Triple Play + community WiFi, disruptive for cellular operators?

September 24, 2006

For the past several years, France has become one of the world’s most dynamic VoIP and triple play markets. There is a large choice of several service providers (Free, Neuf, Orange, Club-Internet) and triple play packages start at cut-throat prices: 29.99 Euros per month. Now triple play providers are adding mobility with dual-mode WiFi/cellular handsets.

Neuf is the first to market with its Twin phone, which connects to your home WiFi network or to a GSM network while outside. More interestingly, it also connects to any Neuf community WiFi hotspot outside your home: Neuf claims 50,000 access points worldwide! This “user-built” WiFi network is made up of other Neuf user WiFi boxes, French railway hotspots, the ADAEL network and the FON community. This means unlimited calling to fixed lines in all of the European Union, China, Singapore, Taiwan, Australia and New Zeeland. For the US and Canada, calls to both fixed and wireless numbers are included.

Neuf has found a nifty solution to the power challenge on dual-mode phones with a manually activated “WiFi button”. With this feature, Neuf claims 250 hours standby time in GSM mode, 50 hours in WiFi and 4 hours of talk time.

This is the beginning of a trend which could be very disruptive to cellular operators. If I live and work in a large city covered with my community’s WiFi hotspots, how much will I spend on cellular services in the future?

-Erik