WiFi Stats

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WiFiWiFi market information and statisticsmarket information and statistics

February, 2003

8/3/2019 WiFi Stats


Wireless ForecastWireless Forecast

! WLAN worldwide service revenues by 2007 willbe reaching $9.5 billion.

80 % of all public WLANs will be deployed incafes, bars and restaurants these domains will

only generate a small portion of the projectedpublic WLANs service revenues. The majority ofWLAN service revenues will come from businessusers in airports, business hotels and exhibition

centers. In fact, use of WLANs in cafes, bars andrestaurants will begin to decline, leaving

’dead spots’ in revenue and service.

Source: Alexander Resources, Stand: February, 2003

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Wireless ForecastWireless Forecast

!

Customer ownership: the expectation is that in allscenarios revenues will be largely driven bybusiness customers – in none are businesscustomers expected to contribute less than of 80

% of total revenues by 2005. There is anexpectation that in the ‘WLAN rules’ scenario thecontribution made by residential customers cansubstantially increase in latter years as consumerdevices (PDAs, phones) and hotspots (cafes,restaurants) proliferate. The initial strategy forcustomer ownership needs to focus on thebusiness customer.

Source: Analysys Research, Stand: February, 2003

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Revenue contribution in 2005Revenue contribution in 2005

Source: Analysys Research, Stand: February, 2003

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Public Wireless LAN accessPublic Wireless LAN access

Source: Analysys Research, Stand: Research, 2001

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Which costs less to deliver thanWhich costs less to deliver thanother wireless productsother wireless products


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WLAN device penetrationWLAN device penetration


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Hotspot operators are crucial toHotspot operators are crucial toestablish a wide footprintestablish a wide footprint

Source: 802.11 Planet, Stand: June 12, 2002

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A few players have occupied keyA few players have occupied keypositions in the value chainpositions in the value chain


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They are starting to addressThey are starting to addressoperational challengesoperational challenges


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Who will win?Who will win?

!

Wide availability of access and roamingagreements are key to success

! From a commercial standpoint:

- mobile operators have an advantage but they

will need to move fast- independent WISPs have a clear focus and

can move quickly

- system integrators have an opportunity toenable the market for users that value a

dependable and wide-footprint service


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WLAN opportunity forWLAN opportunity for

wireless service providerswireless service providers

In the US thepublic WLANmarket is

forecast to

include 21million usersand to generate

US$3 billion in

annualrevenues by

2007

Source: Analysys Research, Stand: May, 2002

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How Hot will Public Wireless‘Hot Spots’ become?

!

802.11b technology is the foundation for today’shot spots, but this will change through 2004 to2007 as vendors switch to 802.11a basedproducts to increase bandwidth and to avoidinterference issues. As enterprises begin toadopt 802.11a, hot-spot operators must considerwhen to deploy dual-mode access points. By2007, most networking and access point vendors,as well as PC and PDA manufactures will include802.11a, 802.11b, or 802.11g in their offerings,thus creating a broad base of both consumersand enterprise users that can take advantage ofhot-spot deployments.

Source: Gartner Research, Stand: October 5, 2002

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The hot-spot value chain

! The hot-spot value chain is evolving different

paces and in different directions worldwide.Factors affecting this include:

-The higher proportion of laptop PC users

in North America.-The amount of investment by wireless and

wire line service providers, as well as the

emergence of nontraditional providers such as

franchises.- Disparities in regional networks of competing andcomplementary 2.5G and 3G technologies.

- Regulatory issues in Europe at both 2.4GHz and 5GHz

Source: Gartner Research, Stand: October 10, 2002

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Wireless Statistics

! Based on the current rate of consumer

acceptance to wireless technology, the BostonConsulting Group estimates global mobilecommerce will generate revenues of $ 100 billion

by 2003.! According to a new report from IDC, by 2005, an

estimated 35 billion e-mail messages will be sentdaily-that’s roughly six daily messages for each

person on the planet. (It’s hard to imagine eachone being composed on a desktop).

