Jeff Belk

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Jeff Belk

  1. 1. WiFi & 3G CDMA 802.11a Cordless Internet 802.11g 802.11b Hot Spot PWLAN May, 2003 Industry Analyst Briefing Deck
  2. 2. Covering QUALCOMM’s Campus with WiFi <ul><li>QUALCOMM believes in 802.11 for the enterprise & home environments </li></ul><ul><li>QUALCOMM has spent over $300,000 &quot;full up costs&quot; for the access points covering our common areas and meeting rooms </li></ul><ul><ul><li>200 Access Point's represent in one mid size company in a restricted area campus an equivalent of 20% of Boingo's sites nationwide </li></ul></ul><ul><ul><li>Access point installation currently costs about $1,500, at around $500 per an access point and approximately $1,000 in installation expenses. </li></ul></ul><ul><li>- Cometa, May, 2003 </li></ul>Source: QUALCOMM IT
  3. 3. Public WiFi Service Limitations <ul><li>Data speeds </li></ul><ul><ul><li>Limited by backhaul and multiple access scalability </li></ul></ul><ul><ul><li>11 Mbps becomes irrelevant when connecting through a T1/E1 (~1.5 Mbps), DSL or cable modem (300 – 500 kbps) </li></ul></ul><ul><li>“ Hotspot” coverage </li></ul><ul><ul><li>Very limited </li></ul></ul><ul><ul><li>Predicated on “travel to compute” model </li></ul></ul><ul><li>Backhaul costs </li></ul><ul><li>Landlord fees/revenue sharing </li></ul><ul><ul><li>Perceptions of ultra-low service fees are incorrect </li></ul></ul><ul><ul><li>Hotel room phone example </li></ul></ul><ul><ul><li>CTIA IT show / T-Mobile example </li></ul></ul><ul><li>Billing issues </li></ul><ul><ul><li>WiFi roaming is in its infancy, need for multiple subscriptions </li></ul></ul><ul><li>Barriers to entry are few </li></ul><ul><ul><li>“ Java Joes” can provide free access next door to a Starbucks/T-Mobile </li></ul></ul>
  4. 4. Mainstream Users Expect Ubiquitous Coverage <ul><li>A single 802.11 access point covers roughly 25,000 square feet </li></ul><ul><ul><li>One or more APs consists of a WLAN “hotspot” </li></ul></ul><ul><li>A single suburban 3G cellsite covers roughly 750,000,000 square feet </li></ul>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. 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. 6. Cisco Starbucks Finder Source: <http://www.cisco.com/warp/public/779/smbiz/cmo/yahoo/index.html> <ul><li>New York City </li></ul><ul><ul><li>96 Total “Hot Spots” </li></ul></ul><ul><ul><ul><li>20 Wireline Locations </li></ul></ul></ul><ul><ul><ul><ul><li>20 Landline Ethernet Hotels </li></ul></ul></ul></ul><ul><ul><ul><li>5 Wireless Locations (non-café) </li></ul></ul></ul><ul><ul><ul><ul><li>3 Admirals Clubs </li></ul></ul></ul></ul><ul><ul><ul><ul><li>2 WiFi Hotel Lobbies </li></ul></ul></ul></ul><ul><ul><ul><li>71 Starbucks </li></ul></ul></ul>100% of the “Hot Spots” in Both Cities are Covered by CDMA2000 <ul><li>San Francisco </li></ul><ul><ul><li>86 Total “Hot Spots” </li></ul></ul><ul><ul><ul><li>15 Wireline locations </li></ul></ul></ul><ul><ul><ul><ul><li>15 Landline Ethernet Hotels </li></ul></ul></ul></ul><ul><ul><ul><li>3 Wireless Locations (non-café) </li></ul></ul></ul><ul><ul><ul><ul><li>1 Admirals Club </li></ul></ul></ul></ul><ul><ul><ul><ul><li>1 WiFi Hotel Lobby </li></ul></ul></ul></ul><ul><ul><ul><ul><li>1 Restaurant </li></ul></ul></ul></ul><ul><ul><ul><li>68 Starbucks </li></ul></ul></ul>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. 7. http://www.verizonwireless.com/express_network/index.html
  8. 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. 9. History Lessons for Wireless Networks <ul><li>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. </li></ul><ul><li>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.” </li></ul><ul><li>But if the history of Rabbit and its peers is any guide, location-specific services may prove unpopular. </li></ul>Source: http://news.bbc.co.uk/1/hi/technology/2175804.stm

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