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section heading icon     hotspots and hotzones

This page considers wireless access to the net through public and commercial hotspots.

It covers -

It supplements the broader discussion elsewhere on this site of Networks & the Global Information Infrastructure, the net in Australia, cybercafes & telecentres and Australian & New Zealand telecommunications.

section marker     introduction

As at the beginning of 2004 there were an estimated 15 commercial providers in Australia, sharing some $500,000 revenue for upwards of three hundred 802.11-based wireless internet access "primary locations (often encompassing multiple wireless hotspots)" across Australia. Users often had multiple subscriptions because of the lack of ubiquitous roaming.

section marker     development

Internet access through hotspots in Australasia echoed development in Europe and North America, reflecting -

  • falling prices for wireless cards in laptops (and, more broadly, in other personal computers), coupled with growth of the laptop market
  • falling prices and increased availability of wireless personal digital assistants (PDAs)
  • investor willingness to put money into hotspots and the infrastructure, including billing systems, that would allow roaming by commercial customers
  • relaxation of regulatory constraints
  • competition among a handful of ISPs and support from particular hardware vendors, notably Cisco, Juniper and hp
  • media coverage underpinning perceptions that wireless access had desirable attributes (eg was funky or made business sense for individual users and organisations) or did not involve inappropriate risks
  • appreciation among ICT managers in government, business, academic and other organisations that WiFi offered a cost-effective mechanism for construction and maintenance of local area networks (LANs) - discussed here - potentially with bridges from those intranets to the internet

It also reflected the slow uptake of specialist devices such as the RIM Blackberry, with many consumers apparently deterred by perceived high hardware acquisition and ongoing service costs.

Commercial hotspot developments have concided with

  • trials by local government (eg in Brisbane) of free access
  • moves to build comprehensive fibre & wireless networks in some central business districts (eg in Adelaide and Philadelphia)
  • the rollout of wireless intranets across many academic institutions (eg the Australian National University and Melbourne University), health organisations and businesses discussed in the preceding page of this note.

The emergence of public commercial and free wireless access has been uneven and atomistic.

That unevenness reflects timing, with the drying up of capital that would be required for rollout of national chains of hotspots, ie in all major locations across Australia and New Zealand. That 'breadth and depth' is important for large-scale user adoption, given that some operators currently only have one node in a city such as Brisbane and that being online while travelling interstate can require switching from one operator to another. In practice many potential customers are merely going without and instead relying on mobile phones (by 2002 some 72% of all households having access to a mobile).

Attrition saw the departure or reorientation of some operators. SkyNetGlobal for example, started roll out hotspots in some airport lounges and Rydges hotels but experienced funding difficulties and was acquired by Telstra in 2002. AirPortal launched in 1999 with an emphasis on "providing innovative solutions to the 'road warrior' ... setting up connectivity solutions for corporate users to communicate no matter where they go". Rebadged as Aeris Entertainment it has "followed the path of the corporate business traveller into the Hospitality market and began to position its services into Hotels" with a Digital Video on Demand solution.

Over the past two years we have seen the emergence of wireless ISPs, typically using licensed radio spectrum and aimed at business/residential users who primarily access the net from one location.

section marker     regulation

In Australia wireless access is governed by the federal telecommunications legislation, similar to the New Zealand enactments.

The Telecommunications Act 1997 specifies that two types of persons or organisations may provide carriage services to the public - carriers and carriage service providers (CSPs).

Carriers are those entities that own a telecommunications network (including wired and radiocommunication infrastructure) used to supply carriage services - include traditional voice and internet access - to the public. Carrier licences granted by the Australian Communications Authority (ACA) under section 56 of the Act encompass a WLAN base station in a terrestrial radiocommunications customer access network under section 34 of that Act.

CSPs use a telecommunications network to supply carriage services to the public, including entities that resell time on a carrier network for voice calls and internet service providers. CSPs are not required to obtain an ACA licence to supply a carriage service to the public.

The Telecommunications Act identifies different obligations for carriers and CSPs: carriers must comply with carrier licensing obligations, CSPs with service provider rules. WLAN equipment in some circumstances may require a carrier licence, depending on what the equipment is being used for and who it is being used to supply services to.

In September 2002 the federal Minister for Communications, Information Technology & the Arts issued a determination that exempts hotspots from carrier licensing. The expectation was that the determination would "preserve technological neutrality and encourage innovation", removing an anomaly under which cable networks on single premises did not require a carrier licence but wireless networks on single premises did.

