WLAN - from 3G killer to 3G helper!

WLAN - from 3G killer to 3G helper! CANNES - February 21, 2002 - WLAN and other alternative wireless technologies are not a threat to the 3G operators. Instead they can help increase both revenues and customer satisfaction for the mobile operators. According to leading Wireless analyst Northstream, mobile operators are the most likely to benefit from a co-existence between WLAN and 3G. "In our view the idea that WLAN would replace 3G is simply not true. Replacing 3G with WLAN would be like attaching a motor to a bicycle and calling it a motorcycle", says Tommy Ljunggren, Co-founder of Northstream. According to the Northstream analysis, WLAN and 3G represents two distinctive technologies addressing different needs. Office WLAN is already widely adopted in the US market. Europe is trailing behind, but is catching up fast, and so is the rest of the world. Public WLAN - the so-called 3G killer - on the other hand, is a completely different matter: *Public WLAN is, unlike 3G, not a system. *Public WLAN is more expensive than 3G (if used for wide area coverage). *Public WLAN is targeting a small user segment. *Public WLAN is normally slow, less than 11 Mbit per second. Deployed according to a carefully moulded strategy, however, WLAN can work as an important complement to 3G, offering wireless Internet indoors in airports, cafés and other hot spots for the business user in particular. The existing WLAN market and technology are still immature with mostly small companies working with limited resources, coverage and customer relations. Existing mobile operators are consequently best positioned to take advantage of public WLAN as it dovetails well with their traditional business: *Parts of their existing customer base can be targeted. *Billing and customer management can easily be re-used. *They often control established and well-known brands. *Mobile operators control transmission capacity, which means cheaper deployment. *Organisational requirements are similar. "Public WLAN in combination with 3G and GPRS can increase both customer satisfaction and total usage, raising revenues for mobile operators. Public WLAN is definitely not a 3G killer, but has great potential as a 3G helper", says Tommy Ljunggren, co-founder of Northstream. Tommy Ljunggren will address the "Impact on Mobile Network Operator Business Models from WLAN and other Unlicensed Alternative Technologies" at the 3GSM World Congress in Cannes, Friday 22nd at 12:05 at the closing plenary session For more information contact : Tommy Ljunggren, Tel: +46 70 591 00 64, tommy.ljunggren@northstream.se Northstream provides strategic technology and business advice to the global wireless industry. Northstream has assembled a multinational team with some of the world's best experts and analysts on wireless communication business and technology. Northstream works for several of the world's leading operators and system suppliers, e.g. Vodafone, AT&T, NTT DoCoMo, SmarTone, Sonera, Mitsubishi, Ericsson, Nokia and Siemens. Northstream also works for other consultancies such as Accenture and some of the leading investment banks and financial institutions. Northstream is established in Stockholm (Sweden), Sophia Antipolis (France), Tokyo (Japan), Hong Kong (HK) and Henley on Thames (UK). For more information please visit us at: www.northstream.se ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/02/21/20020220BIT01060/bit0001.doc http://www.waymaker.net/bitonline/2002/02/21/20020220BIT01060/bit0001.pdf