Wi-Fi: It's
Fast, It's Here-and It Works
Inexpensive broadband wireless networks that can keep you connected
while you move about the office or home are getting faster and less
expensive all the time.
In the past year, we have seen wireless go from 11 to 72Mbps. In
2003, the 802.11g standard should be released, providing greater
range, security and speed.
Far from what tradition might indicate, the
wireless Internet isn't turning out to be one of those tech breakthroughs
that arrives accompanied by a Microsoft-size marketing campaign
and eight-foot-high displays in consumer-electronics stores. Instead,
it's a grassroots trend that has moved from research labs, to techie
circles, to hobbyists -- and that now, after five years -- is reaching
the general public. Anyone who didn't know broadband (meaning, fast)
wireless Internet access is here -- and that it works -- soon will.
The broadband wireless Web is being built around
a technology known as 802.11b. 802.11b has become the most popular
networking standard that's used to create wireless local area networks
(LANs) in homes and offices at speeds up to 22 megabits per second,
far faster than the peak 144-kilobit-per-second rate so-called 3G
(for third-generation) mobile-phone networks that Sprint PCS, for
one, plans to deliver.
For now, wireless primarily provides broadband
Internet access to specially outfitted PCs and laptops within a
few hundred feet of an access point, or transmitter. These create
what in the wireless vernacular are known as "hot spots"
in homes, airport lounges, or libraries. Businesses are also adding
wireless networks to allow for easy net access from conference rooms
and temporary work stations -- and also to avoid the hefty costs
in both time and money of wiring an office.
SPAWNING STARTUPS
Wireless's most admirable attributes are that it's fast (to both
set up and use) and cheap (under $200 for a small installation).
It operates on unlicensed airwave spectrum, so no extra monthly
costs on top of the charge for a broadband connection are incurred.
It's also easy to install. Most high-end laptops now come wireless
ready, equipped with a special plug-in circuit card. Hotels and
coffee shops are offering customers wireless access as a convenience.
Starbucks has equipped 530 stores and plans eventually to enable
more than 70% of its 3,200 company-owned North American outlets.
Some cities even are choosing wireless over
cellular networks for uses such as distributing mug shots to police
cruisers. Techie towns like Seattle and San Francisco already have
hundreds of access points available to the public. And the technology
is spawning startups. A new company, Boingo Wireless, now links
500 industrial strength wireless LANs in hotels and airports so
subscribers to its $25-and-up monthly service can tap into these
networks on the road.
The lack of marketing muscle behind wireless
can make the industry seem small-time and disorganized. And some
concerns include security and interference (baby monitors and garage-door
openers, among other devices, share the same spectrum, which can
slow network speeds). But those problems are surmountable, and an
increasing number of companies -- large and small -- are buying
wireless LANs, says Ken Dulaney, who covers mobile computing for
research firm Gartner.
Wireless is a no-risk financial decision especially
for small businesses or companies in hard-to-wire locations, because
of its low cost. Consulting firm Adventis, which spent $30,000 to
wire its Boston office last year, says a similar wireless installation
today would cost only $500. Gartner's Dulaney estimates that 20%
of large companies currently have wireless LANs as an adjunct to
their wired networks. By 2003, when the technology will provide
even faster Net access -- plus tighter security and less interference
-- he thinks 50% of the largest 1,000 public companies will have
it.
BOTTOM-UP MOVEMENT
Indeed, research firm Cahners In-Stat expects sales of wireless
network cards and wireless base stations to grow from $1.9 billion
in 2001 to $5.2 billion in 2005, despite big declines in the prices
of such equipment.
This grassroots flavor -- similar to the bottom-up
movement from which the Web itself sprang in the mid-1990s -- is
what makes wireless so powerful, say tech analysts and consultants.
"This came out of left field," says Andrew Cole, the global
wireless practice leader at Adventis. "Now all the major carriers
are sitting up and taking notice."
They had better. This is a vastly different
wireless Web than the one the major network operators envisioned.
The six big wireless carriers in the U.S. have spent billions on
buying spectrum licenses and building 3G networks that can carry
data at high speeds. Only 3G will give you a connection to the Internet
that's always open from anywhere -- while driving down a lonely
back road, for example.
WHO NEEDS ALWAYS-ON?
Because wireless offers faster, cheaper net connections and is here
now, though, it could eat away at what already looks like a smaller-than-anticipated
market for 3G data services. "It will be hard for 3G to compete
on a price point that makes sense," says Tom Taulli, author
of Tapping Into Wireless. Adds Eric Kintz, associate partner at
Roland Berger Strategy Consultants in San Francisco: "There
aren't that many people who need a truly always-on connection"
-- 3G's primary selling point. "For most mobile professionals,
having wireless access at airports, hotels, and the office is sufficient."
To get back in the game, many wireless players
are planning to incorporate wireless into their networks so they
can promise customers both coverage and speed -- even if not both
at the same time. The idea is that you would use a wireless LAN
when one is available and migrate to the slower wide-area networks
(WANs) upon which 3G is based when that's the only network available.
MIRA MOBILITY
Meantime, tech Goliaths Intel and Microsoft are quietly betting
that wireless home networking will stimulate demand for all kinds
of new mobile computing and consumer-electronics products. "The
dream of having a digital hub from which you can wirelessly transmit
music or videos-on-demand is made possible through wireless,"
says Roland Berger's Kintz.
Indeed, Microsoft's Windows XP and Windows CE
operating systems for PCs and handhelds, respectively, already come
configured for wireless networking. Microsoft has already introduce
its Mira mobile devices including a detachable wireless flat-panel
monitor. Gates & Co. promises that users will be able to remove
the display from a PC and carry it around a home or office while
maintaining an Internet connection and the full functionality of
the computer via an on-screen keyboard.
"People spend up to 10 hours a week browsing
the Web and reading e-mail," says Aubrey Edwards, marketing
director for Microsoft's embedded and appliance platforms group.
"It doesn't need to be done in the confines of a small home
office."
Meantime, Intel has spent hundreds of millions
of dollars on research and development related to wireless, says
Stephen Salzman, senior director of wireless LAN marketing at the
No. 1 chipmaker. He believes that wireless is the technology that
will make the "extended PC" a reality and "really
give people a reason to go mobile." For instance, 802.11b could
link video cameras wirelessly to your PC so you can monitor your
home from work.
As the technology improves, PCs will be able
to stream movies from the Net to your living room TV, says Salzman.
"The range of applications only grows," he says. "Every
week we see some creative application we haven't seen before."
- Written by Amey Stone in New York
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