Cable operators are rapidly deploying Wi-Fi hotspots resulting in a decrease in WSP’s ARPU.

The driving force behind this is the monetization of video-based demand, which relies on providing consumers the best user experience – both indoors and on-the-go. The installation of Wi-Fi also opens the door to revenue-sharing opportunities through location-based advertising and related analytics and big data.  Cable operators are telling their broadband customers that opting to use Wi-Fi over a cellular network can be less expensive. Does this mean the cable operators are trying to steal cellular subscribers? Yes and no. The first phase of a more global Wi-Fi strategm  involves expanding the Wi-Fi footprint both in dense urban areas as well as inside homes and businesses, resulting in individual hot-spots with dual-SSID routers that can be shared by the public. Phase two won’t happen until and unless consumers shift preferences from WI-Fi to cellular, and we don’t expect this to happen in the next few years since the build-out is just beginning.

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