Langberg: The Overbuilding Of Wireless Networks Lingers In The Air

Too much excitement over wireless technologies is risking the possibility of overbuilding of networks. At present, there are several projects aimed at providing citywide or nationwide WiFi coverage and the question is whether these networks will attract enough customers to remain viable in the long term. Analysts like Andy Seybold, editor of the wireless industry newsletter Outlook4Mobility, and Monica Paolini, who founded the wireless research firm Senza Fili Consulting, believe wireless services will have a tough road ahead. Part of the reason is that they are more expensive than wired services. Verizon Wireless, Sprint and Cingular offer unlimited wireless data service with half-a-megabit-per-second speed for $50 to $60, which is double the fee for and just a third of the speed of DSL. The demand is also low due to lack of computers that are ready to adopt the technology.
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