I was reading through Najila’s Blog post and saw one of her blog post which intrigued me. Her blog post was about  WiFi becoming a threat to phone carriers as its features are becoming more famous in huge cities. In her blog post, Najila includes a comment by David Goldman’s which was posted on CNNMoney which talks about how people may not need a mobile carrier by 2020 as WiFi is becoming more and more available, even in airplanes.

Nowadays, if you look at anyone’s smartphone, we can see that their WiFi is always switched on, and the reason for this is that everyone is trying their level best to maximize the use of WiFi everywhere they go in order to minimize their data costs. Najila mentions that nowadays there are applications to receive phone calls and text messages over WiFi, hence lessening the use of phone carriers.

This might be a threat to the phone carriers as people tend to substitute phone carriers with WiFi. In the long run, a lot of phone carriers may shut down as a result of not making enough revenue to run the firm. In order to prevent this from happening phone carriers may reduce their plan prices (to stay competitive) or create an innovative feature that will allow users to experience features that are not supported with WiFi. The second measure is a long term approach which requires a lot of investment in Research and development; however, reducing the prices of carrier plan is always a strategic option.

To read the full article click on the following link:

Najila’s Blog link: https://blogs.ubc.ca/najlasekar/2014/11/01/wifi-becomes-a-threat-for-phone-carrier-companies/

Article link: http://money.cnn.com/2014/11/07/technology/mobile/wifi-mobile-carrier/index.html?iid=HP_LN