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Benefits

The main benefit of a PMG is that you are purchasing a single connection to the WAN as opposed to buying multiple connections with one connection charge per device. Although this may spell less revenues for wireless carriers, it makes a lot of sense for the consumer. The challenge this model will face is that once the WAN communication capability is decoupled from the device itself, the device becomes dependent on the PMG for its full operation. In other words, the device would only support short-range PAN communications with other similar devices. Wireless carriers may be unwilling to give up their service revenues by supporting such devices, because consumers could well pick other carriers to provide the main connection. But then again, perhaps if they don’t cannibalize themselves with this business model, someone else will! In the end, wireless carriers running the PMG may end up controlling not just a single wireless device as they do today, but the consumer’s entire suite of personal devices. Their revenues will then shift from connection service fees to higher revenues from the provisioning of a variety of applications and services to these devices.


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