News

Another pundit doubts 3G can withstand threat from WiFi

by Guy Kewney | posted on 26 March 2002


Wireless LAN technology (WiFi) can't compete with forthcoming 3G phone systems, because it is too short-range - or at least, that's the conventional wisdom. But now a Taipei analyst has joined the doubters, reports the Taipei Times.

Guy Kewney

WLAN a 3G alternative All the hype says that third generation, UMTS phones will be with us next year. Unconvinced, a Taipei researcher, is predicting that it will take longer - and that it will be too long.

According to a report by Annabel Lue - staff reporter with the Taipei Times - availability of high-speed wireless connections or third-generation (3G) services is now expected to be years away. So WLAN technology may have the chance to get a chunk from the market.

Annabel Lue quoted Sun Min-Cheng , a researcher at the Taipei-based Market Intelligence Center, who said: "Since 3G service is not expected to be popular until 2005, those that need wireless connections now may turn to wireless local-area networks [WLAN] first."

"Compared with the billions of dollars in license fees for 3G, operating WLAN doesn't require any payment to the government, resulting in vastly lower service charges," said Sun Min-Cheng.

In Taiwan, wireless networks are in use at CKS International Airport, Taipei Sungshan Airport and Kaohsiung International Airport and hotels, along with a few coffee shops.

Sun Min-Cheng described WLAN's data rate as "five times faster than a 3G connection." This is quite possible optimistic, according to many pundits.

The Taipei Times reckons that by the end of last year there were about 500 locations offering wireless connection aroundTaiwan, and quotes a Market Intelligence Center report saying that figure may triple this year.

Although the application of WLAN and 3G may overlap in some ways, Sun said the two technologies may turn out to be partners rather than rivals. When users are outdoors, their devices will connect to 3G networks, and when they enter a location where WLAN service is available the device will seamlessly reconnect itself to the WLAN site.