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Reports of “Free Nationwide Wi-Fi” Network are Overhyped; No ‘Obama-Wi-Fi’ Forthcoming

Phillip Dampier February 5, 2013 AT&T, Broadband Speed, Community Networks, Competition, Consumer News, Editorial & Site News, Public Policy & Gov't, Verizon, Video, Wireless Broadband Comments Off on Reports of “Free Nationwide Wi-Fi” Network are Overhyped; No ‘Obama-Wi-Fi’ Forthcoming
A big 40oz can of Hype from the Washington Post.

A big 40oz can of Hype from the Washington Post.

Conservative bloggers are calling it socialized “Obama-Wi-Fi,” broadband advocates claim it represents salvation from high-priced wireless service plans, and the media echo chamber is amplifying reports that the federal government in on the verge of launching a nationwide free Wi-Fi network.

Sorry folks, it is not to be.

An article in Sunday’s Washington Post originally titled, “FCC Proposes Large Public WiFi Networks” got the ball rolling, and almost 3,000 reader comments later, a full-scale debate about the merits of government-supplied Wi-Fi Internet access is underway.

Cecilia Kang and her headline writer mislead readers with statements like these:

The federal government wants to create super WiFi networks across the nation, so powerful and broad in reach that consumers could use them to make calls or surf the Internet without paying a cellphone bill every month.

[…] If all goes as planned, free access to the Web would be available in just about every metropolitan area and in many rural areas.

There is nothing new about the FCC’s effort to set aside unlicensed spectrum for so-called “white space” Wi-Fi. As the spectrum wars continue, wireless companies like Verizon and AT&T are pushing proposals to further shrink the number of channels on the UHF television band and repurpose them for expanded cellular data networks. That newly available spectrum would be secured through an FCC auction. FCC chairman Julius Genachowski wants to set aside some of that available spectrum for unlicensed use, including the next generation of Wi-Fi, which will greatly extend its range and speed.

There is no proposal on the table for the government to fund or create a free, national Wi-Fi network as an alternative to paid commercial services. At issue is simply how 120MHz of newly-available television spectrum would be made available to new users. Republicans and large wireless companies like Verizon and AT&T are demanding the vast majority of that spectrum be auctioned off. AT&T and Verizon would like to expand their spectrum holdings, and a straight “highest bidder wins” auction guarantees the vast majority of it will be divided by those two companies. Many Democrats and broadband advocates want a portion of that spectrum set aside to sell to AT&T and Verizon’s competitors — current and future — to promote competition. They also support set-asides that make frequencies available for unlicensed uses like Wi-Fi.

Genachowski’s proposal could potentially spur private companies or communities to build community-wide Wi-Fi networks operated on unlicensed frequencies. With more robust signals, such high speed wireless networks could be less costly to construct and serve a much wider geographic area.

The potential for competition from the public or private sector is what bothers companies like AT&T and Verizon. Both argue that since they had to pay for their spectrum, allowing other users access to free spectrum would be unfair, both to themselves and to the government’s effort to earn as much as possible from the auction. AT&T has been the more aggressive of the two companies, repeatedly attempting to insert language into legislation curtailing the FCC’s ability to set aside a significant amount of spectrum for unlicensed use. While AT&T’s lobbyists do not go as far as to advocate banning such networks, the technical conditions they demand would make them untenable. AT&T and others also demand the FCC must close down unlicensed networks if they create “harmful interference,” which is open to interpretation.

Helping the wireless companies in the campaign against the next generation of Wi-Fi are hardware manufacturers like Cisco, which has been trying to deep six the proposal for at least two years. Why? Because Cisco’s vision of wireless networking, and the products it has manufactured to date, are not in sync with the kind of longer distance Wi-Fi networks the FCC envisions. Cisco faces overhauling products that were designed under the premise Wi-Fi would remain a limited-range, mostly indoor service for consumers and businesses.

The threat to incumbent Internet Service Providers is clear enough. If a new version of Wi-Fi launched that could blanket entire neighborhoods, communities, non-profits, or even loosely-knit groups of altruistic individuals could launch free Wi-Fi services sharing their Internet connection with others. If the technology allowed users to seamlessly hand off wireless connections from one free Wi-Fi hotspot to another, much like cell sites do today, customers might downgrade their wireless data plans with big telecom companies. Machine-to-machine networking could also rely on Wi-Fi instead of commercial wireless data plans. It could threaten billions in potential revenue.

