In 1961, Arthur C. Clarke said that "any sufficiently advanced technology is indistinguishable from magic."
In an age where devices with 160Gb and a colour screen can fit into the front pocket of a shirt and be taken in people’s stride as regular a day to day device, wireless internet connections are (to me) the area of technology where magic still exits. The fact that on the latest iPods, I can watch videos on a screen which takes up more of my field of vision than my TV but is thin enough to fit into a suit pocket without spoiling the lines impresses me- but it’s when I’m near an internet hotspot and I can instantly watch one of hundreds of thousands of YouTube videos that I’m still amazed; especially when considering that just 5 years ago, broadband internet penetration in the UK was at just 7%, and the restricted bandwidth meant that the idea of just streaming audio was difficult to take seriously- let alone streaming video.
What’s happening in the industry with WiFi in the UK is quite interesting— particularly when compared to the 3G mobile networks, the other wireless high speed data channel. Unlike 3G, as WiFi operates in an unlicenced frequency band, there haven’t been any licences for billions of pounds to be paid to use the frequencies. You just need a wireless router (about £40 in the shops, but usually freely provided by broadband suppliers) and you can set up your own hot spot, allowing access to whoever you want. If you like, you can set up a landing page, so that anyone who connects is directed to a page of your choosing before going on with their internet browsing- a whole new space, which could be a branding or advertising opportunity, or a payment area if further access is something to be charged for.
However, there are still problems with the technology; security on wireless networks has come under fire- WEP (the simplest but most widespread form of protection) is generally seen as being insecure; WPA and WPA2 are more secure but devices which support them are less widespread, with WPA2 only being mandatory on new devices since September 2006.
Last week, McDonalds announced the roll-out of free high speed wireless internet in almost 1200 UK restaurants by the end of the year, which will make it the biggest provider of free wireless internet access on the UK. Network provider The Cloud will be delivering the service- other services on the Cloud network are free access for Nintendo DS owners, free access for iPhone users through the O2 network, and exclusively for iPod Touch owners is the £3.99 a month unlimited WiFi service. (The iPod Touch is essentially the iPod element of the iPhone- with no phone or bluetooth functionality, but with WiFi connectivity so that you can connect to the internet at a hotspot and buy new music from the iTunes store, browse the web or watch YouTube videos.) Also last week, the BBC announced that it’s online services will be free to all over the Cloud’s network.
National Express are also introducing a WiFi service on their Milton Keynes to London services, and in December they plan to introduce free WiFi to trains, when they take over GNER’s licence.
Meanwhile, also in the world of the wireless internet, BT have announced a partnership with the FON wireless network community. FON members allow one another to use their wireless access points, effectively creating a network of semi-public WiFi hotspots at their own homes. This requires either a special wireless router or modifications to an existing router, which the terms and conditions of most Broadband suppliers (including BT, until recently) forbid.
In the US, Starbucks have partnered with Apple to provide a special service in Starbucks cafes; when a customer with an iPhone or iPod Touch comes in range of a WiFi hotspot in the cafe, it connects to the in-house iTunes player and a special Starbucks button appears on the menu, listing the last 10 tracks played and linking to an easy download through the iTunes Music Store, which is also available through the service.
As well as the opportunities for online services such as the iTunes Music Store, or local services (ie. wifi hotspots for the public), there is also an opportunity to provide services in between. Taking a visitor directly to detailed menus for a restaurant, perhaps, or show listings at a cinema, or a stock catalogue for a shop. When online information is a key part of the shopping process and users can check Amazon prices from their mobile phone- perhaps while contemplating a purchase of the same item instore, there’s an opportunity for in house services that can be provided on hand to provide a competitive advantage.
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