3G making waves, especially in midsized business

By Andrew R. Hickey, News Writer 19 Jul 2006 | SearchMobileComputing.com

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According to a survey of more than 1,000 business users, nearly 5% of U.S. respondents have already adopted 3G services, while another 15% to 20% are "extremely interested" in adoption.

The survey was taken among business users from small, midsized and large companies during March and April.

David Chamberlain, In-Stat analyst, said he was surprised to see the number of users who have already adopted 3G, and he said it signifies that 3G may soon be ready for prime time.

"It's entering the mainstream," he said. "There are people who are looking at it, thinking about it and planning to use it."

3G, the third generation of wireless, is a faster network than its predecessors -- 1G and 2G -- and adds additional features. 3G features enhanced multimedia, such as voice, data video and remote control; usability on all popular modes, such as cellular, telephone, email, paging, fax, videoconferencing and Web browsing; broad bandwidth with high-speed connectivity; and roaming capability throughout North America, Europe and Japan.

Chamberlain said the survey also uncovered a number of reasons why 3G could be a better choice than Wi-Fi for wireless data connectivity. Across all business sizes, Wi-Fi costs roughly $40 a month per user. But Chamberlain said most companies end up spending more on Wi-Fi bills than on cellular bills because businesses and employees place a high premium on Internet access.

For more on 3G Learn all you need in our 3G Crash Course Tim Scannell asks: Is 3G ready for prime time?

According to Chamberlain a company would purchase a 3G line from a carrier and pay monthly. Wi-Fi, which can be built on a similar model, opens itself up to overspending, however. He said that Wi-Fi users often have to pay for usage at Wi-Fi hot spots for connectivity. The survey found that 10% of respondents who have monthly Wi-Fi subscriptions also pay for usage at hot spots, which causes unforeseen telecommunication expenses for their companies.

"Generally, spending is higher for Wi-Fi," Chamberlain said. "Cellular data spending per user is less by between half and two-thirds than Wi-Fi. Using 3G is less costly."

Another differentiator between 3G and Wi-Fi is that 3G devices can use different networks if high speed is not available, Chamberlain said. With Wi-Fi, if no Wi-Fi connectivity is available, nothing else is.

"When you're using Wi-Fi, you've got a fast connection or you've got nothing," he said. "If you have cellular in some form, you have fast or you have not so fast, but you still have something."

Chamberlain said the study also found that midsized companies -- with 100 to 1,000 employees – have the greatest penetration among their workforces and spend the most time on mobile communication.

"We've really found that midsized businesses spend the most on all mobile services…they have the largest percentage of employees who are using those services," he said.

Additionally, spending by midsized companies on mobile data services, including both cellular and Wi-Fi, is roughly 15% higher than by companies of other sizes.

Broken down by size, more respondents from midsized businesses are currently using 3G, with slightly lower concentrations in small and large companies. From midsized businesses, 10.4% of respondents said they use 3G, while 2.3% from small and 5.1% from large companies said they are using it.

"We're on the way," Chamberlain said of 3G. "It's got a lot of appeal. I think people who need mobility are going to see it has a lot to offer."

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