WiFi

1
Industry Analyst Briefing Deck
May, 2003
802.11a
WiFi 3G CDMA
Hot Spot
Cordless Internet
802.11b
PWLAN
802.11g
2
Covering QUALCOMMs Campus with WiFi

• QUALCOMM believes in 802.11 for the enterprise
  home environments
• QUALCOMM has spent over 300,000 "full up costs"
  for the access points covering our common areas
  and meeting rooms
• 200 Access Point's represent in one mid size
  company in a restricted area campus an equivalent
  of 20 of Boingo's sites nationwide
• Access point installation currently costs about
  1,500, at around 500 per an access point and
  approximately 1,000 in installation expenses.
• - Cometa, May, 2003

Source QUALCOMM IT
3
Public WiFi Service Limitations

• Data speeds
• Limited by backhaul and multiple access
  scalability
• 11 Mbps becomes irrelevant when connecting
  through a T1/E1 (1.5 Mbps), DSL or cable modem
  (300 500 kbps)
• Hotspot coverage
• Very limited
• Predicated on travel to compute model
• Backhaul costs
• Landlord fees/revenue sharing
• Perceptions of ultra-low service fees are
  incorrect
• Hotel room phone example
• CTIA IT show / T-Mobile example
• Billing issues
• WiFi roaming is in its infancy, need for multiple
  subscriptions
• Barriers to entry are few
• Java Joes can provide free access next door to
  a Starbucks/T-Mobile

4
Mainstream Users Expect Ubiquitous Coverage

• A single 802.11 access point covers roughly
  25,000 square feet
• One or more APs consists of a WLAN hotspot
• A single suburban 3G cellsite covers roughly
  750,000,000 square feet

Number of public WiFi access points (est.)
By 2006, estimated U.S. public WLAN access points
will cover an area roughly equaling 3.5 cell
sites
Source Gartner Dataquest 2002,
5
T-Mobile/Starbucks averages 1 user / day /
hotspotat 46 minutes each session
Limited to Backhaul T1/E1 (1.5 Mbps)
Usage required to break even on just the T1
access lines 90 users per AP! T1s are expensive!
Source Strategy Analytics, October 2002
6
Cisco Starbucks FinderSource
lthttp//www.cisco.com/warp/public/779/smbiz/cmo/ya
hoo/index.htmlgt

• New York City
• 96 Total Hot Spots
• 20 Wireline Locations
• 20 Landline Ethernet Hotels
• 5 Wireless Locations (non-café)
• 3 Admirals Clubs
• 2 WiFi Hotel Lobbies
• 71 Starbucks

• San Francisco
• 86 Total Hot Spots
• 15 Wireline locations
• 15 Landline Ethernet Hotels
• 3 Wireless Locations (non-café)
• 1 Admirals Club
• 1 WiFi Hotel Lobby
• 1 Restaurant
• 68 Starbucks

4 of these sites are Wireless and not owned by
Starbucks
Are coffee shops the optimal place to work? What
if you dont get a seat
100 of the Hot Spots in Both Cities are
Covered by CDMA2000
7
http//www.verizonwireless.com/express_network/ind
ex.html
8
Will P-WLAN services go the way of the pay phone?
Recent CTIA Trade Show (3/03, New Orleans)
Hotspots offer a beacon of access today. What
happens when cellular data pricing plans are
lowered and data rates increased?
Since cellular phones are now widely used and
pricing plans include large bundles of minutes,
payphones are less popular
9
History Lessons for Wireless Networks

• Rabbit phone service Subscribers to the service,
  backed by Hutchison Whampoa, could make mobile
  calls when they were within 100 metres of a
  Rabbit transmitter.
• WiFi as a business? Adam Zawel, Yankee Group -
  "The business models are still uncertain," he
  said. "That's why we've seen some early failures.
  It's an uncertain opportunity.
• But if the history of Rabbit and its peers is any
  guide, location-specific services may prove
  unpopular.

Source http//news.bbc.co.uk/1/hi/technology/2175
804.stm