The most obvious way to monetize Wi-Fi indirectly is to attract new subscribers. But there are many more ways. In fact, in our experience, the indirect monetization of Wi-Fi exceeds the direct monetization. By far. Below we will go through the most important ones.
Monetize Wi-Fi indirectly with reduced churn
Gaining new subscribers is costly—and losing them is even more expensive. Carrier Wi-Fi has become the last piece of the operator’s customer retention puzzle and therefore deserve a new return on investment (ROI) calculation. A calculation with reduced churn as the main contributor for Wi-Fi monetization.
Operators spend 15-20% of their service revenues just to stand still. To have the same number of subscribers at the end of the year as they had in the beginning. What would it mean if you also could cut churn by 35% like Shaw Communications did thanks to their Wi-Fi service?
Monetize Wi-Fi indirectly with Wi-Fi offload
Our mobile operator customers offload up to 30% of their traffic to their Wi-Fi networks using our mobile data offloading solution. We can clearly see the effects of this. One operator cut their cellular traffic in half, at an airport, when they switched on Wi-Fi offload. The FIFA 2014 bronze match in Brasil had 70% higher usage rate than the 2014 Super Bowl XLVIII, thanks to the automatic and secure SIM authentication enabled by Aptilo for Oi and TIM.
The total cost of ownership (TCO) per bit delivered is much lower in Wi-Fi compared to cellular macro cells. That’s why our customers keep on investing in it. A study from Senza Fili Consulting, shows that you can cut TCO by at least half.
Indirect monetization by going Wi-Fi first
Cable MSOs can light up a huge Wi-Fi network overnight by using the excess capacity in their subscribers’ homes. With the right Wi-Fi service management mechanisms in place, they can do so without risking their subscriber’s service level agreements.
Many Cable MSOs offer mobile services running on a mobile operator’s network. They have become a so-called mobile virtual network operator (MVNO). A “Wi-Fi first” strategy, where they on-load as much as possible of the cellular traffic to their own Wi-Fi network, has a huge impact on their bottom line. The disruptive effect on the mobile industry is even more clear with Wi-Fi Calling enabled. Wi-Fi monetization can’t be any more tangible than this.
Monetize indirectly with advertizing
If you have no subscribers to keep. No cost savings on infrastructure to make. How can you then do Wi-Fi monetization on a free Wi-Fi service? The answer is advertizing and sponsored access.
GTD (former Digital Way) in Peru, with their Wi-Fi service “Wigo”, monetize Wi-Fi with mobile ads. The ads are tailored to the user profile and their current location. It’s a win for everyone. Users have the convenience of logging into the service with their social media accounts. Furthermore, they will only see ads interesting to them. Advertisers get hyper-targeted campaigns, even down to a single location within e.g. a shopping mall. Digital way can sell high value advertizing space.
Direct Wi-Fi monetization
In many parts of the world, Wi-Fi services are considered being free of charge. Thus direct Wi-Fi monetization can be a challenging task for service providers. Below we will discuss the most common ways of monetising Wi-Fi directly.
Monetize directly with managed guest Wi-Fi
Selling operator-managed guest Wi-Fi services to different verticals has proven to be a good source of revenue. Our 100+ service provider customers have done this form of direct Wi-Fi monetization since 2001. They have provided managed guest Wi-Fi for thousands of businesses.
The demographics information retrieved from integration with CRM systems or by using social media login for the Wi-Fi service has a very high value for business customers such as shopping malls. In fact, some are prepared to pay more for the analytics than for the Wi-Fi service as such.
Some of our customers monetize their free Wi-Fi services by combining two pieces of information that they can retrieve from our system. Insights about the location and the user demographics such as gender and age. With Wi-Fi marketing tool, they can engage users with relevant and very targeted advertising. The right user gets the right message at the right location and time.
Furthermore, operator managed guest Wi-Fi is a strategic B2B asset for operators, they can also monetize indirectly buy selling more services to their business customers.
Monetize directly with corporate Wi-Fi services
There is a huge demand for managed Wi-Fi and LAN services. But the ones that needs it most, smaller businesses with less than 20 employees, will most likely never be a profitable customer. It’s a pity as those businesses are 90% of all companies. Opportunity lost.
However, with Aptilo Virtual Service Provider™ solution you will profitably reach a huge part of this mass-market. Target businesses such as co-working offices that “aggregates” many small businesses and make them virtual service providers on your infrastructure. They will take care of the sales and the daily operation of the service. It’s managed IT-services that scales.
Monetize Wi-Fi directly with increased ARPU
Many of our customers, such as Telia Company, gain additional revenue by only include Wi-Fi in the higher tier service plans. The result is more revenue per subscriber (ARPU).
Other operators, such as Singtel and Telenet, have increased their prices thanks to their excellent Wi-Fi services.
Monetize Wi-Fi directly with differentiated services
In many markets and locations our customers offer a basic Wi-Fi service limited in time and/or data.They then charge for a premium Wi-Fi service, with better bandwidth, most often through a captive portal experience with a credit card payment. With the increase of active users and data-hungry applications, the need for premium services will only increase. You get what you pay for. Users understands this.
Direct Wi-Fi monetisation with wholesale
Deploying a Wi-Fi network is not for everyone. But, providing Wi-Fi services is a must for operators that want to stay relevant. This opens a good market for wholesale of Wi-Fi capacity.