Subject: [NEXTEL-1] Wireless Companies Mull How To Turn WiFi Into Business

From: Marcel <[email-masked]>
Date: Tue, 18 Mar 2003 19:17:41 -0500

http://biz.yahoo.com/djus/030318/1430000998_1.html

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Wireless Companies Mull How To Turn WiFi Into Business
Tuesday March 18, 2:30 pm ET

By Ellen Sheng, Of DOW JONES NEWSWIRES

NEW ORLEANS (Dow Jones)--As one of the buzzwords at the CTIA Wireless 2003
conference, WiFi, or wireless networking technology, is being touted as the next
big thing. But companies are far from agreeing on how to approach the
technology.

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During a keynote presentation here, the heads of several wireless carriers
aired widely differing opinions. While most were in agreement that WiFi can be
complementary to their third-generation, or 3G, technology, questions loomed
about how to turn the new technology into business.
WiFi "hot spots" - or designated areas where wireless users can log onto the
Internet - are being set up by many organizations, including universities,
cities, and service providers that often offer the service for free. Some
industry observers have warned that the enthusiastic response could hurt the
adoption of 3G services being touted by carriers. Others believe that the two
technologies can work together since there are some tasks better suited to 3G
technology than WiFi. But for this to happen, there needs to be coordination
with wireless carriers. As it exists now, users need to log in twice when
switching between WiFi and 3G technology.
While many interested parties have set up hot spots, a network has not
emerged, said Nextel Communications Inc. (NasdaqNM:NXTL - News) Chief Executive Tim Donahue. "
Right now, it's a little like herding cats," he said of the prospect of
coordination efforts. Though WiFi can be complementary, he said, it is still too
early in the game to tell what direction the industry will take. "It's not ready
for prime time yet," he concluded.
Also taking a cautious stance, Sprint PCS Chief Executive Len Lauer
voiced the need for carriers to figure out how WiFi hot spots can be used to
make money.
In an earlier keynote speech Tuesday morning, Qualcomm Inc. (NasdaqNM:QCOM - News) Chief
Executive Irwin Jacobs pointed out that users don't want to pay more each time
they hit a new hot spot. WiFi will need to offer wide area coverage, high-
quality service and low costs in order to attract customers, he emphasized.
Taking a more upbeat stance, John Stanton, chief executive of T-Mobile, said
he believes the WiFi economic model can be "very attractive," adding that "for
us as a carrier, we need to embrace it."
Attesting to that conviction, T-Mobile has signed an agreement with Boingo
Wireless Inc., a company with a network of 1,000 WiFi hot spots in airports,
cafes, hotels and convention centers.
-By Ellen Sheng, Dow Jones Newswires; 201-938-5863; [email-masked]

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