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Editor's Perspective
Verizon's value judgement
By Dan O'Shea
May 13, 2003
A telco has spoken. Now what?
Verizon today announced that it would build 1000 Wi-Fi hot spots in New York City this year, from which it will offer free broadband access to Verizon DSL customers while they are on the move in Gotham.
The incumbent local exchange carrier already has activated 150 such hot spots built onto existing Verizon public payphones in the city, and should have another 350 ready by this summer.
But, getting back to the key points--and the key issues of concern--for the Wi-Fi market, the service is free, and it's exclusive. The telco could have gotten into Wi-Fi a number of ways, among them following the service and price model established by other operators such as
Wayport and the partnership of
T-Mobile and
Starbucks.
But, Verizon made a value judgment, and its judgment is that there is no value in offering Wi-Fi access as a separate service. It's merely an additional convenience being allotted to an existing group of customers.
Will this cause a shake-up in the public Wi-Fi market? Will Verizon's decision not to work with a Wi-Fi aggregator mitigate the prospects of such firms? And anyway, how much crossover is there between Verizon DSL customers in New York City and the users of Starbuck's hot spots throughout the city?
These are just a few of the questions this announcement raises, and none of the answers are obvious. What is certain is that a long-awaited event has happened: A big telco is using Wi-Fi in a big way, and the market will change one way or another because of that.
E-mail me at doshea@primediabusiness.com.
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Top News
fastmobile makes speedy debut
By Dan O'Shea
May 12, 2003
While several wireless carriers mull over trials of push-to-talk service and potential commercial plans,
fastmobile, an instant communications start-up, is launching PTT and other services for U.S. customers this week.
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Pronto lends OSS to Alvarion system
By Dan O'Shea
May 12, 2003
Wi-Fi hot spot OSS developer
Pronto Networks said this week it is providing the control and management functions behind
Alvarion's new public hot spot access system, which was formally unveiled about two months ago.
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GPRS coverage growing in U.S.
By Dan O'Shea
May 12, 2003
Carriers' confidence in GPRS and their data prospects are beginning to drive expansion plans, as exemplified in announcements made by
T-Mobile USA and
AT&T Wireless Services.
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MNS helps carriers' Wi-Fi aims
By Dan O'Shea
May 12, 2003
Mobility Network Systems is announcing a Wi-Fi hardware/software product suite this week that gives carriers some flexibility in how they enter the confusing public hot spot market.
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Deal of the Week
Sale steers PCTEL toward wireless
May 12, 2003
Seeing a high-growth opportunity for its Wi-Fi client software,
PCTEL has agreed to sell its soft modem business to
Conexant Systems.
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Newsletter Archives
Click on the links below to view the last five issues of Telephony's Wireless
& Wi-Fi Weekly on the Web.
May 6, 2003
April 29,
2003
April 22,
2003
April 15,
2003
April 8,
2003
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