According to Pyramid Research, T-Mobile's bet on Wi-Fi as a broadband wireless alternative is paying off - while competitors are scrambling to get 3G networks on their feet.
T-Mobile bet correctly by embracing Wi-Fi in the US early on, is the claim made by U.S. based research firm Pyramid Research. The bundling of Wi-Fi and cellular is driving business users to T-Mobile and away from competitive carriers, and the company says churn reduction alone will more than justify the operator's investment in Wi-Fi.
Furthermore, Pyramid said it believes that carriers who resist (or ignore) Wi-Fi in favor of their own cellular data technologies do so at their own risk. Business travelers freely migrate between cellular and Wi-Fi data, and Pyramid claims operators that successfully price and package both technologies will be most likely to succeed with this audience.
As soon as in 2005, Pyramid also predicts the U.S. will overtake Korea in total Wi-Fi deployment. Despite its early lead, the rate of Wi-Fi deployments in Korea is slowing while U.S. Wi-Fi deployments continue to grow at a rapid clip. Meanwhile, the hotel service providers market is also booming: regardless of what Wi-Fi business model evolves, those providers installing Wi-Fi into hotels are already enjoying a lucrative market, which Pyramid says will triple in size over the next four years.
Also, the research firm said venues are not to be underestimated, as hotels and retail chains will continue to challenge service providers for greater control over (and pricing of) their networks. Service providers that want to create far-reaching Wi-Fi networks are advised to cede a large degree of control; in return, they will be spared from paying for venue-specific backhaul, as more and more venues are covering these costs themselves.
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