News
Issue #2002 - 46 (December 2002)
(Updated Dec. 10, 2002)

TECHNOLOGY

Tech Giants to Build Network of 'Hot Spots'

NEW YORK — A joint venture between technology giant IBM, long-distance carrier AT&T and chipmaker Intel will set up high-speed wireless Internet access "hot spots" in hotels, universities and other buildings in the 50 largest U.S. cities, the companies announced recently. 

Analysts had long hinted at the formation of the new company, called Cometa Networks, during discussions that were leaked under the name Project Rainbow. The company will sell its services to telecom companies, ISPs, cable operators and wireless carriers, who will then sell the high-speed WiFi, or 802.11 Internet access to retail chains, hotels, universities and real-estate firms who want to set up corporate or retail networks. Apax Partners Inc. and 3i Group plc. funded the venture.

Cometa also will sell wholesale WiFi access to telecommunications companies, Internet service providers, cable operators and wireless carriers, who then can resell the service. The service will begin appearing in 2003. 

Cometa will join a growing field of companies offering WiFi networks, including Boingo Wireless, a California start-up launched by Earthlink founder Sky Dayton; cellular carrier T-Mobile, which offers WiFi access in Starbucks shops; and Verizon Communications, which announced it would set up wireless networks for businesses last month. 

Verizon's initiative started in Boston and was expected to move to other cities. 

WiFi uses radio waves to extend the Internet and company networks through the air for short distances — around 300 feet, using current technology — with data transfers at speeds of up to 11 megabits per second, far faster than dial-up connections. 

Access has popped up in cafes, airports and hotels. Some stores offer it free for their customers, others, like Starbucks, charge an access fee. 

Cometa Networks will be headed by Lawrence Brilliant, the former chief executive of broadband-access company SoftNet Systems who stepped down in 2000 because of health concerns. 

"WiFi technology gives mobile workers high-performance productivity tools that help them boost performance and customer service, whenever and wherever they're working," Brilliant said in a statement. 

In addition to many offices, WiFi is already being used by courier companies, auto-assembly plants and even some hospitals. 

For more information: http://www.cometanetworks.com

MobileInfo Comments and Advisory: This is good news for hybrid wireless networks that will stimulate wireless data applications. Entry of IBM and Intel more than legitimizes an already-legitimate field. Enterprise network architects and application developers understand LANs - their potential and weaknesses. The industry is fast solving security issues in wireless LANs. Much has been written about it to expose the problem vividly and clearly. Network security specialists should keep the vigil but need not be obstructionists. VC community has already funded several startups. Let them encourage vendor rationalization by encouraging consolidation among mainstream security vendors and wireless LAN niche startups.

We, the enterprise wireless data IT professionals, need to test these products thoroughly and make them stable. Billing, common user interface and single seamless logon are issues that need more work. The network infrastructure vendors and their customers - the carriers, must now work diligently and with open arms (not grudgingly and reluctantly) towards an end that we call - fait accompli. When you can not win with 3G alone, the best strategy is to join this trend. Carriers, you still have a big role to play in this game of hybrid networks. Nobody is isolating you. Wireless LANs need 3G when users start wandering from their home base.

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.