Wireless Internet (WiFi) networks can only be built if the economics are feasible, as one cannot adopt the build-it-and-they-shall-come attitude of the dot-com boom period.
So says Niall Murphy, co-founder and technical director of one of Europe`s largest broadband wireless network operators, The Cloud.
Speaking at Internet Week, which is currently under way in Rosebank, Murphy said the network needs to be there first, in order to attract customers.
He said it is almost a catch-22 situation, as the usability needs to be there to attract customers, but the usability only becomes practical if a number of hotspots are rolled out, which is costly when there is uncertainty as to how many customers it will attract.
"The business traveller is the primary target for a WiFi network - one needs to provide the businessman with the ability to connect wherever he is, whether it is in a pub, a coffee shop, a hotel, restaurant or even on the beach.
"However, in order to make the setting up of such a network cost-effective, it is necessary to find other drivers for the technology."
He noted that in the European context, some surprising drivers have been discovered.
"It may sound silly, but a key driver of the technology is the humble cold-drink vending machine. This is because it optimises the field servicing of the machines - it is able to inform head office when it needs refilling, or if there is some mechanical problem - and on top of this, having a WiFi application for a vending machine means that it is not just a case of the machine being connected to the outside world, it means that the entire venue is connected."
Murphy said another driver is the need for meter maids (UK traffic police) to be able to stay in touch with base and immediately check licences and registrations through a WiFi connection.
"Surveillance cameras are also starting to go the WiFi route, as it provides immediate streaming back to the control centre, and it is far cheaper than wired technology, which would require vast lengths of cable for the same level of service.
"The reason WiFi is taking off is that it is a generic interface technology that supports many and multiple applications, including Internet access, private network access, point-of-sale applications, telemetry services and content distribution, to name just a few," he said.
"The key factors in making it a widely adopted technology - SA`s legal issues notwithstanding - are to have a shared neutral infrastructure with a large footfall, and to make it easy to use, so that the man in the street can use it as comfortably as the more tech-savvy types."
Asked whether WiFi might at some point find itself in conflict with the cellular market, Murphy said he believes that WiFi and cellular will be able to co-exist, although they may eat into each others` markets a bit.
"I feel that our technology will combine with the mobile operators` technology to provide a ubiquitous WiFi service."
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