What's holding back Wi-Fi?

Wi-Fi was on a roll. The IEEE with its 802.11b standard managed to leap ahead of the likes of HyperLAN and Bluetooth to establish itself as the wireless technology of choice. Suddenly we found ourselves in Starbucks sipping cappuccinos and surfing the Net. It seemed as if nothing could stop the relentless charge of Wi-Fi, as airports, hotels, coffee bars and even home-users grasped the no-wires concept.

But following the initial burst of hype and furious marketing, Wi-Fi's momentum seems to have plateaued, particularly with public-domain hot spots. Costs are high and, when weighed against the limited coverage, monthly and annual subscriptions (£85 a month for unlimited BT Openzone account) are difficult for businesses -- let alone general consumers -- to justify. It's no surprise that the business community is sitting back and trying to weigh options, which later this year will also include 3G services, and who can blame them?

Dismal adoption rates
There are a number of issues with Wi-Fi in the public domain that need addressing before corporates start to take the technology seriously for a roaming field force, says Richard Dineen, research director for UK analyst Ovum. "Costs, coverage, inflexible price plans and lack of national roaming have all lead to the dismal adoption rates of WiFi among corporate businesses," he comments, adding that the promises of 3G are also confuse the issue.

"3G pricing will be at or below existing Wi-Fi public hotspot subscriptions but at launch the operators claim they will have a 30 per cent coverage, therefore there is immediately, in theory at least, more value for money, and users are not restricted to hotels and airports," adds Dineen.

3G services
Wi-Fi roaming company Boingo acknowledges that cost is still major inhibitor. Tracy Allard, Boingo’s director of European Carrier sales believes that while there is "excitement surrounding Wi-Fi in Europe," and that the company is "optimistic about the market's development," the cost of service "is a significant factor in holding up increased usage of Wi-Fi," she says. "The cost in Europe is roughly five times the cost in the US and this high price may be slowing mass adoption."

It's not as if businesses are not interested. Research by Toshiba and the Institute of Directors (IoD) last month found that 50 per cent of UK businesses surveyed are planning to invest in wireless technology during the next 12 months, although just 21 per cent have a formal wireless strategy. So while the will is there, the commitment is stalling and the expected execution would appear to be haphazard to say the least. This is being bred by confusion due in part to a number of mixed messages being dished out about Wi-Fi and the potential overlap with 3G-enabled mobile networks.