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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: foundation who wrote (20967)	4/1/2002 1:43:28 AM
From: Jon Koplik	Respond to of 197054

WSJ -- Satellite Radio Stations' Complaints Could Force FCC to Limit Wi-Fi April 1, 2002 Satellite Radio Stations' Complaints Could Force FCC to Limit Wi-Fi By Thomas E. Weber Wireless Internet access was all the rage at the annual PC Forum gathering last week in Scottsdale, Ariz. High-tech gurus surfed the Web from untethered laptops while entrepreneurs touted new wireless business plans. But there's trouble in paradise, and every Internet user needs to know about it. The problem concerns the widely used wireless technology known as 802.11b, or Wi-Fi. Satellite-radio operators complain that Net users' Wi-Fi connections could interfere with their services, and they want the Federal Communications Commission to impose new restrictions on the technology. That could kill the wireless revolution before it gets started. If Wi-Fi equipment makers are forced back to the drawing board, plans for pervasive wireless Internet access in urban areas could evaporate. Start-ups that have embraced Wi-Fi, such as Sky Dayton's Boingo Wireless, would be out of business. This debate will serve as a litmus test for the FCC's program to deregulate high-speed broadband Net access. The commission wants to loosen constraints on cable and telephone companies. But if the goal is real competition, and not a cable-phone duopoly in broadband, they must not hamstring Wi-Fi and other wireless technologies. To understand what's at stake in the wireless world, look no further than Joltage, a new 802.11b start-up that held its coming out at PC Forum. Before a standing-room-only audience, Joltage executives described an ambitious plan to develop a global wireless Internet network -- with the help of small businesses and individual Net users. The Joltage plan is a wireless franchise operation practically anyone can join. All it takes is a high-speed Internet connection and a few hundred dollars worth of Wi-Fi gear. Would-be network members -- a coffee shop, say, or a bookstore -- download and install special software. The program links the location to the Joltage network. A laptop user with an 802.11b card and a Joltage account can then visit the location, boot up, sign on and get online. A Joltage account costs $1.99 an hour, or $24.99 a month for up to 60 hours of access. For the user, the experience is similar to other Wi-Fi networks already in operation. The interesting thing here is the pitch to potential network franchisees, which get a cut of revenue whenever a Joltage member signs on at their locations. For anyone with a high-speed Net connection and a wireless access point, joining Joltage could prove an easy way to defray the cost of the connection, and maybe even make some money. In other words, Joltage is creating an incentive for thousands of small businesses to install a broadband connection. That's great for broadband companies that bemoan a lack of demand for their services, and for business users and consumers who want to tap the Internet no matter where they go. But what if the government changes the rules for Wi-Fi? Manufacturers would need to redesign their wireless equipment, driving up costs, reducing availability and potentially cutting the range of Wi-Fi. Companies like Joltage, which hope to offer pervasive public Internet access, could be stalled. It would be a broadband disaster. Yet that's exactly what could happen if the FCC buys into the arguments of satellite-radio providers. Sirius Satellite Radio and XM Satellite Radio have both asked the FCC to clamp down on Wi-Fi and other wireless technologies. These companies offer new satellite-radio services that provide clear, commercial-free radio broadcasts almost anywhere for a monthly fee. The broadcasts operate on a different frequency from Wi-Fi. But the frequencies are so close to each other that the satellite providers say energy can leak over from Wi-Fi devices and interfere with satellite radio. They want the FCC to set limits on these so-called out-of-band emissions. The satellite companies say they aren't trying to shut down Wi-Fi. "I think wireless devices are going to blossom," says Sirius co-founder Robert Briskman. Mr. Briskman believes Wi-Fi-device manufacturers could reduce the interference by installing filters and making other changes to wireless transmitters. Wi-Fi advocates reply that their systems were designed to meet the FCC's current rules -- so if satellite providers have a problem, they should fix their own systems. Static is obviously a bad thing in the radio business. But satellite providers may face future competition from Wi-Fi. After all, Internet radio broadcasters offer thousands of high-quality digital-music streams for users connected over broadband. If wireless networks give users that kind of access outside their homes, subscription-based satellite radio might not seem so attractive. FCC Chairman Michael Powell, who appeared at PC Forum, wouldn't comment specifically on the satellite proposals. Many came away encouraged when he proclaimed, "I love 802.11." But Mr. Powell also cautioned that heavy usage of Wi-Fi and other devices that use unlicensed frequencies could eventually produce a "meltdown." He gave out his public e-mail address, mpowell@fcc.gov, and encouraged audience members to send comments. Consumers should get involved. Corporate interests have lobbyists to represent them. Consumers need to represent themselves. Write to Thomas E. Weber at tweber@wsj.com Copyright 2002 Dow Jones & Company, Inc. All Rights Reserved