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Bluetooth is a 'shortwire' replacement for the mass of cables we use to connect 'personal' devices so they can share information. These personal devices are portable PCs, mobile telephones & headsets, PDAs, digital cameras, MP3 players and so on. As Bluetooth develops, we will see more enabled devices, particularly around the home.
WiFi is the 'longwire' (network cable from desk to hub/server) wireless replacement technology. It is designed to allow users to log onto an office/business network without the need to physically attach via a network card. As long as the user has network access rights, they should be able to log on to the network from anywhere within the network area (building or site). It simplifies the network infrastructure as physical cabling is only needed to connect the wireless access point to a hub or server. By removing physical cabling, costs can be saved, and there is less physical structure to fail / troubleshoot. It also increases the flexibility of the workforce in being able to go anywhere within the network but remain connected.
The trade-off - In a shared environment where both WiFi and Bluetooth are operating concurrently, Bluetooth will loose some of its available bandwidth to the WiFi system. It is not 'chopped' but declines between 17 - 22 % (max).
So you'd use Bluetooth for syncing and WiFi for network capability.
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