There is a quiet power
shift occurring in the broadband industry that promises to
dramatically change how we access the Internet and its many
features. Instead of DSL, digital cable, cellular, and POTS
(Plain Old Telephone System), we will use high-speed
wireless connections (Wi-Fi) for nearly everything.
Wi-Fi itself isn't
especially new. Countless people have Wi-Fi in their homes
and use it to log onto the Internet from any room having a
computer equipped with a wireless modem. Thousands of
businesses, college campuses, and other facilities also have
Wi-Fi networks. In many places, the services are available
at no charge to anyone who enters the area.
However, what's new is
that so many Wi-Fi networks have been set up, the zones
often overlap forming wide-scale "hotspots." In many cities,
a person can be nearly anywhere in the central business
district and have Wi-Fi services. Although many systems are
restricted, the trend is to make them public.
Many municipal
governments have noticed the popular Wi-Fi trend and its low
cost, and are deciding to offer the services themselves. San
Francisco recently contracted with
Google (GOOG,
Nasdaq) to create a comprehensive Wi-Fi network able to
serve 750,000 city residents.
Earthlink (ELNK,
Nasdaq) is doing the same for Philadelphia. Dozens of other
cities are also creating Wi-Fi networks to promote business
and meet the public's need for broadband services. Before
long, Wi-Fi will be available nearly everywhere.
Even some rural areas are
installing Wi-Fi networks. In Oregon, for example, Umatilla
and Morrow counties have a shared Wi-Fi system that covers
600 square miles. Cowboys, Indians, the Marshall and
hundreds of other people use EZ Wireless every day.
The next big wireless
development that's just becoming available is Wi-Fi
telephone. First-generation systems were awkward to use
because both a laptop and a special phone were needed to
make and receive calls. However, new phones are being
introduced that access Wi-Fi systems directly. Lowe's, the
building products giant, has converted several stores
entirely to combined Wi-Fi voice and data systems. The
company's SpectraLink
(SLNK, Nasdaq) phones are dual-mode--they use both wireless
and the regular POTS system.
Eventually, people may
carry multi-use phones that combine cellular and Wi-Fi
capabilities. Motorola
(MOT, NYSE) hopes to have such a phone available next
summer.
Incredibly,
Vocera Communications,
a privately held company, just introduced a Wi-Fi telephone
that clips to a person's lapel, In fact, the company's
Communications Badge is easier to use because it is
voice-activated. Speak a name and the phone badge makes the
call.
As you might expect, the
cellular industry is less than happy to see the spread of
Wi-Fi technology that threatens to make their systems
obsolete--at least in urban areas. Not only does Wi-Fi do
more, and usually faster, it's generally free or available
for very little money. That's a tough combination to beat.
Nevertheless, some
cellular companies are introducing Wi-Fi networks of their
own in the theory it is better to compete with themselves
than to give ground to outsiders. T-Mobile, for example, has
6,000 hotspots located in Starbucks, Borders, and other
locations.
DSL providers are on the
same slippery slope as cellular services, and for the same
reasons. Digital cable still has a speed edge over Wi-Fi,
but many customers may decide the difference is not worth
$40 or $50 a month. POTS, of course, has been heading for
dinosaur heaven for several years.
Wi-Fi's competitors won't
go down without a fight, though. They are well established
nearly everywhere with millions of satisfied customers. In
addition, Wi-Fi's opponents have a lot of clout with local
governments that are paid handsome licensing and access
fees. However, Wi-Fi is so popular, and it is expanding so
quickly, it probably can't be stopped.
As with any rapidly
evolving technology, wide-area Wi-Fi is still working out
some kinks. Users sometimes lose their connections when
moving from one wireless zone to another. Standards are also
lacking for some systems. And pricing plans are still being
worked out. But, Wi-Fi is here, it's fast, it's cheap, and
it does most jobs very well. It's the most promising
computer and telecom development we've seen in years.