Stopping these networks is a priority for corporate interests with profits at stake. But one thing they do not have to worry about, at least for now, is the federal government getting into the wireless Internet business.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Washington Post FCC offers path to free Internet access 2-4-13.flv[/flv]

After the original story ran in the Post, Cecilia Kang participated in this interview which clarified what the FCC is actually proposing. This video explains what spectrum allocation and unlicensed spectrum is all about. Kang clarifies her article, explaining private companies and/or communities will have to decide what to do with the unlicensed spectrum. The federal government is only facilitating the space and has no plans to run a national network itself. (5 minutes)

https://www.washingtonpost.com/business/technology/tech-telecom-giants-take-sides-as-fcc-proposes-large-public-wifi-networks/2013/02/03/eb27d3e0-698b-11e2-ada3-d86a4806d5ee_story.html

Kansas City Time Warner Cable Customers Getting Downtown Wi-Fi Access, Starter Internet

Time Warner’s Wi-Fi hotspots in Kansas City (click to enlarge)

Sorry Kansas City — Time Warner Cable is not bringing faster broadband to compete with Google Fiber. Instead, the company today unveiled a new network of local Wi-Fi hotspots, along with an invitation to area businesses to help expand Wi-Fi access.

The new Wi-Fi initiative begins with 14 hot spots in downtown Kansas City, the Crossroads Arts District, the River Market, Brookside, Waldo, Westport, the 18th and Vine District, Loose Park, plus the downtowns of Parkville, Leavenworth and other sites.

Time Warner Cable Inc. launched 14 Wi-Fi hot spots in Downtown, the Crossroads Arts District, the River Market, Brookside, Waldo, Westport, the 18th and Vine District, Loose Park, plus the downtowns of Parkville, Leavenworth and other sites, reports the Kansas City Business Journal.

Time Warner said any of its commercial customers with Business Class broadband can share their connection by hosting a Wi-Fi hot spot themselves, with the cable company supplying the necessary equipment.

Company spokesman Mike Pedelty said the service will complement businesses’ existing Wi-Fi offerings, particularly in restaurants and other high traffic public venues.

But not everyone will have access. Time Warner Cable is restricting the Wi-Fi network to its own customers with Standard broadband service or above. Customers can access the new network with their Time Warner-supplied e-mail address and password.

Additionally, Time Warner has added Kansas City to the roster of communities where it sells disadvantaged families access to a discounted broadband package called Starter Internet. The package will match Google’s entry level 5Mbps service plan (with 1Mbps upload speed) and will run $10 a month. Google offers anyone in its service area 5Mbps service for a one-time fee of $200, payable in $20 installments.

For the time being, Time Warner Cable is leaving broadband speeds unchanged for its customers in Kansas City, although that may change in the future as Google’s fiber network continues to expand across the city.

Halloween Scare Stories: Controlling the “Spectrum Shortage” Data Tsunami With Rate Hikes, Caps

Phillip Dampier October 25, 2012 Astroturf, AT&T, Broadband "Shortage", Competition, Consumer News, Data Caps, Editorial & Site News, Public Policy & Gov't, Sprint, T-Mobile, Verizon, Video, Wireless Broadband Comments Off on Halloween Scare Stories: Controlling the “Spectrum Shortage” Data Tsunami With Rate Hikes, Caps

Phillip “Halloween isn’t until next week” Dampier

Despite endless panic about spectrum shortages and data tsunamis, even more evidence arrived this week illustrating the wireless industry and their dollar-a-holler friends have pushed the panic button prematurely.

The usual suspects are at work here:

  • The CTIA – The Wireless Association is the chief lobbying group of the wireless industry, primarily representing the voices of Verizon, AT&T, Sprint, and T-Mobile. They publish regular “weather reports” predicting calamity and gnashing of teeth if Washington does not immediately cave to demands to open up new spectrum, despite the fact carriers still have not utilized all of their existing inventory;
  • Cisco – Their bread is buttered when they convince everyone that constant equipment and technology upgrades (coincidentally sold by them) are necessary. Is your enterprise ready to confront the data tsunami? Call our sales office;
  • The dollar-a-holler gang – D.C. based lobbying firms and their astroturf friends sing the tune AT&T and Verizon pay to hear. No cell company wants to stand alone in a public policy debate important to their bottom line, so they hire cheerleaders that masquerade as “research firms,” “independent academia,” “think tanks,” or “institutes.” Sometimes they even enlist non-profit and minority groups to perpetuate the myth that doing exactly what companies want will help advance the cause of the disenfranchised (who probably cannot afford the bills these companies mail to their customers).

Tim Farrar of Telecom, Media, and Finance Associates discovered something interesting about wireless data traffic in 2012. Despite blaring headlines from the wireless industry that “Consumer Data Traffic Increased 104 Percent” this year, statistics reveal a dramatic slowdown in wireless data traffic, primarily because wireless carriers are raising prices and capping usage.

