Wireless Fidelity: Wi-Fi

Agenda
History of Wireless Internet
 Standards
 Evolution
 Where we are today
 Future of wireless
Developing Nations – shrinking the digital
divide
Barriers to expansion of wireless access
 What is Wireless Fidelity?

A local area network that uses high

frequency radio signals to transmit and
receive data over distances of a few
hundred feet; uses ethernet protocol

www.dictionary.com
 History of Wi-Fi
1985 – FCC opens up “garbage bands” for
communication purposes without need for government
licenses
1988 – Institute of Electrical and Electronics Engineers
(IEEE) setup a committee called 802.3 and defined
Ethernet standard (later setup 802.11 committee)
1999/2000 – 802.11b and 802.11a standards were
ratified
Wireless Ethernet Compatibility Alliance (WECA) formed
by Intersil, 3Com, Nokia, Aironet, and Lucent
1999 – Apple computers teamed with Lucent to add
wireless slot to all laptops (named Airport)
 Role of Standards
802.11b – operates in 2.4
GHz band; speeds up to
11 mbps
802.11a – operates in 5.6
GHz band; speeds up to
54 mbps
802.11g – operates in 2.4
GHz band; speeds up to
54 mbps
Typical range is 50
meters, based on location
and obstacles
 Evolution and Expansion
Wi-Fi has mostly grown
as a convenience to
homes
Yet to be fully adopted by
businesses, but it is
estimated that by 2007,
50% of all businesses will
have wireless network
capabilities
“Hotspots” are popping
up all over major cities,
some priced and some
free
 Estimated 180K+ by 2007
 WiMax
Newest version of 802 series, 802.16 standard is
being touted as the next generation of wireless
internet access
Unlike current wireless access ranges, WiMax is
claiming to have ranges of up to 30 miles with
broadband speeds
Current standard is set for only fixed point
access
802.16e is being developed as WiMax’s roaming
counterpart and has the potential to threaten the
cellular carriers
 WiMax Companies
Company Price Market Cap Comment
Intel (INTC) 20.85 $134 bil Intel is the biggest pushing WiMax just as it did Wi-Fi. Will all
laptops eventually be WiMax-ready?
Alvarion (ALVR) 13.49 $695 bil Tel Aviv company is the leading supplier of wireless broadband
equipment. Obvious acquisition bait.
Airspan (AIRN) 6 $222 mil Boca Raton, Fla. firm, a leading maker of broadband wireless
gear; takeover target.
Nextel (NXTL) 24.61 $27 bil Maverick cellular carrier conducting broadband wireless test in
Raleigh-Durham, N.C., area.
Covad (COVD.OB) 1.69 $440 mil DSL provider conducting low-key trials in Bay Area for business
customers.
Proxim (PROX) 0.83 $103 mil Struggling wireless-equipment maker to work with Intel to
develop WiMax equipment.
Alcatel(ALA) 12.29 $16 bil Telecom equipment giant in strategic pact with Intel to deliver
WiMax gear by second half 2005.
Clearwire (private) n/a n/a Craig McCaw-funded start-up recently started wireless
broadband service in Jacksonville, Fla.
Aperto (private) n/a n/a Milpitas, Calif., startup has $77 million in venture capital. France
Telecom among customers.
 Future Uses
Cellular Substitute
 Wireless VOIP
 Switch from cellular
service to locally
owned PBX
WiMedia (802.15.3)
Wireless Municipals
Bridging the Digital
Divide
 What is the Digital Divide?
The continued separation between
the industrialized nations and
developing nations concerning
technology and access to internet
based services
US
 More computers than rest of world
 80% of websites are in English
 58% of homes have internet
 PC can be purchased with typical
one month salary
Developing Nations
 Bangladeshi would take 8 years
worth of salary to purchase PC
 19/20 people have never used
Internet
 Half the world’s population have
never used a telephone
Role of IT in Development of Nations
Adding Communications Capabilities
 Increase educational opportunities
 Agricultural Development
Weather forecasts
Pricing of crops to market
 Quality of life improvements
Summon Help
Research disease and illness
Communicate with family members
Role of IT in Development of Nations

“The world's poorest

two billion people
desperately need
health care right now,
not laptops”
- Bill Gates
 “Last Mile” Solution
WiMax – could be solution to overcome
infrastructural problems in the “last mile”
 Half the cost of a wired connection
 Could provide more than just internet, but voice
communication as well (VOIP)
Hardware costs could become inhibitor for
WiMax solutions
Must meet balancing act between basic needs of
developing nations and need for information
technology
 Barriers to Wi-Fi
Security Concerns
 Much easier to tap into wireless connection than
wired
Connectivity
 Range and placement of wireless access points
 Line of Sight
Regulation of Wi-Fi
 Domestically and Internationally
 Licensing of airspace
 Barriers (cont’d)
Little to no return
 Market for wireless technology is not large
enough to produce sizable profits
 Access points are difficult to find and
expensive to use
Telecommunications Companies Push
Back
 Expansion of WiMax could have significant
influence on Telecoms profits