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Issue 87 | 25th June 2003 |
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Wi-Fi hotspots800,000 hotspots for Wi-Fi (wireless broadband access) will be installed across Europe by 2007. There is a lot of interest in current developments in this industry especially in Ireland as Wi-Fi could solve the "last mile" of broadband access issues. 57% of US corporations already support Wi-Fi networks with small companies leading adoption of the technology. This large take-up of wireless networks could be reflected in Ireland, which has a high concentration of SME's, which need a competitive Internet access solution. The installation of these hot spots involves investment in equipment and installation, which someone has to pay for. Yet, it is still unclear how the Wi-Fi industry will make money. Standardisation is one solution to encourage adoption and increase revenues.A report issued by Forward Concepts Electronics Market Research firm, addresses the issue of how service providers will make revenue from Wi-Fi, as a standard business model has yet to emerge. Chaos is ruling with some users getting access to Wi-Fi networks for free while others are being charged up to EUR110 a month. Currently service providers agree revenue share terms with the venues (airports, coffee shops, hotels etc.) in which the technology is installed. "There is a need to create global roaming agreements between Wireless Local Area Network (WLAN) providers and network operators," stated Richard McBride of Intec. The technology is already available to make Wi-Fi hotspots a commercial success as it can build on the existing technology for mobile networks and next generation services. Operators need to establish the necessary interoperator agreements instead of excluding users e.g. Wi-Fi users in Starbucks in America must be connected to T-Mobile; no other service provider is accepted. Increasing standardisation of Wi-Fi products will grow the industry. This is what the Electrical and Electronics Engineers, Inc (EEEI) are trying to achieve when last week they approved an added transmission speed, which gives Wi-Fi the ability to serve up to 4 to 5 times more users. It also means that IEEE Wi-Fi networks can be used in more demanding applications, such as wireless multimedia, video transmission and broadcast MPEG. This announcement is expected to result in an increase in Wi-Fi product certifications and a boost in industry growth. |
