Lower Wi-Fi prices on the horizon

Competition for customers is likely to push down WiFi pricing, say analysts

Experts say Wi-Fi prices are set to fall as competition in the sector heats up. Most laptops now ship with Wi-Fi and many public areas are equipped with hotspots, but users often complain about the cost and complexity of accessing the internet.

However, David Eurin of telecoms watcher Analysys said the increasing use of Wi-Fi for voice calls could drive down prices.

“[More companies] are trying to grab some mobile revenues,” Eurin added. “They might be successful with dual-mode handsets coming in and the cost of Wi-Fi chips getting cheaper. We’re advising our mobile [carrier] clients to be very careful about this. People could switch GSM or 3G to Wi-Fi.”

High charges for Wi-Fi connections are leading more firms to consider entering the business, or expanding present offerings. Wi-Fi infrastructure provider The Cloud, for example, is considering selling direct to end-users.

“We’re seeing major uptake for business-to-business users,” said Sanjeev Sarin, chief operating officer at The Cloud. “It’s like broadband access, where prices came down with competition and demand. Is BT Openzone for £25 a month the right figure? I don’t know.”

However, Sarin insisted that usability is a bigger problem than price. “The key driver is to make the customer experience as easy as possible. If you make it difficult for the user to log on, that’s a problem.”

Others said that prices will be determined more by the owners of hotspot sites than carriers.

“Hot locations such as airports can continue to charge higher prices because in many cases a vendor has exclusivity on the area,” said Bena Roberts of research company Current Analysis. “However, in the high street, Wi-Fi costs will plummet as restaurants add value to their offers with in-house Wi-Fi service for free.”