Readers debate public wireless access

By Keith Shaw
Network World Mobile Computing Newsletter, 11/14/01

I got some great feedback on my newsletter dedicated to public access wireless and the demise of MobileStar (www.nwfusion.com/newsletters/mobile/2001/01083531.html ). I've included some of the comments below.

First off, I wanted to clarify a point. In that newsletter, I stated that "Wireless LAN technology (802.11b) will be ubiquitous in the enterprise." Some readers thought I was making the argument that wireless LANs would take over for wired LANs, which wasn't my intention. What I meant was that in the wireless LAN world, 802.11b would be ubiquitous in the enterprise (as opposed to other wireless LAN technologies).

Where it's a case of wired vs. wireless, obviously wired wins in existing situations. Wireless LANs will be used in situations where wires can't be placed (or where it's too expensive), or in new building situations. But I don't believe that large companies are going to rip up all of their Category 5 cabling just to go wireless. Now, on to some other comments.

One reader points out that the wireless technology a user chooses depends on the application desired. For smaller bandwidth-intensive applications (such as e-mail or instant messaging), General Packet Radio Service and Code Division Multiple Access 1XRTT networks would be great solutions.

"Per K-byte charges won't really stack up checking e-mail on a PDA, " he says. " 802.11b comes in when more serious data applications are used."

He adds that wireless ISPs will install service in "hot spots" that will allow data-intensive applications using 802.11b and 802.11a.

"I think this will force would-be 3G providers to re-examine their pricing strategy. No market, geek or non-geek, will go for per K-byte charges for services that don't easily lend themselves to account tracking. Talking on the phone and getting charged per minute is easy to remember. But when surfing on a broadband (say 384K bit/sec) wireless connection, hundreds of dollars could be spent in a couple of minutes, without the user even noticing. Users will never go for this. I think the attractiveness of the alternative of wireless ISPs using 802.11b in ‘hot spots' will leave 3G providers with big, overbuilt networks and only marginal revenue because users will only revert to their service for narrowband applications like e-mail and IM while on the road."

Another reader chimed on the thought that hotels would adopt high-speed Internet connections in rooms. "Surely you don't think a hotel is going to make 10M bit/sec data cheaper than a phone call, do you? Heck no, " he says. " It's a 'revenue opportunity.' "

Well, yes, I don't think it will be cheaper, but I think travelers will be more likely to pay a $10 fee per night for unlimited access as opposed to $1 per local phone call (and in some cases, per minute charges if you go over 30 minutes per call).

And finally, one reader wrote in with a great idea. "I think MobileStar had a good idea for making money, but I don't think people will pay for it unless everyone everywhere had MobileStar access points. (Instead), businesses should offer this service to their customers for free in trade for their business! As an option, the business could charge a minimal fee for the service, or maybe only charge for access greater than some number of bits per second. Public access points will be common also, as groups in cities such as Seattle set up access points (for more information, see www.guerrilla.net )."

I love that idea. Buy a grande mocha latte and get free wireless data service for 30 minutes! Maybe businesses thinking about setting up these access points shouldn't worry so much about getting the extra revenue as much as keeping customers loyal and in the store. I mean, if you are sitting in a Starbucks and accessing e-mail or surfing the Web, wouldn't you buy more coffee? Or would too many people try to take advantage of that offer and just sit there without buying anything? Maybe Starbucks could set up a "3-coffee minimum" before providing access to the wireless LAN.

There are tons of issues related to public wireless access, and I plan to explore at least some of them in future newsletters. If you've got some comments on anything in the mobile computing world, send me an e-mail at kshaw@nww.com