AT&T taking over the reins of WiFi business

Unlike other hotspot providers, AT&T uses WiFi to augment its other businesses, offering WiFi service free to its DSL customers as well as its 3G laptop data customers and select smartphone customers, such as iPhone users. So for fixed broadband customers, AT&T provides a means of remotely using broadband services, while for mobile broadband customers, it offers a faster connection in high-traffic locations. WiFi also gives AT&T the reciprocal benefit of offloading data traffic from the 3G network in those same high-use areas, said Bill Ho, wireless service analyst for Current Analysis. “How much this impacts remains to be seen, as the number of iPhones and [BlackBerry] Bolds out there has yet to be significant,” Ho said. “But when the AT&T device lineup includes more and more WiFi-enabled devices, it can pay off.”

AT&T certainly isn’t short on choice. The WiFi Alliance said that 18 million dual-mode WiFi/cellular phones and converged devices were shipped in 2007, while it estimates that number will increase to 500 million by 2012. “AT&T’s acquisition of Wayport exemplifies the emphasis that many carriers are putting on WiFi as a central part of their business strategies,” said Edgar Figueroa, executive director of the WiFi Alliance. “There are half a billion people worldwide who use WiFi at home, at work, and in public hotspots, and carriers are recognizing the important role that WiFi plays in delivering a great connectivity experience to their customers.”