Color Rings Enables Further Wireless Personalization

North American Public Wireless LAN Market Will Generate $1.63 Billion

Interest in public wireless local-area networking (PWLAN) is gathering steam in the mobile computing and networking arenas. For wireless carriers, the emergence of PWLAN solutions based on Wi-Fi technology represents both opportunity and threat.

That's because, when integrated with wireless WAN (i.e., 2.5G/3G networks), Wi-Fi:
Complements carriers' service portfolios,
Provides an additional revenue source, and
Enables closer relationships with premium business customers.

According to report author Roberta Wiggins, Wireless/Mobile Services director, "For most service providers, PWLAN does not represent a viable stand-alone business. Carriers are well positioned for this space by providing both hotspot access and WAN/WLAN integrated service to their subscriber base. They can offset deployment costs by leveraging existing investments in the core network, billing systems, customer database and network management. WLAN is complementary to 2.5G and 3G WAN technologies when used for wireless data services in local hotspot areas. But WLAN is more about portability than mobility."
A new Yankee Group study of the PWLAN market, "Public Wi-Fi LAN Threat Becomes Wireless Carrier Opportunity," concludes that these complementary and competitive scenarios are both valid reasons for market entry. However, the Yankee Group forecasts that the revenue opportunity represents a relatively small percentage of total carrier revenues. And, while WLAN (where available) will be a faster and more reliable solution for more remote access requirements, we predict long-term cannibalization of traffic from 3G to PWLAN systems will be minimal.

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