Source: Cahner’s In-Stat Group., Stand: October 18, 2000

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Notebooks computers in use to date

Source: Cahner’s In-Stat Group and Nokia 2001, Stand: April, 2001

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Wireless and Laptop Statistics

Source: Cahner’s In-Stat Group, Nokia and Gartner Dataquest Stand: 2001

! Annually there are 43 million business travelers in the US,

of which 70% carry laptops. On a daily average 15 millionNorth Americans work on the road. Usage statistics showthat 19% use their laptops for an hour or less, whereas 31%of business travelers use their laptops for 3 hours or more.

Laptop computer use in the USA was 20+ million in the year2000; worldwide use totaled 40+ million. By 2005 laptopcomputer use in USA will grow to 60 million while worldwide usage is predicted at 150+ million. Forecast forwireless connectivity, regular users in 2002 is expected

around 2 million and predicted to grow to 20+ million by2006 in USA alone. Shipment of wireless enabled laptopcomputers, is expected to grow 15+ million in 2005,compared to 2.9 million in 2001.

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Laptop Applications used whiletraveling

Source: Cahner’s In-Stat Group, Stand: June, 2000

! Check e-mail 86%

! Prepare documents 85%

! Log on to Internet 74%

! Log into corporate network 59%

! Scheduling 48% Presentations 45%

! Entertainment 36%

! Hours of use while traveling Less than 1 hr. 19%

! 1 - 2 hours 31% or 2 < 3 hours 19%

! 3+ hours 31%

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Methods used by internet users

worldwide to arrive at web sites,2001 - 2003

Source: WebSideStory, Stand: February, 2003

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Wireless Public Access over the nextseveral years

Source: In-Stat/MDR reports, Stand: June, 2002

! The number of locations available for public access is estimated

to grow worldwide from 2,000 in 2001 to 42,000 in 2006 withservice revenues experiencing a corresponding growth, reaching$642.6 million in 2006, up from $11.3 million in 2001.

! “However, as the concept for public broadband access booms,new issues of complexity and sustainability arise.” said AmyCravens, an analyst with In-Stat/MDR. Providers must still find thedelicate balance between the pioneer mentality of expandingfootprint and the reality of subscription levels.

! “Business models must be formulated to support the multiple

layers that are feeding the hotspot market, from equipmentvendors, to network providers, to roaming providers,, to venueowners. Finally, marketing and branding efforts must be broughtto the forefront as the amount and caliber of competition in thismarket escalates.

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Hotspot facts from In-Stat/MDR


! The principal wireless public area markets to have emerged focusprimarily on delivering services to the business traveler. Thus, the

arenas in which this type of connectivity has surfaced are thoselocations that business travelers frequent most. Service providersare attempting to create a footprint that touches on multiplelocations including, airports, hotels, train stations, and cafes.

! The hotspot market in the United States and North America will

continue to dominate the market through 2006. However, as apercentage of deployments, the North American market isexpected to decline between 2001 and 2004. During this period,other regions are expected to outpace North America in growth offootprint.

! 90% of public access revenue will be derived from pay-per useaccess in 2002, largely due to the relatively undeveloped state ofthe market. However, beginning in 2003, subscriptions will beginto account for a growing percent of the end-user market. In 2006almost 50% of individuals public access connectivity will besubscribers to one or more services.

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Worldwide Wireless Public AccessService Revenues


Wirelesspublic area

accessservice

revenue isexpected togrow from

$3.9 million in

2001 to $224.7million in

2005.

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Bridgewater Systems’ Wi-Fi

Market Model

Source: Bridegewater Systems, Stand: January, 2003

Bridgewater Systems

believes that there will bemany players in the Wi-Fi

market, but that the

market champions are still

to be determined. Today,

there are a number of

players already offering

802.11 Internet services.

Many are exiting suppliers

and Service Providers,others are new, and yet

others will take on

additional roles to

capitalize on

opportunities.

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