If
they don't act quickly, mobile operators may miss their chance to get
a
critical head start in the burgeoning public Wireless LAN market, according
to In-Stat/MDR. The high-tech market research firm reports that offering
WLAN services today will enable mobile operators to
experiment with broadband services, to combine them with their GPRS
and CDMA 1x RTT offerings, and migrate users to
WCDMA when it becomes available.
If
they delay in implementing WLAN technology, competitors will get a sole
head start over mobile operators, covering all the hotspots and competing
head-on with their future services.
"Public
WLAN services will help educate users on WWAN data
usage, thus increasing their usage and adding to overall
data ARPU incrementally while helping to alleviate the
decline in voice ARPU," says Donald Longueuil, an Analyst
with In-Stat/MDR. Mobile operators will be able to contain
the potential revenue erosion from competitive WLAN
providers by offering public WLAN services themselves.
"Entering this new market will not only provide them with a
logical service line extension, but it will also allow them
to defend their valuable future next-generation revenues."
In addition, they will be able to address a demand that
they currently do not meet, increasing their overall data
cash flows. According to Longueuil, "Every mobile operator
could achieve increased wireless data revenue if they
implement a WLAN solution properly. But to do this, they
must start now, either by growing organically or by
purchasing a WLAN service provider. Delaying entry into the
market will likely prove detrimental in the long run."
In-Stat/MDR
has also found that:
-
WWAN/WLAN as a combined offering achieves
approximately $676 million greater revenues worldwide
in 2006 that offering WWAN alone. Mobile operators'
overall cash flows could increase 51%, as offering
WLAN service will not only generate revenue for that
service, but will also cause an addition to WWAN usage
and cash flow
-
In 2006, of the total public WLAN users worldwide,
approximately 52% will be paying their service bills
to WWAN operators. Fairly consistent growth is
forecasted throughout the world, particularly in
Europe and Asia/Pacific. Growth will be strongest in
early years, as the market is being developed, since
mobile operators will have the CAPEX and desire to be
the first to market, and to attract and solidify a
user base.
-
Due to the number of mobile operators in Europe and
their deployment strategies, Europe should lead the
other three regions in total number of mobile operator
WLAN users.
-
There will be approximately 5,000 hotspots at the end
of 2002 worldwide and approximately 41,000 at the end
of 2006. Although private non-telecom companies own
the majority of public hotspots today, that majority
will shift to the mobile operators by 2006.
