Next Generation Hotspot (NGH) Wi-Fi technology is expected to generate revenue of $150bn (£94bn) by 2018 for telecom operators, according to a report from Wireless Broadband Alliance (WBA).
NGH Wi-Fi is expected to account for 9% of global mobile traffic by 2018, while allowing the mobile operators to decrease their per-bit RAN costs by 18%, the report said.
The combination of Wi-Fi and cellular small cells is expected to increase cost savings and profitability as well as drive more traffic compared to the legacy Wi-Fi using the same infrastructure.
Wireless Broadband Alliance CEO Shrikant Shenwai said the new generation of Wi-Fi infrastructure will not only deliver a completely seamless and ubiquitous Wi-Fi experience to the end user, but will also become a key component of an operator's RAN and network optimisation strategy, when integrating Wi-Fi with LTE and small cells.
"With the knowledge that NGH is not only cost effective but can also boost profits as well as significantly improve customer experience, we expect it to be increasingly integrated by carriers throughout 2013 and beyond," Shenwai said.
The report also revealed that the combination of Wi-Fi and cellular small cells will offer additional cost savings and higher profitability, and the per-bit cost in a network with NGH Wi-Fi and 4G small cells may be 38% of those of a 3G macro network