May 19, 2007
Wi-fi signals big change for mobiles
When mobile phone firms paid billions for a licence to run a third-generation (3G) network in 2000, they could console themselves with the knowledge that the network was theirs and theirs alone, writes the BBC.
"To offset the high cost of buying a licence and building the network, operators knew that, for the 20-year term of that licence, they had control over any and every customer they could persuade to sign up.
Unfortunately the relentless pace of innovation may be about to dent the dreams of recovering those costs.
As hotspots get linked up into mesh networks that offer blanket coverage they create a rival to the 3G networks currently in existence.
Because there was no huge outlay of cash to buy the base stations and install them the operators aiming to use wi-fi have a much lower starting point for call costs. They also route the calls over the net which helps cut prices for certain calls. "
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