CAMBRIDGE, United Kingdom-Public wireless local area network services are in danger of caving under third-generation services as carriers are offering all-you-can-eat services and replicating WLAN pricing, according to analyst firm Analysys.
The report, however, warns that such strategies may hurt 3G technology’s economic prospects at an early stage.
“While 3G offers substantial throughput, capacity and cost advantages over 2.5-generation technology, operators must avoid pushing 3G beyond its limits,” said report co-author Alastair Brydon. “Head-to-head competition with xDSL or PWLAN could kill profitability,” adding such a move could “fill 3G networks with low-margin Internet traffic, leaving no space for more profitable services, such as voice telephony, small-screen messaging and video content.”
