Why WiFi will not be profitable if you are NOT a telecom company

The WiFi Age

What is WiFi? WiFi is a popular method of internet connection all over the world. It allows devices to connect to the internet or communicate wirelessly within a certain area.

WiFi is a great feature to have now. It is popular and almost everyone has a 3g/4g smartphone. It allows you to have all of the information you could need at your fingertips.

Small WiFi Startups

Popular now are smaller WiFi start up companies hoping to get a new movement going where most consumers do all of their calls, text and data over a wifi hotspot instead of using the cellular network. This would mean that the normal 3g/4g network is being used only as a backup instead. If this ends up happening, that would mean consumers would pay far less on their phone bill each month. These public WiFi spots are everywhere now. Even though we are carrying around mobile phones, we aren’t really using them as a mobile device. They are primarily used inside homes, workplaces and other areas that have an established WiFi set up. Only a small percentage of calls are actually made out of the range of a WiFi.

Big internet companies think that free WiFi would spark an age of innovation. It would lead to more opportunity to selling. However, telecom companies want to keep control of the internet.

However, WiFi will not be profitable if you are NOT a telecom company. It will for bigger carriers, but not for small malls and stores. Although it is nice to offer this kind of service in your stores, it will not be as profitable for you if you are not a major telecom company. Having a WiFi hotspot in your store is a good thing to have, because it draws in customers, but you will not be profiting from the advertising revenue directly. On the internet, a website has to get at least 100,000 visitors monthly to be profitable. No one can get 100,000 people connected in one simple store.

Overall, we will have to watch and see where the range of WiFi takes us and how it will impact stores and malls.