First Impact of 3G : Is It Time To Re-Think Remote Access?

25th June , 2004

Europe : With the 3G-related announcements from Sprint PCS and Cingular at Supercomm and Verizon Wireless’s pending launch of EV-DO services in multiple cities, Mobile Ecosystem calls on end users to begin the process of re-thinking their remote access strategy.

In his June Lens on Wireless opinion column, Mark Lowenstein, Mobile Ecosystem’s managing director, argues that we are entering the era of “pervasive broadband,” where users have become accustomed to a broadband experience at work and, increasingly, at home. Mobile has been the missing link.

“For the past three years,” Lowenstein says, “we’ve been in a ‘hunting and gathering’ phase with respect to broadband, where users search for the Ethernet-equipped hotel room or the nearest hotspot. But, with the impending launch of 3G services, we will move from the era of wireless broadband to the era of mobile broadband.” The evolution from the 60-80 Kbps connections typical of 2.5G to 300 Kbps or more experienced with, for example, Verizon’s 1X EV-DO network, is game changing. The impact, Lowenstein believes, is that corporate end users can, for the first time, seriously consider cellular as their default remote access network for data.

Although 3G is a major step forward, the business case is not a slam dunk. There are performance challenges, such as slower uplink speeds, power management and the usual issues associated with wireless network coverage, especially in-building. From an ROI perspective, Lowenstein argues that 3G remote access must displace at least 50 percent of current remote broadband spending, such as hotel Ethernet or WiFi connects. The “less quantifiable” benefits of the wide area network--mobility, ubiquity, and convenience-- are also a part of ROI.

Lowenstein also concludes that this is not a zero sum game with respect to WiFi. “A user has many network, coverage and application requirements in a given day,” he says. “Nirvana would be one relationship with a provider that offers the best of all worlds: WAN, WiFi and wired broadband connections for a flat monthly charge--through one relationship and on one bill.” This would require a rollup in the 802.11 space. The lead candidates for providing this complete wireless broadband service are the wireless operators--in fact they might even view WiFi as a loss leader in order to sell more 3G. If they don’t do it, watch out for the cable companies or some new generation WISP or data-centric MVNO. “It is time--in this new telecom era characterized by convergence, new technologies, and the end of traditional boundaries between services--for the service providers to present a bold, new, integrated vision.”

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