Innercity Gridlock

2005

With falling hardware costs and increasing speeds, WiFi networks become commonplace in homes and offices, resulting in many WiFi hotspots in urban areas, though these are mainly private local area networks. Wireless communities offer their services in establishing hotspots for offices and leisure companies (i.e. cafes/bars/bookstores) and begin to form wide coverage areas with interconnected hotspots. Devices begin to emerge with VoIP capability for use in WiFi networks and find very receptive customers in inner cities (with wireless communities), particularly with younger customers and students. With their high-margin business being eroded and reduced revenues from broadband use, the telcos are facing a cash crisis and cannot afford to invest in 4G technology, nor can they afford to wait until 4G is a profitable venture. They decide to buy-out the infrastructure of wireless communities, at a relatively low-cost, and replicate the technology to more urban areas before other communities emerge.

2006

The increase in WiFi coverage fuels the use of VoIP WiFi phones, and consumers begin to demand a higher quality in connection from the WiFi network. In response the telcos offer QoS subscriptions at a small fee to consumers who, now that they have the phones, readily pay the low cost. With high speed and highly available WiFi coverage in urban areas, and the possibilities afforded by IPv6, personal media devices begin to have always-on WiFi connections and can be used as WiFi phones, but are limited to WiFi networks. Their always-on connections allow downloading of music and video without the use of a PC, making such devices simpler to use, and cheaper to own (i.e. no PC or broadband needed). Consumers find it inconvenient however to retain their standard mobile phones which are used less now that personal media devices can offer video and voice calls at better resolution and sound quality.

2007

With greatly increased WiFi use, electro-smog is becoming a much greater issue: service quality is being reduced, and side-effects are being noticed with current electrical installations. Pressure is growing to increase regulation which would limit WiFi frequency ranges to higher frequencies and therefore shorter distances. Needing to improve service quality for consumers, and to find a solution for the reduced use of GSM networks, the telcos create WiMAX trunk connections between urban areas where coverage is greatest. This reduces the need for WiFi trunk connections witch require many relay stations, and opens up the possibility of WiMAX connections for faster-moving network connections.

2008

Having established their presence with wireless connectivity, the telcos start to push wireless solutions to large companies; firstly offering wireless network infrastructure, and then offering complete voice services at a flat fee, including mobile devices and PDAs for use with the WiMAX network. The companies see opportunities to reduce complexity and reduce cost in taking up such complete solutions, and become the first users of the WiMAX/WiFi phones. Through these WiMAX connections their employees can also benefit from high-speed connections on the road, and can participate in video-conferences on their laptops whilst outside the office.

2009

WiMAX chipsets rapidly fall in price, becoming viable for the consumer market, but with the large adoption of personal media devices they must be combined with existing products to make such devices attractive. The telcos begin to collaborate with consumer electronics companies to integrate the technologies and position themselves to provide telecommunications expertise and technology to these electronics groups who are themselves in high competition, and cannot afford to develop the capabilities themselves.

2010

The telcos try to redevelop their previous business model (for consumers) of charging for line use: though this time applied to WiMAX connections, but are forced to keep prices low due to the already high cost of the consumer devices and the threat of WiFi hotspots expanding.