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Selling Wi-Fi presents serious challenges

posted onJune 16, 2004
by hitbsecnews

Alas, wireless Internet may not be the technology sector's salvation after all.

Small companies, some publicly traded, are burning cash trying to turn Wi-Fi into viable business. Some have already shut down.

Faster than you can say "industry bubble," skeptics are asking whether wireless Internet connections will become similar to the wired Internet of the late 1990s -- hot but rarely profitable.

"Anyone trying to build a stand-alone business on Wi-Fi access should be worried," said analyst John Yunker of Byte Level Research. "It's not a stand-alone business, it's an add-on to other communications businesses, the cable bill or the DSL bill."

Wi-Fi, short for wireless fidelity, appeals most to people with laptops and personal digital assistants. It radiates an Internet connection to users within 300 feet -- a zone known as a "hotspot".

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