The number of Wi-Fi hotspot users worldwide expected to grow from 9.3 million in 2003 to 30 million in 2004

At the present moment, there exist just 13 Wi-Fi hotspots in Saudi Arabia, 5 in the UAE and 4 in Kuwait.

Wi-Fi Hotspots are predominantly used by owners of Intel Centrino powered laptops, with limited exploitation of Wi-Fi's potential as high-speed connectivity provider to Wireless Local Area Networks (WLAN). However, the incorporation of Wi-Fi enabled chipsets into two recent mobile phone models, the Nokia 9500 Wi-Fi communicator and the Motorola MPX has opened the doors for a new exploitation of Wi-Fi connectivity.

Wi-Fi, a young technology backed by the likes of Intel and Microsoft, sends Web pages, emails and instant messages via radio waves. That avoids the expense of cables, which has partly held up the spread of broadband or high-speed Internet, services in the USA. At the same time, at 11 Megabits per second (Mbps), Wi-Fi is characterized by hitherto unheard of speeds in wireless connections. According to on-ground reports from countries that have extensively developed Wi-Fi networks, the cost of setting up a base station can be as low as US$ 150.

"The introduction of Intel Centrino Mobile technology, which incorporates Wi-Fi connectivity in its chip, was the first catalyst to the adoption of Wi-Fi technologies. As compared to the relatively lower speeds and higher adoption expenses of cable-fed broadband connectivity, Wi-Fi became the ideal choice for a larger number of network providers in Europe and the USA," said Bashar Dahabra, Founder and General Manager of Info2cell.com the Middle East's leading Mobile Service provider.

"By 2003, when the Wi-Fi technology first began to gain ground, it had two inherent limitations. First and foremost, it was a technology with application limited to laptops. There were no mobile phones in the market that could access the Internet through a Wi-Fi hotspot. Mobile phones and PDAs were already using 2.5G (GPRS) technologies, which enabled the user to download music and video clips, besides limited web browsing capabilities. Although relatively more expensive than a Wi-Fi network, 2.5G further gained ground with the introduction of GPRS EGDE technologies that considerably augmented the web access speed encouraging increased WAP as well as WEB Pages browsing. Where the 2.5G technologies scored was in the range of the network, as compared to a bare maximum of 100 Feet range for a Wi-Fi network. However, with laptops and mobile phones using two distinctly different technologies, mobile communications remained split between incompatible devices," added Dahabra.

"The introduction of Wi-Fi connectivity in mobile phones has changed all that. The two inherent benefits that come to mind are on the one hand the convergence between the laptop, a handheld and a phone, and on the other hand the relatively cheaper to install, maintain and use Wi-Fi network," said Dahabra.

The Wi-Fi network works through a base station, known as a hotspot, which provides internet connectivity by creating an 'internet cloud' with a diameter of not more than 100 Feet, providing internet access to devices with a Wi-Fi chip. The users pay the hotspot owner, who in turn pays the service provider, creating a win-win situation for all three. The user gets high-speed wireless connectivity at relatively low rates (since the cost of installation and maintenance is relatively low), the hotspot owner earns for the service he provides. The revenue benefits for the service provider, in turn, are immense, with additional service outlets.

According to a recent research quoted in the Seattle Times, the number of Wi-Fi hotspot users worldwide is expected to grow from 9.3 million last year to 30 million in 2004. The number of Wi-Fi hotspots has grown from a few hundred locations worldwide in 2000 to 40,000 in 2003. It is also predicted that, in the very near future, more than 50 percent of laptops used by professional users will have built-in Wi-Fi by year's end.

"Another potential application of Wi-Fi lies in office and home networking via WLAN. The limited range of the Wi-Fi hotspot could be exploited to advantage in data networks for offices, as well as networked homes, on a cost-effective basis. In the UAE, which already has a few hotspots, Wi-Fi could be of great benefit for organisations such as Dubai Internet City, which could provide high speed limited range Wi-Fi connectivity inside offices, as well as, in public places such as its food-courts and cafeterias," said Dahabra.

One of the main concerns of network operators is the network security and questions are bound to be asked about the safety of a wireless network based on radio waves. Originally, Wi-Fi used a technique called Wired Equivalent Privacy (WEP) that used simple encryption to protect data. However, as vulnerabilities in WEP have been exposed, a new standard called Wi-Fi Protected Access (WPA) is being tested that will provide a much greater security through improved data encryption and user authentication.

"However, there is talk in the market-place that the entry of the Wi-Max technology will bring about the demise of Wi-Fi networking. This is a misnomer. Wi-Fi and Wi-Max have totally different fields of application, which are in fact complimentary," added Dahabra.

Wi-Max is a technology that would allow an operator to place antennas on just a couple of towers in a town to offer wireless Internet access just about everywhere. Customers within two or three miles of an antenna could share Internet access at speeds of 75 megabits per second (Mbps), which would be reduced to 1 or 2 Mbps each per user (compare that to 11 Mbps minimum per user for Wi-Fi). Users as far as 30 miles away would have access as well, albeit at slower speeds. Obviously, Wi-Max would be an external network. Where Wi-Max scores in range, it loses out in speed, indicating a totally different set of applications for the Wi-Max. Wi-Max was built for reaching across wide distances but not necessarily for what Wi-Fi does best: network different devices at high speed, within a building.

"The fact that Intel is pursuing a strategy to combine Wi-Fi and Wi-Max onto a single chip, so that users may switch from network to network, will provide the next catalyst for growth for the Wi-Fi technologies. The combined strength of Wi-Fi and Wi-Max will create a new generation of communication systems that will replace 3G Mobile technologies. Now is the time for Middle East governments and service providers alike to plan for adoption of Wi-Fi technologies, especially keeping in mind that countries like the UAE are emerging as global centers of Commerce. The Middle East region cannot afford to be left behind in adopting emerging telecommunications technologies," said Dahabra.