WLAN - from 3G killer to 3G helper

date: March 20, 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.Swedish version

“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.

“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.

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