Mobile operators should offload data over WiFi to reduce costs

Dubai: Investing in WiFi can help mobile operators in the UAE save 25-27 per cent of infrastructure costs over the next five years compared to 3G and 4G networks, according to the findings of a Cisco study unveiled on Wednesday.

Mobile subscriptions outnumber people in the UAE — the subscription rate in the country surpassed 159 per cent in 2012, according to the study. Mobile data is a big part of this growth, accounting for almost half of UAE subscriptions.

This growth threatens to overload the capacity of regional mobile operators, who may struggle to ensure availability of high-speed packet access (HSPA or 3G) and long-term evolution (LTE) spectrum.

“An insatiable demand for capacity and connectivity continues to grow,” Rabih Daboussi, Managing Director and Strategic Service Provider Business and UAE, Cisco, told Gulf News.

WiFi could provide the solution to the increasing demand, transforming wireless internet access by offering higher speeds, improved security, and more availability. ‘Mobile data offload,’ or using WiFi network to deliver mobile data traffic to mobile broadband users, will enable operators to capitalise on the benefits of Wi-Fi.

Offloading data will also give operators the opportunity to reduce data costs, allowing them to accelerate adoption and increase market share.

“Our study clearly proves that mobile data offload will enable mobile operators to maximise the benefits of WiFi through cost savings, revenue generation and improved services for their customers,” said Bader Al Mubarak, Senior Manager Cisco Consulting Services, Saudi Arabia, said in a video conference.

Negative savings are expected in the first year due to WiFi infrastructure rollouts. UAE mobile operators would have to invest $51.6 million between 2013 and 2017 to provide Wi-Fi coverage across the country.

But the costs of not doing so could prove to be much higher. Without offloading, mobile operators will need to heavily invest in 3G and 4G network infrastructures, with figures ranging from Dh90 million in 2013 and Dh2.5 billion in 2017. The total cost over the next five years can exceed Dh4.5 billion for UAE telco operators.

Cisco’s analysis shows that mobile operators will need to invest up to $1.23 billion in 3G and LTE infrastructures by 2017 to meet the growing demand for mobile data. Costs will vary depending on mobile data traffic offload rates.

— Jerusha Sequeira is an intern at Gulf News