An earlier test with a small number of users in select neighbourhoods found that a quarter of subscribers made active use of the hotspots, while only a few customers opted out of opening up their modems to other customers.
According to Ziggo, the test had no impact on the Wi-Fi or internet service in the home, and the quality of the signal and coverage were good enough to achieve around 1Mbps or more within 30m throughout the neighbourhood. The connection remained good even when the user walked or biked through the neighbourhood, but at higher speeds, the connection often broke down.
With the expansion of the tests, Ziggo appears confident of the possibilities for offering this service to all its customers.
It should be noted though that it's not yet possible to offer full coverage of the managed Wi-Fi service, due to a lack of equipment. Ziggo's third-quarter report showed that around 730,000 Wi-Fi modems are active on its network, equal to just 41 percent of its total broadband base of 1.76 million customers.
The modem swap programme, which saw little activity in the past two quarters, will need to be revived if penetration is to increase. The reason for the slowdown in modem swaps appears to be the pending introduction of a new Wi-Fi modem that can use both the 2.4GHz and 5GHz bands, expected to come available in the second quarter of 2012. Until then Ziggo will still offer Wi-Fi modems for new or upgrading customers, but the swap programme is on hold.
Ziggo is working with Alcatel-Lucent on the Wi-Fi service. The supplier has developed Wi-Fi access as part of its lightRadio portfolio. The Policy Management platform ensures that devices log in automatically to available Wi-Fi routers, with no need for confirmation by the customer.
Alcatel-Lucent offers the service on all types of Wi-Fi networks, including homespots, public networks of hotspots and Wi-Fi as part of a heterogeneous mobile network. Network owners can sign up for a contract for the services.
This strategy addresses well a current trend in mobile user behaviour. A growing group of smartphone users is calling and sending texts less and using mobile internet more to communicate, preferably over Wi-Fi and not just at home.
Results from the Telecompaper Consumer Panel (December 2011) show that 31 percent of smartphone users have logged on to a secured Wi-Fi network at a friend or family member's house or in a hotel. Over a quarter (27%) have used an unsecured network, and 3 percent have paid for Wi-Fi access.
Ziggo has already said earlier that it has no plans to become a traditional mobile operator. This suggests that mobile data is central to its focus, and Wi-Fi is a clear candidate for this. However, given that Ziggo cannot offer national coverage on its own, it will need agreements without operators in order to offer customers Wi-Fi roaming.
