plans, consumers don’t need to log on to a Wi-Fi Network to avoid costly overage changes anymore.

That’s a critical change that threatens to render Wi-Fi obsolete. And with new competitive technologies crowding in, the future looks even dimmer. In an all data you can eat world, consumer’s use of Wi-Fi at public places like stadiums and airports will drop to a third of all mobile data traffic from about half. This means businesses not upgrading public access Wi-Fi as often. Smartphone users might not even turn on their Wi-Fi capability.
Customers are rational. When pricing incentives favor Wi-Fi customers use more Wi-Fi. When pricing incentives shift, so does behavior. The erosion of Wi-Fi influence is likely to be slow and uneven. While unlimited data plans make the technology less necessary for phones, many home devices, from a MacBook to Amazon Echo, still use Wi-Fi to connect to Internet. Wi-Fi also helps fill in gaps in some office buildings and homes that have spotty cellphone coverage.

Some wireless carriers also still rely on Wi-Fi Networks to handle a large portion of the growing volume of internet traffic. Putting all of that Netflix binging and Spotify listening on cellular networks could strain capacity. Unlimited plans aren’t the only threat. Wi-Fi has survived 20 years and spurred a roughly $20 Billion industry of gear, service providers and chipmakers – mainly because it’s technology is open to innovation and it operates freely in the nation’s unlicensed airwaves. Wi-Fi now faces competition from other technologies that also run in those same frequencies such as LTE and CBRS (Citizen Broadband Radio Service).

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