Despite all the hype about high-speed Internet access, most people who want faster connections at home face initial waits that make their trusty dial-up modems seem downright speedy.
That’s because they have to wait–sometimes for months–for their local phone company to bring digital subscriber line (DSL) technology to their neighborhood or for their cable operator to offer cable modem service.
But little by little, wireless technologies are emerging that could quicken the spread of broadband access.
Two of the nation’s largest long-distance companies, Sprint Corp. and AT&T Corp., are launching residential services that use so-called fixed-wireless systems to deliver faster Web connections without stringing wires to every home in America. WorldCom also holds fixed-wireless licenses, but the company’s roll-out plans are unclear.
Wireless technologies have definite limitations, but so do their wired alternatives. Fiber-optic lines remain pricey; DSL speeds are distance-sensitive and can be affected by poorly maintained copper phone lines; and cable modem networks share the last leg of the connection with the whole neighborhood, slowing speeds for everyone during peak usage.
“Between cable modems, DSL and fixed-wireless, it’s pick your poison. You’re going to have similar levels of service, but different things are going to cause problems,” said Tim Burke, telecommunications analyst at Edward Jones. “No one’s going to be 100 percent happy with what they’re using.”
Different broadband systems probably will coexist for the next few years by targeting the markets best-suited to their technological strengths and by filling service gaps left by other systems. But it will take time.
“Most people have a choice of zero forms of broadband to this day,” said Timothy Sutton, president of Sprint’s broadband wireless group. “There is going to be something north of 50 million households that cannot get any broadband for the next few years, so it’s a huge market for us.”
Sutton’s group hopes to tap those unserved homes using fixed-wireless technology that can deliver Internet connection speeds comparable to–and often faster than–competing technologies. The company holds licenses for wireless service in 90 U.S. markets, an area covering 30 million potential customers.
Sprint launched its first system in Phoenix in May, and has signed up about 10,000 customers, Sutton said. The company recently expanded into Colorado Springs; Tucson, Ariz.; Detroit; Houston; San Francisco; and San Jose, Calif., and plans to be in more than 40 markets by the end of next year.
Sprint’s service uses a section of the radio spectrum originally set aside for wireless delivery of cable programming. That market never developed, and federal regulators allowed license owners to shift to two-way Internet offerings.
The basic system starts with a central antenna or transmitter mounted on a tall radio tower, typically one that is already in use for television or radio transmissions. Outside a customer’s home, the company mounts a small, flat, diamond-shaped antenna so that it has a clear transmission path to the tower.
Inside, the setup is similar to that required for DSL or cable modem service: It includes a wireless cable modem and installation of software and a computer network interface device.
The Phoenix offering costs $39.95 per month and includes Internet service from EarthLink Sprint with typical download speeds from 512 kilobits per second to 1.5 megabits per second–about 18 to 52 times faster than a dial-up modem running at 28,800 bps.
Installation fees, which are sometimes waived, run $299, and equipment costs range from $99 to $299, depending on the service contract.
A single tower can serve customers as far as 35 miles away, covering about 3,000 square miles–a fact that allows Sprint to enter new markets quickly and at relatively low cost.
The primary drawback of Sprint’s service is its susceptibility to obstructions such as dense woods, tall buildings, neighboring houses or mountains.
Rival AT&T is shifting into commercial operations with its wireless broadband service after a lengthy test in Dallas and Ft. Worth. The system, originally code-named Project Angel, uses a cellularlike technology in some markets and a system similar to Sprint’s in other markets.
The cellularlike system requires AT&T to build out its coverage area in cells, each with a base station that sends and receives data to and from customer homes in much the same way that mobile services transmit signals to and from wireless phones.
AT&T’s service is being advertised only in its original Dallas market, but it has begun installations in San Diego and will move to Los Angeles, Houston and Anchorage next. The company hopes to be able to reach 15 million potential customers by the end of 2002.
Prices will vary by region, but AT&T’s San Diego service costs $54.45 per month and includes Internet service from AT&T WorldNet and the ability to connect several computers at shared download speeds of up to 512 kbps. A planned upgrade would boost download speeds to 1 megabit per second, but sending data to the Internet would be significantly slower at 128 kbps.
AT&T’s wireless broadband package also includes phone services, with unlimited local calling, two phone lines and long-distance service at 7 cents per minute for state-to-state calls and 5 cents per minute for in-state calls. Three add-on phone features, such as call waiting, are included on one line for free for a limited time.
Both Sprint and AT&T could face installation difficulties because the home antennas must be mounted correctly, but analysts expect the fixed-wireless systems to play an ever-larger role in broadband service. Brian Gilman, senior analyst at market research firm eMarketer Inc., estimates that fixed wireless systems will have 80,500 residential customers by year-end, rising to around 770,000 users in 2003.
“As more players get in here, the market is going to get very competitive, and prices are going to drop,” Gilman said. “But the key word is patience.”
