Boingo Wireless Inc. launched with plans to provide wireless Internet access at speeds up to 11 Megabits per second in major hotels, airports and coffee shops.
Founded by Sky Dayton, the founder and chairman of EarthLink, the company will use 802.11b technology. A beta version of the software is available on the company’s Web site now, but Boingo did not say when the software will be fully released.
There will be three service plans, including Boingo As-You-Go, which is $8 per 24-hour connect per venue: Boingo Pro, which is $25 per month for up to 10, 24-hour connects, each additional connect is $5; and Boingo unlimited, which is $75 per month for unlimited access.
Boingo launches into a potentially troubled market as evidenced in recent headlines generated by its competitor MobileStar Network Corp.
Although wireless local area networks have been hyped as a great threat to third-generation technology, the recent troubles of MobileStar. and its likely acquisition by GSM operator VoiceStream Wireless Corp. is calling into question the staying power of WLAN, according to research firm Ovum.
“We said earlier this year that the hype around wireless LAN was way over the top,” said Richard Dineen, senior analyst at Ovum. “Short-range wireless LAN technologies such as IEEE 802.11b cover everything that is needed to attach devices to each other, or even to connect temporarily stationary users to Internet or intranet services. But they don’t cover the service management elements that mobile users more or less take for granted.”
If VoiceStream acquires MobileStar, it will be the first signal that the wireless LAN tide is turning in favor of cellular operators, according to Dineen.
“VoiceStream is fairly small compared to the big players such as Verizon (Wireless), AWS (AT&T Wireless Services Inc.) and Sprint PCS, but the eyes of the majors will be on this move,” Dineen said.
Although cellular operators in the United States are facing uncertainty over the provision of 3G spectrum and are consequently experiencing delays in service deployments, wireless LAN and wide area cellular-which are available now-have several drawbacks.
The popular IEEE 802.11b, as used by MobileStar, can deliver much higher data rates than 3G, but it has not been developed for public access networks. It lacks the billing, mobility management and event recording capabilities that are inherent to cellular networks.
MobileStar, said Dineen, overreached itself with a rollout that included 500 Starbucks restaurants.
“But cellular operators may well fancy their chances of leveraging their existing customer bases with wireless LAN technology. As trusted service providers, they are well positioned to offer wireless LAN as part of a communications portfolio,” he said.
Dineen concluded wireless LAN will either fail or fly.
“If it fails, cellular operators have a clear run at being the wireless data leaders; if it succeeds, the operators are going to take a slice of that pie as well,” said Dineen.
