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Coda Coda Research Consultancy
For more information about this product, please email steve.smith@codarc.co.uk, or call
+44 (0)7779 610004
European office:
Coda Research Consultancy Ltd
95 Wodeland Avenue
Guildford
Surrey
GU2 4LD
England
This report draws upon research and analysis conducted by Coda Research Consultancy. Use of this report by any third party for whatever
purpose should not, and does not, absolve such third party from using due diligence in verifying the report’s contents. Any use which a third party
makes of this document, or any reliance on it, or decisions to be made based on it, are the responsibility of such third party. Coda Research
Consultancy, its affiliates and representatives accept no duty of care or liability of any kind whatsoever to any such third party, and no
responsibility for damages, if any, suffered by any third party as a result of decisions made, or not made, or actions taken, or not taken, based on
this document. Coda Research Consultancy does not make investment recommendations, in this report or otherwise, and nothing in this report
should be interpreted as an opinion by Coda Research Consultancy either on market forecasts or on the prospects of specific companies.
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Contents
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US video traffic via mobile handsets,
with forecasts to 2015 ....................37
Cost advantages and access to alternative
revenue stream .........................................38
Cost advantages of Wi-Fi for carriers..38
Access to revenue stream from Wi-Fi .38
Next generation Wi-Fi (802.11n, 802.11u). 39
802.11n overview .........................................39
802.11n enabled smartphones .......................39
Access point shipments .....................39
802.11n roll out on smartphones,
including forecast, 2009-2015 .........40
802.11u .......................................................40
US Wi-Fi users’ demographics and behavior41
Demographics ..............................................41
Wi-Fi behavior via mobile handsets ................42
Wi-Fi enabled smartphone owners’
satisfaction around Wi-Fi, and
preference over 3G ........................42
Behavior by device........................................42
Wi-Fi behavior via iPhone ..................42
Wi-Fi behavior via RIM Blackberry......43
Wi-Fi behavior via Nokia ....................43
Wi-Fi behavior via Android.................43
Sources ......................................................... 44
About Coda Research Consultancy .............. 45
Notes ............................................................ 46
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Figures and tables
Figure 1. Historical quotes for Apple Inc (US$) ..... 8 Figure 25. Wi-Fi enabled handsets available in the
Figure 2. Historical quotes for RIM (US$) ............. 9 US, by manufacturer and handset type ....... 25
Figure 3. Historical quotes for Nokia (Euros)......... 9 Figure 26. Top mobile handsets in the US, with and
Figure 4. Historical quotes for Palm (US$) ...........10 without Wi-Fi capability ............................. 26
Figure 5. Historical quotes for Motorola (US$) .....10 Figure 27. Smartphones people intend to purchase
that are Wi-Fi enabled ............................... 26
Figure 6. Wi-Fi generations overview (802.11 a, b. g
and n) ......................................................12 Figure 28. US smartphone shipments with and
without Wi-Fi capability, 2009-2015 ............ 27
Figure 7. Wi-Fi enabled handsets certified by Wi-Fi
Alliance, by handset type ...........................13 Figure 29. US smartphone owners with and without
Wi-Fi capability, 2008-2015........................ 27
Figure 8. The eco-system of Wi-Fi devices...........14
Figure 30. US smartphone owner demographics.. 28
Figure 9. Wi-Fi enabled devices certified by the Wi-
Fi Alliance, by year ....................................14 Figure 31. Top ten countries for public Wi-Fi
hotspots................................................... 29
Figure 10. Wi-Fi enabled devices in use worldwide,
2008-2015 ................................................15 Figure 32. Top locations for public Wi-Fi hotspots in
the US ..................................................... 30
Figure 11. Wi-Fi household penetration: How the US
compares, 2009.........................................15 Figure 33. Proportion of Wi-Fi connections to
hotspots via smartphones, 2009-2015......... 31
Figure 12. Worldwide Wi-Fi enabled device
shipments, 2008-2015 ...............................16 Figure 34. Public Wi-Fi connections by smartphones
across ten US cities ................................... 32
Figure 13. Wi-Fi handset models entering the
worldwide market, 2000-2009 ....................17 Figure 35. US 3G+ traffic via handsets, 2009-2015
............................................................... 33
Figure 14. Wi-Fi enabled mobile handsets entering
the worldwide market in 2009, by Figure 36. Smartphone penetration vs peak carrier
