InterDigital Inc (IDCC)

[mschere]

Portable access a threat to mobiles
Townsville Bulletin/Townsville Sun (Australia)
April 28, 2003

Analysts say the increasing popularity of WiFi could seriously dent the viability of regional teleco operators who have sunk billions of dollars into building third-generation cellular networks.

WiFi is restricted to laptops and personal digital assistants (PDAs), which are connected to the network when they are within 100m to 200m of a transmitter. The transmitter is connected to a broadband line and offers high-speed web access.

The system does not work with mobile phones.

Telecos, some who have paid billions for their 3G licences, are betting the advanced mobile technology, which allows high-speed Internet access, voice, data and video streaming over a mobile phone, will take users by storm. But the reality has been very different.

In Japan, which was first to launch the much-hyped technology in 2002, users are bedevilled by handset woes, technical glitches and a lack of applications.

WiFi access points cost as little as $115, down from $1500 in 2000, while 3G base stations sell for between $80,000 and $400,000-plus each.

Wi-Fi's download speeds are also more than five times faster than 3G's. Wi-Fi can hit 10 megabits per second while 3G runs at about 384 kilobits per second.