3G Market Attracting IP Communications Vendors

Unless you’ve been living under a rock, you’ve heard an awful lot about new 3G wireless networks — if for no other reason, Apples iPhone (News - Alert) 3G has garnered a large share of media attention since even before its release. In fact, even if you live under a rock, the iPhone App Store probably has an application that can locate you — it has just about everything else.

 

But while the development of 3G networks has provided a significant opportunity for wireless phone makers and application developers, it also has opened new doors for other, more traditional network equipment manufacturers as well — for fixed wireless terminals. ABI Research (News - Alert), in fact, predicted about a year ago, the FWT market to triple by 2012, and by all accounts, it is well on its way to meeting that mark handily.

 

The most common use for FWTs is to provide local broadband connectivity in areas where laying fiber is difficult or cost-prohibitive. For instance, in APAC and South America, cellular infrastructures have been deployed in many places where landlines do not exist. This offers an opportunity to provide broadband connectivity wirelessly, particularly for the SOHO and consumer markets. 

 

A much less exciting opportunity lies in backhaul, where signals or data can be delivered from monitoring devices, particularly in industrial markets.

 

But there are other uses as well, and since its initial report, the 3G space has grown considerably, and the FWT market has gained traction from major networking players like Cisco and D-Link, which are seeing value in being able to provide such connectivity solutions to both business and consumer markets.

 

“The relatively recent introduction of 3G routers has broadened the playing field and made this market attractive for them, especially in developed economies with deployed 3G infrastructure,” said Lucero.

 

Specifically, 3G routers provide a number of opportunities to set up broadband connectivity on the go, or where other alternatives are not yet available, enabling secure, shared access to the Internet using cellular signals. They work with WiFi (News - Alert) phones, wireless network cards and adapters, network storage products, and more, effectively creating a communications solution anywhere.

 

Deployment opportunities include:

 

Private Network Access — business users can create wireless networks to enable remote access to corporate networks without the need for traditional wired or WiFi connections. This is particularly effective for short term uses, such as crime scene investigations, where information delivery is critical.

 

Special Events — Typically, events and off-site meetings must consider communications capabilities, but FWTs allow such events to be held anywhere. Uses include corporate meetings, sporting events, concerts, political events, to name a few.

 

Commuter Access — 3G mobile routers can be easily deployed on busses, trains, boats, or any other mobile environments, allowing passengers to connect to their networks to check email and generally continue communications when in transit.

 

Emergency Response — Quick response is critical in emergency situations, and first responders can use FWTs to ensure they have immediate, reliable connectivity to communicate with other personnel to coordinate activities and access files and other communications.

 

General Mobile Access ­— Like access on commuter facilities, groups can ensure continuity of communications while on trips, for business or pleasure.

Fixed Broadband — For SOHOs, residences, or other facilities that lack more traditional access means, FWTs provide a reliable substitute for broadband connectivity. They can be used by subscribers to wireless broadband services in lieu of adding wireline access, or they can provide backup to wireline services.

 

Today, many users have come to rely on wireless network cards from their wireless carriers with which they are able to connect their laptops to broadband services. The benefit of FWTs is that groups of users can instantly share access through standard WiFi connectivity to the 3G routers, eliminating the need for all users to carry wireless cards, which also cuts costs.

 

The challenge, of course, if getting buy-in from carriers, who would prefer to charge for each user or wireless card.

“There’s some pushback from carriers who see these devices as reducing the potential number of individual subscriber lines,” notes Lucero. “There are, however, exceptions. In Australia, for example, Telstra has strongly pushed the concept.”

 

D-Link (News - Alert) has introduced 3G routers for EV-DO and UMTS/HSDPA networks, and Cisco is gaining traction with its 3G HWIC for CDMA and GSM networks. ABI expects additional vendors will quickly bring additional products to market as well, as users begin to adopt the solutions.

 

Carrier acceptance is another issue, but ultimately, the demand will be such that they will offer such alternatives. It may take one brave carrier taking the lead, which will them prompt others to follow suit so as not to risk customer churn, particularly in the business market. They may also find ways to package the FWTs with other products and services, reducing any potential revenue loss.

 

But when it comes down to it, 3G wireless routers present a very desirable opportunity for users, and it will be difficult for carriers to ignore the demand.