AT&T (NYSE:T) today reported a record 24.5 million connections on its nationwide WiFi hotspot network in the third quarter, but what was most surprising about the figures was the the type of device being used to make those connections. In Q3, 60% of all WiFi connections were made by smartphones and other integrated mobile devices, making it the first quarter in which laptops didn’t dominate the network.
AT&T’s WiFi network appears to be evolving from a stand-alone network to one whose primary purpose is to support AT&T’s booming 3G mobile data network. Several of the smartphones used to access hotspots could have been from rival operators whose customers paid to access the AT&T network, but since AT&T lets its own smartphone and mobile broadband customers access the WiFi network gratis, the vast majority of those smartphone connections likely came from the Apple (NASDAQ:AAPL) iPhone or other AT&T devices.
Considering the surge in AT&T’s data usage in recent years (AT&T’s own figures show an almost 5000% increase in 12 quarters) the respite of WiFi is surely welcome. AT&T not only use WiFi as a complimentary service for AT&T Mobility mobile data customers but as a bonus access service for its DSL and U-Verse subscribers. In total, AT&T has 27 million customers that qualify for free WiFi access at its 20,000 hotspots by virtue of paying for smartphone, laptop connect or home broadband plans.
Does AT&T say how they count these connections? Are these fully authenticated user sessions or are these simply an iPhone in someone’s pocket that pings the wifi access point?