1. iGillottResearch The Real Market for Wireless LANs Iain Gillott (512) 263-5682 iain@igillottresearch.com Charul Vyas (512) 282-0161 charulv@igillottresearch.com

2. iGillottResearch www.igillottresearch.com The Basics Wireless LANs A generic term used to refer to wireless local area networks On-premise data communication system IEEE 802.11 Standard Standard includes an encryption method, the Wired Equivalent Privacy algorithm, for security 802.11 Family of specifications for WLANs developed by a working group of the IEEE Currently four specifications in the family: 802.11, 802.11a, 802.11b, and 802.11g 802.11b Often called Wi-Fi Backward compatible with 802.11 First standard implemented 802.11a Operates at radio frequencies between 5 GHz and 6 GHz Possible data speeds up to 54 Mbps - but 6 Mbps, 12 Mbps, or 24 Mbps more realistic

3. iGillottResearch www.igillottresearch.com Up Next… 802.11g Offers wireless transmission up to 54 Mbps Operates in the 2.4 GHz range and is thus compatible with it 802.1X Standard designed to enhance the security of WLANs Provides an authentication framework for WLANs, allowing a user to be authenticated by a central authority Actual algorithm that is used to determine whether a user is authentic is left open and multiple algorithms are possible Uses existing protocol, the Extensible Authentication Protocol (EAP, RFC 2284), that works on Ethernet, token ring, or wireless LANs, for message exchange during the authentication process

4. iGillottResearch www.igillottresearch.com Devices Most devices currently on market on 802.11b 802.11a devices starting to hit market Coming soon (or relatively soon) 802.11a and 802.11b combined products Wi-Fi/Wi-Fi5 and wireless wide area network device New multi-network devices/cards necessary to avoid delayed adoptions

5. iGillottResearch www.igillottresearch.com What’s Good... Enterprise Flexibility for workers that travel Flexibility for temporary facilities High speed data Allows for wireless connection where there may not be 3G signal (inside buildings) Scaleable Cost Effective Another reason to get addicted to Starbucks… Small Biz/Consumer Flexibility High speed data Cost effective For high data users Decreasing cost of equipment High availability of equipment Ease of installation Networking for home PCs

6. iGillottResearch www.igillottresearch.com What’s Not so Good … Coverage Usually 300 feet Less indoors Depends on building structure Number of public deployments still limited Generally poor marketing Low awareness of availability Inconsistent pricing structures Variable costs No true roaming between all major WISPs No roaming between Mobile WAN operators and WISPs Multiple standards can be confusing Data only VoIP possible but no signalling Klugy, expensive… Business model Not yet proven for WISPs

7. iGillottResearch www.igillottresearch.com More Not so Good Stuff … Network monitoring more complex for the enterprise than LAN Speed/reliability suffers when network loaded Interference starting to be a problem in some public areas DFW terminal B Admirals Club High cost of backhaul Important to remember that wireless LANs need a wired high speed connection – such as in the form of T1s, DSL lines or cable modems – on the back end Not usually factored in when people enthuse about wireless LAN Unlicensed frequency No control Share with multiple other devices 2.4 GHz phones cause problems Drains battery life Use 1x/GPRS modem and an 802.11 card and enjoy 3 Secs of battery life…on a PC! Security concerns

8. iGillottResearch www.igillottresearch.com WLAN Security Perceived and real security issues with WLAN Most security problems arise from corporation not taking general precautions Unlicensed frequency increase ease of hacking network

9. iGillottResearch www.igillottresearch.com WLAN Security Security Flaws WEP is flawed - algorithm used is too short - no provision for the secure distribution and management of keys Security fixes from one WLAN provider many not carry over to another vendor PKI can be used to address the failing of 802.11b’s security mechanism, wired equivalent privacy Fixes IPsec VPNs are the best and easiest way to secure WLANs WLANs can use RADIUS servers - often already deployed within an enterprise to authenticate users

10. iGillottResearch www.igillottresearch.com WISPs Future unclear for many, large and small, WISPs Business model unproved Shaky at best Main providers today are T Mobile Broadband and Wayport T-Mobile is not a small operator… Wayport is only 20% wireless … Service aggregators and smaller WISPs are emerging Boingo Joltage hereUare (but not for long… there ya go!)

11. iGillottResearch www.igillottresearch.com WLAN & Mobile WAN Operators Operators carefully watching WLAN space Aware that WLAN could take some of the $$$ from expected 3G data traffic Still, as revenue generated from WLAN public usage is small, they are waiting to market to mature July 2002 “Project Rainbow” Rumors AT&T Wireless, Cingular Wireless and Verizon, Intel, and IBM considering forming company to build nationwide WLAN network

12. iGillottResearch www.igillottresearch.com WLAN & Wireless Operators Limited investments in WLAN MobileStar bought by Voicestream in 2001 Sprint PCS invests in Boingo NTT DoCoMo Testing an 802.11b WLAN service Will launch commercial WLAN service - with 802.11a and 802.11b standards Service now offered at 200 locations in Tokyo; hotspots to increase to 1,000 locations by YE2002 British Telecom Deploy 400 wireless public hot spots over the next 12 months. By 2005 - hotspots to reach 4,000 and BT will upgrade those 802.11b networks to 802.11a Ericsson Signed a contract with TDC Mobil in Denmark to deploy its Mobile Operator WLAN system Other carriers in Europe Such as Telia, Telenor and Telefonica Stated they have plans to integrate WLAN and their 3G networks

13. iGillottResearch www.igillottresearch.com WLAN & Mobile WAN Operators Operators need to realize that WLANs are complementary – NOT competitive – to their offerings In order for WLANs to see wide spread adoption, there must be integration between Mobile WAN networks and public/private WLAN networks

14. iGillottResearch www.igillottresearch.com WLAN & Mobile WAN Operators Many issues with integrating WLAN and Mobile WAN: Maintaining session between Mobile WAN and WLAN Dual mode devices Back end integration with Mobile WAN operator’s systems – billing, customer care, authentication and fraud management

15. iGillottResearch www.igillottresearch.com WAN Business Users & Public Connections

16. iGillottResearch www.igillottresearch.com Recommendations Remember most adoption still with businesses Opportunity to link corporate WLAN to WAN Lucent, iPASS… Widespread, even general, consumer recognition & adoption a ways off Revenues from public connections will be small for sometime Very limited vendor opportunity Thus - timing of new solutions is important Operators will need solutions that tie into WLAN – customer care, billing, monitoring, etc. Do not underestimate the importance of security

17. iGillottResearch Questions?