"Wireless Networking Poised to Shake Up Telecommunications Industry"

Associated Press (08/11/02); Fordahl, Matthew

Although Wi-Fi wireless networking is in its infancy, Wi-Fi's potential of providing a "cloud" of Internet access while bypassing the physical infrastructure of telecommunications and cable companies is already generating responses from telecom companies. Recently, Time Warner Cable, AT&T Broadband, and SBC Communications have taken steps to restrict Internet and cable subscribers from using Wi-Fi to share connections without paying extra charges, and MIT's Nicholas Negroponte told a Congressional Internet Caucus Advisory Committee meeting that recent downturns in telecom stock prices may reflect a market change in which consumers are moving to new, uncharted methods to fulfill communication needs. Indeed, a grassroots movement is pushing the inexpensive technology, which benefits from a lack of control by the big cable and phone firms. Meanwhile, wireless companies and technology designers are beginning to bet on Wi-Fi's popularity: For instance, Intel plans to build Wi-Fi functionality into its chips. Cahners In-Stat predicts sales of Wi-Fi access cards and base stations sales will jump to $5.2 billion in 2005 from $1.9 during 2001.
(http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2002/08/11/financial1311EDT0010.DTL)