More firms turn to 3G to get data on the move

Laptops with support for 3G mobile networks are set to account for a much larger share of the market in future, according to communications vendor Sierra Wireless. The firm also said it sees little threat to the cellular networks from upcoming wireless technologies such as WiMax, despite the latter being given substantial backing from industry giants such as Intel.

Sierra Wireless is one of the leading global suppliers of 3G modules and adapters. In June, the firm introduced its latest products, the MC8790 and MC8790V embedded modules, which support high-speed packet access (HSPA) capability at up to 7.2Mbit/s on the downlink and 2Mbit/s on the uplink. These modules are intended for laptop vendors looking to embed 3G broadband capability into their systems, a market that is growing rapidly, according to Larry Zibrik, Sierra’s director of marketing and product management.

“A million and a half laptops shipped with embedded 3G in 2007, and this year I believe we will see from two to three million,” he said, adding that other markets such as 3G routers are likely to account for the same volume. Cisco is a big customer for Sierra’s hardware.

Overall, the 3G attach rate is set to grow at almost 100 per cent per year in the near future, according to Zibrik, but with an interesting split occurring between business users and consumers. While corporate buyers are opting for laptops with 3G capability built in via an embedded modem and antenna, consumers are driving demand for plug-in dongles that connect to a laptop USB port.

This trend perhaps reflects the fact that a 3G modem is still a relatively costly item to integrate if not all buyers want it. And while consumers can add this if need be, corporate buyers are more likely to see wide-area connectivity as a necessity.

Other markets where Sierra is seeing demand for its 3G modules include handhelds for mobile workers such as field service engineers. Recent models from vendors such as Intermec and Motorola’s Symbol division have included this capability so that workers have access to data wherever they are and whenever they need it.

As the number of 3G connections is growing, the technology has sometimes been seen as a rival for Wi-Fi, since both technologies are now included as standard in many corporate laptops. But comparisons are not valid, according to Zibrik, because while Wi-Fi offers higher connection speeds, it is a relatively short-range technology.

“Wi-Fi is designed for use when you are in range of your company network. Outside the office, IT managers would much rather see their users on a commercial 3G network connection than using Wi-Fi hotspots because they are more secure and coverage is much more widely available,” he said.

Although 3G data rates have previously been seen as costly, carriers now offer all-you-can-eat business tariffs that have a generous ceiling on data volumes or no cap at all, according to Zibrik.

On the subject of rivals such as WiMax, the Intel-backed technology that supports speeds of 10Mbit/s to 70Mbit/s over distances of several kilometres, Zibrik was pretty dismissive. “You can only compete with someone when you have coverage,” he said, pointing out that WiMax can hardly be said to exist in the UK. He added that the 3G network operators have spent large sums of money over the past few years rolling out their coverage, so that 3G networks are now available to the vast majority of the population, while WiMax is still confined to one or two pilot installations.

“When setting up a network, the majority of the cost is in site acquisition, and 3G is past that – it’s already there,” he said.

In addition, the cellular network operators are already planning a roadmap to higher bandwidth via new standards such as HSPA+, which may offer download speeds up to 42Mbit/s, while further off there is Long Term Evolution (LTE), which may offer speeds in the region of 320Mbit/s. These plans make the operators a moving target for proponents of any rival network technologies seeking to take over their market.

“It would be a very tough treadmill for any outsider to step onto,” Zibrik said.

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