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May
19
I wrote an opinion piece a while back about the battle between 3G and WiFi (that is, 802.11b/g/n v/s WCDMA/EDGE). To put it briefly, ISPs are increasingly getting households, businesses and cities connected via WiFi. At the same time, telcos are offering Internet access via mobile using 3G. Once they get ordinary devices (desktops, laptops) with 3G cards to access the Internet through their 3G networks, we’ve set the stage for a fierce turf battle between ISPs and Telecom Companies.
A report in the New York Times seems to confirm my predictions. (”Going Wireless Most Places You Go”, NYT).
“Wi-Fi, the wireless networking technology that can create an invisible field of Internet access over a limited area, has revolutionized the world of mobile computing. But while Wi-Fi is serving up Internet access in a growing patchwork of places like coffeehouses and, in some cases, across entire cities, it can fall short of the demands of laptop users who want a gateway to the Internet essentially everywhere they go.
“Another wireless option on the rise, this one from cellular carriers, provides high-speed Internet access over many of the nation’s most populated and heavily traveled regions. These services, made possible by the new networks that carriers are referring to as 3G (for “third generation”), may be useful to business travelers, professionals who need a connection constantly within reach, businesses with roving employees or small groups of users looking to share a single connection.”
The report then goes on to outline vendors, plans, hardware needed and such. But the essence is clear - telcos are looking to play ISP!
In fact, I think this battle will be played out more in India and (maybe) China, given the relatively low Internet penetration, and the scorching pace of growth of mobile connectivity. The US, on the other hand, is pretty saturated. Ironically, so is South Korea. There will be tremendous growth in all these markets in terms of getting more and more devices online (and that will also trigger an identical battle), but revenue from that will pale in comparison to getting PCs and notebooks online, through wiring up cities, communities - that kind of market is growing only in India and China.
(Of course, the reverse is also true - think VoIP, which is giving telcos nightmares, but has ISPs smacking their lips in sweet anticipation!)