Despite its recent rise to prominence, WLAN is unlikely to mount a serious challenge to 3G in the future. That is according to new analysis from Strand Consult.
While WLAN offers faster online access than mobile phones, the research suggests there are a number of factors to be addressed before it can be compared with third generation networking. These include the lack of business models, the restricted roaming possibilities and poor coverage. There is also a low penetration of WLAN handsets compared to mobiles and the whole infrastructure requires significant investment.
Wireless technology will not stand still and although 3G has not taken off as anticipated, there is considerable potential in mobile internet devices. Mobile networks already offer speeds of up to 2Gb download in South Korea and the cost of data services will fall over time. Observers maintain that WLAN will be “a good complimentory technology” rather than a replacement for 2.5G and 3G services.
According to recent estimates, there will be 31 million regular WLAN users in North America by 2007 (see Over 31m US Users To Adopt Wireless Networks By 2007, Says Gartner). However, given the current limitations of local area networking and the prospect of further development in mobile communications, Strand Consult concludes that there is little sign that WLAN will prove a significant threat to 3G business models.
