Subject: [NEXTEL-1] Wi-Fi Could Save Telecom Industry, Report Says

From: Marcel <[email-masked]>
Date: Fri, 03 Jan 2003 19:47:42 -0500

Wi-Fi Could Save Telecom Industry, Report Says 

Electronic News
Online staff
1/3/2003

Wi-FI could be the telecommunication industry’s saving grace in 2003, according to
Boston-based researcher Aberdeen Group. 

Overcapacity and razor-thin margins will continue to plague the telecommunications sector
in 2003, however wireless data services, especially Wi-FI, could provide some relief. 

Aberdeen Group said it has identified three distinct Wi-FI markets that will prove key:
Wi-FI to enterprises; to and in residences; and in public hot spots, such as airports. 

Wi-FI to and in the residence will emerge as the dominant Wi-FI area of activity in 2003,
the researcher said. Chief obstacle to its growth is limited residential broadband
adoption, which remains under 15 percent penetration in the U.S., according to the firm.
However, carriers are expected to push Wi-FI by offering residential subscribers premium
services by pushing managed Wi-FI LANs in the home. Residential Wi-FI growth will also be
driven by cheap pricing and near ubiquity among electronic gear, with adoption heating up
approaching the September back to school and subsequent holiday season. 

Hot spots will continue to receive the most press attention in 2003, according to Aberdeen
Group, with major investments by Intel, IBM, and AT&T. However, the firm said it is
bearish about this market, as there seems to be no business model and usage trends to
support the necessary heavy capital investments.
 
http://www.e-insite.net/index.asp?layout=article&articleid=CA268691

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