Wi-Fi service trumps 3G
Unlimited mobile Internet access at 7,000 UK hotspots for £12 a month
Mobile operators planning to launch faster 3G technology this summer may face competition from wireless internet service provider (ISP) The Cloud. It has announced its UltraWiFi service offering unlimited Wi-Fi access across its 7,000 indoor UK hotspots for a flat rate £11.99 per month for a 12-month subscription.
The Cloud’s chief operating officer, Sanjeev Sarin, predicted that initially the service is likely to attract business users who already use laptops, but consumers will follow because The Cloud is working with large distribution channels keen to push the service.
“One of the main reasons [we are offering this flat-rate service] is that to get uptake and utilisation, you need a price point that people really notice and also a service usable through multiple devices,” Sarin added.
Tim Gower of analyst firm Datamonitor said The Cloud’s business model is to build out the network and then develop relationships with mobile operators.
“The mobile operators can pass on a competitive package since they have the billing relationships,” said Gower. “A plus for The Cloud is that they can deploy their network relatively cheaply and get relationships with mobile operators. The negative part is that the technology is so cheap that you’ve got people like Google offering free Wi-Fi access, although currently the ‘free Wi-Fi’ coverage is relatively patchy.”
Sarin said the price would be the main attraction to customers. “I’ve talked to large players and their average bill for some of their field service guys can be between £300 to £500 per month. If you can offer an £11.99 all-you-can-eat service across 7,000 locations, OK it’s not ubiquitous but research shows that 70 to 80 percent of mobile calls are made in a fixed location.”
UltraWiFi will be available from 1 July. Meanwhile, The Cloud is also developing city centre hotzones in areas including Birmingham, Edinburgh, Leeds, and Manchester as well as London boroughs including Camden and Islington.
The Cloud is also building out its City of London Wi-Fi network due for launch in late summer.