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Wi-Fi as a Commercial Service: New Technology and Policy Implications

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  • Reed, David
  • Lansford, James

Abstract

While Wi-Fi has enjoyed explosive growth and deployment for use in residential homes, the rollout of commercial Wi-Fi service has been more limited. Part of the holdback on large-scale commercial deployment has been the strategic concern that the commons model to spectrum management lacks the incentives for service providers to invest due to the limited ability to manage interference in the unlicensed band. Today, however, this situation appears to have changed. To explain the new confidence by service providers in commercial Wi-Fi, the activities of the Wi-Fi Alliance and IEEE 802.11 standards body are analyzed to show how these groups essentially replicate many, but not all, of the functions traditionally employed by an effective band manager that is optimizing efficiency on a licensed spectrum block more typically associated with the deployment of commercial services. Consequently, with the Wi-Fi ecosystem functioning as an effective spectrum manager, it is concluded that the service provider investment in Public Wi-Fi networks is rational and the risk posed by saturation or overuse has been reduced to an acceptable level. The strategic implications of this finding on the Wi-Fi platform are the examined. How the requirements from service providers are already significantly influencing the evolution of the Wi-Fi standard is discussed, and an attempt is made to address the risks and liabilities associated with the unlicensed spectrum management model. Thus, service providers increasingly need functionality in Wi-Fi technology to manage interference, and monitor and improve network performance. The current ideas under discussion are elaborated for the next version of Wi-Fi to support both commercial Wi-Fi requirements, which address the interference concerns, but only up to a point, as the unlicensed model intrinsically leaves some risk to participants of spectrum saturation through overuse.

Suggested Citation

  • Reed, David & Lansford, James, 2014. "Wi-Fi as a Commercial Service: New Technology and Policy Implications," Telecommunications Policy, Elsevier, vol. 38(8), pages 827-837.
    • Handle: RePEc:eee:telpol:v:38:y:2014:i:8:p:827-837
    DOI: 10.1016/j.telpol.2014.04.005
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    References listed on IDEAS

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    1. Paul Milgrom & Jonathan Levin & Assaf Eilat, 2011. "The Case for Unlicensed Spectrum," Discussion Papers 11-002, Stanford Institute for Economic Policy Research.
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    Cited by:

    1. Park, Jong-Hyun & Kim, Yun Bae & Kim, Moon-Koo, 2017. "Investigating factors influencing the market success or failure of IT services in Korea," International Journal of Information Management, Elsevier, vol. 37(1), pages 1418-1427.

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