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Wireless LAN: Operator Friend or Foe?

Description:
As the race to deploy third generation networks stalls among global operators, business enterprises and home-networking enthusiasts are forging ahead independently in the race to install wireless broadband networks. Wireless local area networks (Wlan) provide limited mobility and data rates ranging to 54Mbps. Wlans are undergoing rapid uptake in the United States and elsewhere. From a modest $378m in Wlan chip sales this year, the market will grow to over $12bn in the next 10 years.This report analyzes the threats and opportunities that Wlans pose to mobile operators through a series of financial analyses. For savvy mobile network operators, Wlans are a potential ally toward convincing subscribers of the value of ultra-broadband network access. For late-moving mobile network operators, Wlans are a risk to the mobile data revenue opportunities that have warranted enormous 3G spectrum costs. In many parts of the world, limited-mobility Wlan networks will enter the market years ahead of 3G. Vendors face an enormous revenue opportunity. But they need to act fast and fully understand where operators are likely to succeed (or fail). For savvy mobile network vendors, Wlans represent an unhindered short-term opportunity to broaden their market in the enterprise and home networking arenas. For late-moving mobile network vendors, Wlans present significant standards and quality-of-service (QoS) debates from which they risk being frozen out. A more significant long-term challenge will be the entry of computer chip and terminal manufacturers competing for network capital budgets. This report applies both retail and wholesale business cases to the following cities: Chicago (retail model), Singapore (retail model), Buenos Aires (retail model), New York City (wholesale model), Seoul (wholesale model), and São Paulo (wholesale model)Region:GlobalNumber of Exhibits: 25
Contents:
WLANs Coming of Age

WLAN Technology: sorting out the spectrum and standards debates

As 3G Dithers, WLAN Tries to Deliver

Mobile OpCos Take the 3G Challenge

WLAN Demonstrates the Power of Wireless Data, Can it Prove the Business Case?

Case Study: MobileStar Sets, Only to Rise in Deutsche Telcom’s Cradle

Retail vs. Wholesale, Dissecting the WLAN Business Model

Retail WLAN Business Model Proves Difficult

City 1 – Chicago (Metro Downtown)

City 2 – Singapore (Central)

City 3 – Buenos Aires (Downtown City)

WLAN Retail Lessons

Wholesale WLAN a Whole Lot Better

City 4 – New York City (Including Boroughs)

City 5 – Seoul (Inner City)

City 6 – São Paulo (City Limits)

WLAN Wholesale Lessons

Conclusions: WLAN and WAN Will Share the Airwaves

Vendor Profile: Atheros Communications – Leading the 802.11a Chip Race

List of Exhibits:

WLAN Poised to Grow, 2002-2011

WLAN’s Present Space in the Wireless Universe

WLAN Standards and Tech Specs

WLAN Chip Shipments by Spectrum Band, 2002 & 2011

Home Networking Scenarios for WLAN

Campus WLAN Networking

Distributed WLAN Hotspots in a Community

Global ARPS Decline, 1997-2006

The Weakening Business Case for Prepaid

Weighted Global ARPS Breakdown Among Total Mobile Users, 1997-2006

Falling 3G Sentiment Reflected in per PoP Prices

WLAN Penetration and Internet Growth, 2002-2011

OPEX of the WISP Business Model, 2002-06

WLAN Traffic Build-Up Inputs and Assumptions

Sensitivity Analysis of a Hypothetical Chicago WISP

WISP Comparison Across Three Cities

Sensitivity Analysis of a Hypothetical NYC Wholesale WLAN Provider

Wholesale Comparison Across Three Cities

WLANs Will Be Deployed in Many Regions Before 3G Ever Arrives

3G Networks Can Equal WLANs Coverage Potential

Companies Mentioned:
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