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35,000 European Wi-Fi Hotspots In Place By 2006.


Business Editors/High-Tech Writers

PALO ALTO Palo Alto, city, California
Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries.
, Calif.--(BUSINESS WIRE)--Oct. 21, 2003

The European WLAN See wireless LAN.

WLAN - wireless local area network
 public access hotspots market is starting to look like a hype bubble. Despite widespread failure to address the technical and business challenges that need to be overcome before the market can truly flourish, many players are viewing WLAN hotspots as an exciting business opportunity, with wide-ranging business models being debated.

At present, the market is highly fragmented with many different players each staking their claim to be a major force in the market. It is clear that not all of these market participants The term market participant is used in United States constitutional law to describe a U.S. State which is acting as a producer or supplier of a marketable good or service. When a state is acting in such a role, it may permissibly discriminate against non-residents.  can survive in the long run, but many players feel that even a short-term gain Short-term gain (or loss)

A profit or loss realized from the sale of securities held for less than a year that is taxed at normal income tax rates if the net total is positive.
 renders market entry attractive. Frost & Sullivan believes that the consolidation has already begun and that the number of service providers in this market will decline as they are absorbed by larger organisations with more resources.

It is clear that a limited investment can yield significant revenue generation opportunities in the European WLAN hotspots market. However, this can only be achieved by selecting the most appropriate business models. The limited success of commercial services in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere.  has already demonstrated that the right mix of customer segmentation, location, pricing and service offering needs to be found.

The enterprise market, with its high penetration of notebook PCs and growing demand for flexible access to network services, is of pivotal importance to the WLAN industry. However, WLAN is also growing in popularity in vertical markets such as transportation, distribution, medical, public access networks and home environments.

Frost & Sullivan expects total subscription revenues in the European WLAN hotspots market to rise from around EUR EUR

In currencies, this is the abbreviation for the Euro.

Notes:
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
 18 million in 2002 to in excess of EUR 1 billion by the end of 2006.

The rollout will be largely driven by the weight of force placed behind the market by the incumbent fixed and wireless operators, as it is these players who have the resources to drive large-scale implementations.

Independent service providers are investing great efforts into driving the early market and forcing larger players to make their moves, but few of them have the resources or skills base to create large scale networks or initiate the inter-network roaming initiatives that will be crucial to the key business clients.

The adoption of Wireless LAN A local area network that transmits over the air typically in the 2.4 GHz or 5 GHz unlicensed frequency band. It does not require line of sight between sender and receiver. Wireless base stations (access points) are wired to an Ethernet network and transmit a radio frequency over an area  services in Europe is being led by the Scandinavia region, first and foremost spearheaded by SoneraTelia's Telia HomeRun and Sonera wGate services. Other pioneering companies in this marketplace include BT Openzone BT Openzone is the name given to a network of Wi-Fi hotspots deployed in part by British Telecom.

These hotspots are generally deployed in cafés, hotels, stations and airports, however anybody wishing to deploy a hotspot can purchase "Openzone in a Box" directly from BT.
, T-Mobile (Deutsche Telekom Deutsche Telekom AG (ISIN: DE0005557508, FWB: DTE, NYSE: DT, LSE: DEU, TYO: 9496 ) (abbreviated DTAG) is a telecommunications company headquartered in Bonn, Germany. It is the largest telecommunications company in Germany and in the EU. ), and Swisscom.

Maximising footprint by signing up as many locations as possible, as well as selecting the most appropriate locations for hotspots (most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent"
above all, most especially
 locations frequented by business travellers Business Traveller is a CNN International monthly television program hosted by Richard Quest.
  • CNN's Business Traveller Web site
, the market's most lucrative target audience), is highlighted by Frost & Sullivan's study as a critical success factor for operators looking to develop commercial services.

On the subject of GSM roaming on all enabled hotspots worldwide, Frost & Sullivan notes that it is of important for service providers to be able to provide seamless coverage. The relative power and positioning of the different operators will determine the nature of the roaming agreements and the revenue sharing revenue sharing

Funding arrangement in which one government unit grants a portion of its tax income to another government unit. For example, provinces or states may share revenue with local governments, or national governments may share revenue with provinces or states.
 agreements that they have in place.

One of the biggest issues for hotspot operators is maintaining a decent level of service. Where hotspot services are complementary or free of charge, the user cannot expect particularly high levels of reliability. However, if an end-user is paying for a service they will expect to be able to use the service for the duration they are being charged for. This is a major challenge for the service provider, given that there are still doubts surrounding the reliability of most WLAN equipment.

Frost & Sullivan, an international growth consultancy, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies include custom strategic consulting, market intelligence and management training. Our mission is to forge partnerships with our clients' management teams to deliver market insights and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers and support staff, spans the globe with offices in every major country.
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Copyright 2003, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Oct 21, 2003
Words:690
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