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Issue #2003 - 18 (June 2003)
(Updated June 4, 2003)


Wi-Fi News This Week

1. Palm Announces Alliances in Voice Over IP, Wi-Fi and Security For Palm Tungsten C Handheld Users 
Go to details on this item in current newsletter. 

2. Italian government moves ahead on Wi-Fi
The Italian government has finally introduced legislation to allow operators to launch commercial WiFi hot spot services. The country's Communications Minister, Maurizio Gasparri, has signed a decree which opens the way for public access WiFi services in both the 2.4GHz and 5GHz bands. Until now, operators have been restricted to providing private indoor WLAN services or installing small trial hotspot networks. Italy is one of the few remaining Western European nations that does not allow public, commercial WiFi networks.

3. 802.11b chip prices could fall 75 percent in 2003
According to a report in DigiTimes, the cost of 802.11b chipsets could fall by as much as 75 percent by the end of this year, reaching as low as $4. Another report from researcher Allied Business Intelligence says the cost of an 802.11b chipset could fall to $6.06 by year's end. In 2002, the average cost of an 802.11b chipset was $16.06. 802.11b chip sales this year are expected to hit 41.3 million, almost double the 22.5 million from 2002

4. Individual Hotspot Business Model Iffy - Research Report says
A report from Forward Concepts doubts the economics of the public hot spots. According to the report, the wireless hot spot market is set to generate $8 billion a year in revenues, but given the number of hot spots, this figure will come to a mere $15,000 per hot spot per year. This low revenue per hotspot could seriously challenge the economics of hot spot operations. The report predicts that the number of hot spots will reach 46,000 in the U.S. at the end of this year, and hold steady at that rate until 2005. In 2005, the number of hot spots will again begin to grow and there will be a total of 530,000 hot spots in the U.S. by 2007.

Source: Fiercewireless, 80211Report, Forward Concepts

MobileInfo Comments and Advisory: We have commented on Palm Tungsten's support of Wi-Fi and hotspot business model separately. It is interesting to note ABI (Allied Business Intelligence) forecast that 802.11b chip prices could drop to $4. If it does, does Bluetooth have a chance? Let Bluetooth replace short communications cables, phone dongles, hands-free accessories and wiring in cars. Then we can let different incarnations of Wi-Fi do the wireless LANs.

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.

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