TechShowWiFi

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WIRELESS HOT SPOTS: HOW THEY WORK AND HOW THEY MAKE MONEY? Les Seagraves, EarthLink, Inc.

WIRELESS HOT SPOTS OUTLINE: 

WIRELESS HOT SPOTS OUTLINE Introduction to Wireless Networks Wi-fi 101 How do they work? Why does Wi-Fi matter? Where is it? How to make money? Closing: Pringles and Security

Wireless Network (WLAN): 

Wireless Network (WLAN) Multiple mobile broadband connections to the internet Dominant Usage - laptops configured with PC cards Dominant industries - education, healthcare, government, and manufacturing

Wireless Network (WLAN) Benefits: 

Wireless Network (WLAN) Benefits Business Benefits reduce the cost of space planning and preparation, "moves, adds, and changes," equipment and peripheral upgrades short-range mobility on laptop and PDA users wearable computing, laser-based data and image capture devices User Benefits convenience -  no cabling required mobility/portability ease of setup flexibility - anywhere, anytime productivity - time and cost savings maintenance - easier adds, moves and changes

Case Study - Microsoft WLAN: 

Case Study - Microsoft WLAN Microsoft has about 3,000 wireless access points in its Redmond campus and branch offices. It is estimated that 7,000 employees are using wireless LAN cards in their laptops, a number that is expected to grow to 20,000. Employees can get high-speed access to the Internet and corporate intranet anywhere within the Microsoft campus—a capability that Microsoft believes will yield a 30-minute productivity gain per employee per day. Results like these are expected to fuel the growing demand for wireless LANs. ~ E-Business Strategies (www.ebstrategy.com)

WLAN problems: 

WLAN problems speed/throughput security range security reception/interference security dead spots and reliability security

Types of WLANs: 

Types of WLANs *These devices and cards operate in 802.11b mode, with a maximum throughput of 11MBps. ~ www.jiwire.com

Wi-Fi 101: 

Wi-Fi 101 HOT SPOT = open wireless network connected to the internet Technology = Wi-Fi (802.11b – IEEE wireless LAN standard) = 2.4GHz – (cordless phones, baby monitors, microwave ovens, security radios) = 300-500 feet = 11Mbs (DSL 1.5Mbs) Wi-Fi = Wireless Fidelity - registered trademark of the Wireless Alliance (100+ companies - Cisco, 3Com, Nokia, et al.)

How does Wi-Fi work?: 

How does Wi-Fi work? Broadband internet connection Signals are sent from a transmitting antenna Users receive the signal with the aid of a credit card-size receiver that usually has an attached antenna

Why do Wi-Fi hot spots matter?: 

Why do Wi-Fi hot spots matter? Mobile society – 25% U.S. Workforce is mobile = 40 Million people Wi-Fi is cheap and fast $1900 in 1997 to about $70 today 11 Mbps Wi-Fi is not based on proprietary technology – standards based Major vendors are backing Wi-Fi (Intel) Wi-Fi network security has been greatly improved (?!?!?!)

Where is Wi-Fi?: 

Where is Wi-Fi? Every major city Airports, cafes, and parks Small businesses and homes Large companies and colleges

Cool examples: 

Cool examples 150 NYC Phone booths - Verizon Gas stations – downlaod email while you gas up Convenience stores – see gas Grocery Stores with scanners – no check out

Wi-Fi Atlanta: 

Wi-Fi Atlanta Ranked No. 16 in wireless accessibility 320 wireless hot spots in greater Atlanta, including about 120 free/“public” Airport has at least 11 hot spots (ranked 3rd)

Wi-Fi in Atlanta: 

Wi-Fi in Atlanta

Finding Hot Spots: 

Finding Hot Spots

Finding Hot Spots: 

Finding Hot Spots

How to run a hot spot: 

How to run a hot spot Have to deliver: Easy part (cheap) The service Hard part (expensive) - business and operational support - network operations - billing and settlements processing - help desk support for end users

How to Make Money? – provide service: 

How to Make Money? – provide service Service Providers - ISPs (EarthLink, Sprint, BT) - Access fees (day, month, year) - Home networking - Aggregators (Boingo) - Connect users to many services - “Out of Box” Providers (Airpath) - Run your own Hot spot

How to make money ? - entice customers: 

How to make money ? - entice customers Starbucks Mobile work station, leisure UPS stores Home away from home office Kinkos Document management

Revenue Models: 

Revenue Models Monthly Subscription Service Individuals, corporations, educational institutions and federal, state and local governments for internet or secure intranet access Pay Per Use Downloads of information and entertainment, or purchase of internet time. Consumer entertainment company offering music, video, games. Local real estate agents Premium Surcharge For Wireless Subscribers Enhanced connection speeds for heavy data users Mobile operators, PDA vendors offering wireless connectivity, Paging networks Advertising-Supported Downloads Access points to attract public to promotional displays or retail stores Maps for free download at airports with local business advertising; access points on billboards or in shopping malls Free to users (company-wide or home infrastructure) intra-firewall use for all mobile employees on a campus. Home usage with a Set-top box acting as a Wi-Fi gateway; Conference/Meeting rooms/Classrooms;

Location v. Revenue: 

Location v. Revenue

Future Indicators: 

Future Indicators Currently 15,000+ hot spots in US Windows XP has built in search Intel's Centrino chip - 80% of new laptops; 50% will include wireless LAN (24 million laptops) Most new “devices” have Wi-Fi capability – PDAs, cell phones, games

More trends: 

More trends Wi-Fi users will outnumber cellular data users by 2007 Worldwide Wi-Fi users will number 707 million by 2008 (Currently about 40 million) Reaching critical mass faster than dial up (100,000 hot spots = key number) Prices continue to fall (good/bad?) Revenue per user will drop from around $30 a month this year to $3 a month in five years

Chip costs plummeting: 

Chip costs plummeting Prices for New Wi-Fi chips on average: 2003 – $16.42 2004 - $8.20 Older 802.11b chips: 2003 - $16.06 2004 - $6.61 Faster 802.11g: 2003 - $18 2004 - $9.68

SoHo Market and Wi-Fi: 

SoHo Market and Wi-Fi

Cantenna!: 

Cantenna! Increase Wi-Fi range to 1 mile!

Conclusion: 

Conclusion - Wi-Fi = cool and cheap but hard to make money unless you get lucky providing a service Best bet is that it is a marketing cost that may pay for itself VOIP could be “killer ap” - Get in the security or litigation business