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Smartphone Usage on Wi-Fi is Driving Most Website Traffic and Growth
11/24/2017 | 03:03pm CET
In case we weren’t aware of just how much the shift in web traffic is moving from desktops to the mobile world, the tech sector is confirming that the majority of traffic is now being driven by Wi-Fi on smartphones.
Companies that can see big benefit from the shift include Edgewater Wireless Systems Inc. (TSX.V: YFI), Cisco Systems, Inc. (NASDAQ: CSCO), Texas Instruments Incorporated (NASDAQ: TXN), Qualcomm Incorporated (NASDAQ: QCOM).
It appears that smartphones are responsible for significant web traffic growth, and a surprising amount of it is on Wi-Fi rather than mobile networks.
This data comes from Adobe Digital Insights who have been tracking over 150 billion web visits.
Industry growth may be most visible in the chip sector, but there are other Wi-Fi tech spots that are also seeing the trend first-hand. The leading chip companies are all ramping up to accommodate growth, and emerging innovators in the Wi-Fi and connectivity markets are clamoring for the new business.
Many of the leading stocks in both chips and connectivity are seeing outstanding Q3 numbers, providing further support that this is where web traffic is headed.
One smaller player in this group is getting a lot of interest for its new, patented technology for use in high-density Wi-Fi applications, like public spaces and convention centers. Edgewater Wireless Systems Inc. (TSX.V: YFI) has unveiled its Aera™ access point line that uses the company’s patented WiFi3™ technology. The pair promise much improved Wi-Fi and increased connections in high traffic areas.
Other companies that have been moving to meet increased demand for chips and connectivity technology include Cisco Systems, Inc. (NASDAQ: CSCO), Texas Instruments Incorporated (NASDAQ: TXN), and Qualcomm Incorporated (NASDAQ: QCOM). Each of these large players has a significant stake in the future of the Wi-Fi space and web traffic, since they are heavily invested in both mobile and future Internet of Things (IoT) applications like connected devices.
MOBILE TRAFFIC USING WI-FI
According to Adobe Digital Insights in its Adobe Mobile Trends Refresh — Q2 2017, web visits from desktops and tablets are dramatically declining.
This is not really a surprise. Neither is the device of choice for most people visiting the web: their smartphone.
What the industry numbers reveal does hold some surprises though. Most prominent in the data is the fact that the majority of smartphone traffic is arriving via Wi-Fi connections, not through mobile carrier networks, according to the research.
Adobe is well suited to breakdown the analytics. The firm claims it has been tracking over 150 billion visits to some 400 websites and apps since 2015.
So what’s popular on smartphones?
It seems that the sites mobile users visit most are large-organization national news, media and entertainment, and retail. Really no surprises there. But for actual traffic, Adobe says over 60 percent of that smartphone segment is connecting through Wi-Fi.
Some other areas getting the most traffic include major travel, banking, automotive, and insurance company sites. In those instances, more than 50 percent of public traffic from smartphone devices arrives via Wi-Fi instead of mobile networks.
With mobile access on Wi-Fi now getting up over 50% of virtually all web traffic, it’s easy to see why there continues to be major opportunities within the Wi-Fi and connectivity space.
PUBLIC WI-FI ACCCESS NEEDS SOLUTIONS
Analysts agree that future growth of the web and connected devices (now becoming known as the Internet of Things) will involve almost completely connecting via mobile. And that is going to mean massive demand for reliable public access, even in high density areas like stadiums, airports, hotels and public spaces.
Edgewater Wireless Systems is an emerging Wi-Fi innovator that’s way ahead of the curve on this account and offers a clear example of the future potential for Wi-Fi.
The company designs and patents new solutions for Wi-Fi and connectivity in high-density applications where people need broad access to Wi-Fi. Edgewater has spent about $60 million on their new technology that addresses the three big issues that impact Wi-Fi performance —interference, capacity and density.
Edgewater Wireless has begun introducing its patented WiFi3™ technology in various products including Aera™ brand connection point devices. Their system uses a totally unique approach, incorporating multiple radio channels in a single chip to increase connectivity by as much as 40% compared to current Wi-Fi.
The system, which already has over 20 patents filed on it, is one of the conduit technologies to creating a seamless Wi-Fi connected world.
Edgewater Wireless Systems is already garnering the respect of big peers in Wi-Fi and the IoT. The upstart company expects to be heavily impacted by sector growth, while it helps to assure Wi-Fi’s role in the future by improving access and higher standards for all Wi-Fi.
MAJORS ARE ON BOARD
Networking equipment giant Cisco is betting on growth in Wi-Fi traffic.
Cisco says that by next year, “Wi-Fi traffic will even surpass fixed/wired traffic.” in research published in February.
Cisco should know. They have the data to support this claim and publish it regularly.
They also forecast that by 2021, 63 percent of global mobile data traffic will be offloaded onto Wi-Fi networks and not use mobile ones.
“By 2021, 29 percent of the global IP traffic will be carried by Wi-Fi networks from dual mode [mobile] devices,” Cisco states.
Beyond what we already account for, Wi-Fi is also expected to handle mobile network offloading for many future IoT devices, they noted.
So while it would be easy to write off Wi-Fi in favor of 5G connections, it seems the technology has a solid life expectancy.
Wi-Fi continues to dominate over mobile generally because of speed and cost. Wi-Fi is, on the whole, much faster and costs significantly less than mobile networks. That could reach a closer parity, but only if mobile networks are willing to get cut-rate.
In the meantime, the challenge is thrown down for companies like Edgewater Wireless Systems, to provide better, faster and cheaper Wi-Fi solutions assuring the growth and longevity of the sector.
As mobile traffic goes, so goes the growth of the web. It is certainly headed to the smartphone and Wi-Fi is the technology of choice to connect the dots.
Cisco Systems, Inc. (NASDAQ: CSCO)
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP) based networking and other products related to the communications and information technology industry worldwide. The company offers switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points, and servers; and next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice, and video applications. The company sells its products directly, as well as through channel partners, such as systems integrators, service providers, other resellers, and distributors. The company was founded in 1984 and is headquartered in San Jose, California.
Texas Instruments Incorporated (NASDAQ: TXN)
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. The company operates through two segments, Analog and Embedded Processing. The Analog segment offers high volume analog and logic products for automotive safety devices, touch screen controllers, low voltage motor drivers, and integrated motor controllers; and power products to manage power requirements using battery management solutions, portable power components, power supply controls, and point-of-load products. The company markets and sells its semiconductor products through direct sales and distributors, as well as online. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.
Qualcomm Incorporated (NASDAQ: QCOM)
QUALCOMM Incorporated develops, designs, manufactures, and markets digital communications products and services in China, South Korea, Taiwan, the United States, and internationally. The company operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access (OFDMA), and other technologies for use in voice and data communications, networking, application processing, multimedia, and global positioning system products.
For a more in-depth look into YFI you can view the in-depth report at USA News Group: http://usanewsgroup.com/2017/11/19/buildingouttheiot-2-2-2/
USA News Group
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