A survey released Tuesday on usage of the two wireless technologies indicates both are thriving and likely to continue to do so into the foreseeable future.
"The results of our Mobile Broadband Index suggest that no single technology can meet all the needs of an enterprise workforce," said Joel Wachter, VP of marketing and strategy at iPass, in a statement. "While 3G provides broadband download speeds in domestic metropolitan areas, users need Wi-Fi hotspots for fast bi-directional access everywhere else as well as to avoid high international 3G roaming charges. We expect both Wi-Fi hotspots and 3G to continue to grow as enterprises roll out a complete toolkit to their mobile workers."
In addition to the competition between Wi-Fi and 3G, the index uncovered a number of trends, some unexpected. Europe is outpacing the United States in terms of wireless growth. Wi-Fi grew in Europe as its worldwide hotspot market share jumped from 31% to 40% while the U.S. ranking dropped to 51% from 59%.
The majority of Wi-Fi hotspot usage is at U.S. airports. Some 45% of Wi-Fi traffic is in the terminal, though the use of Wi-Fi in hotels is surging and now accounts for 29% of hotspot usage, iPass found. Wi-Fi usage at train stations and ferries also is booming.
On a local scale, Wi-Fi at restaurants is the new hot space, gaining dramatically on Internet cafes, which still dominate the local scene with a 44% share of the market.
In surveying 3G, iPass found that businesspeople grew their use, expanding service to 190 MB in the fourth quarter of 2007 -- up from 152 MB in the first quarter. "Usage seems to rise with experience," iPass said.
There were some very heavy users of 3G. "At the extreme, a small number of users exceeded 2 GB of usage in a given month," the firm stated. "These heavy users accounted for less than one half of 1% of all users in the sample and were offset by the 32% of businesspeople who used on average less than 50 MB in a month."
The survey found also that users of 3G sometimes had to revert to 2.5G usage, usually when they traveled beyond 3G coverage. Analysts with iPass speculated, however, that many 3G users found Wi-Fi hotspots in areas where they couldn't get 3G.
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