3G wins corporate war

Commercial WiFi technology is losing the adoption race in the corporate sector, with 3G adoption jumping from 58% in 2006, to 82% in 2007, according to the Mobility 2007 study.

The study is in its third year and was conducted by World Wide Worx and sponsored by First National Bank (FNB).

Speaking at a media briefing, in Sandton yesterday, World Wide Worx MD Arthur Goldstuck said WiFi use in the corporate sector dropped from 74% to 66%. "Commercial WiFi networks are probably dead in the water; 3G has won that particular war."

WiFi use has dropped because it is expensive when compared to 3G, he said. "It only takes one or two episodes of paying R30 for 30 minutes access at a hotspot to realise that a 3G subscription, costing less than R100 a month, makes far more sense. Thanks to mobile technology, paid WiFi in hotel rooms is going the same way as phone calls from hotels - their exorbitant pricing can`t compete."

The promise of WiMax is another factor that is hurting WiFi use, Goldstuck said. "As many as 8% of corporations said they were trying it out, which exactly matches the proportion dropping WiFi."

Goldstuck noted that while WiFi has a slightly brighter future in the small and medium enterprise (SME) market, the numbers are "deceptive".

"The majority of these SMEs (26%) are using WiFi to network their offices more efficiently, rather than enabling their staff to use it in wireless hotspots."

He revealed that adoption of wireless broadband technologies, including iBurst and Sentech, has almost doubled, growing from 16% in 2006, to 31% in 2007.

"As with corporates, most SMEs using 3G are doing so to remain connected when out of the office and as a backup, rather than as a primary form of connectivity."

The study also found mobile banking has more than doubled in the past year, with 17% of consumer respondents saying they use their mobile phones for banking services, said Len Pienaar, FNB head of mobile and transact solutions.

This is a big growth from 8% of mobile banking users in 2006. An additional 24% are expected to begin using mobile banking services next year.

Pienaar added that an internal survey by FNB found mobile banking was gaining a stronger adoption from the mainstream market, rather than from the wealthy. "I was surprised by how many wealthy people still use branches, and it`s not a trend we will reverse in our lifetime."

"Urban cellphone users, aged from 46 to 55, are twice as likely to use cellphones for banking as those in the 19 to 24 age group," said Peter Searll, CEO of Dashboard Research, which led the fieldwork for the consumer research.

The sample for the Mobility 2007 study included 400 corporate, telecommunication decision-makers and 800 SMEs.

The consumer segment of the research was made up of an initial sample of 400 consumers and an additional 175 booster sample of mobile banking users.