Feeds

China Mobile to quit WiFi rollout

4.3 million hotspots not making money

Intelligent flash storage arrays

After spending 17 billion yuan on WiFi hotspots – more than $US2.75 billion at the current exchange rate – China Mobile has quit on the rollout and will redirect its spend to LTE.

The reason for the decision, reported in Sohu IT (original in Chinese, here), is simple: the hotspots don't make money. Sohu IT says the hotspots are good at generating traffic, but hopeless at generating income, with an raw ARPU of just 15 yuan ($US2.58) per month .

As LightReading's Robert Clark states in this blog post, that return isn't enough to generate ROI, even with the anticipated network optimisation benefits (from mobile-to-WiFi offload).

“In light of the poor returns from Wi-Fi, China Mobile is going all-out for TD-LTE and has forecast it will have rolled out 500,000 base stations in 300 cities by year-end,” Clark writes.

The Sohu IT report says that in 2013, WLAN traffic accounted for nearly 74 per cent of wireless Internet traffic growth, but contributed less than 2.6 per cent of wireless data revenue. The report notes that the backhaul build for the WiFi network has also helped give China Mobile's base station rollout a kick along, so not all the investment was wasted.

There's no word on the fate of the 4.3 million hotspots installed under the China Mobile program. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Same old iPad? NO. The new 'soft SIMs' are BIG NEWS
AppleSIM 'ware to allow quick switch of carriers
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Brits: Google, can you scrape 60k pages from web, pleeease
Hey, c'mon Choc Factory, it's our 'right to be forgotten'
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.