In fact, operators should embrace WLAN because they are more likely to benefit from a co-existence between WLAN and 3G, said Tommy Ljunggren, co-founder of Northstream. "Public WLAN in combination with 3G and GPRS can increase both consumer satisfaction and total usage, raising revenues for mobile operators," he said.

The research firm says that WLAN and 3G represent two distinctive technologies addressing different needs. In contrast to 3G, Pubic WLAN is not a system; it targets a smaller user segment, and it is much slower, less than 11 Mbps.

However, WLAN can work as an important complement to 3G, offering wireless Internet in airport lounges, hotel lobbies and cafes, according to the Northstream’s analysis.

Existing mobile operators are in the best position to take advantage of public WLAN as it dovetails well with their traditional business, for example:

• Parts of their existing customer base can be targeted,
• Billing and customer management can easily be re-used, and
• Established and well-know brands can be capitalized on.

Thus Public WLAN is definitely not a 3G killer, but has the potential as a 3G helper, Ljunggren said.