InformationWeek
Defining The Business Value Of Technology
By Jason Levitt
elevision cable systems? xDSL? ISDN? Plain Old Telephone system? None of these technologies was designed to provide Internet access, but with their heavily wired infrastructure in place, they've become the quickest -- and cheapest -- ways to connect to the Internet. But if up-and-coming ISPs such as Nobell Communications (www.nobell.com) have their way, more users will start thinking about wireless alternatives. "All of these other Internet-access technologies, with the exception of fiber, are pushing the limits of their ability to deliver high-speed bandwidth," says Nobell president Bert Johansen. "We're at the beginning of our capability, and we'll be considerably expanding bandwidth in the coming years."For business users, power users, and telecommuters, this Austin, Texas, startup offers up to 3-Mbps wireless Internet access (both upstream and downstream) with one static IP address for $195 a month. That's not too shabby for an ISP with 11 employees and a coverage area of about a quarter of the city. It expects to have all of Austin covered in six months and then expand to other cities.
Nobell Communications (as in "No Bell telephone company necessary") won't be threatening the Time-Warners and Concentrics of the ISP business anytime soon, but the company is definitely on to something. The costs for wireless radio-frequency equipment are dropping and standards are in place. Additionally, the FCC recently changed the rules that have kept wireless communication companies such as TV stations from getting into the Internet-access business. Television stations can now offer wireless, two-way Internet access to homes and businesses. And -- need I say it? -- you don't have to wait for fiber to be laid.
New Old Stuff
Many companies with wireless LANs already know the benefits of not having to lay new cable or modify buildings for networking. There are no busy signals, no phone lines -- nothing to rot or get cut. Instead, there is another set of problems. Interference from other devices (both wired and wireless), such as microwave ovens, can upset the signal. Even atmospheric disturbances, such as severe thunderstorms, can cause service problems. And, of course, the connection relies on antennas, which must be functioning properly, situated on the roofs of buildings.
Just as in the cell-phone business, rooftop real estate is what these wireless pioneers value the most. Nobell customers need to be within two miles of an antenna and situate their antenna roughly within line of sight. Nobell transmits in the 2.4-GHz, unlicensed ISM (Industrial, Scientific, Medical) frequency using equipment that adheres to the IEEE 802.11 standard for wireless networks (http://grouper.ieee.org/groups/802/11/main.html).
Competition In The Air
Wireless Internet-access technology is nothing new. Various companies have offered wireless Internet access for some time, including Metricom (www.metricom.com), with its Ricochet wireless modems. Although Ricochet is easy to use and coverage has expanded to the San Francisco Bay area, Seattle, and Washington, D.C., access speed is only about the same as a 28.8 modem. For casual Internet users who need full mobility (both indoors and outdoors) in those areas, it's a good deal, starting at $30 a month, but it's hard to be seriously productive at those speeds.
Metricom is building a new infrastructure, though, and it's based on the same 2.4-GHz frequency used by Nobell and others. While Metricom likes the concept of using 2.4-GHz frequency for Internet access, the company feels using the frequency would compromise the mobility of its existing user base. "They will not get indoor coverage off of their base stations," Bob Friday, system design engineer for Metricom, says about ISPs that might make mobility claims for the 2.4-GHz spectrum. Instead, Metricom will be using 2.4 GHz for their backhaul infrastructure and continue to use 900 MHz for their user base stations. "While wireless local loop access is a viable business, you have to deal with interference issues in that frequency," says Friday. "Inherently, the faster you go, the less resistance to interference you have." Metricom hopes to offer ISDN speeds (128 Kbps) to its users and greatly expand its coverage across the United States, though it may be late next year before the company will roll out the new service.
Familiar Services
With wired services dominating our Internet-access landscape, it's easy to forget that users are most familiar with wireless data access. Television and radio were around long before computer networks became fashionable, and, more recently, cellular phones and pagers have attracted millions of users.
Still, wireless technology won't be replacing the bulk of wired access methods, but, as the prices for wireless products drop, it will become more attractive to business and consumer users who want high speed without having to mess with their wired infrastructure. Nobell's Johansen sees the market moving quickly in his favor. "What we're using today will be obsolete in a year," he says, "and what we use a year from now will be obsolete a year after that."
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