eFiles: February 12, 2001

By eweek  |  Posted 2001-02-12

Big Bucks to Be Made in Net Access

Wireless access to complex, high-bandwidth services such as video may seem sexy, but truth be told, the infrastructure they require is just too pricey to make them profitable in the short term, according to a new study from wireless consultancy Herschel Shosteck & Associates Ltd., in Chicago. Rather, the real money lies in providing access to Internet content via mobile devices, which requires far fewer investments in extra base stations and other infrastructure.

Because total costs to produce high-bandwidth services and video are so high, operators wont make much money unless they offer limited-bandwidth applications, which will keep down operating expenses. The study also predicted that consumers will be attracted to third-generation networks—those that promise high bandwidth and always-on Internet access—because of the lifestyle changes they will bring, not because of slick, high-bandwidth offerings.

Cell Phones Bagged Due to Radiation Fears

A study released last month found that consumers are limiting their use of cell phones due to anxiety over the radiation they emit. The study, by International Communications Research, based in Media, Pa., noted that 41 percent of the 100 million U.S. citizens who use cell phones fear radiation emissions and that 43 percent would be more likely to use cell phones if technology were available that reduced those emissions. Fifteen million of those surveyed have already limited cell phone use because of such concerns.

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