Will Mobile Operators Rise to the Wi‑Fi Challenge?

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Wi‑Fi calling is gaining strong momentum as mobile operators seek to counter the growing threat from over‑the‑top VoIP services offered by internet application providers. Reliable voice service remains central to the mobile experience and essential for operators’ customer retention efforts. A fully integrated, bearer‑neutral voice service is an attractive proposition, but the trend has a broader significance: operators are acknowledging that cellular alone cannot deliver the ubiquity and consistent performance consumers expect from their wireless connectivity.

Each operator that rolls out Wi‑Fi calling is responding to two realities. First, smartphone users frequently experience poor indoor cellular reception. Second, Wi‑Fi is often available where cellular coverage is weak or absent. The clear conclusion is that comprehensive wireless connectivity requires both cellular and Wi‑Fi — demand for connectivity does not stop at the edge of any single network.

This shift in thinking is important. For years, operators positioned cellular as the sole solution consumers needed. As recently as August of the previous year, for example, EE promoted the idea that LTE customers were drastically reducing their use of public Wi‑Fi and fixed broadband. Yet in April, EE’s CEO Olaf Swantee acknowledged the “major frustration” many UK consumers face when they cannot get a cellular voice connection indoors, and announced the expansion of EE’s voice service to include Wi‑Fi calling, promising it would “make a real difference to millions of customers across the UK.”

That is likely true, but Wi‑Fi calling also highlights unresolved challenges. While operators may integrate voice services at the application level, the underlying data connectivity experience can remain fragmented. Many consumers already connect to Wi‑Fi at home, but cellular coverage problems occur across many indoor environments, and most people find it difficult to manage Wi‑Fi connectivity, especially in public places.

Research by Devicescape helps quantify this user behaviour. In a study of smartphone users we found that 29% never connect to their home Wi‑Fi, 53% keep Wi‑Fi switched off in public, and 71% connect to Wi‑Fi inconsistently. As long as users must find a Wi‑Fi network themselves, log in manually, and manage variable quality and security without assistance before they can use Wi‑Fi calling, the experience remains disjointed. Imagine having to follow those same steps just to access the cellular network — the contrast highlights the disconnect between the cellular and Wi‑Fi parts of the smartphone experience.

Moreover, voice is becoming a smaller share of overall smartphone use. Research from Analysys Mason and Nielsen shows that communication services accounted for only 25% of daily smartphone usage in 2013, down from 49% in 2011. When cellular coverage weakens, data connections typically suffer faster than voice. That means the need for supplementary data connectivity extends well beyond enabling voice calls; it affects much of what users do on their smartphones.

The logical response is for operators to deliver truly integrated cellular and Wi‑Fi connectivity across the board. LTE has driven huge demand for mobile data because it can deliver a high‑quality experience when users are connected. But cellular networks cannot guarantee that quality everywhere and at all times. Just as operators are extending voice via Wi‑Fi, they must also ensure data experiences are augmented by Wi‑Fi where appropriate.

A service that manages a user’s complete smartphone connectivity is the practical solution. Such a service would automatically connect users to Wi‑Fi whenever the cellular network cannot provide an optimal experience — whether at home, in the office, or in crowded public venues. Automatic connection management, seamless authentication, and quality‑aware handover are key elements to making Wi‑Fi a true extension of the mobile network rather than a fragmented add‑on.

Operators recognize the demand for this kind of integrated offering. A 2014 Informa Telecoms & Media survey of more than 800 mobile operator representatives found that over 75% believe there is market demand for an integrated cellular and Wi‑Fi connectivity service.

Wi‑Fi calling demonstrates operators’ ability to innovate for customers, but it addresses only a narrow slice of what users need. To retain customers and stay competitive, operators must expand and deepen their innovations — delivering seamless, managed Wi‑Fi integration for both voice and data — or risk losing subscribers to other players who move faster to meet evolving connectivity expectations.