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  • 1. WiFi & 3G CDMA 802.11a Cordless Internet 802.11g 802.11b Hot Spot PWLAN May, 2003 Industry Analyst Briefing Deck
  • 2. Covering QUALCOMM’s Campus with WiFi
    • QUALCOMM believes in 802.11 for the enterprise & home environments
    • QUALCOMM has spent over $300,000 "full up costs" for the access points covering our common areas and meeting rooms
      • 200 Access Point's represent in one mid size company in a restricted area campus an equivalent of 20% of Boingo's sites nationwide
      • Access point installation currently costs about $1,500, at around $500 per an access point and approximately $1,000 in installation expenses.
    • - Cometa, May, 2003
    Source: QUALCOMM IT
  • 3. Public WiFi Service Limitations
    • Data speeds
      • Limited by backhaul and multiple access scalability
      • 11 Mbps becomes irrelevant when connecting through a T1/E1 (~1.5 Mbps), DSL or cable modem (300 – 500 kbps)
    • “ Hotspot” coverage
      • Very limited
      • Predicated on “travel to compute” model
    • Backhaul costs
    • Landlord fees/revenue sharing
      • Perceptions of ultra-low service fees are incorrect
      • Hotel room phone example
      • CTIA IT show / T-Mobile example
    • Billing issues
      • WiFi roaming is in its infancy, need for multiple subscriptions
    • Barriers to entry are few
      • “ Java Joes” can provide free access next door to a Starbucks/T-Mobile
  • 4. Mainstream Users Expect Ubiquitous Coverage
    • A single 802.11 access point covers roughly 25,000 square feet
      • One or more APs consists of a WLAN “hotspot”
    • A single suburban 3G cellsite covers roughly 750,000,000 square feet
    Number of public WiFi access points (est.) Source: Gartner Dataquest 2002, By 2006, estimated U.S. public WLAN access points will cover an area roughly equaling 3.5 cell sites
  • 5. T-Mobile/Starbucks averages 1 user / day / hotspot at 46 minutes each session Source: Strategy Analytics, October 2002 Usage required to break even on just the T1 access lines: 90 users per AP! T1’s are expensive! Limited to Backhaul: T1/E1 (~1.5 Mbps)
  • 6. Cisco Starbucks Finder Source: <>
    • New York City
      • 96 Total “Hot Spots”
        • 20 Wireline Locations
          • 20 Landline Ethernet Hotels
        • 5 Wireless Locations (non-café)
          • 3 Admirals Clubs
          • 2 WiFi Hotel Lobbies
        • 71 Starbucks
    100% of the “Hot Spots” in Both Cities are Covered by CDMA2000
    • San Francisco
      • 86 Total “Hot Spots”
        • 15 Wireline locations
          • 15 Landline Ethernet Hotels
        • 3 Wireless Locations (non-café)
          • 1 Admirals Club
          • 1 WiFi Hotel Lobby
          • 1 Restaurant
        • 68 Starbucks
    Are coffee shops the optimal place to work? What if you don’t get a seat… 4 % of these sites are Wireless and not owned by Starbucks
  • 7.
  • 8. Will P-WLAN services go the way of the pay phone? Recent CTIA Trade Show (3/03, New Orleans) Since cellular phones are now widely used and pricing plans include large bundles of minutes, payphones are less popular Hotspots offer a beacon of access today. What happens when cellular data pricing plans are lowered and data rates increased?
  • 9. History Lessons for Wireless Networks
    • Rabbit phone service: Subscribers to the service, backed by Hutchison Whampoa, could make mobile calls when they were within 100 metres of a Rabbit transmitter.
    • WiFi as a business?: Adam Zawel, Yankee Group - &quot;The business models are still uncertain,&quot; he said. &quot;That's why we've seen some early failures. It's an uncertain opportunity.”
    • But if the history of Rabbit and its peers is any guide, location-specific services may prove unpopular.