Service providers search for a cost model

All the major vendors will be talking about mobility in one way or another for much of the show. However, this 'hot' technology area still has to overcome significant hurdles before the wireless utopia that many service providers and vendors are talking about, becomes a reality.

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By  Greg Wilson Published  September 29, 2003

All the major vendors will be talking about mobility in one way or another for much of the show. However, this 'hot' technology area still has to overcome significant hurdles before the wireless utopia that many service providers and vendors are talking about, becomes a reality.

An initial stumbling block to the widespread deployment of hotspot areas is the absence of a viable business model. Even elsewhere in the world, service providers have struggled to make hotspot services profitable and the Middle East won't be an exception, says IDC's senior telecoms analyst, for Central & Eastern Europe, Middle East, Mohsen Malaki.

"It is very uncertain how much money [these services] will generate. In fact, we don't think that in the short to medium term there is much revenue to be made from hotspots. The same applies to hotels or retail outlets that have deployed it as a value add service to business customers. In itself it won't be a significant revenue generator," he explains.

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