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Wi-Fi Wins Over 3G

21st April , 2004

US : T-Mobile bet correctly by embracing Wi-Fi in the US early on. The bundling of Wi-Fi and cellular is driving business users to T-Mobile and away from competitive carriers. Churn reduction alone will more than justify the operator's investment in Wi-Fi.

Furthermore, Pyramid believes that carriers who resist (or ignore) Wi-Fi in favor of their own cellular data technologies do so at their own risk. Business travelers freely migrate between cellular and Wi-Fi data; operators that successfully price and package both technologies will be most likely to succeed with this audience.

Where Do We See Wi-Fi Going?
In 2005, the US will overtake Korea in total Wi-Fi deployment. Despite its early lead, the rate of Wi-Fi deployments in Korea is slowing while US Wi-Fi deployments continue to grow at a rapid clip.

The hotel service providers market is booming. Regardless of what Wi-Fi business model evolves, those providers installing Wi-Fi into hotels are enjoying a lucrative market, set to triple in size over the next four years.

Don't underestimate the venues. Hotels and retail chains will continue to challenge service providers for greater control over (and pricing of) their networks. Service providers that want to create far-reaching Wi-Fi networks must cede a large degree of control; in return, they will be spared from paying for venue-specific backhaul, as more and more venues are covering these costs themselves.

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