Contents:

TABLE OF CONTENTS: 1 Executive Summary 2 Introduction 3 802.11 WLAN Technical Overview 3.1 Evolution of 802.11 3.2 Physical Aspects of WLAN hotspot deployment 3.3 Security and the WLAN 4 Roaming and WLAN 4.1 Hand-over Roaming 4.2 Contractual Roaming 5 Business Cases for WLAN 5.1 High-Traffic Coffee Shop 5.1.1 Free Access within an Established Coffee House Chain 5.2 Established chain, high-traffic locale with access charged 5.3 Airport Deployment 6 Earning Money from a WLAN Hotspot Operation 6.1 Subscribers 6.2 Services 6.3 Mixed Harvest 7 Hotspot Operator Overview 7.1 Mobile Operator Revenue 7.2 Business outlook for the industry 7.3 Pre-requisites for the Success of WLAN Hotspots 7.4 Creating Success Through Widespread Coverage 7.5 Aspects of Failure 7.6 What lies ahead 8 Fundamental Questions about the WLAN Paradigm 8.1 Psychographic Profiles of the Internet Users 8.1.1 Business User 8.1.2 Average User 8.1.3 Youth User 9 Hotspot Typing and Business Cases 9.1 Enterprise 9.2 Cafes 9.3 Airports 9.4 Hotels 9.5 Apartment Complexes 10 Today’s Hotspot Operators 10.1 North America 10.1.1 North America hotspot operators as of December 2002 10.2 Europe 10.3 Asia 11 Case Studies North American Hotspot Operators 11.1 North America 11.2 T-Mobile 11.2.1 Hotspots 11.2.2 Starbucks 11.2.3 Airports 11.2.4 Subscription/Access Options 11.2.5 Strategy 11.2.6 Outlook and Recommendations 11.3 Wayport 11.3.1 Hotspots 11.3.2 Subscription/Access Options 11.3.3 Strategy 11.3.4 Outlook and Recommendations 11.4 Boingo 11.4.1 Hotspots 11.4.2 Subscription/Access Options 11.4.3 Strategy 11.4.4 Outlook and Recommendations 11.5 Hotspotzz (formerly WiFi Metro) 11.5.1 Hotspots 11.5.2 Subscription/Access Options 11.5.3 Strategy 11.5.4 Outlook and Recommendations 11.6 HereUAre 11.6.1 Hotspots 11.6.2 Subscription/Access Options 11.6.3 Strategy 11.6.4 Outlook and Recommendations 11.7 Surf and Sip 11.7.1 Hotspots 11.7.2 Subscription/Access Options 11.7.3 Strategy 11.7.4 Outlook and Recommendations 11.8 FatPort 11.8.1 Hotspots 11.8.2 Subscription/Access Options 11.8.3 Strategy 11.8.4 Outlook and Recommendations 11.8.5 Toshiba (Computer Systems Group) 11.8.6 Hotspots 11.8.7 Subscription/Access Options 11.8.8 Strategy 11.8.9 Outlook and Recommendations 11.9 Joltage 11.9.1 Hotspots 11.9.2 Subscription/Access Options 11.9.3 Strategy 11.9.4 Outlook and Recommendations 11.10 Pronto 11.10.1 Hotspots 11.10.2 Subscription/Access Options 11.10.3 Strategy 11.10.4 Outlook and Recommendations 11.11 Cometa Networks 11.11.1 Hotspots 11.11.2 Subscription/Access Options 11.11.3 Strategy 11.11.4 Outlook and Recommendations 11.11.5 Café.com 11.11.6 Hotspots 11.11.7 Subscription/Access Options 11.11.8 Strategy 11.11.9 Outlook and Recommendations 11.12 North American Operator Summary 12 European Hotspot Operators 12.1 Telia Home-Run 12.1.1 Hotspots 12.1.2 Subscription/Access Options 12.1.3 Strategy 12.1.4 Outlook and Recommendations 12.2 Sonera 12.2.1 Hotspots 12.2.2 Subscription/Access Prices 12.2.3 Strategy 12.2.4 Outlook and Recommendations 12.3 Telenor 12.3.1 Hotspots 12.3.2 Subscription/Access Options 12.3.3 Strategy 12.3.4 Outlook and Recommendations 12.4 BT OpenZone 12.4.1 Hotspots 12.4.2 Subscription/Access Options 12.4.3 Strategy 12.5 TDC Mobile Denmark 12.5.1 Hotspots 12.5.2 Subscription/Access Options 12.5.3 Strategy 12.5.4 Outlook and Recommendations 12.6 WLAN GmbH 12.6.1 Hotspots 12.6.2 Subscription/Access Options 12.6.3 Strategy 12.6.4 Outlook and Recommendations 12.7 Metronet (Austria) 12.7.1 Hotspots 12.7.2 Subscription/Access Options 12.7.3 Strategy 12.7.4 Outlook and