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section heading icon     WISPs

This page considers wireless internet service providers (WISPs).

It covers -

section marker     introduction

Wireless internet access has been recurrently touted as

  • the "wave of the future"
  • a solution for 'last mile' connectivity in suburban Australia and urban centres overseas
  • a solution for connectivity to remote locations or other places where there are geographical barriers or insufficient demand for a connection via wire.

Most attention has centred on access via ground-based short-range stations - often using the same technology highlighted in the preceding page about wireless hotspots. However, some connectivity is provided by satellite and there have been proposals, credible or otherwise, to use airships or even low-flying aircraft.

In Australia most activity has involved the dominant telcos and a handful of competing internet service providers for upmarket consumers within a handful of metropolitan areas (in particular central business districts) and venues that attract consumers willing to pay a premium for secure access (eg airports).

section marker     the industry

In advanced economies the industry 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 in Australia 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.

section marker     in Australia and New Zealand

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.

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

Wireless ISPs offering connectivity for business and residential customers include Telstra, Optus and

iBurst (Personal Broadband Australia) - founded in 2001 with support from Arraycomm, Ozemail and UTStarcom, and currently offering wide area wireless connectivity in Sydney, Brisbane, Gold Coast and Melbourne

Unwired - providing full local loop services - initially in Sydney - through radio spectrum licences in the 3.4-3.5GHz band acquired at auction in 2000 (with additional licences from Austar)

Big Air - promoted as a wireless 'last mile' provider of connectivity to multiple tenancy units buildings (primarily in the inner city) - ie acting as an ISP - and to cafes or other venues

section marker     bridging digital divides?

Wireless has been promoted as a mechanism for bridging digital divides in advanced, emerging and other economies.

In parts of Africa, Asia and Latin America - where wired infrastructure is inadequate or unavailable and rollout might be prohibitively expensive - wireless has sometimes been greeted as a panacea that will solve intractable education, economic, cultural and even regulatory problems.

It has been a major focus of the United Nations ICT Task Force, Woprld Summit on the Information Society (WSIS) and some private sector initiatives. Much of the planning and associated writing is an often uneasy mix of technology boosterism, academic grandstanding public sector funding, with particular programs gaining media attention but unlikely to deliver what end users would regard as appropriate or sustainable outcomes.

For an overview see the UN/WII's The Wireless Internet Opportunity for Developing Countries and the more readily available Fact Sheet Wireless Internet Opportunities for Underserved Areas.

Questions about Africa are identified in Maria Neto's 2004 Networks for the Developing World: The Regulation & Use of License Exempt Radio Bands in Africa (PDF).

For perspectives on China see Jonas Clausen's thesis Opportunities for WLAN and WISP in China (PDF)

section marker     satellite

Access via satellite is essentially available in two forms for individual consumers and most organisations.

The first uses a satellite dish for two-way (ie both upload and download) data communications. The upload speed is typically around 10% of the 500 kbps download speed (which is around ten times faster than a standard telephone line modem).

The second uses a mix of satellite and terrestrial infrastructure, typically a dish for a down-link from the satellite and a phone line, cable or even wi-fi/wi-max for the uplink.

In remote Australia - where distance, harsh environmental conditions and low market demand make construction and maintenance of wired infrastructure cost prohibitive - satellite services have attracted attention as a cost-effective solution (particularly when subsidised by the federal and state/territory governments). One-way and two-way satellite services are available through commercial providers.

The 1999 Digital Data Service Obligation (DDSO) - for which Telstra is the nominated provider - requires a 64kbps Integrated Services Digital Network (ISDN) service to be made available to 96% of the population on request. The other 4% of the population are covered by the Special Digital Data Service Obligation, a satellite service that features a rebate of up to 50% of the installation cost (capped at $765) of one-way satellite internet access equipment.

There is some subsidised two-way connectivity, primarily to remote Indigenous communities. That connectivity is typically through community telecentres.




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