The Mobile Internet Report Key Themes*

Wi-Fi Significantly Cheaper for Carriers + Consumers –
Little Incremental Capex Translates into Low Access / Device Costs
Wi-Fi network gives carriers 70% cost advantage – AT&T reported 70% cost advantage
from offloading data traffic from 3G network onto Wi-Fi, owing in part to zero licensing
costs for 2.4Ghz spectrum + cheaper equipment costs.
Less capex for integrated (wireline + wireless) carriers – Incremental capital investment on
each Wi-Fi access point is trivial (~$50-100) vs. each 3G cellular site (~$2K monthly lease
expense for the tower operators + $150 monthly T1 backhaul connection line). Therefore,
a large Wi-Fi network could be a crucial asset for carriers who are seeking to determine
how they can offer a world-class customer experience cost effectively.
Consumers enjoy lower access fees / equipment costs – Wi-Fi consumers benefit from
little-to-very low incremental service cost (free to $20 per month) vs. $30+ per month for
3G data plans / relatively low upfront costs on Wi-Fi equipment and devices (