Why not all public WLANs will be free

Just over a month ago silicon.com called 2003 the year of the wireless LAN, barely distinguishing between corporate private wireless networks, public paid-for hot spot access and domestic set-ups. Of course, we meant all types, usually based on one of the 802.11 standards, across most advanced economies, but we didn't say which companies would be the winners and losers.

Many major telcos are competing or co-operating with start-up service providers such as Boingo in the US or Megabeam in Europe. But there is a breed of provider worrying these companies. They are either offering retailers such as cafés the know-how, connectivity and support to offer a totally free service - with the promise it will attract more general business - or undercutting the bigger boys, as with cyber-café operator Internet Exchange announcing 32 hot spots today in the UK.

The question becomes: Can anyone compete against free? The answer: It can be done.

Also earlier this year, in a column for silicon.com, telecoms consultancy Ovum stuck its neck out about the 'will public Wi-Fi become free' issue. An analyst wrote: "Ultimately, in this [free to end user] scenario, wireless LAN would become like air conditioning: lots of places have it, some places might occasionally gain additional custom because of it but no one charges extra for it."

And then went on to say it won't happen. Why, it asked, would anyone give away something that it can easily supplement its bottom line with?

Of course, to a business wanting to sell more coffee or books or whatever, the cost of providing a free WLAN using Wi-Fi is appealing. It is going to happen more and more.

But let's take some of the paid-for service providers. A BT OpenZone or Megabeam, with their relatively high prices - certainly relatively high compared to zero - still stands a chance. Two scenarios come to mind.

First, many public WLANs won't be that public. If they’re in airport business lounges or upmarket hotels, they're aimed at a captive audience. People will have to pay or start looking for sockets, which certainly won't be free.

Second, many businesses, as opposed to individual end users, feel comfortable having a contract with an organisation guaranteeing certain coverage and quality of service. They may not want to pay over the odds but want some recourse - a bill is normally a good starting point. Note how many IT directors started to consider 'free' software such as StarOffice viable once a token fee was attached.

No, as with most other telecoms and network services, there will be layers of provision. Charging will merely carry with it greater responsibility, and that's the way it should be.