Have wireless routers become the new municipal Wi‑Fi?
As US carriers reported their latest financial results and subscriber metrics over the past few weeks, it became clear the “other” category of cellular-connected devices was a strong point of growth. While net post-paid phone additions were dull and churn was close to record lows, Covid-19 drove the action elsewhere.
Carriers pointed to the absolute need for connectivity during the pandemic as people worked remotely and students learned from home. This meant that school districts had to ensure everyone could be connected regardless of location or income levels. It was a time for wireless service providers and device makers to step up to the challenge. In particular, there was a need for more wireless routers, those little boxes that turn cellular connections into local Wi-Fi hot spots.
T-Mobile, for example, made this clear when it explained in its second-quarter financials that a big chunk of its 859,000 “other” post-paid gains were “educational institution additions”. A year ago, the “other” category totalled less than half this, at 398,000.
Since March 2020, municipalities across the US and around the globe rushed to deliver connectivity and computers to millions of students so they could Zoom from their room. Distance learning became the norm and Internet connectivity has not only become a basic human right, it suddenly falls somewhere into Maslow’s hierarchy of needs, along with air, water and shelter.
More than a decade ago, the concept of connectivity for all sparked what seemed like a major disruptive trend: municipal Wi-Fi. Urban authorities looked to build out citywide networks of Wi-Fi, blanketing block after block with freely accessible connectivity. Internet access was to be a tax-supported service like police departments and street lights.
The current spike in demand for mobile hot spots reminds us that municipal Wi-Fi never reached its original idealistic goals, though there certainly have been some success stories, sometimes thanks to corporate backers that often have some commercial interest in the roll-outs. In New York City, for example, a system called LinkNYC provides high-speed wireless data access from many hot spots in spaces that were once payphones. LinkNYC is financed by several large companies including Qualcomm and, indirectly, Alphabet. The hot spots work well at street level, but in a vertical city they’re no replacement for a broadband subscription (see Free Gigabit Wi-Fi in New York City).
Another example is San Jose, California, where officials announced that the city is providing 11,000 mobile hot spots with unlimited LTE data to “unconnected and underconnected students” through a partnership with AT&T.
The fact that municipal-supported MiFi has become a substitute for municipal Wi-Fi also whets the appetite for 5G, which promises to boost speeds and reduce latency. It also highlights the need for more dedicated spectrum for 5G. It does seem like ubiquitous 5G access is coming a little late to help in this time of need.