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Technology Stocks : Proxim (PROX) - wireless networking products

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To: assetlogic who wrote (346)2/12/2002 1:01:13 PM
From: tech101  Read Replies (1) of 366
 
Not part of the cable and DSL boom?

nwfusion.com

If you're out of range, alternative broadband technologies offer a small ray of hope.

By Michael Martin
Network World, 02/11/02

High-speed cable and DSL connections have been a godsend to small office/home office networks and teleworkers across the U.S., but unfortunately not everyone has access to a cable or DSL connection.

A variety of wireless alternatives exist for the cable and DSL-deprived, but their availability is spotty, and the technology behind the alternatives is often less proven than the relatively new cable and DSL products.

However, early last year, it seemed as if fixed wireless might provide a palatable alternative to cable and DSL in price and performance. In residential areas, fixed wireless works by transmitting data at rates similar to cable and DSL between a dish located at a subscriber's home and a nearby transmission tower. In multitenant buildings, service providers position transmission dishes on the tops of buildings and connected tenants to the dish through wires.

With the backing of Sprint, AT&T and WorldCom, as well as many smaller regional providers, the future of fixed wireless looked bright. But late last year, those big names announced they were scaling back their plans, and some smaller providers have run into financial difficulty.

Another wireless method providers are using is the 802.11b wireless LAN standard. So far, providers such as Wayport and MobileStar have focused on two markets for 802.11b as a broadband tool.

The first is the multitenant building. "If you have a large building it makes sense to get a high-speed land line in there and then connect the tenants to the Internet through 802.11b devices," says Joe Laszlo, an analyst with Jupiter Media Metrix.

The second area 802.11b providers are targeting is the mobile user market, through deployments in places such as airport lounges and coffee houses.

Groups such as the Bay Area Wireless User Group in San Francisco and NYCwireless in New York are also setting up open 802.11b networks that can be used by the public to get mobile Internet access and bring broadband connections to areas that might not otherwise gain fast access.

One drawback is that 802.11b transmissions can be easily intercepted and should be encrypted for security.

The 802.11b standard isn't the only mobile wireless broadband access method available. Providers can also use radio technology to provide service to customers on the move.

The now bankrupt Metricom used a microcellular data network in the unlicensed bandwidth spectrum. Using its Ricochet service, subscribers get speeds of 128K to 175K bit/sec, through a desktop modem or PC modem card.

Aerie Networks purchased the assets of bankrupt Metricom last November and is betting that Ricochet can be a success. Aerie hopes to restart Ricochet service in several markets this year, at about half of what Ricochet originally cost, putting it in line with cable and DSL pricing.

"The service could compete with cable or DSL, or it could just be a complement," says Emilie Kelly, Aerie's senior vice president of marketing.

For broadband seekers in rural locales, satellite service from a provider is an option. There are several drawbacks to satellite service, though. For starters, it's expensive - about $400 in initial hardware costs, $200 for installation and a monthly fee starting at $60 per month.

Satellite service can provide cable- and DSL-like speeds, but there is more latency because the data has to be bounced up to a satellite and then back down to Earth. The satellite signal can also be affected by poor weather, a badly aligned satellite dish on the customer side, or by interference from other wireless signals. Because of the latency, satellite broadband won't work well for applications that require a constant connection.

"But it's still better than dial-up," Laszlo notes.
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