Phone Companies Killed the Tech Boom
Killing the Free Wireless movement in its infancy would be tragic, because the alternatives for spreading
broadband are fraught with problems. Not only are the cable, phone, and satellite companies many years
and billions of dollars away from creating universal broadband, but if small entrepreneurs disappear, so
will customer choice: whichever of the major providers controls broadband also influences what its
subscribers see and do online. In much the same way that Microsoft dominates the browser market, it's
conceivable that a phone company such as Verizon could cut deals with certain news and shopping sites,
then instruct its network to steer unwitting customers toward its content partners. By controlling the
broadband gateway, it could even go so far as to ensure that non-partner pages download slower
than preferred portals to encourage---or force---users to stay within the Verizon "family."
At a time when Washington is flummoxed over how to spread broadband and spur the next economic
boom, the Free Wireless movement is pointing the way toward a cheaper, faster way to bring broadband
to the masses. The trouble is, cutting-edge entrepreneurs like Hendricks and Berry have no real presence
in Washington, which is where the future of broadband will soon be decided. Right now, the debate is
shaping up as a battle between the Baby Bells, cable companies, and the big wireless phone companies, all
of whom have hired lobbyists and are jockeying to guide federal subsidies and regulatory advantages their
way in a bid to claim for themselves this vast potential market (if you live in Washington, surely you too
have been bombarded will all the television commercials for and against broadband legislation). But it will
take big industry years and billions of dollars to deliver universal broadband through their preferred
means.
Washington lawmakers need to create a regulatory environment in which small entrepreneurs can
flourish. The first step is to clear up the law so that broadband entrepreneurs are free to resell broadband
to customers quickly and affordably. AT&T may flinch over this, but NYC Wireless's Townsend makes
the point that "big ISPs will come to see us as a good thing---we're building demand for broadband by
demonstrating its possibilities." The vast majority of Americans could receive some form of broadband,
but due to price and hassle, so far have elected not to. Low-cost wireless community networks could
change this, giving customers an easy way to get online, sparking demand for broadband applications and
kicking the economy into high gear.
None of this can happen until the FCC frees up more unlicensed spectrum. While 802.11b has proven its
potential for enabling cheap wireless networking, the downside is that it can only handle a limited amount
of users before interference becomes a problem. Fortunately, there is plenty of available spectrum that
could fill this need---the catch is that it's controlled by powerful businesses which got their spectrum
years ago and aren't permitted to sell it. Television broadcasters are the best case in point: Several years
ago, the government allotted them, at no cost, new spectrum for high-definition television, which looked
at the time to be the next stage in broadcast technology. But that idea fizzled. Digital television is instead
being deployed at a rapid clip through cable. It's time to take that spectrum back.
Try Before You Buy
Unfortunately, the Bush administration looks to be on the brink of doing exactly the wrong thing: giving
Baby Bells and cable operators complete and exclusive control of their lines, effectively shutting out
competition. The Baby Bells have already shown their eagerness to deny access to independent ISPs,
driving many out of business. Surely, they would move just as swiftly to deny small broadband
entrepreneurs the right to re-sell their signal if doing so meant sacrificing potential customers.
Throughout American history, our economy has thrived when individual entrepreneurs led the way---
from homesteaders in the 19th century to the 1970s garage-geeks who founded some of today's biggest
Silicon Valley tech companies. New wireless technologies could enable legions of small broadband
entrepreneurs to deliver high-speed wireless Internet to tens of thousands of Americans at lower prices.
Once online, these new broadband users will not only unleash long-awaited features like movies-on-
demand and videoconferencing, but also set the stage for more Napster-like innovation from smaller
entrepreneurs. (Ninety percent of small businesses lack broadband.)
Today, the closest thing to anytime-anywhere wireless broadband service is provided by a company
called Boingo, which is garnering heaps of praise from the tech press and early adopters like me. Boingo
sells "sniffer" software that hunts for 802.11b networks in the vicinity of your laptop, wherever it may
happen to be. Next month, I'm travelling to San Jose and then to Seattle---both cities covered under the
Boingo umbrella. While on the road, I'll be able to flip open my laptop and get fast, wireless broadband
service. And I don't even need a Pringles can.
Lawmakers debating the future of broadband should take note: Before you side with big industry and
sabotage free wireless, give this service a shot and discover the future of broadband yourself. Thousands
of voters already have. Millions more are bound to be impressed with whomever recognizes this hidden
key to fixing the economy.
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