The WSJ reports that ]"It wasn't until [Wi-Fi] was embedded in computers that it exploded on the scene," said John Stratton, Verizon Wireless' vice president and chief marketing officer. The widespread integration of WiFi was largely driven by the Centrino platform.
In addition, Intel resolved many interoperability problems with WIFI and led the rapid deployment of WiFi base stations. It is no coindence that lots of airports and other locations initiated WiFi service complete with Centrino banners when Intel introduced the Centrino platform.
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By JESSE DRUCKER
Staff Reporter of THE WALL STREET JOURNAL
September 19, 2005; Page B1
Verizon Wireless and Dell Inc. announced a deal to put cellular technology that allows high-speed Internet access directly inside some of Dell's notebook computers, in an attempt to bring the service to the mass market.
Verizon Wireless offers the service, called BroadbandAccess, in about half of the U.S. It allows customers to get on to the Internet wirelessly at speeds comparable with wired digital subscriber lines in most places in those markets where they can find a Verizon Wireless signal -- such as when riding in a car or train or sitting in a hotel room.
But the service requires customers to purchase a separate wireless card to slide into a laptop. Beginning early next year, the technology will be built directly into some of a line of Dell portable computers called the Latitude series. The service also requires a monthly subscription and annual contract. Verizon Wireless is negotiating with other laptop makers and is expected to announce shortly a similar deal with Lenovo Group Ltd., the maker of ThinkPad-brand laptops, according to a person familiar with those talks.
Verizon Wireless is investing more than $1 billion to upgrade its cellular network with a technology known as EV-DO to accommodate higher data speeds. The company hopes to create a whole new wireless Web access business as it competes with other cellular carriers as well as with the popular technology known as Wi-Fi. Wi-Fi allows wireless Internet access at faster speeds than EV-DO, but generally at a much shorter range of a few hundred feet from an access point.
Verizon Wireless also seeks to enter new lines of business as the old landline phone business of its majority owner, Verizon Communications Inc., faces new competition from cable-TV companies. (Britain's Vodafone Group PLC owns the other piece of Verizon Wireless.)
It is betting that wireless Internet access could give it a possible advantage over competitors. Verizon Wireless could also face competition from efforts coordinated by several local governments that are deploying citywide wireless Internet setups, in many cases using Wi-Fi or other wireless broadband technologies. Sprint Nextel Corp. also sells EV-DO.
In another attempt to boost the popularity of EV-DO, Verizon Wireless last month dropped its prices by 25% for some customers, to roughly $60 per month. Corporate discounts could lower the cost further for some users. The company declines to say how many EV-DO subscribers it has.
Verizon Wireless hopes that the ease of having the technology built into notebooks will do for its service what Intel Corp., Dell and other laptop makers did to help spread Wi-Fi by installing that technology directly into portable computers.
"It wasn't until [Wi-Fi] was embedded in computers that it exploded on the scene," said John Stratton, Verizon Wireless' vice president and chief marketing officer. Indeed, Alex Gruzen, senior vice president of Dell's product group, said more than 90% of Dell's notebooks now have Wi-Fi built in. Roughly 55 million portable computers with built-in Wi-Fi are projected to be shipped this year, according to ABI Research.
Verizon Wireless still faces challenges in getting consumers to adopt its service. For one, while several providers offer paid Wi-Fi services, consumers often can receive Wi-Fi signals free at friends' homes, from neighbors or even in some hotels and coffee shops. And Verizon Wireless's EV-DO service, while potentially more ubiquitous than the numerous but spotty Wi-Fi networks springing up, requires a monthly subscription; it cannot be purchased by the hour like many paid Wi-Fi services.
Earlier this year, Sony Corp. announced it was putting the wireless web access technology used by Cingular Wireless into a new line of laptops. The technology it is using, called EDGE, is far slower than EV-DO and is considered by many an interim step until Cingular upgrades its network to enable higher speeds later this year, using a faster technology called UMTS. Cingular, a joint venture of SBC Communications Inc. and BellSouth Corp., is the country's biggest cellular carrier.
The move by Verizon Wireless is also the latest step in a showdown between Qualcomm Inc., which devised EV-DO technology, and Intel. Intel has made selling Wi-Fi chips a cornerpiece of its strategy. However, through its EV-DO technology, Qualcomm is now moving into the same territory by competing for high-speed wireless Web access via laptops.
AI
