Wi-Fi Access Plays Key Access Role for Apple Devices and Users

In case you were wondering about the growing role played by Wi-Fi access as a way of offloading smartphone traffic from the mobile network, about 24 percent of U.S. traffic in May 2010 used Wi-Fi, with very heavy usage by Apple iPod and iPhone users.

The iPod "Touch," of course, must use Wi-Fi, which accounts for its heavy profile.

AT&T Launches Free Wi-Fi In Times Square

AT&T is launching a free wi-fi network for its customers in New York City's Times Square, obviously designed to take a load off the 3G network.

The move illustrates both the importance of wireless offload strategies as well as a changing role for fixed-line networks, which are assuming much more importance as mobile video consumption increases.

That might provide small comfort to fixed-line service providers, but comfort nevertheless. The fundamental answer for why broadband fixed line networks will remain relevant in a market that emphasizes mobile service has to do with superior bandwidth.

Fixed lines will remain the "best" way to deliver huge quantities of video to end users, in many venues, including both the linear multi-channel video and over-the-top Internet modes.

AT&T Launches Free Wi-Fi In Times Square To Take A Load Off Its Battered 3G Network

Gap Between Bandwidth and Revenue is Key Wireless Business Challenge

In a nutshell, the gap between bandwidth consumption and revenue is the key problem faced by mobile service providers. The reason is simple enough. Everybody agrees the future industry revenue model will be driven by data services, not voice.

And though service providers will sell a mix of simple connectivity services and other value-added features and services, access will remain a huge, perhaps the biggest single revenue source, even in the future.

Given user resistance to paying higher prices for bandwidth, service providers will struggle to close the gap between rising supply of bandwidth and slower-growing ability to price the additional capabilities in any linear fashion.

That is one reason why offloading access from the mobile networks to the fixed landline network is so important, and why a developing rationale for landline network services providers is "wireless offload." Especially as high-bandwidth video becomes a bigger part of the end user demand, it will be necessary to offload as much of the load as possible to fixed networks.