The End in Sight: WiFi Service Providers Are Seeing a Reduction in Churn
Services such as Amplify, the VoWiFi service now enabled by Apple iPhone 6, will drive a new growth for SP WiFi.
“Spectrum offload, enhanced customer experiences and the emergence of integrated WiFi and license solutions are the key trends that are driving the SP WiFi Solution market,” states Ray Mota, CEO, ACG Research. “Focusing on apps/and controllers will not be enough to sustain profitability; offering a complete SP WiFi solution as a whole service that addresses access, infrastructure and software will be the key to vendors financial success.”
Cisco, which leads in the end-to-end solution offering, has 52.9% market share and revenue of $51 million in 2Q14. Ruckus, in second place, has gained some traction and has 26.1% market share and revenue of $25.1 million. Ericsson, holding third place, has 5.9% market share and revenue of $5.7 million in 2Q14.
ACG Research has a positive outlook of this market especially as providers see and understand the development of use cases that drive customer retention. Looking forward, ACG anticipates that operators will continue to increase their spending on carrier WiFi equipment as mobile operators use carrier WiFi for data offload. This trend will gain momentum as operators invest in small cells with integrated WiFi.
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