Wi-Fi 101

Wireless fidelity (Wi-Fi) is a registered trademark of the Wireless Alliance, a group founded by Cisco, 3Com, Intersil, Agere, Nokia, and Symbol and now supported by more than 100 companies. Wi-Fi networks are based on the 802.11a and 802.11b standards for wireless LANs written by the Institute of Electrical and Electronic Engineers (IEEE). Other standards competing for the wireless networking space include Bluetooth, Ultrawideband, and ZigBee, the offspring of the now defunct HomeRF standard. Thus far, Wi-Fi technology has proven to be the most widely adopted of the four, even finding possible U.S. government support in the proposed Jumpstart Broadband Act.

Wi-Fi networks connect users to the Internet with signals sent by radio waves. Laptops receive the signal with the aid of a credit card-size receiver that usually has an attached antenna. Signals are sent from a transmitting antenna that is linked to a wired (i.e., land-based) Internet connection.

Many PCs and some handheld devices currently are being manufactured with Wi-Fi capability, but users can make old laptops Wi-Fi ready by purchasing a Wi-Fi receiver that slips into a PC-card slot. Desktops also can take advantage of these wireless networks by purchasing a card similar to the one used by laptops or by plugging an external USB radio into the desktop's USB jack.

Once laptops are equipped, users need an access point or gateway to begin surfing the Internet. In urban areas like Manhattan and San Francisco, open (i.e., free) wireless networks or "hotspots" are becoming commonplace. In fact, users sometimes are pleasantly surprised to find that they are already online when they open their laptops, thanks to software that searches out nearby hotspots.

The majority of users is not fortunate enough to live in a location with free hotspots. For those people, a subscription-based service may be a better fit. Enterprising companies such as Boingo Wireless, T-Mobile USA, and Joltage Networks realized the confusion that would arise with the proliferation of wireless networks and have aggregated hotspots throughout the United States to provide Wi-Fi service to customers independent of location. Service is generally found in busy public locations such as airports, cafes, and parks.

The other eager adopters of Wi-Fi are small businesses and families. Both have reacted favorably to the technology because it eliminates the hassle of installing cable to connect computers situated throughout an office or household. Employees or family members that like to work from different locations throughout the office or home can do so and still maintain a connection. In addition, it is relatively easy to add another user to private wireless networks. If businesses or families move, the Wi-Fi network moves along with them.

On the consumer side, one of the most publicized Wi-Fi rollouts has occurred at Starbucks, but more will certainly follow. Borders plans to begin offering the service at more than 400 bookstores in 2003. In addition, formidable newcomer Cometa Networks, the joint venture of AT&T, IBM, Intel, and venture capital firms Apax Partners and 3i, plans to equip 20,000 public locations over the next two years.

On the business side, companies will likely continue to support the technology in growing numbers largely because their workforces are increasingly mobile - according to research firm Yankee Group, 25% of the U.S. workforce is mobile, or 40 million people. If Wi-Fi becomes more widely available and addresses security and range concerns, it may be the most logical choice for an on-the-move society.

Related Case Studies :
Boingo Wireless
802.11b Wi-Fi Aggregator Business Model Analysis
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