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News
Issue #2002 - 27
(July 2002)
(Updated July
17, 2002)
MARKET
OUTLOOK & TRENDS
Wireless LAN Threat to 3G Networks Overstated, Yankee Group Says
Public access wireless local
area network (PWLAN) services will not dramatically change the
European telecommunications landscape, and the threat that this
emerging "hotspot" technology posts to the 3G business
case has been grossly overstated, according to a Yankee Group
report, "Public Access WLAN in Europe: A Technology in Search
of a Business Case?" "WLAN technology is now relatively
mature, and has already been widely deployed in European
enterprises," said Declan Lonergan, director of European
wireless research and consulting at the Yankee Group. "What is
not mature, however, is the public access WLAN service environment.
Some fundamental challenges remain to be resolved before we can
start to see significant growth in user numbers. The key technical
obstacles relate to service roaming, security and billing. Perhaps
more fundamentally, however, are the challenges emanating from the
uncertainty surrounding PWLAN service models, and the service
provider business case. Despite these concerns, we do see a future
for PWLAN in Europe. We are projecting annual revenues of $1.8
billion from European PWLAN services by 2007, with 7.7 million
active users of the technology. We do not, however, see PWLAN
solutions cannibalizing 3G revenues to any significant degree."
(Source: Wireless NewsFactor)
For more information: http://www.yankeegroup.com
MobileInfo Advisory & Comments: The report draws
important conclusions about public WLAN hotspots and 3G wide area
wireless markets. Much as we would like the carriers to build hybrid
networks, their self-interests and shareholder pressures (ahead of
customer pressures) will delay building of nation-wide hotspot
services with full roaming. This will perhaps not happen until 4G.
While it will not directly cannibalize 3G market, presence of
scattered public WLANS and many enterprise WLANS will delay the
adoption of 3G networks. Is this delay significant? There is no exact
definition of the term "significant".
Note: This news release may contain forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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