Still waiting for ubiquitous Wi-Fi to deliver

By CHRIS BARTON

For a technology so full of promise, you have to wonder why Wi-Fi hasn't really delivered. It's cheap, available from multiple vendors, easy to install, and able to quickly send large amounts of data over long distances using open "public park" spectrum. And there's been plenty of time to iron out all the bugs from the wireless standard, also known as 802.11.

The first time I ran into the technology as a serious proposal in New Zealand was in early 1997 when former Microsoft managing director Greg Cross was involved in setting up Tetherless Access New Zealand.

The scheme involved Santa Clara-based TAL Wireless Networks, which had been going since 1993, and a $1 million plan to install a wireless infrastructure (TALNet) in the country's main cities and provincial centres to deliver fast internet and data services.

But by August 1997 the US parent company had gone bust and the scheme shuffled off into high-tech oblivion.

The story has been repeated many times. In November 1999 Auckland company Radionet began providing wireless internet access using the 802.11 standard and 2.4GHz frequencies to Auckland businesses.

It too had plans to expand to other city centres. In February 2000 it was acquired by hospitality company Wilson Neill, which wanted to become a listed tech stock and had big expansion plans into Australia. But then it all went horribly wrong and by late 2001 Wilson Neill had become another tech wreck.

There's a similar sorry story to tell about Savoy Equities subsidiary Safetynet. Even Walker Wireless, the darling of New Zealand's wireless world, was almost brought to its knees by Wi-Fi.

Like Radionet it began in late 1999 selling two-way internet access at speeds from 64Kbps up to 11Mbps using general licence frequencies in the 2.4GHz, 5.8GHz and 900MHz bands.

In July 2000 a who's who of New Zealand business - Stephen Tindall, Craig Heatley and Todd Capital - sank $20 million into the company for a 40 per cent stake.

But by November 2001 things were threatening to go downhill. About a third of its staff were laid off and the company staved off disaster by finding a different wireless technology from US company IPWireless.

One of the latest 802.11 ventures is from Nomad Communications, which in August last year built its RoamAD demonstration network covering 3 sq km of the Auckland central business district.

The company wanted to sell the concept and the technology to telcos to enhance their service offerings. So far no one is buying and from last reports, the company is looking to take its business model overseas.

Another big Wi-Fi punt is Rural Networks, which began work with the South Waikato District Council last September on a $9 million wireless broadband joint venture that aims to bring high-speed internet to 25,000 people.

Latest reports say it's pushing on with the scheme despite missing out on subsidy funding from the Government's Probe project that aims to bring fast internet to every school.

After all these misadventures you have to ask whether this 802.11 technology is jinxed. But despite all the disasters, there are a number of successful commercial Wi-Fi installations.

Whale Watch uses the technology from a hill overlooking Kaikoura to send data to and from its boats and base. During the America's Cup Seanet used the technology to provide fast internet access to visiting yachts.

State-owned networking company BCL has been using it since 2001 to provide fast internet to four Gisborne schools, four in West Auckland and to Tuatapere Area School in Southland.

And Citynet last year created Cafenet allowing notebook users equipped with Wi-Fi cards to log on from anywhere in downtown Wellington. Not to mention the thousands of businesses or home users that are using it to link computers in a network. So if the technology works, why after all this time has it not taken off? Like so many fine technologies, Wi-Fi has been overhyped and it will take another eight to 10 years before it realises its potential.

There are many signs it's beginning to overcome some of its difficulties, such as lax security and problems with interference.

It's also clear that Wi-Fi works best when the frequency is largely uncrowded - such as out to sea or in the country or over small distances in local area networks.

The Government can also help alleviate overcrowding by allocating more public park spectrum.

There are indications, too, from work done by companies such as RoamAD and Rural Networks that with the right configuration Wi-Fi can be used to deliver voice over internet protocol as well as fast data - although we're yet to see such demonstrations running commercially.

We're also beginning to see Wi-Fi aerials incorporated into other mobile and wireless technologies. BCL plans to include the capability in its Airspan AS4020 subscriber units to give customers the option of wireless local area networks.

Walker Wireless has similar plans for its IPWireless equipment, as do a number of mobile phone makers.

Not to mention microprocessor giant Intel, which one day soon will add Wi-Fi radio to its PC chipsets and eventually integrate it on to a corner of its chips.

When that day arrives - and don't hold your breath because it will take a decade - then we might begin to see just what a ubiquitous wireless world is about.

* Email Chris Barton