Why the Internet giant has watched free WiFi?

Recently, China commercial WiFi access for upgrades. Tencent, the mass comment di WiFi service provider outside the 300 million Yuan investment, Alibaba Guizhou built free WiFi, 360 and 3 billion for three major telecom operators, as well as industry chain enterprises nationwide to build nearly billions of free WiFi hotspots. Strategic investment of tens of millions of wireless communications developer Shanghai hanfeng Baidu … …

Because of the lack of a mature business model, WiFi has been bearish capital markets, enterprise WiFi industry engagement is not high, why suddenly heating up overnight? The Live Communications daily (app: maoqiying2008) by visiting WiFi operators communicate with industry tycoons learned that BAT in addition to competition for the mobile Internet outside the entrance to the chiefs, to promote its application store is behind the goal.

Following is dry information sharing:

Why giant WiFi this fancy “cakes”?

Why giants are eyeing free WiFi? Since the media said Xie Pu, “WiFi is the hardware, the operating system, search, distribution, LBS, and a mobile Internet portal, is the connection between mobile devices and the mobile Web pass. ”

1, occupy APP users.

Publicly available data shows that Baidu mobile phone assistant will provide free WiFi download 700,000 APP penetration platform. As at the second quarter of 2014, Baidu’s market (including Baidu, 91 Assistant Android market Mobile Assistant) users has reached 600 million people as a whole.

360 free WiFi business communication Ma Yi, Director of the living newspaper, 360 launching Standalone APP called 360 free WiFi,3 has reached 16 million users a month.

Ma Yi said, “different from other free WiFi Internet, 360 free WiFi is a stand-alone APP, and basic operators and cooperation is the depth of cooperation are not restricted to any one carrier. In addition, internal applications and closely integrated 360WiFi free. ”

2, pushing their products.

Insiders say, in September this year, Zhou hongyi t 360 free WiFi project was listed as the highest level: 360 free WiFi product’s goal is to be the industry’s second this year, will become the first three months of next year. 360 and 360 mobile phone phone assistant guardian of which are adjusted to the “free WiFi” content in the past. Free WiFi for better publicity, Zhou hongyi t personally intervene and distributing content.

Meanwhile, Tencent set up a secure WiFi Alliance. Tencent announced combined light and sound network of 10 domestic commercial WiFi service providers set up a secure WiFi Alliance, which has achieved the 10000+ supermarkets, 15000+ Cafe, restaurant of the 35000+ cover. Among them, the QQ5.1 joined the “QQ free WiFi” feature provides 5 million free hotspots. Subsequently, the app pushes phone book, known as the State of WiFi you can talk for free.

Industry analysts believe that the 360 and Tencent have free WiFi so Shi Dong Zhong, selling product composition rather than realistic.

March 3, “public works”, and other fields.

Tencent, the mass comment this 300 million Yuan to complete Mai di c round of funding. Mai di commercial WiFi coverage, including Beijing-capital, Shanghai-HongQiao, Pudong International more than more than 20 airports nationwide, and more than more than more than 500 domestic and foreign well-known business chains, including Starbucks, Burger King, South beauty, and so on.

WiFi operators, said municipal projects such as airports, subways and city buses, wisdom relates to the State’s urban construction, these earlier WiFi operators for the provision of car ads and so on, in addition to roots in this business line, special circles is the short-term can not get the BAT, BAT selection and WiFi operators, this is the best route.

WiFi could let Giants get it?

WiFi hot market, it is difficult to disguise global lack of mature business models, differing ideas of the BAT into the free WiFi, I’m afraid the promise of cash.

1 defects, WiFi technologies, an Internet company irreparable

China Mobile business supporting system Department of the Ministry of planning said Chang Ning Yu, Director of construction, “WiFi technology that exists in defect gradual exposure, non-carrier-grade quality of equipment and the lack of major operational capabilities, and more difficult to solve problems. ”

In this connection, media people in the e-road WiFi, companies deploying free WiFi on the bus in Beijing, early use of Huawei’s network facilities, because the standards are not unified, unable to continue, and now use Mendoza company WiFi facilities, due to system upgrades, delayed a few years time.

CMO e Lu Liu Hui of the Live Communications, “said public WiFi has its own characteristics, for example, the equipment to be placed on the mobile, bumps and high temperature environments, therefore, test period may be longer. ”

Said one operator, “Internet companies for technology and carrier-grade standards are different, especially public WiFi security risk, BAT was reluctant to spend a lot of energy in it. “Baidu CEO Robin Li had been issued at the two sessions on the proposal to cancel WiFi personal identification in public places, was opposed by base operators.

2, capital spending was huge, long payback period, Internet companies dabble

Liu Hui gives the author a Bill, deployment cost per car free public WiFi in 3000-4000, that does not include traffic costs, personnel costs, operating costs, maintenance costs, and so on.

“According to each hot spot deployment costs around 4000 Yuan terms, telecom operators invested more than 20 billion yuan building WiFi. Average monthly ARPU WiFi users less than 15 dollars, let alone return, not even enough net cost, “one operators responsible for WLAN project said.

Open message in July of this year, Baidu in the mobile phones of aides to push Telecom free WiFi service (340,000 open WiFi hotspots for free). Insiders have revealed to the author due to Baidu’s app store has achieved the expected objective, free WiFi feature is temporarily stopped cooperation with China Telecom, Baidu may have made a difficult decision.

3, profit mode stuck in the “story” stage, the strategy of forming group

WiFi operator profits mainly in two ways:

First, car ads. Includes placement ads, text link ads, Banner banner ads, Liu Hui on telecommunication Hayat said “free WiFi advertising is the lowest form of monetization models traffic intermodal O2O distribution, game guide, application and data analysis will be the mainstream in the future. ”

Second, applications APP to make money. Users to download the APP, you can browse information, playing mobile games, social networking. E-road WiFi from 2013 onwards, until now has developed APP users 3 million. Bus online Yuan Bo, Deputy Chief of the authors said, bus line through “Mike” (APP, is a completely free application can support many simultaneous voice or video) free Wi-Fi, business integration, through games and realisation.

Hayat WiFi operators tell communications, WiFi on the APP is just beginning, only information small amounts of content delivery, application is still in the planning stage, small number of users, is too early to talk about making money. And the BAT objective is not to make money, but if you throw money blindly into it, and cannot achieve large-scale operations, BAT hard, rising to group strategy, just a few small chipping away at most.

4 chances, the sustainable investment?

League of friends of published reports show that WiFi is still the preferred way to users accessing the mobile Internet, occupied half of the country and even higher, and in June alone, as much as 60% number of WiFi access.

However, Beijing, Shanghai, Guangzhou and Hangzhou cities have been “testing the waters” free Wi-Fi access in public places, had sunk into login difficulties, poor signal, slow trap. A WiFi operators who complained to the author, “there are users complaining the biggest problem is bad experience, allowing users to download the APP, and then verify, audit, and so on. ”

According to media reports, the “base operators are currently only doing technical support for public WiFi, some operators are responsible for public WiFi project engineer has been leaving the service or transfer. “The bus online CEO Wang Xianshu said, success depends on operators of public transportation WiFi sound 4G network and 4G network are unable to realize the scale of the present public WiFi.

APP as mobile Internet portal, can increase user stickiness. BAT hoping gets APP users fast free WiFi, promoting its own applications, curves of access to mobile Internet, please. However, once found free WiFi into a huge, the cost recovery period is out of reach, publicity and expectations differ, may quit.

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