Recommendations 12.8 Megabeam 12.8.1 Hotspots 12.8.2 Subscription/Access Options 12.8.3 Strategy 12.8.4 Outlook and Recommendations 12.9 Aptillo Network 12.9.1 Hotspots 12.9.2 Subscription/Access Options 12.9.3 Strategy 12.9.4 Outlook and Recommendations 12.10 Swisscom 12.10.1 Hotspots 12.10.2 Subscription/Access Options 12.10.3 Strategy 12.10.4 Outlook and Recommendations 12.11 European Operator Summary 13 Asia 13.1 CBCom (China) 13.1.1 Hotspots 13.1.2 Subscription/Access Options 13.1.3 Strategy 13.1.4 Outlook and Recommendations 13.2 China Mobile (China) 13.2.1 Hotspots 13.2.2 Subscription/Access Options 13.2.3 Strategy 13.2.4 Outlook and Recommendations 13.3 SMCC (Shanghai, China) 13.3.1 Hotspots 13.3.2 Subscription/Access Options 13.3.3 Strategy 13.3.4 Outlook and Recommendations 13.4 NTT-C (Japan) 13.4.1 Hotspots 13.4.2 Subscription/Access Options 13.4.3 Strategy 13.4.4 Outlook and Recommendations 13.5 NTT DoCoMo Communications (Japan) 13.5.1 Hotspots 13.5.2 Subscription/Access Options 13.5.3 Strategy 13.5.4 Outlook and Recommendations 13.6 Hanaro Telecom 13.6.1 Hotspots 13.6.2 Subscription/Access Options 13.6.3 Strategy 13.6.4 Outlook and Recommendations 13.7 Korea Telecom 13.7.1 Hotspots 13.7.2 Subscription/Access Options 13.7.3 Strategy 13.7.4 Outlook and Recommendations 13.8 SingTel 13.8.1 Hotspots 13.8.2 Subscription/Access Options 13.8.3 Strategy 13.8.4 Outlook and Recommendations 13.9 StarHub (Singapore) 13.9.1 Hotspots 13.9.2 Subscription/Access Options 13.9.3 Strategy 13.9.4 Outlook and Recommendations 13.10 Airborne Access (Philippines) 13.10.1 Hotspots 13.10.2 Subscription/Access Options 13.10.3 Strategy 13.10.4 Outlook and Recommendations 13.11 Azure (Australia) 13.11.1 Hotspots 13.11.2 Subscription/Access Options 13.11.3 Strategy 13.11.4 Outlook and Recommendations 13.11.5 Blink (ePLDT) Philippines 13.11.6 Hotspots 13.11.7 Subscription/Access Options 13.11.8 Strategy 13.11.9 Outlook and Recommendations 13.11.10 Outlook and Recommendations 13.12 PCCW IMS (Hong Kong) 13.12.1 Hotspots 13.12.2 Subscription/Access Options 13.12.3 Strategy 13.12.4 Outlook and Recommendations 13.12.5 YellowSpots (Malaysia, Asia) 13.12.6 Hotspots 13.12.7 Subscription/Access Options 13.12.8 Strategy 13.12.9 Outlook and Recommendations 13.13 Asian Operator Summary 14 Summary

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Metronet (Austria) Metronet is Austria’s biggest hotspot operator. It signed a deal with T-Mobile Austria to provide WLAN hotspot access to T-Mobile customers as well. Metronet Hotspots: Metronet has approximately 290 hotspots, located in coffee shops, airports, and hotels. Metronet Subscription/Access Options: Metronet has several subscription plans available. - Business Plan: 19.50 USD per month plus .35 USD per MB - Student: 6.50 USD per month plus .35 USD per MB - Surfer: 13 USD per month plus .65 USD per MB - Prepaid: 21. 50 USD for 120 minutes Metronet Strategy: Metronet has adopted the strategy of offering many different plans suited to a variety of users. It has deployed a relatively large number of hotspots, and will continue to expand rapidly throughout 2003. Metronet Outlook and Recommendations: Metronet will continue to expand the hotspot business and become an innovator during 2003. On the negative side, we believe that its plans are for the most part too expensive and, for the non-corporate customer, difficult to understand. They should rework the subscriptions on both fronts. Nonetheless, the outlook for Metronet favorable, especially if it maintains its deployment pace, markets more aggressively and lowers prices.