The CTIA press release only quotes total wireless data traffic within the US during the previous 12 months up to June 2012 for a total of 1.16 trillion megabytes, but doesn’t give statistics for data traffic in each individual six-month period. That information, however, can be calculated from previous press releases (which show total traffic in the first six months of 2012 was 635 billion MB, compared to 525 billion MB in the final six months of 2011).

Counter to the CTIA’s spin, this represents growth of just 21 percent, a dramatic slowdown from the 54 percent growth in total traffic seen between the first and second half of 2011. Even more remarkably, on a per device basis (based on the CTIA’s total number of smartphones, tablets, laptops and modems, of which 131 million were in use at the end of June), the first half of 2012 saw an increase of merely 3 percent in average wireless data traffic per cellphone-network connected device, compared to 29 percent growth between the first and second half of 2011 (and 20-plus percent in prior periods).

[…] What was the cause of this dramatic slowdown in traffic growth? We can’t yet say with complete confidence, but it’s not an extravagant leap of logic to connect it with the widely announced adoption of data caps by the major wireless providers in the spring of 2012. It’s understandable that consumers would become skittish about data consumption and seek out free WiFi alternatives whenever possible.

Farrar

Cisco helps feed the flames with growth forecasts that at first glance seem stunning, until one realizes that growth and technological innovation go hand in hand when solving capacity crunches.

The CTIA’s alarmist rhetoric about America being swamped by data demand is backed by wireless carriers, at least when they are not talking to their investors. Both AT&T and Verizon claim their immediate needs for wireless spectrum have been satisfied in the near-term and Verizon Wireless even intends to sell excess spectrum it has warehoused. Both companies suggest capital expenses and infrastructure upgrades are gradually declining as they finish building out their high capacity 4G LTE networks. They have even embarked on initiatives to grow wireless usage. Streamed video, machine-to-machine communications, and new pricing plans that encourage customers to increase consumption run contrary to the alarmist rhetoric that data rationing with usage caps and usage pricing is the consequence of insufficient capacity, bound to get worse if we don’t solve the “spectrum crisis” now.

So where is the fire?

AT&T’s conference call with investors this week certainly isn’t warning the spectrum-sky is falling. In fact, company executives are currently pondering ways to increase data usage on their networks to support the higher revenue numbers demanded by Wall Street.

If you ask carriers’ investor relations departments in New York, they cannot even smell smoke. But company lobbyists are screaming fire inside the D.C. beltway. A politically responsive Federal Communications Commission has certainly bought in. FCC chairman Julius Genachowski has rung the alarm bell repeatedly, notes Farrar:

Even such luminaries as FCC Chairman Julius Genachowski has stated in recent speeches that we are at a crisis point, claiming “U.S. mobile data traffic grew almost 300 percent last year” —while CTIA says it was less than half that, at 123 percent. “There were many skeptics [back in 2009] about whether we faced a spectrum crunch. Today virtually every expert confirms it.”

A smarter way of designing high capacity wireless networks to handle increased demand.

So how are consumers responding to the so-called spectrum crisis?

Evidence suggests they are offloading an increasing amount of their smartphone and tablet traffic to free Wi-Fi networks to avoid eroding their monthly data allowance. In fact, Farrar notes Wi-Fi traffic leads the pack in wireless data growth. Consumers will choose the lower cost or free option if given a choice.

So how did we get here?

When first conceived, wireless carriers built long range, low density cellular networks. Today’s typical unsightly cell tower covers a significant geographic area that can reach customers numbering well into the thousands (or many more in dense cities). If everyone decides to use their smartphone at the same time, congestion results without a larger amount of spectrum to support a bigger wireless data “pipe.” But some network engineers recognize that additional spectrum allocated to that type of network only delays the inevitable next wave of potential congestion.

Wi-Fi hints at the smarter solution — building short range, high density networks that can deliver a robust wireless broadband experience to a much smaller number of potential users. Your wireless phone company may even offer you this solution today in the form of a femtocell which offloads your personal wireless usage to your home or business Wi-Fi network.

Some wireless carriers are adopting much smaller “cell sites” which are installed on light poles or in nearby tall buildings, designed to only serve the immediate neighborhood. The costs to run these smaller cell sites are dramatically less than a full-fledged traditional cell tower complex, and these antennas do not create as much visual pollution.

To be fair, wireless growth will eventually tap out the currently allocated airwaves designated for wireless data traffic. But more spectrum is on the way even without alarmist rhetoric that demands a faster solution more than  a smart one that helps bolster spectrum -and- competition.

Running a disinformation campaign and hiring lobbyists remains cheaper than modifying today’s traditional cellular network design, at least until spectrum limits or government policy force the industry’s hand towards innovation. Turning over additional frequencies to the highest bidder that currently warehouses unused spectrum is not the way out of this. Allocating spectrum to guarantee those who need it most get it first is a better choice, especially when those allocations help promote a more competitive wireless marketplace for consumers.

