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More on Flarion/Nextel

During this period, public Wi-Fi hot spots -- essentially, wireless networks located in cafes, hotels, and airports -- could come under attack by new data networks from the likes of Nextel, the No. 5 wireless provider in the U.S. This month, Nextel began testing a new system built by privately held Flarion Technologies, based in Bedminster, N.J., that would offer blanket access to the Net throughout an area the size of a large city at speeds of 1.5 megabits per second -- vs. about 2 megabits per second for a typical Wi-Fi hot spot, which functions only within a small area.

Experts say Flarion's technology could become the basis for a wireless standard called "802.20," which is expected to be ratified by the IEEE by yearend. It requires the installation of special hardware at cellular-transmission sites that generally costs one-third to one-fifth as much as the gear for other advanced data networks, says Ronny Haraldsvik, senior director for global marketing at Flarion.