Public hotspots and other wireless networks pose three regulatory challenges -

  • concerns about erosion of traditional demarcations between voice traffic, data traffic and broadcasting - particularly through a movement to VOIP
  • interference with other devices and networks
  • security - in particular regarding unauthorised access to private content and facilities (including capture of devices for sending spam, sometimes characterised as warspamming)

The latter point is of concern, given indications that over half the wireless access points in major centres such as Canberra are unsecured.

section marker     the industry

The industry in both countries is being driven by four factors -

  • support by hardware and software providers for creation and maintenance of hotspot networks and wireless ISPs, implicitly in an effort to build the market and reinforce acceptance of particular standards
  • second-guessing by established telephony operators and ISPs, with minor investments in wireless ISPs and deployment of hotspots in alliance with hotel or food service chains
  • opportunistic establishment of isolated hotspots - often on a free access basis - by cybercafe owners
  • creation of global roaming alliances (eg between Azure and US-based Boingo, Telstra and Germany's T-Mobile and BT) that allow premium - ie commercial - customers to seamlessly go online in locations across the globe

Payment arrangements for hotspot access vary. Most operators use a subscription and/or sessional fee model, with payment by a credit card for set-up and an individual session or by bundling as part of the user's phone account. Some operators have been experimenting with hotspot versions of prepaid mobile phone accounts, with Xtreme for example promoting "a Recharge Card which [users] can scratch off the rear panel revealing a one-time-use Recharge Code".

Rates vary considerably, from multi-user corporate fees equivalent to around $3 per hour and charges for casual users ranging from $11 to $20 an hour. Xone's prepaid (via credit card) account is priced at $3.30 for the first half hour and then 11 cents per minute plus $0.45 per megabyte data transfer.

section marker     services and demographics

Immaturity of access provision and use is reflected in the fragmented nature of wireless access, with a handful of commercial hotspot networks (often restricted to central business districts), an indeterminate number of cybercafes or other venues offering access on an informal basis and volatility with non-commercial community networks.

Commercial networks and providers of hotspot services (eg offering hotels and restaurants a 'hotspot in a box' turnkey solution) include -

Telstra - the dominant fixed-line phone network operator, that has gained attention for its acquisition of the SkyNet Global start-up and alliance with McDonalds and Starbucks

Optus - the number two telephony operator, with upwards of 100 spots as of early 2004

Azure - established in 2001 and now a subsidiary of property developer Hudson Conway. Azure's executive includes the founder of high profile etailer dstore. In partnership with iPrimus (and an alliance with Boingo) it offers spots in the Melbourne CBD, St Kilda, South Yarra, Sydney CBD, Brisbane, QLD Gold Coast, Sunshine Coast and Perth

Xone - Sydney CBD, North Ryde, North Sydney, Paddington, Brisbane, Melbourne CBD, Mawson Lakes

Xtreme - 11 spots in Queensland

Atomic Wireless - launched a campaign for the cybercafe market in mid-2004 with the rubric "offer a wireless internet connection to the internet for free for 10 minutes to the end user - as long as they make a purchase from the location. Buy a coffee and get 10 minutes online for free".

Figures for user demographics are contentious. Operators of commercial networks have tended to suggest that users are predominantly male, in technical/professional positions and in the 25 to 45 age cohort. Supposedly most online sessions cluster between 2:00 pm and 5:00 pm, with users typically checking email.

section marker    
maps and statistics

Statistics about the number of commercial and noncommercial hotspots in Australia and New Zealand are problematical. In August 2004 the Australian Communications Authority, in releasing its DC to Daylight - Accounting for Use of the Spectrum in Australia document, suggested that there were around 400 spots across Australia.

Maps of varying accuracy are online. They include

hotspot-locations.com - Australia and New Zealand

wi-fihotspotlist.com - Australia and New Zealand

The patchiness of mapping, volatility of hotspot provision (in particular the arrival and departure of wireless cybercafes) and geek culture has led to pursuits such as warchalking and wardriving.

Individual network operators offer lists on their sites, for example Optus Wireless and Telstra.

A point of comparison is provided by the US WiFiMaps.com - "Now you can see your neighborhood, the city you are visiting, or other places, and what they look like to wardrivers" - and Julian Priest's 2004 paper The State of Wireless London.

JiWire claimed in January 2006 that there were 1,282 hotspots in Australia. The top ten nations and locations by hotspot were supposedly -

United States 37,073
United Kingdom 12,668
South Korea 9,415
Germany 8,614
Japan 5,951
France 3,886
Italy 1,767
Netherlands 1,703
Canada 1,397
Switzerland 1,295

Seoul 2,056
Tokyo 1,802
London 1,627
Paris 895
San Francisco 801
Daegu 787
New York 643
Singapore 619
Busan 617
Hong Kong 605







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version of January 2006
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