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The wireless wasteland: Forthcoming carnage in wireless middleware

Start-ups in the wireless middleware and applications space face huge challenges ahead and must stay focused on addressing real needs and revenue-producing applications, says a report by global venture capital firm, Crescendo Ventures.

The report, examines the problems faced by the wave of business models with unclear paths to profitability. Profitable commercialisation of applications and middleware platforms will only happen after the large-scale build out of infrastructure to support next generation wireless networks, says the report.

Many emerging companies have mistakenly approached wireless opportunities as a new market, rather than a new channel for the internet. Although around one billion subscribers globally will use handheld, mobile wireless devices by 2003, most start-ups are said to lack the resources, infrastructure and technology needed to take advantage of the coming opportunities.

Factors characterising business models likely to fail include a lack of supporting infrastructure, limitations of current wireless handset technology, and security and privacy issues.

Promising market segments where start-ups can improve their chances of success are infrastructure enhancements, differentiated service allocation, real-time wireless billing and mediation, and location-based technology.

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© July 2001 Crescendo Ventures.

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