3G networks depend on wireless Internet

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CHICAGO-Third-generation wireless networks will rely on wireless Internet access for profitability instead of full motion video and other high-bandwidth applications, according to a study by wireless consulting firm Herschel Shosteck & Associates.

“The Internet will be the enabler-the connector-which ties together networks, supporting infrastructure, devices and end-users,” the study said. “The business case for manufacturers and operators becomes facilitating and enabling Internet access at the lowest possible cost. Those that do so will profit.”

The high infrastructure costs needed to support higher bandwidth applications will prove prohibitive to wireless operators who will be looking to turn a profit as quickly as possible on their huge investments, the study noted, pointing to NTT DoCoMo’s i-mode service as an example. According to Herschel Shosteck & Associates, DoCoMo doubled its monthly revenue per subscriber within six months of launching i-mode.

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