[flv width=”600″ height=”358″]http://www.phillipdampier.com/video/KGO San Francisco FCC considers spectrum shortage 9-12-12.flv[/flv]

KGO in San Francisco breaks down the spectrum shortage issue in a way ordinary consumers can understand. FCC chairman Julius Genachowski and even Google’s Eric Schmidt are near panic. But the best way to navigate growing data demand isn’t just about handing over more frequencies for the exclusive use of Verizon, AT&T and others. Sharing spectrum among multiple users may offer a solution that could open up more spectrum for everyone.  (2 minutes)

Time Warner Cable & Comcast Dump 4G Clearwire-Partnered Mobile Broadband in Verizon Deal

Phillip Dampier August 30, 2012 Comcast/Xfinity, Competition, Consumer News, Wireless Broadband Comments Off on Time Warner Cable & Comcast Dump 4G Clearwire-Partnered Mobile Broadband in Verizon Deal

New Yorkers know the end of summer is upon us when the New York State Fair opens every year at the end of August in centrally-located Syracuse. But at this year’s fair, Time Warner Cable has also made it clear the season for its 4G mobile broadband service has also come to at least a temporary end.

Fierce Cable’s Steve Donohue noticed big changes at the cable company exhibit:

When I attended the New York State Fair outside of Syracuse last year, the Intelligo mobile hotspot–which Time Warner Cable offered to subscribers through a partnership with Clearwire –was one of the hottest pieces of technology that it had on display. Time Warner Cable said that it tripled the number of 4G wireless hotspots that it sold at the fair in 2011 compared to 2010. Here in Central New York, where subscribers don’t have access to the Wi-Fi networks that Time Warner Cable, Comcast and Cablevision offer in the New York area, apparently there was a significant demand for mobile hotspots.

‘Intelligone’

This year, the mobile broadband technology is all gone. Both Time Warner Cable and Comcast are no longer selling access to Clearwire’s 4G WiMAX service marketed under each cable company’s brand. Once it became clear they were partnering up with Verizon Wireless to sell each other’s products, the days of Clearwire were numbered.

Both cable companies are still supporting existing Clearwire mobile broadband customers, but for how long nobody is certain. Verizon Wireless’ products have not yet appeared on the western or central New York regional Time Warner Cable websites, but may be forthcoming soon.

Meanwhile, Time Warner’s push this year is on home automation and security. The company has been test marketing its IntelligentHome service in Rochester for quite awhile and has now expanded to other upstate areas. The service offers a respectable suite of traditional security products apps ranging from watching your pets over webcams to controlling your home’s heating and cooling system from remote locations.

In 2010, Time Warner Cable featured celebrity Mike O’Malley at the Fair to shake hands and sign autographs. This year, they have a player and “spokesmodel” from the Syracuse Crunch, a minor league pro hockey team. Time Warner Cable also hired a juggler on a unicycle to attract crowds to their pavilion.

Broadband Slow Lane? Connectify’s Dispatch Combines 10 Slow Connections Into 1 Fast One

Phillip Dampier August 23, 2012 Broadband Speed, Consumer News, Video 1 Comment

Stuck with snail slow DSL, spotty Wi-Fi, or usage-capped 3G and need faster access? A new project from Connectify is now attracting funding from the Kickstarter project to deliver a new broadband connection combiner that can turn up to 10 different wireless and wired connections into one super-sized broadband pipe.

Connectify’s Dispatch software will manage connections ranging from dialup to Ethernet through a hotspot application that can be run on a desktop PC. The Philadelphia company has been pushing the project primarily to the speed obsessed, demonstrating outdoor connections to multiple open Wi-Fi networks, 3G and 4G mobile broadband that when combined deliver more than 80Mbps of download speed. But the software may also prove useful as a connections management tool that can seamlessly switch from free Wi-Fi when your connection becomes intolerably slow to a different pipe — 3G or 4G wireless broadband — all without missing a beat.

With two weeks left in the Kickstarter campaign, Connectify has raised just over $33,000 of the $50,000 goal. The company recently sweetened the deal early investors get, perhaps to attract an additional burst of funding. Those investing $50 or more will receive a lifetime license with unlimited software upgrades forever.

Some mobile carriers are experimenting with similar technology, mostly to move customers automatically off of their mobile networks to Wi-Fi, where available. Others are experimenting with technology that would allow simultaneous connections to Wi-Fi and 4G networks, moving different types of data across one or both simultaneously.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Connectify Dispatch.mp4[/flv]

Introducing Connectify Dispatch, which can turn multiple slow broadband connections into one fast one. (4 minutes)

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