3G, Wireless LANs and Hybrid Network Solutions?

May-June 2001 - Nomura Securities, Merrill Lynch, and others have recently published reports highlighting the potential threat that wireless LANs pose to third-generation (3G) operators. They point out that less expensive wireless LAN network offer better solution both in terms of effective speed and lower costs as compared to what network providers could provide through 3G networks. This is somewhat ominous at a time when several operators have delayed their 3G rollouts.  The capital markets are quite cocerned with huge licensing costs. Read MobileInfo.Com's advisory and comments.

802.11b Popularity Driving Wireless LAN Chip Sales
The year 2000 was a great year for wireless LAN component manufacturers, with the number of chipsets produced having more than tripled from the previous year, according to a Cahners In-Stat Group report, "The Wireless LAN Reality Show -- Who Will Be the WLAN Survivor?" The high-tech market research firm reports that last year more than 7.8 million wireless LAN chipsets were produced, and, despite a worldwide economic slowdown, another 7.7 million will be produced in 2001.

For more information:
http://www.instat.com/pr/2001/wt0104wl_pr.htm

Mobileinfo Comments and Advisory: We have stated at various places on this site that there is a place for wireless LANs and there is a place for wide-area wireless networks. 3G networks will always be slower and costlier to operate than wireless LANs. On the other hand, you can not economically extend the reach of wireless LANs beyond the coverage area of these LANs (usually less than 500 to 1000 feet even with additional access points). Therefore, it is some what amateurish for Nomura and Merrill Lynch to suggest that one poses threat to the other. We need to grow both technologies. However, we do propose that hybrid solutions serve needs of users in the most cost-effective and performance-efficient fashion. See our comments on a related story.