Subject: [NEXTEL-1] Wi-Fi, 3G Can Coexist, Report Says

From: [email-masked]
Date: Tue, 10 Jun 2003 20:13:14 -0400

Wi-Fi, 3G Can Coexist, Report Says

Online staff -- Electronic News, 6/10/2003

Wi-Fi and 3G can live in harmony, according to a report today from Allied Business
Intelligence (ABI) today.

The market research firm said that migrating wireless consumer to adopt
data-enabled solutions has become a prime objective of mobile operators and OEMs. 

3G networks, which have yet to fully launch, have promised to answer that call,
ABI said, but hotspots are currently providing plausible solutions for the
wireless user.  

The question for equipment makers then becomes, can 3G and Wi-Fi both profitably
exist.

ABI found that hotspots are becoming the focal point in the wireless industry, and
the driving force behind Wi-Fi enabled laptop users, expecting a CAAG of 79
percent and 58 million users by 2008. 

Centrino and its marketing efforts providing widespread awareness to the industry
and may have a serious effect in siphoning away data traffic from 3G networks, but
ABI believes 3G will not be edged out.

"By offering consumers the ability to retrieve data from their laptop wirelessly
at top-rate speeds, mobile operators are going to bring more data users to the
table," said Tim Shelton, an ABI senior analyst, in a statement. 

 "There may be more then one winner here in the long run, with Wi-Fi's success
being the driving force that pulls consumers towards data driven services."

Still, the firm cautioned the industry on shrinking markets, noting cellular. 
While cellular networks continue to grow, costs are lower, resulting in lower ASPs
and revenue opportunities for infrastructure providers.  

The much-needed relief is currently being sought after in 3G network build-outs,
ABI said, predicting that the infrastructure market will shrink to $16 billion off
its highs of more than $20 billion in the past.

But will the build-out of 3G networks capture enough customers to make economic
sense -- especially if this same customer base migrates to using hotspots?  ABI
believes that, over time, enough customers will exist in the market to make
multiple wireless offerings both feasible and profitable.

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