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For more information, contact:
Cheryl Cadden, Marketing Coordinator
Phone: 480-609-4540; Email: cheryl.cadden@reedbusiness.com
| Mobile Business Data & Productivity Services |
3G Data and For-Pay Wi-Fi Services Face Tough Sell
SCOTTSDALE, Ariz., February 13, 2006 -
Lack of perceived value by consumers for 3G bandwidth indicates continued downward pressure on cellular data pricing, and will also dampen prospects for for-pay Wi-Fi service providers and aggregators, reports In-Stat (http://www.in-stat.com). Nevertheless, because consumer enthusiasm for free Wi-Fi is ample, Wi-Fi hotspot operators do have an opportunity to exploit the technology’s low barriers to entry and its horizontal business model.
“Both cellular and Wi-Fi are currently serving mobile data users” says Allyn Hall, In-Stat analyst. “However, so far, neither service has found the sweet spot, the perfect balance of speed, coverage, and price.”
A recent report by In-Stat found the following:- Amongst Wi-Fi users, more than 60% sometimes or always plan their travel with Wi-Fi availability as a consideration.
- 1Q04—1Q05 year-on-year Wi-Fi revenue and shipment growth was strong, but quarter-on-quarter growth figures show an overall slowdown.
- According to an In-Stat consumer survey, laptop/notebook computers are used for mobile data almost twice as often as cell phones.
- More than one-third of Wi-Fi users use only free Wi-Fi connections, and 18.9% use Wi-Fi only at home or at work. Nearly two-thirds (61.7%), however, also said they use commercial hotspots.
Recent In-Stat research, 3G and Wi-Fi: In Search of the Sweet Spot (#IN0502026MBD), covers the market for wireless data services. It features the results of a proprietary consumer survey covering their use of and preferences regarding 3G and Wi-Fi data services. It also includes data concerning consumers’ willingness to pay for these services.
For more information, contact:
Allyn Hall, Director - Wireless Research
Phone: 480-483-4461
Email: allyn.hall@reedbusiness.com
Cheryl Cadden, Marketing Coordinator
Phone: 480-609-4540
Email: cheryl.cadden@reedbusiness.com
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About In-Stat
In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology vendors, equipment manufacturers, service providers and media companies worldwide rely on In-Stat to support critical business, product and technology decisions.
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