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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 159.42-1.2%Jan 16 9:30 AM EST

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To: foundation who wrote (30167)12/17/2002 7:06:51 PM
From: foundation  Read Replies (3) of 197246
 
Wi-Fi Industry May Face Setback

By Kenneth Li
Senior Writer
12/17/2002 05:25 PM EST


Defense officials reportedly are seeking to place restrictions on the Wi-Fi industry, due to possible interference between wireless signals and military radar.

Wi-Fi, or wireless fidelity, which lets home users connect a range of devices without cords to the Internet, is seen as one of the few potential growth spots in an otherwise depressed semiconductor and communications-equipment industry. But defense officials reportedly are looking to curtail Wi-Fi technology, saying in-home wireless transmitters may interfere with wireless signals employed by military radar, hence undermining national security, according to a New York Times report.

Fearing the potential long-term impact of such a move, technology companies including Microsoft (MSFT:Nasdaq - news - commentary - research - analysis) and Intel (INTC:Nasdaq - news - commentary - research - analysis) met with Department of Defense officials last week to discuss the problem, according to the Times report.

Specifically, the Pentagon is urging the FCC to delay a plan to make more airwaves available for a range of devices including cordless phones and Wi-Fi gear in homes, cafes and retail outlets. Last month, Sen. Barbara Boxer (D., Calif.) and Sen. George Allen (R., Va.) said they planned to introduce a bill to help spur the rollout of Wi-Fi connections.

FCC and Defense Department official didn't return calls seeking comment.

Last week, the FCC chairman, Michael Powell, and the National Telecommunications and Information Association administrator, Nancy Victory, met to coordinate efforts to discuss spectrum-conflict issues among wireless concerns.

"The Department of Defense understands that spectrum is a vital national resource and that defense needs must be balanced with other national needs, such as economic concerns," said Victory. "The Department of Commerce will continue to work closely with industry and defense interests to find a solution that accommodates the spectrum needs of both of these important communities."

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