Introduction
Wi-Fi 6 and Wi-Fi 6E client devices are entering the home in an unprecedented way, surpassing 50% of the market share since their introduction in 2019 (compared to four years for Wi-Fi 5). By 2025, Wi-Fi 6 and Wi-Fi 6E are expected to surpass 80% market share and dominate the smartphone sector, according to the Wi-Fi Alliance. Indeed, Wi-Fi 6 is rapidly becoming part of the ISP toolbox to deliver the best quality service and increase growth potential.
Wi-Fi 6 is also a necessary upgrade to help manage the growing Internet of Things (IoT) successfully, especially given how rapidly consumers are adopting Wi-Fi 6 client devices. According to McKinsey, “Data traffic is expected to expand by around 20% annually in the next five years, and fiber is arguably the only fixed-broadband technology currently capable of delivering the speed and capacity expected by governments, businesses and consumers.”
This is further complicated by the so-called exodus we witnessed during the pandemic. Many Americans relocated from large urban to suburban and exurban locations to take advantage of more affordable housing options and spaciousness. This trend, combined with the push by state and federal governments to increase internet access in rural communities, creates an opportunity for ISPs to grow their market share and further differentiate their offerings.
Specifically, one of the most viable solutions for ISPs to expand their business is deploying the latest Wi-Fi 6 and Wi-Fi 6E-generation infrastructure to leverage the most recent innovations for delivering superior customer service.
Escalating internet demands for today’s homes
Since the onset of the COVID-19 pandemic, internet use and connected devices have accelerated exponentially. U.S. households using broadband internet now own an average of 20 connected devices, including smart home and connected consumer electronics.
Further, there is a greater use of distributed services in the home—including online meetings, online gaming, smart home services and video streaming—all of which drive internet usage. As smartphones and other internet-connected devices have become more widespread, one-third of U.S. adults now report that they go online “almost constantly,” up from 21% in 2015, according to a Pew Research Center survey.
Five challenges for today’s ISPs
As consumers become increasingly connected across a myriad of devices, ISPs face several challenges in a diverse and highly competitive market, including:
1. Ensuring customer satisfaction. Wi-Fi performance and, by extension, user experience, are frequently compromised by adverse environmental impacts like congestion, noise and interference. According to 2022 Maravedis research on ISP professionals, slow Wi-Fi speed throughout the home remains the number one reason triggering service calls, followed closely by unstable Wi-Fi. Slow internet access, unstable connections, and difficulty connecting certain devices to the network are some of the most common issues Wi-Fi customers face.
Further, when customers call their ISPs, they want their issues resolved in record time. The longer they are on the call, the more likely they are to reduce the ISP net promoter score (NPS) and quality of experience ratings.
2. Reducing operating costs. ISPs without network or fleet management solutions are unable to proactively troubleshoot Wi-Fi problems in the home, resulting in higher operating costs. This leads to a high incidence of repeat customer calls, reduced satisfaction and unnecessary service visits to the home.The impact on profitability here is significant. According to an online ISP survey by Maravedis Research, ineffective and/or lengthy support calls cost an average of $57 and truck rolls for on-site service average $150 per visit, excluding travel costs. According to SightCall, the cost of individual truck roll costs is likely to be over $1,000, factoring in labor costs, vehicle costs and impact to other billable work. Replacement CPE (customer premise equipment) adds even more to the expense.
3. Managing legacy equipment and other technical considerations. “New Wi-Fi standards and the introduction of devices leveraging the latest technology are currently on an 18- to 24-month cadence,” said Gary Bolton, president and CEO of the Fiber Broadband Association. Many home Wi-Fi users are still using legacy Wi-Fi equipment (such as 802.11n / Wi-Fi 4) or are placing their routers in ineffective locations, creating a series of problems.
To mitigate this challenge, U.S. ISPs now deploy mesh routers inside the home in 50% of new installations, according to a survey from Maravedis Research. Mesh solutions help blanket the home.
4. Battling delays in the supply chain. Many ISPs are faced with long wait times as their equipment suppliers struggle with supply chain problems, which create large backlogs. For ISPs working hard to maintain or gain market share, waiting is not an option and keeping costs down is essential in times of high inflation. One consideration for ISPs is to choose a supplier with a robust supply chain and a full lineup of Wi-Fi 6 products. ISPs can minimize cost and wait times by selecting access points with the optimal number of radios. For example, 2x2 radios from eero provide a lower-cost option for the majority of cost-sensitive users, while 4x4 radios can be reserved for the higher end of the market with greater purchasing power and service requirements.
5. Keeping increased competition at bay. The U.S. government has allocated billions of dollars in grants to close the digital divide between Americans and finance broadband deployments. With fiber now accounting for more than 20% market share, according to a report from the Fiber Broadband Association, ISPs must quickly deploy Wi-Fi 6 access points to avoid a bottleneck of capacity in the last meters. Pre-Wi-Fi 6 access points can hardly keep up with the high speeds offered by fiber technology; ISPs that have not yet already deployed Wi-Fi 6 run the risk of losing market share to new competitors.
Wi-Fi 6: A Game Changer
While the broadband speed to the premise is essential, whole-home Wi-Fi coverage and connectivity are as critical as the service to the house. Consumers are increasingly demanding full-coverage, efficient, self-configuring home Wi-Fi networks that require minimal setup and that largely maintain themselves.
That said, “Selecting the system best suited for your unique home environment is where things get tricky,” Bolton said. “Researching, purchasing and installing a store-bought Wi-Fi system might be a fun home project. But for most consumers, having a system that doesn’t require any thought is ideal. Managed Wi-Fi ensures the responsibility for connectivity and service continuity falls on the shoulders of the capable and knowledgeable ISP.”
eero for Service Providers
With eero for Service Providers, ISPs are given the tools to improve operational efficiency with network and business analytics. And with dedicated customer support, ISPs have the tools to give their customers a reliable, secure Wi-Fi experience.
eero for Service Providers is designed to have ISPs covered with an end-to-end solution of premium Wi-Fi 6 and Wi-Fi 6E hardware along with eero Insight software, eero Secure and the eero co-branded app, all providing a frictionless customer experience at attractive price points. eero ISP partners benefit from a 50% reduction in call volume, resulting in fewer truck rolls, lower operation costs and happier clients.
eero 6 Series Mesh Wi-Fi Systems: eero’s Wi-Fi 6 series of whole-home mesh Wi-Fi systems with patented TrueMesh technology includes Wi-Fi 6 and Wi-Fi 6E—supporting faster speeds, higher performance and more simultaneously connected devices compared to previous Wi-Fi standards.
eero Insight: As its name implies, eero Insight provides both fleet and network management insights. The proactive fleet management software for ISPs combines history, aggregation and actionable insights to predict and address problems before they escalate. eero Insight analytics, APIs and datasets help eero's partners get ahead of customer issues related to network and client health.
eero Secure: eero Secure is an add-on subscription that helps keep devices connected to the network safe and secure with advanced parental control features, active threat protection and ad blocking.
In Conclusion
ISPs need agility to enter new markets fast and with optimal impact using a turnkey solution. Without the ability to move quickly and address market demands, service providers stand to lose both customer perception and brand reputation.
By delivering low latency, high throughput and improved support for high-density smart homes, the next generation of Wi-Fi should be a cornerstone of ISP success.
With this latest generation of Wi-Fi 6 technology and unique eero tools, ISPs can grow their customer base and Average Revenue Per Unit (ARPU) with new services while reducing costs and churn.
For more information, download our white paper here or contact eero.