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Wi-Fi Vendors Announced More Residential Wi-Fi Mesh Systems at CES |
NEWS |
Wi-Fi device makers, including ASUS, D-Link, Linksys, and Netgear, made announcements of new versions of residential Wi-Fi mesh systems at CES 2018. ASUS announced Lyra Trio, a dual-band Wi-Fi mesh system with three antennae. D-Link announced a new Wi-Fi mesh system with a trio of router packages, and Linksys announced a new Wi-Fi mesh router that is cheaper than its existing Wi-Fi Velop AC2200, tri-band Wi-Fi mesh system. Netgear announced the outdoor satellite Orbi mesh system.
Residential Wi-Fi mesh systems are wireless access points that coordinate with each other using the same SSID, allowing end-user devices to seamlessly switch from one access point to another. They were first introduced in 2015 by brands such as eero and Luma, targeting the retail market. Many Wi-Fi equipment vendors have now added Wi-Fi mesh systems to their residential Wi-Fi products, targeting both retail and service provider channels.
What Is New with CES 2018 Wi-Fi Mesh Systems |
IMPACT |
Mesh Systems Continue to Gain Strong Demand |
RECOMMENDATIONS |
Residential mesh systems were initially sold through the retail market in order to solve Wi-Fi coverage issues. Purchasing a mesh system from the retail market is costly, usually around US$200 for two-unit packs and more for systems with more than two units. However, consumers’ demands for reliable Wi-Fi networks are growing, due to the increasing number of Wi-Fi devices and bandwidth-consuming applications in every household. That is driving the number of Wi-Fi-related technical support calls to broadband service providers. Some service providers have taken advantage of Wi-Fi mesh systems; for example, broadband operators in the United States, such as Midco and Frontier, and Singtel in Singapore have launched Wi-Fi mesh systems for their broadband customers at an additional monthly cost. Wi-Fi mesh systems not only solve the home Wi-Fi network problem, but also generate additional revenue for operators. Increasing numbers of operators are interested in providing mesh systems to residential broadband customers. Comcast recently rolled out Wi-Fi mesh system xFi Pods that work with Comcast’s xFi gateways to create Wi-Fi mesh networks. xFi Pods are currently available to Xfinity service customers in Boston and Chicago, and Comcast plans a nationwide launch in 2018.
Mesh systems provided by service providers are less costly for consumers, because they are usually subsidized by service providers or a device rental option is available. Furthermore, when a subscriber is using a service provider’s CPE, the service provider has better control over the residential Wi-Fi network to assist whenever the subscriber needs technical assistance. Wi-Fi mesh system announcements at CES highlighted that there is strong demand for whole-home Wi-Fi coverage. Service providers will be able to increase ARPU by providing Wi-Fi mesh systems as a premium device selection, improving the user experience. While mesh systems are available to consumers in the retail market, consumers can take advantage of lower purchasing costs and managed Wi-Fi service by getting them directly from the service providers. There is a good opportunity for CPE vendors to sell Wi-Fi mesh systems to the service provider segment. The ability to partner with service providers will enable CPE makers to gain market share in the residential Wi-Fi mesh market. CPE vendors will need to provide Wi-Fi mesh systems with lower price points to achieve mass adoption in the retail market.