FGWI: Good Now, Great When VoIP Becomes Mainstream
5GWireless Communications– FGWI– Stock Guru Profile
5G Wireless Communications, Inc. is wiring everything from colleges, to hospitals, to retirement villages to condos for Wi-Fi. Today the services they provide are principally for the internet BUT tomorrow these services will include cellphones. I believe the demand for VoIP will keep FGWI busy for a long, long time. Let me explain why.
You have two entities interested in promoting VoIP now: the carriers and the cellphone handset producers. As the public becomes aware of the benefits, I believe the demand for WiFi will grow.
AT&T Rolling Out VoIP
VoIP is growing exponentially in the United States and when AT&T quits fighting it and joins the fray … it’s time to take VoIP very seriously. WiFi facilitates VoIP and 5G Wireless Communications facilitates WiFi.
AT&T is bundling its little-publicized Internet phone service, CallVantage, with its cellphone service during a three-month trial at 14 AT&T Wireless stores. If the trial goes well, AT&T could offer the package elsewhere outside its mainly Midwestern and Southern U.S. local-service regions. A wider roll-out could allow AT&T to fill a potential void left by Vonage, the No. 1 independent Internet phone service, with 2.1 million U.S. customers.
Voice over Internet Protocol, or VoIP, service lets customers make inexpensive phone calls that travel over the Internet by plugging a modem into a broadband line.
AT&T has offered CallVantage for years but has not actively promoted it since 2005 when AT&T was bought by SBC, which took its name. AT&T worried that the VoIP offering would cannibalize sales of its more profitable land-line phone service in the Midwest, where SBC was strong.
VoIP services have exploded. There were 9.4 million customers at the end of 2006, up from 1.3 million at the end of 2004, and these users want WiFi.
Internet broadband networks are a less expensive way to make calls — which can be made from home or at the office if Wi-Fi is available.
The Cell Phone Vendors Are On Board
As all major handset vendors start selling these dual-mode “cell-fi” mobile phones, the demand for Wi-Fi will only increase.
Well over 20 different cell phone models are available that can connect to Wi-Fi, with about 20 million units expected to be sold this year alone.
The majority of those are made by cell phone maker Nokia, mostly as part of its range of enterprise phones.
Sony Ericsson, Motorola, Palm, Blackberry maker Research In Motion, UTStarcom are bringing out new models.
Almost half of the North American enterprises surveyed by market research group Forrester were interested in dual-mode Wi-Fi/cellular phones, hoping for lower costs.
In the United States, Samsung Electronics Co. has received an order for cell-fi phones from a major telecoms carrier, although it has not disclosed the name of the company.
Wi-Fi capability has historically been restricted to the most expensive smartphones, but this is changing.
Wistron from Taiwan has a medium-priced cell-fi phone, based on the Linux operating system.
If medium-priced feature phones come with Wi-Fi, the potential global market widens to 250 million phones a year and that creates and incredibly strong demand for Wi-Fi.
In the United States the switch to WiFi by cell phone users has the potential to create a cell phone revenue decline of $240 million per year for every 1 million consumers who shift to VoIP.
My Conclusion:
VoIP has been a stealth service. Vonage did a great deal to promote it and other carriers have benefited from their awareness campaign. With AT&T behind VoIP and cellphone companies producing WiFi enabled phones in the medium price range, I see the demand for WiFi exploding.
5G Wireless is building a company that can address this demand.
Source: 5GWireless
5G Wireless Communications, Inc.
4136 Del Rey Ave.
Marina del Rey, CA 90292
Phone: (800) 916-1611
Investor Relations: (310) 448-8022
Website: www.5gwireless.com :
About 5G Wireless Communications, Inc. 5G Wireless Communications, Inc.: 5G Wireless Communications, Inc. (OTCBB: FGWI) is a designer, developer and manufacturer of commercial grade wireless broadband communications equipment operating in the 802.11a/b/g frequency. The 5G Wi-Fi system functions through macro-cell base stations deployed in key areas, while dead spots are filled in with smaller micro cells following the proven deployment strategy used today by cellular carriers. This type of structural design allows for a well-tailored combination of cells resulting in the ability to add higher capacity where and when needed. The Company’s principal markets are universities and municipalities and just recently entered into hospitality, time shares and planned community markets. The Company sells its equipment to colleges and universities, commercial businesses and international markets and also installs its equipment and services the hospitality, time share and planned communities, at The Company’s expense in order to recognize a recurring predictable revenue stream as opposed to a one time sale. The Company will only place equipment at its expense where it receives a minimum 3 year exclusive agreement to provide pay as you use services.
Forward Looking Statements: Certain statements in this release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise which could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward-looking statements are further qualified by other factors including, but not limited, to those set forth in the company’s Form 10-KSB filing and other filings with the United States Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
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