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"In-building revenues to top $1.3bn by 2009," says visiongain report

San Francisco, CA and London, UK; 18 June 2006: Visiongain forecasts that in-building wireless revenues can exceed $1.3 billion by 2009 if mobile operators position themselves correctly in the market. The need for improved voice quality in homes, offices and other buildings, as well as increasing usage of mobile data networks indoors, are driving this growth of cellular and wireless in-building solutions. These are some of the findings from visiongain s latest report, "In-building wireless solutions 2006-2011: Stimulating greater mobile usage through better indoor coverage".

Upwards of 70% of 3G data traffic originates indoors and adopting the right strategy can help operators alleviate network capacity issues while at the same time boost data ARPU and reduce churn through service differentiation. Visiongain believes that strategies to improve the quality and coverage of in-building services will increase the value of mobile services and in the process boost in-building minutes of use and data ARPU.

"The need for improved in-building wireless communication is clear. Coverage, capacity and frequency constraints limit the QoS customers expect indoors and negatively impacts mobile usage," says visiongain analyst and the report s lead author Sherman Fridman. "By carefully evaluating the various in-building technology solutions on the market, operators can stimulate the growth of mobile-only households, which presents a huge opportunity to tap into"

Nokia s recent agreement with RadioFrame Networks that will see Nokia sell, distribute and support RadioFrame s picocell solutions to mobile network operators will prove a major shot for this market and is indicative of a growing focus on the benefits of in-building solutions.

"The significance of this announcement is the pico cell's ability, at relatively low cost, to accommodate several wireless communication technologies in one unit. And, with Nokia as a seller and supporter of the pico cell solution, added market clout is given to in-building wireless solutions," says Fridman.

The announcement by London Underground in April 2006 will have a profound affect on the development of in-building availability in underground subways and tubes. LU announced that it is beginning a feasibility study looking into the use of mobile phones in underground stations, and possibly on trains.

In the enterprise segment, all indications are that businesses are very serious about deploying wireless applications. "This is great news for operators, who see new revenue generating opportunities. However, there must be reliable, seamless and consistent coverage within structures of all sizes and building materials," says Fridman.

"Property owners and building managers of smaller as well as mixed-tenant buildings are beginning to realise that their tenants are coming to expect good-quality cellular service, with the costs amortised in the rental agreement. This has resulted in shifting dynamics of the in-building business model, which raises its own share of issues," concludes Fridman.

This visiongain report analyses the business case for in-building services, assessing the market potential for voice and data traffic, and the associated options and costs of various in-building solutions. The report examines the challenges faced by operators in effectively targeting the in-building market, and looks at technologies including cellular, Wi-Fi, VoIP and WiMAX.

ENDS

Notes for Editors If you are interested in a more detailed overview of this report, including the Executive Summary, charts and images, please send an email to sara.peerun@visiongain.com or phone Sara on +44 (0) 20 8767 6711.

About visiongain Visiongain is one of the fastest growing and most innovative independent media companies in Europe. Based in London, UK, visiongain produces a host of business-2-business conferences, newsletters, management reports and e-zines focusing on the Telecoms, Pharmaceutical and Defence sectors. ‘Visiongain has a global client base, with offices in London and San Francisco.

Visiongain publishes reports produced by its in-house analysts, who are qualified experts in their field. Visiongain has firmly established itself as the first port-of-call for the business professional, who needs independent, high quality, original material to rely and depend on.

For more information on visiongain, please visit the website: www.visiongainintelligence.com

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