Wi-Fi -- short for wireless fidelity, a technology allowing anyone with a laptop and a wireless card to get high-speed Internet access at places like cafes and airports -- has been one of technology's few bright growth spots. In 2003, about $1.67 billion will be spent on Wi-Fi equipment worldwide, according to Allied Business Intelligence, in Oyster Bay, N.Y.
Wireless devotees can thank Intel (INTC ), the world's largest semiconductor company. In October, it pledged to invest $150 million over several years into Wi-Fi startups. In December, it joined with AT&T (T ) and IBM (IBM ) to create Cometa Networks, which is setting up Wi-Fi "hot spots" (places that allow for wireless access) in 50 U.S. cities. And in March, Intel unveiled its Centrino brand of chips for laptop computers. The new chips have Wi-Fi compatibility built in. In fact, according to a recent forecast from market consultancy Cahners In-Stat, 90% of laptops sold in 2005 will have built-in wireless-access capabilities, up from 5.7% in 2002.
Intel's efforts are one of the forces behind Wi-Fi's recent boom. Although Wi-Fi was standardized in 1996, only a few years before the Internet boom started, it's still in its infancy, says Jim Johnson, general manager for the wireless networking group at Intel and the prime mover behind the Centrino chips.
Intel's researchers are already working on new generations of wireless technologies, enabling faster, more secure high-speed access. Some of these networks will allow access from miles away -- a huge improvement over today's 300-foot radius from the access point. Johnson talked to BusinessWeek Online reporter Olga Kharif on Apr. 14 about Intel's wireless vision and its research projects. Following are edited excerpts from their conversation:
Q: What are Wi-Fi's drawbacks? A: One of the concerns I run into the most talking to enterprises is security. Early on, hackers could break into the security keys used. So most enterprises treated their wireless network like their remote-access network. They put authentication servers in place that use virtual private networks (VPNs). That's what we've done to make sure our wireless network is robust.
However, to keep adding more users, we need better technology -- better authentication, encryption, and better encrypted transport of data. We are [one of the companies] working on a new technology, likely to come out in the first half of 2004, which should address these problems. In the meantime, a bunch of us -- Intel, Microsoft (MSFT ), Cisco (CSCO ) -- have developed an interim security solution called the Wi-Fi Protected Access, which will be shipping in the middle of this year. Then, enterprises could either go the VPN route or use these new technologies to increase security.
Q: Analysts also say for Wi-Fi to realize its full potential, its reach has to be extended. What are you experimenting with in this area? A: We're running a pilot out of this building: We are getting Wi-Fi to a home 10 miles away, running at 2 to 3 megabits per second, and a home 20 miles away at 1 megabit per second [using directional antennas mounted on a roof at Intel's Jones Farm Campus in Hillsboro, Ore.]. As the distance from the access point is increased, the speed drops off.
Q: What do you think Wi-Fi would look like in five years? A: I envision this five-minute experience: If you're in a city, you'll know which coffee shop or hotel has a high-speed connection within five minutes of where you are. And if you don't need a high-speed connection, you'll use traditional wireless carriers' networks from the same device.
So you'll always be able to make a connection, but you also could get a higher-performing one. In a village or at a suburb, you'll have the same five-minute rule: Places with high-speed access might be a five-minute drive away.
Copyright 2003, by The McGraw-Hill Companies Inc. All rights reserved.
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