News
Issue #2002 - 47 (December 2002)
(Updated Dec. 22, 2002)

MARKET OUTLOOK & TRENDS

1. 2002 Called Landmark Year for Wi-Fi

This year could be remembered as the time that Wi-Fi wireless networking technology moved from relative obscurity to a popular technology backed by industry giants. It moved from making news earlier in the year for being banned by Lawrence Livermore National Laboratory for its security vulnerabilities, to the controversial spread of war chalking to mark the locations of open networks. Some Internet service providers (ISPs) contacted customers who had set up Wi-Fi networks informing them that sharing the ISP Internet connection with non-subscribers violated terms of use policies. Other ISPs welcomed the Wi-Fi networks. T-Mobile USA this year launched the service in 1,200 Starbucks coffee houses and, late in the year, announced that it would offer similar service at Borders Books and Music. This entry of for profit Wi-Fi networks set up duels with technology enthusiasts and community activists who think that the relatively inexpensive, high-speed wireless access service should be offered for free. Now as 2002 closes, Intel, IBM, AT&T and two venture capital firms announced Cometa Networks, which plans to spread Wi-Fi technology to the 50 largest markets in the U.S. Wi-Fi is moving from a phenomenon found in tech centers such as San Diego, Seattle and New York, to homes, apartment buildings and university campuses across the country. Even more technologically cautious communities like Charlotte, N.C. are seeing the emergence of Wi-Fi use. 

Source: CTIA News service based on coverage in Seattle Times, Washington Times, Charlotte Observer, North Carolina) 


2. In-Stat MDR Calls 2002 Stellar Year for Hotspot Market
With the worldwide footprint growing from under 2,000 locations to over 12,000 locations, 2002 was an extraordinary year for the hotspot market, according to In-Stat/MDR. The high-tech market research firm projects that, in most regions, growth in the deployment of the wireless local area network access points will continue to be steady in the coming year, however, in later years growth rates will decline, as the market becomes more mature. Much of the growth in 2003 will result from carriers and other large players entering the hotspot market. Several European providers are expected to become more active in the hotspot market in 2003, and the providers in the Asia Pacific region will continue to demonstrate a high level of interest. The North American market will be largely affected by the realization of the Project Rainbow rumors, with the recent announcement of AT&T, IBM and Intel backed Cometa Networks. While deployment levels in 2002 were higher than In-Stat/MDR anticipated at the onset of the year, they are significantly lower than what providers were predicting as of mid-year 2002. In the U.S., network aggregator Boingo initially expected between 2,000 and 5,000 locations by end of year, but as of November 2002 they had less than 1,000 locations in their portfolio. Even in Korea, which comprised the vast majority of the 2002 growth, target deployment levels were not met. (Source: 802.11 Planet) 

For more information: http://www.wow-com.com and http://www.instat.com 

MobileInfo Comments and Advisory: There has been more than adequate coverage in the trade press as well as in the business pages of mainstream newspapers on WiFi and hot spots. This is a technology trend that nobody including the vested interests of telecommunications industry would be able to fight. Just the need to for ubiquitous access to the Internet, low cost of required hardware, ease-of-installation and compatibility with huge wire-line infrastructure are factors that outweigh inherent problems of security. Security problem is being addressed aggressively and will be resolved in 2003

Our advice to telecom carriers is - speed up your adoption. You will not win with 3G alone, therefore join the trend. There is an opportunity to make money with this.

Our advice to enterprise IT professionals is - go ahead with WLAN deployment inside and outside (hot spots). Simply use good technology and business practices for safeguarding information that needs to be secured. Do not expect VoIP on WLANs too soon - keep your cell phones for a bit longer. To IT security professionals, please try to understand the risks and use available technology (Bluesocket, Reefedge, Air Defense and others) to address the problem. Being an obstructionist and creating scare is not such a good policy except in few selected situations like public safety. 

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.