3G and Wi-Fi?

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One has distance, the other has speed; together, they might become the "dynamic duo."

Although true 3G cellular technology is still in its infancy, it is predicted to give cellular customers users access to the Internet at a speed of up to 2 Mbps (although 144 Mbps will more likely be the data rate experienced by most end-users-a rate that is far slower than Wi-Fi's minimum speed of one Mbps). Furthermore, 3G speeds can't even come close to Wi-Fi's maximum throughput speeds of 7 Mbps to 32 Mbps.

Wi-Fi has the cellular industry worried. A recent report by the investment research firm ARCchart found that Wi-Fi could pose a risk to the success of next-generation (e.g. 3G) cellular operators. The research firm reported that Wi-Fi could eat up as much as 64 percent of 3G revenues in the next four years. It's easy to see why 2.5 and potential 3G operators are beginning to fret about competition from Wi-Fi.

However, 2.5 and 3G networks have one asset Wi-Fi networks lack-the ability to communicate over long distances. If these two mobile communication sectors could work as a team, though, there might be the tantalizing makings of a partnership. Given the relative strengths of both technologies, it's easy to find analysts, Wi-Fi operators, and even big wireless carriers who argue that it makes sense for the two technologies to come together.

Many cellular providers are quietly "test driving" the technology before promoting it as part of their service package, but not all-cellular provider T-Mobile has entered the market in a big way. Another cellular provider, Sprint PCS, has indicated that it definitely views Wi-Fi as complementary to its Sprint PCS Vision service. However, at the time of this writing Sprint had no specific plans in place for a 3G-to-Wi-Fi product. But that's not to say that the idea isn't under active consideration. According to its spokesperson, Jennifer Walsh, "Any service that creates the larger demand for wireless coverage, we see as a positive thing."

In South Korea, home of some of the most advanced and popular wireless data services, Korea Telecom, the nation's largest telecommunications company, is currently selling Wi-Fi access in addition to its regular cellular phone service. The company has installed 1000 access points in major cities and plans to deploy thousands more. The telco is forecasting 3.6 million South Koreans will use the networks by 2005.

Numerous problems arise from a cellular / Wi-Fi pairing. Perhaps the trickiest is that Wi-Fi vendors and Wi-Fi network operators face a catch-22: the general public isn't going to invest in dual-mode Wi-Fi/cellular devices until Wi-Fi service is widespread and Wi-Fi isn't likely to become pervasive until there is a decent base of such devices so as to enable a groundswell of subscribers to use Wi-Fi networks. But also, any networks that try to offer both cellular and Wi-Fi currently must use cobbled together gear, making it difficult for both the providers and the customers.

There is much more on the feasibility of teaming up these two technologies in Chapter 13.

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