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View Full Version : Boost seen in demand for fast data access


ontarioguy
13-06-2003, 18:29
[SOURCE REUTERS NEWS AGENCY]

Swedish telecom equipment maker Ericsson believes wireless local-area networks, or WLAN, will help change consumer behaviour and spur demand for fast data access everywhere, boosting so-called third-generation mobile phone demand.

"WLAN should create more competitive service packages for businesses and make customers ask for more fast data service outside the local area," Per Nordlof, head of Ericsson's WLAN program, told a seminar yesterday.

A wireless local-area network, using small base stations, allows for fast Internet browsing from such mobile devices as laptop or handheld computers without cables in an area of up to 100 metres around an access point.

Operators and independent firms install WLAN in relatively small areas called "hot spots" where demand for fast Internet access from people using mobile devices is likely to be high — offices, hotels, airports, conference centres or cafes.

Some analysts see WLAN, also known as WiFi, as a threat to third-generation (or 3G) mobile telephony, which also offers fast access to data services such as video and e-mail.

But Ericsson, the world's biggest producer of mobile networks, sees it as a complementary technology and is investing in its development.

"It will never be the size of our 2G or 3G operations, but it is a training ground for customers who will ask for wide-area data services," Nordlof said.

Ericsson has invested heavily in the development of 3G, but the launch has been riddled with teething problems and this has delayed investments by cash-starved operators.

Ericsson argues that because of WLAN's limited range it cannot replace 3G, since it would take 10,000 WLAN base stations to cover the same area as one 3G base station.