manufacturer ............................................18 network utilization..................................... 34
Figure 15. Wi-Fi enabled smartphones entering the Figure 37. Proportion of mobile ad requests made
worldwide market in 2009, by manufacturer 18 via Wi-Fi, 2008-2009 ................................. 35
Figure 16. Worldwide Wi-Fi enabled mobile handset Figure 38. Typical throughout speeds, comparing 3G
shipments (incl. smartphones), 2008-2015...19 and 4G with current and next generation Wi-Fi
............................................................... 35
Figure 17. Ratios of Wi-Fi enabled mobile handset
shipments to all mobile handset shipments, Figure 39. The importance of Wi-Fi for mobile video
2009-2015 ................................................19 consumption............................................. 36
Figure 18. US Wi-Fi mobile handset shipments, Figure 40. US video via mobile handset users, 2009-
2009-2015 ................................................20 2015........................................................ 37
Figure 19. US proportion of mobile handsets Figure 41. US video traffic via mobile handsets,
shipped with Wi-Fi, 2009-2015....................20 2009-2015................................................ 38
Figure 20. US Wi-Fi enabled smartphones vs Wi-Fi Figure 42. 802.11g and 802.11n compared......... 39
enabled feature phones shipments, 2009-2015 Figure 43. 802.11n enabled smartphones currently
................................................................21 certified by the Wi-Fi Alliance ..................... 40
Figure 21. US Wi-Fi enabled mobile handset Figure 44. 801.11n enabled Wi-Fi smartphone roll
ownership, 2009-2015 ...............................21 out, 2010 and 2014................................... 40
Figure 22. US Wi-Fi users via mobile handsets, Figure 45. Age distribution of Wi-Fi users ........... 41
2009-2015 ................................................22 Figure 46. Occupations of Wi-Fi users ................ 41
Figure 23. Proportion of ad requests made via Wi-Fi Figure 47. Smartphone 3G and Wi-Fi traffic by
enabled devices, 2008-2009 .......................22 operating system, 4th quarter 2009 ............. 43
Figure 24. US Wi-Fi household penetration, 2008-
2015 ........................................................24
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Introduction
Overview
The total number of Wi-Fi enabled cellular handset models that entered the market in 2009 was two
and a half times greater than in 2008, and we forecast that shipments in the US will grow to 140m in
2015. This phenomenal growth demonstrates it is vital that all mobile device, component, content and
service organizations thoroughly understand current and future trends around the Wi-Fi enabled
handset market.
This 47 page study is an investigation of the Wi-Fi enabled mobile phone handset market in the
United States, up to 2015. Providing forecasts throughout, it focuses on drivers to take-up,
opportunities, challenges, and behavior.
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Wi-Fi hotspot operators and aggregators
Notes
From hereon, ‘handsets’ refer to feature phones and smartphones collectively. Unless explicitly
identified, these are ‘dual mode’ i.e. cellular and Wi-Fi handsets. ‘Smartphones’ refer to devices that
run identifiable operating systems, such as iPhone, RIM, Android, Windows and Symbian, and which
have a variety of functions converged onto them. ‘Feature phones’ refer to feature phones i.e. mobile
handsets not running identifiable operating systems and are not converged devices.
Methodology
Overview
The report draws from primary and analysis of secondary research. Sources are identified where
secondary data has been employed. Forecasts have been developed using a variety of statistical
methods and models and where possible have been compared with forecasts from other
organizations. 2009 and prior base data are from published primary data. Selected factors for future
trends are listed below. Some forecasts were iterative in the sense that each forecast helped to inform
other forecasts. This helped to ensure rigor in that constant cross referencing was undertaken
between variables and between forecasts.
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About Coda Research Consultancy
Employing highly structured data collection and analysis, we at Coda Research Consultancy specialize
in understanding and forecasting future trends, roles and impacts of new technologies, services and
media upon people, organizations and businesses.
We undertake two types of projects each year: ad-hoc projects for individual research partners in the
UK and overseas, and more widely scoped projects that are available to anyone in the forms of
reports and optional presentations.
Coda Research Consultancy is led by Dr Steve Smith, an acknowledged research specialist with
thirteen years' research and consulting experience around new media and new technologies.
European office
95 Wodeland Avenue
Guildford
Surrey
GU2 4LD
England
Tel: +44(0)7779 610004
Email: steve.smith@codarc.co.uk
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