The Impact of Public Wi-Fi Expansion on Mobile Network Operators: Analysing Consumer Preferences and Revenue Implications

The rapid expansion of public Wi-Fi has reshaped digital connectivity by providing consumers with cost-effective internet access. However, this growth presents economic challenges to mobile network operators (MNOs) by potentially disrupting their traditional revenue models. This study investigates the economic impact of public Wi-Fi proliferation on MNOs, focusing on consumer preferences, data usage behaviour, and implications for network profitability. Employing a mixed logit model, we analyse survey data from 2,000 respondents in Malaysia to assess how variations in Wi-Fi quality, availability, and affordability affect consumer choices regarding mobile data plans. Results indicate that improved public Wi-Fi access significantly reduces consumer reliance on cellular data, leading to a measurable decline in subscriptions to high-cost mobile plans. Specifically, a 100 Mbps increase in public Wi-Fi speed is associated with a 0.28% decrease in MNO revenue, while comprehensive Wi-Fi deployment across public transport systems contributes to a 1.09% revenue decline. Although Wi-Fi offloading reduces network congestion and infrastructure expenditure for MNOs, it also intensifies competition, prompting the need for innovative and adaptive business strategies. The findings suggest that public Wi-Fi should be positioned as a complementary service rather than a substitute for cellular networks. Strategic collaboration between governments and MNOs is essential to balance digital inclusivity with sustainable commercial models, ensuring continued investment in next-generation wireless infrastructure. Future research should further explore the dynamics between technological advancement, regulatory environments, and shifting consumer behaviours to support a resilient and equitable digital ecosystem.