MiFi: What's the point?

By most accounts, MiFi is getting a warm end user reception. Novatel Wireless, which makes the MiFi, posted a third-quarter profit, reversing last year's loss, as strong sales of its MiFi personal Wi-Fi hotspot. Novatel recently surprised Wall Street analysts by revealing it had received $100 million in orders for the MiFi in the first two months.

Novatel executives think the MiFi could be a new product category someplace between a dongle and a smartphone. That remains to be seen, as consumers ultimately will decide what the value is, and how big the value is.

The MiFi creates a mobile, personal hotspot for up to five devices using a single 3G connection. For some, it might be a more-convenient dongle or aircard for PCs. If so, the difference might turn on such simple issues as whether a device that requires use of a USB port is less functional than a device that doesn't require use of a port.

For others, the advantages will be the ability to connect devices without USB ports to a Wi-Fi network.  Dual-mode smartphones might provide one example, but they probably don't provide the biggest obvious benefit, especially when those smartphones have 3G connections.

More obvious value will be garnered by users of iPod "Touch" or other devices that operate only on Wi-Fi, not mobile broadband, and who already pay for a 3G connection, in any location other than the home or office.

Perhaps the more obvious application is a temporary Wi-Fi hotspot for business users in a workgroup setting. But I'd be willing to be that is only one of many uses consumers will find for the MiFi.

For some, the only additional required value might be the ability to use their 3G access device without tying up a USB port. For others it is the ability to access the Internet from their Wi-Fi devices wherever they can get a 3G signal, without needing separate 3G connections for each discrete device.

The point is that hard dollar savings will drive the value for some users, while for others it might be something as simple as "not tying up a USB port." Along the way, clever users will figure out other ways why a MiFi connection adds more value for a mobile broadband connection than using an aircard or dongle.