WI-FI ADVOCATES GATHER TO GROW BUSINESS, WORK WITH WIRELESS CARRIERS

New report by Yankee Group suggests collaboration not only is possible but also advantageous for both sides. Issue will be much discussed at 802.11 Planet, hosted by Jupitermedia, but it’s clear from some of panel titles -- “3G and 802.11: Are They Friends or Foes?” for example -- that issue remains undecided.

Wireless carriers should work with Wi-Fi networks rather than compete with them, Yankee Group concludes in “Public Wi- Fi LAN Threat Becomes Wireless Carrier Opportunity.” There will be 4.6 million Wi-Fi users by 2007, Yankee predicts, and hot spots of those users could complement wireless carriers’ efforts to build out access. Yankee said wireless carrier would contract with hot spot owners, sharing in revenue stream generated by each user of both hot spot and wireless carrier. Such approach would expand wireless carrier’s network and give it competitive edge over other carriers, report said. Cannibalization of carrier’s 3G operations is considered minimal by Yankee, and revenue from hot spot collaborations to carriers also would be small. However, Wi- Fi enthusiasts have been dismissive of Yankee predictions on Wi-Fi in past, and have suggested that industry was on path of having tens of millions of Wi-Fi users in next few years. One driving force they point to is that both Intel and Advanced Micro Devices (AMD) now are integrating Wi-Fi into laptop and handheld microprocessor chips, dramatically increasing number of devices that are Wi-Fi compatible.

Such projections are attracting would-be entrepreneurs to Santa Clara Convention Center this week. One star of show is Sky Dayton, co-founder of Earthlink who is founder and now CEO of Boingo Wireless, company aiming to link independently owned hot spots across the country into seamless network. Dayton is giving afternoon keynote Wed. on “Route to Ubiquity,” common theme at this conference. It’s generally recognized that Wi-Fi won’t have breakthrough impact with consumers until networks can be stretched beyond a 300’ circle, with roaming that users are accustomed to with cellphones. Thurs. session addresses goal of national Wi-Fi footprint, “long viewed as the Holy Grail of public access,” conference agenda comments. Yankee Group analyst Sarah Kim will be among panelists, along with hot spot operator Rick Ehrinspiel, Nextel Vp Ali Tabassi.

Presence of Nextel representative isn’t surprising, as wireless carriers find themselves topic of numerous panels throughout conference. Wed. session on “Roaming Between 802.11 and Cellular Networks” focuses on technological hurdles to that reality, while Thurs. panel, “Melding WLAN and Cellular Networks for Seamless Services,” examines equally important issues of coordinating back-office operations and security protocols. “Friend or Foe” panel on 3G and 802.11 closing conference features representatives of AT&T Labs, Qwest, WorldCom. Among exhibitors are T-Mobile, Deutsche Telekom-owned wireless carrier (formerly VoiceStream) that bought MobileStar’s Wi-Fi assets and now is offering hot spots in Starbucks coffee shops, and Telecom Industry Assn. (TIA). Verizon has stepped into Wi-Fi market, offering for sale Linksys connection devices to its DSL subscribers, while Microsoft Network (MSN) plans to offer hardware deals on Microsoft Wi-Fi equipment.

Other issues at conference: (1) 802.11b operates in unlicensed 2.4-GHz spectrum, while 802.11a (specification that is faster and popular with businesses but not compatible with 802.11b) operates at 5 GHz, also unlicensed. Panel titled “Who Controls the Local Airwaves?” will examine how disputes over interference should be handled. (2) White House Cybersecurity Czar Richard Clarke has been particularly critical of wireless networks from security standpoint. “Homeland Security vs. Wi-Fi” will look at those vulnerabilities in context of White House report on cybersecurity, of which final draft version is due for release in Jan.