Wireless broadband spreads its wings

It is now possible to log on in hotel lobbies

BT is forging ahead with its plans for wireless broadband access, pitting the technology against third generation mobile networks.

It has announced deals with Hilton Hotels, the BAA and Welcome Break which will extend the number of wireless hotspots available to users.

A total of 27 new sites will be opened at Welcome Break service stations, while 36 Hilton hotels will offer hotspots in their lobbies. Business travellers will also be able to log on at Heathrow, Gatwick, Stansted and Aberdeen airports.

BT plans to have 400 wireless hotspots up and running in hotels, airports and motorway service stations around the UK by the summer.

"Wi-Fi is expected to be half the price and three times the speed of 3G and at the moment is one-tenth the price and four times the speed," said David Hughes, BT's Director of Mobility.

Bandwidth demands

Wi-Fi hotspots - which allow people to go online on their laptops or mobile devices via radio waves within a certain area - are growing in popularity.

BT's service has so far attracted 1,000 business customers in around 45 corporations, including the BBC, Intel, Microsoft and Lloyds TSB.

But it is not cheap. A monthly fee for unlimited access costs £85, with 24 hours access costing £15.

BT is currently offering a 50% discount on all the services until March 2003.

"There is demand for more and more bandwidth and broadband and Wi-Fi are the technologies that are really able to deal with these demands," said Mr Hughes.

BT is hoping to make £30m from its Wi-Fi services by 2004.

Downloading music

Wireless technology will be key in delivering broadband to rural areas

Stephen Timms, e-commerce minister

In the future BT envisages thousands of hotspots peppered across the UK, with private wireless networks integrated with public ones.

One popular service could be providing Wi-Fi access on trains, a service which is already being offered in Japan.

At the moment Wi-Fi is targeted at business customers but in the future could become a consumer product said Mr Hughes.

"When phones become game machines or video players, then consumers might go into town on a Saturday morning and download and buy video or music via a Wi-Fi device," he said.

Cheap licenses

Companies wishing to get their hands on a wireless broadband licence can do so for a fraction of the price charged for third generation radio frequencies.

The government has announced it is auctioning off another piece of the wireless spectrum - the frequencies that can carry data - and prices are expected to start at £100,000.

15 regional licenses will be available in all, covering London, the Midlands and the North of England.

"Broadband UK is surging ahead and wireless technology will be key in delivering broadband to rural areas," said e-commerce Minister Stephen Timms.