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3G and Wi-Fi: In Search of the Sweet Spot
In-Stat/MDR, Dec 2005, Pages: 38
3G cellular service already has more than 203 million subscribers worldwide. In the US, 3G covers hundreds of urban and suburban markets and virtually all major and secondary airports. Wi-Fi users can find hotspots in more than 82,000 locations, worldwide, with 40% being in the US alone and 65% of which are located at hotels, restaurants, and cafés. Both 3G and Wi-Fi continue to spread, although, Wi-Fi growth slowed somewhat through mid-2005. Wi-Fi aggregators continue to facilitate international roaming for road warriors, who can also find Wi-Fi free, or at very low cost, at thousands of retail businesses and in hundreds of US municipalities.
Darkening the picture, however, are survey findings showing that neither cellular data users nor Wi-Fi data users are well satisfied with the cost, coverage, or speeds of their respective services. Further, both groups exhibited a strong disinclination to pay for a service that would address their dissatisfactions. This report presents detailed satisfaction and value-perception findings, examines mobile data users’ equipment and service usage patterns in depth, and compares/contrasts 3G and cellular technologies. Finally, the report summarizes the competitive pressures on cellular and hotspot operators and discusses how to capitalize on present opportunities.
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