Subject: [NEXTEL-1] Wi-Fi Networks Are on a Roll; But There Are Still Bumps in the Road, Experts Say

From: Marcel <[email-masked]>
Date: Thu, 13 Mar 2003 22:26:45 -0500

Wi-Fi Networks Are on a Roll; But There Are Still Bumps in the Road, Experts Say

Growing from grass roots efforts by technology enthusiasts to applications deployed by
many companies, Wi-Fi networks are growing faster than many researchers projected. But,
they say, there are still issues to be resolved including pricing for the service, roaming
among networks, and security.  Analysts point to price reductions by T-Mobile USA for its
Wi-Fi service in Starbucks coffee houses, and the decision by Joltage to discontinue
service because it was taking too long to acquire enough customers for the company to
sustain itself. Companies are still learning from the market what customers are willing to
pay for access to the wireless networks. Also, if travelers use laptops to connect to a
Wi-Fi network at an airport, to another at a café, and a third at a hotel, they are likely
to receive three different bills. Companies such as Boingo Wireless are working on ways to
let users roam from one network to another, but it is taking a while for such services to
become widely available. Businesses, in particular, remain wary of Wi-Fi networks,
concerned that they don't meet their requirements for security.

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Posted 3/12/2003 8:11 AM     Updated 3/12/2003 8:11 AM

Wireless Net technology taking off

By Michelle Kessler, USA TODAY

SAN FRANCISCO — First Starbucks. Now McDonald's
and Intel.

Soon, you'll be able to connect to the Internet, without wires, in
all kinds of places. That's because big companies are starting to
pour big bucks into Wi-Fi technology — marking a turning
point for the young technology.

Wi-Fi sends Web pages and e-mail at high speeds through the
air like a radio signal. Sender and receiver need special gear.

The latest company diving in: No. 1 chipmaker Intel. Wednesday, it launches new chips that
will make
connecting to Wi-Fi networks easier. Tuesday, McDonald's said it will test Wi-Fi networks
in 10
Manhattan restaurants. Last year, Starbucks started putting Wi-Fi networks in 1,200
stores. The cost: $6
a day, or $30 a month, for unlimited use.

In recent months, big tech firms from IBM to Cisco Systems to T-Mobile have announced
Wi-Fi
initiatives. They hope the technology, considered by many to be one of the most exciting
in the
downtrodden tech sector, will spark interest in new devices and services, boost their
fortunes and propel
wireless computing.

Hilton, Marriott, Starwood and other hotels — seeing Wi-Fi as a way to woo customers — are
also
installing Wi-Fi in lobbies, guest rooms and restaurants. Boeing is putting it in
airplanes. Intel expects to
spend $300 million-plus touting Wi-Fi — its biggest marketing blitz ever.

The flood of investment will likely make Wi-Fi easier to use, find and accessible to many
for the first time.
"The big players are coming in, spending money on marketing and creating demand," says
Rick
Ehrlinspiel, CEO of Surf and Sip, a wireless Internet provider.

Wi-Fi grew from grass roots. Small firms, such as Linksys and D-Link, pioneered the
hardware. Ad-hoc
community groups or local businesses, such as coffee shops, ran the networks. To make it
work, users
had to be tech savvy. Now:

Hundreds of companies use Wi-Fi networks for business communication.
Nearly every major PC maker builds at least one laptop that can more easily be used with
Wi-Fi
networks. Intel's new set of chips, dubbed Centrino, will make building such PCs easier
because it
bundles the laptop processor with wireless technologies. That means consumers don't need
to buy
separate parts, including $70 wireless cards.
Networks are exploding in number. There are thousands of public Wi-Fi "hot spots," or
places to
access a wireless network. Many more are going up.

Electronics maker Toshiba plans to install about 10,000 hot spots across North America by
year's end.
cell phone maker Ericsson said last week that it was building 5,000 wireless hot spots in
the United
Kingdom. Cometa Networks, a Wi-Fi venture financed by IBM, AT&T and others, plans to have
wireless networks installed in 50 U.S. cities by year's end.

But tech analysts warn that Wi-Fi is still years from being as easy to use as regular
Internet access. It still
takes a bit of technical know-how, and security concerns remain. If a Wi-Fi network isn't
properly set up,
hackers can see information as it travels through it. Many users lack the expertise to
make sure their
connection is secure, experts say.

Also, most wireless networks still aren't compatible. That means someone who logs on in a
coffee shop,
airport and bookstore would probably pay three fees and have three log-ins. Companies also
haven't
come up with a good way to let consumers know where to find a Wi-Fi network. Many put
stickers in
shop windows. Wi-Fi won't become an everyday tool for most until those things change, says
Gartner
tech analyst Bill Clark.

http://www.usatoday.com/money/industries/technology/2003-03-11-wifi_x.htm
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