Experts say sky limit for Internet clouds -Networking technology could bypass networks of big providers

There’s high-speed Internet in the air.

A technology originally developed to link PCs in small, wireless clusters is
spurring grassroots efforts to create Internet clouds that could eventually
bypass the networks of big telecommunications providers.

By Matthew Fordahl
Associated Press

So far, the greatest buzz over WiFi, or Wireless Fidelity, has surrounded the
sharing of connectivity among neighbors, friends and strangers.

But the inexpensive technology, known scientifically as 802.11b, may be
destined for something much bigger. Users are expanding homegrown
networks with little or no control from the local phone or cable company.

This feels like the Internet from 1994, said Scott Shamp, director of the New
Media Institute at the University of Georgia, which is working with Athens,
Ga., to install a wireless cloud downtown.

Such wireless networks don’t require millions of dollars for digging trenches,
laying cables or building towers. Anyone who wants to be a service provider
only needs a dedicated Internet connection and a $200 access point.

Users pop a $70 card into their desktops or laptops to link to the networks,
usually within a few hundred feet of the access points. Some products even
have built-in transmitter and receiver capabilities, allowing users to grow the
network while they’re online.

Intel Corp., for one, says it plans to build such functionality into chips.

Wireless clouds could support a new generation of technology, from
always-on portable phones and handheld computers to futuristic sensors
that could continually update weather or smog conditions, for instance.

Coverage remains limited today, a far cry from what is offered by cable,
phone and cellular companies. WiFi is still mostly used to provide Internet to
laptops and desktops in homes and offices as well as airports, hotel lobbies and coffee shops.

But advocates say WiFi’s organic growth, low cost and simplicity bodes well for future
development. And while current wireless equipment extends DSL or cable Internet service to
several hundred feet, the range can grow to a dozen miles or more with the addition of a
stronger antenna.

Countless free access points are up and running. Most are advertised on the Web. A group in
London has even proposed marking hotspots with chalk.

So far, these early efforts do not threaten service providers.

But they could eventually spell trouble for the debt-laden telecom industry, which has spent
billions rolling out wired and terrestrial networks, said Nicholas Negroponte, director of the Media
Laboratory at the Massachusetts Institute of Technology.

"The decline you’ve seen in (telecoms industry) market value may not just be some trend that will
bounce back with the rest of the market," Negroponte told a recent Congressional Internet
Caucus Advisory Committee meeting. "It may not bounce back because we’re going to use
telecommunications very differently."

Most of telecoms’ grumbling over WiFi stems from customers publicly sharing their cable or DSL
service.

"We believe that’s theft of service," said Sara Eder, a spokeswoman for AT&T Broadband, which
provides cable modem service.

AT&T is not alone, though enforcement is difficult. SBC Communications recently rewrote its
policies to forbid connection sharing outside the home. Time Warner Cable in New York has sent
out a warning letter to about 10 subscribers who were sharing their connections. Other
providers say they don’t mind if connections are shared, provided it doesn’t diminish speeds for
paying customers.

But it remains to be seen whether grassroots groups can maintain the momentum necessary to
provide free coverage for entire cities or regions, or whether corporations will step in. Already,
reports are circulating about plans by major tech companies to deploy a nationwide network.

Sales of WiFi access cards and base stations are taking off, with sales expected to grow from
$1.9 billion in 2001 to $5.2 billion in 2005 despite price drops, according to research firm Cahners
In-Stat.

The sky is the limit for potential applications, said Shamp, who is preparing to launch the wireless
cloud in Athens later this year.

"We’re designing a sandbox," he said. "We want a place where people can experiment."

In San Francisco, Dan Augustine and Jason Luther started SF Wireless, which has 40 volunteers
working on a project that not only provides free connectivity but has a goal of replacing wired
infrastructure and providing content specific to their neighborhood.

Industry has had no choice but to respond.

Cell phone companies are hedging their bets by adding WiFi capabilities to products.

There is a network that has emerged from the grassroots without a lot of planning, said Andrew
Cole, senior vice president for wireless at the consulting firm Adventis. It answers a highly
marketable need. You should not underestimate it.

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On the Net:

SF Wireless: http://www.sfwireless.net/

Wireless network information: http://www.freenetworks.org

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