FreedomPop Launches Wi-Fi Service

FreedomPop, an MVNO based in Los Angeles, CA, has launched a low-cost Wi-Fi service that gives users unlimited use of 10 million hotspots across the U.S. for US $5.00 per month. This service dovetails with FreedomPop’s core business model of offering free and very low-cost stripped-down phone plans over the Sprint cellular network; accessing Wi-Fi for most of their needs allows FreedomPop customers to stick with a very bare-bones cellular plan for the remainder of the time when Wi-Fi service is not available.

Republic Wireless, based in Raleigh, NC, is another MVNO offering low-cost phone service that primarily relies on Wi-Fi networks, pulling signals from cell towers only when Wi-Fi is not available. For US $10.00 per month, Republic Wireless offers a plan that moves calls seamlessly between their Wi-Fi network and Sprint’s cellular network, using a special technique developed by their parent company, Bandwidth.com.  Alternatively, for only US $5.00 per month, consumers can make calls and connect to the internet solely over Wi-Fi.

While these Wi-Fi-centric phone plans are not going to put cellular network providers out of business anytime soon, clearly there is a shifting dynamic taking place. Wi-Fi speeds have increased by orders of magnitude over the last 10 years. We are not surprised that MNOs are offering Wi-Fi hotspots to complement their mobile phone service.  And as more and more hotspots are built in U.S. cities where high-speed fiber optic cable networks are being installed, it is easy to imagine that accessibility to Wi-Fi will at some point be fairly ubiquitous, especially in urban areas. Last month Cablevision announced a phone plan powered entirely by Wi-Fi for US $30.00 per month, and Google is reportedly working on a cellphone service that relies heavily on Wi-Fi. 

 

“As large carriers as well as MVNOs begin to push more traffic onto Wi-Fi, it may be just a matter of time before a robust Wi-Fi network is available across the country and cell towers are relegated to the role of backup service.”

Beith Teitel, Research Analyst at Tarifica

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues or to speak with the research team: http://www.tarifica.com/contactus.aspx

Cablevision Takes Verizon to Court Over New York Wi-Fi Claims

U.S. operator Cablevision confirmed that it is taking Verizon Communications to court, alleging that the company falsely advertised its Wi-Fi network as the fastest available in New York. The complaint was filed on 29 January at a federal court in Manhattan. Cablevision said Verizon recently launched an advertising campaign saying it has faster Wi-Fi than Cablevision, despite the fact that it has no public Wi-Fi hotspot network and that its in-home routers are not faster than Cablevision’s Optimum Smart Routers. Cablevision also noted that its routers are free, while Verizon is charging US $199.99 for its routers, which are limited to in-home use.

Last week we reported that Cablevision was planning to launch a Wi-Fi-based mobile voice, text and data service called Freewheel, leveraging its existing network of Wi-Fi hotspots throughout New York. Verizon owns entities in both the fixed and mobile sectors; Cablevision has fixed service only. By initiating this lawsuit, Cablevision appears to be launching a pre-emptive strike against a competitor and thus paving the way for a publicity campaign. Cablevision can be expected to have a hard enough time establishing in the public mind that a Wi-Fi network can be a legitimate substitute for cellular service without a fixed line competitor denigrating the quality of its signal. 

 

“MNOs have long since been placed on the defensive by OTT services that provide near-equivalents to their services at lower prices. Now another non-traditional type of service, the Wi-Fi hotspot network, is making an incursion of its own into MNOs’ turf. In order to mount this challenge, cable providers will have to be aggressive. Cablevision’s lawsuit, whether well-founded or not, is certainly a sign that the company has the killer instinct to make this venture viable.”

John Dorfman,

Editor-in-Chief,

The Tarifica Alert

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues or to speak with the research team: http://www.tarifica.com/contactus.aspx