> “For example a cellular picocell costs from $7,500 to $15,000 whereas a much higher capacity carrier-grade Wi-Fi access point costs around $2,000,” Thanki wrote. “The cost of a Wi-Fi chipset for a consumer device is around $5, whereas 3G cellular chipsets costs around $30. Won't a cell tower cover at least a couple orders of magnitude more area than a wifi access point? Is this analysis silly or am I missing someth…
This is why cellular phones are called cellular phones. The key enabling technology was the ability to divide a large geographic area into many smaller cells. Each cell needs to use different frequencies than its neighboring cells, but you can reuse the same frequencies many times across the wider region.
The smaller you make the cells, the more data you can pack into the same set of frequencies, because non-neighboring cells can be using the same frequency concurrently.