A Wi-Fi Renaissance

Total Telecom reported today that Wireless Broadband Alliance (WBA) predicted that seamless WiFi offloading solutions will begin deployment within the next 12 months.

"The complementary relationship between WiFi and mobile networks is finally becoming a reality," said WBA’s Chairman Chris Bruce.

With Kineto’s software, it’s been a reality for some time. For years, we’ve been focused on the opportunity for mobile operators who recognize the benefits of Wi-Fi for offload and coverage.

Reporter Lewis Dowling mentioned T-Mobile’s Wi-Fi Calling service based on our Smart Wi-Fi technology as an example of an operator solutions that successfully use Wi-Fi. He also mentioned steps Cisco, Ericsson and Alcatel-Lucent are taking to enable this operator shift.

Bruce added: "Fixed and mobile operators alike are leading a WiFi hotspot renaissance in a renewed effort to sate the seemingly unquenchable desire for ubiquitous broadband connectivity.”

The smartphone deluge has been going on for years already and is only growing. Operators need to try to get out in front of it. With Wi-Fi, they can.

Cisco to buy ip.Access? Better to wait...

The industry is buzzing today with the rumor that ip.Access has ‘won’ a contract with AT&T to supply femtocells. The reportedly $500,000,000 contract for 7,000,000 units gives you an ASP of $71.43/unit. Ouch.

What exactly did they win? The right to sell femtocells below cost to AT&T?

Frankly I think it's AT&T that is hoping Cisco buys ip.Access. At least Cisco can afford to lose money on every unit and ‘make it up in volume.’

The article notes that the contract calls for ip.Access to ‘eventually price the units at less than $100 apiece’. If half of the units are sold at $100 each, the other 50% need to be sold at $42.86 to get to an ASP of $71.43. Hummm… that’s probably why the article dryly notes the contract ‘could exceed $500m.’

My advice to Cisco: wait… buy ip.Access out of bankruptcy.

The best way to get costs down in the market: Open standards.