Using an existing Internet connection, building operators/owners can transform a lobby into a WiFi public access point generating roaming and network fees from WiFi aggregators. WiFi (short for “wireless fidelity”) is the popular term for a high-frequency wireless local area network (WLAN). WiFi aggregators sell monthly connectivity to consumers for access to their publicly available WiFi access points, similar to the way AOL, Earthlink and NetZero sell monthly dial-up service to its consumers. According to recent TV coverage, articles in the Wall Street Journal and New York Times, WiFi, is going to be everywhere, and everyone will become a subscriber. In many ways WiFi mirrors the earlier prospects of broadband, but without the worries associated with potential industry upheaval and service disruption.
There is a distinction that must be made between private and public use of WiFi technology. Private wireless networks can be set up for home or office using WiFi. It allows IT administrators to set-up networks without wires thereby avoiding substantial cabling costs and eliminating the headaches associated with managing hundreds of wired connections. A laptop with “Bluetooth” or a wireless card can be carried around the home or office and may access other computers or the Internet from anywhere within range (typically 150 feet) of the access point. This is great for mobility within the office and intra-office collaboration. With transfer speeds for data between 5kpbs and 11kbps, WiFi is speedy enough to browse the Internet, perform typical networking tasks and retrieve emails. Companies have used this technology to set-up networks with offices that span two different buildings or on different floors of the same building.
The public use of WiFi has revenue generating potential, or can be offered for “free”. Once connected wirelessly to the public access point, WiFi allows anyone with a WiFi enabled PDA or Laptop access to email or the Web. Imagine tenants riding the elevator, passing by on the sidewalk or standing in the lobby with their PDA checking an email from a customer, sports scores, or the financial markets. As a public access point operator, you can either provide it free or to WiFi users at a monthly cost. To comprehend the potential user-base, understand that the majority of laptops from Dell and IBM are shipped with WiFi hardware included.
For private-use, the problems that WiFi present are two-fold. The first is security and the second is interference. Unless adequately protected, a WiFi wireless LAN can be susceptible to unauthorized users. As for interference, the 802.11b (Wi-Fi) technology operates in the 2.4 GHz range, the same radio wave spectrum as cordless phones, household appliances, and garage door openers. The same static that you here on a cordless phone also may cause data transfer loss.
The good news is that the above problems can easily be addressed. Given good technological know-how, security concerns can be avoided with firewalls and encryption techniques. Also, interference can be significantly managed with the latest innovations. These concerns are immaterial in operating a public access point. Much like with the use of cell phones, people have reasonable expectations regarding interference and security. While it may seem complicated, a properly managed WiFi enabled network can be set-up inexpensively and easily. A well-trafficked location with a WiFi access point may instantly become a substantial source of revenue.
Similar to owning the land rights to a cell tower, a building owner can operate a public WiFi access point and receive a portion of roaming fees with larger WiFi user-aggregators like Boingo, Joltage, Ipass or Gric. At this point, we are in the infancy of the WiFi industry, and its impossible to predict which WiFi user-aggregators will exist five years from now. But unlike broadband providers, the WiFi companies don’t actually provide the service, the access point operators do. So long as the building maintains its access point, there can be no disruption of service. More than likely, the corporate transactions in this industry will be similar to the consolidation of ISPs like Earthlink and Mindspring, or Juno and NetZero where there were no service disruptions. These aggregating companies (Boingo, Joltage, IPass, Gric) will consolidate their subscriber-bases with the larger wireless providers like ATT, Verizon, Nextel or Cingular.
Businesses will be unlikely to depend solely on the building’s WiFi to operate their networks; that would be the equivalent of running a business’ entire phone system on cell phones. If the building’s public access point was actually down for a day or two, the only loss will be lack of roaming fees. Some small offices in the building may use the WiFi access instead of installing a costly T-1 line. This obviously has a negative impact on a building’s broadband provider, but the net result is a happy tenant saving money and possibly generating money for the access point operator, the building.
Being a complete technology solution for buildings, Shortpath along with its work order and visitor management system offers WiFi public access point installation and management. Third-party aggregators and Shortpath can assist in attracting traffic to building operators with each installation. Currently, the revenue typically tops out at about $2,000 per month even in the best locations, but once the larger wireless providers enter the WiFi world, these numbers will escalate considerably. Once the access point is installed, people will know about it and begin to use it. With connectivity already present on the ground floor of a building, WiFi virtually costs nothing to install and nothing to operate. In this soon to be WiFi industry, traffic equals revenue. Owning an access point that people know about and use is the key.
