Public wireless local area networks (WLANs) will be used by 20% of 3G business users by 2005, according to a new study from the UMTS Forum.
Impact & Opportunity: Public Wireless LANs and 3G Business Revenues reiterates the sentiments of a recent Yankee Group report which claimed that WLAN should be seen as complementing rather than competing with 3G technology (see
Potential of WLANs Has Been Exaggerated, Says Yankee Group).
The direct impact on forecast 3G mobile intranet revenues is predicted to be less than 1% of total 3G revenues in 2005. However, the report emphasises that WLAN will invigorate the mobile data services market and increase demand for 3G services.
It is argued that WLAN should not be seen as a replacement for 3G because users are required to be stationary and rely on hot spots in public places. The technology therefore lends itself to use by frequent-flying executives who pass through airports on a regular basis.
“WLAN provides an opportunity to expand both overall market size and competitive position for wireless data services,” commented Dr Bernd Eylert, chairman of the UMTS Forum. It is estimated that WLAN solutions will contribute $2.8 billion to the global 3G mobile data market by 2005.
