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Wireless LAN Operator Friend or Foe

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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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Description: Wireless LAN Operator Friend or Foe