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To: waitwatchwander who wrote (129194)	5/22/2003 10:16:36 PM
From: Quincy	Respond to of 152472

It appears to me they are offering WiFi as a loss leader to their struggling DSL operations.

To: waitwatchwander who wrote (129194)	5/23/2003 9:32:10 AM
From: Art Bechhoefer	Respond to of 152472

>>protecting their future in the Big Apple with a loss leader<< Trevor, another explanation for the decision by Verizon to turn Manhattan phone booths into Wi-Fi hotspots may be an attempt to squeeze more earning power from phone booths that are rapidly becoming obsolete. As a visitor to New York, I am struck by the huge numbers of people who walk along the streets as they talk almost endlessly on their cell phones. In fact, if you don't have a cell phone at your ear, especially on mid-town streets, you look out of place. I would submit that in big cities like New York, the pay phone has pretty much outlived its usefulness. What to do with all that investment? Why not convert it into something that might potentially be useful? The wires are already in place, and a DSL connection is relatively low cost, given the existing installations. This is an example of the mindset of large, conservative companies trying to preserve old technology. Other examples include Kodak, trying to preserve at least some market for conventional film as the rest of the world moves to digital; and GM, which since the 1920's has followed a policy of planned obsolescence (i.e., squeezing the last penny out of older technology before introducing, somewhat reluctantly, a new technology to replace it). I'm sure that Intel and QUALCOMM will be watching this experiment. If it is going to be successful, a place like New York with high density of potential users is the most likely market for Wi-Fi. Conversely, if it doesn't work in New York, it is unlikely to work anywhere else. If it works, then we will see demand for Wi-Fi capability, either through the Centrino chip or add-ons to existing laptops and hand held devices. If the success is limited, then it confirms a more likely increase in demand for 3G data services, and greater use of CDMA2000, the lowest cost 3G technology. Art