Maximum Wi-Fi

All the industry analysts are calling the demise of Wi-Fi venture Cometa Networks proof that public Wi-Fi has no commercial future. That may be overstating the facts a bit, but I do think the development is further evidence that there is no strong business case for telecom service providers to get involved in Wi-Fi.

The capabilities of Wi-Fi and its implications for high-speed Internet access are obvious. The technology has forever changed how people access the Web--from their offices, their homes, a park, Starbucks and beyond. But Wi-Fi was conceived as a way of essentially extending broadband wirelessly without additional cost, except the one-time investment for the equipment. That's a model that works great for enterprises and residential self-deployment, but for a service-oriented sector like telecom that's looking for ways to add revenue from new services, it just isn't a great fit.

What broadband wireless technology might be? WiMAX. It's becoming increasingly clear that this platform--which has a potential reach of more than 30 miles and a theoretical capacity that some estimate could be as high as 70 Mb/s--could revolutionize the wireless last mile. WiMAX could have the capability to wirelessly extend broadband networks and services to enterprise locations, provide inexpensive backhaul options for mobile networks and possibly even take fiber traffic from a residential neighborhood node all the way into the customer premises. Also--and most important--WiMAX is reportedly on an evolutionary path toward mobility.

The developers and backers of WiMAX have much still to prove out, including a complex standardization process that will mean everything to the cost-effectiveness of the technology and its chances for mass deployment. But given what the sector has demonstrated so far, it's a relatively safe bet that WiMAX has the potential to play the role in service provider networks Wi-Fi could never land.

E-mail me at jmeyers@primediabusiness.com.