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Boingo - Aggregating Wireless ISPs

Wireless

from the interesting... dept

Thu, Dec 20th 2001 3:13am — Mike Masnick
Sky Daton is at it again. His latest company, Boingo, has been unveiled. It's an interesting idea. He is trying to aggregate the various wireless ISPs into a single big network of Wi-Fi based ISPs. While many smaller wireless ISPs have failed because they couldn't build out a national network, this idea could make it the default network to join to build a national wireless network. Of course, it's still not clear if ISPs can get enough coverage using Wi-Fi. I know it works in some places, but in others, it might just be too difficult. Plus, the integration between various ISPs may be difficult as well. Still, it will be interesting to watch how Boingo does. If they do well, and VoiceStream is really serious about building out an 802.11b national network, look for VoiceStream (or a competitor) to buy up Boingo...
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  • identicon
    Anonymous Coward, 20 Dec 2001 @ 6:37am

    No Subject Given

    This is good news. You stay away.

    [ link to this | view in chronology ]

  • identicon
    Russell, 20 Dec 2001 @ 7:54am

    No Subject Given

    In general, consolidating a fragmented industry is a good strategy because you can achieve economies of scale and increase your bargaining power with suppliers, and be able to defend better against competitorsm, like Wayne Huizenga did with Blockbuster Video. However, it's not clear that it will work in this case, for several reasons. First, these networks have very low variable costs (ie no suppliers, raw materials, etc) so there aren't any obvious economies of scale or suppliers to bargain with. One advantage Dayton will have is the ability to provide roaming from one network to another--whether that's desired is an open question. But otherwise, this consolidation doesn't seem to provide many advantages. Second, there isn't much of a market here, and it's not obvious that there will be one in the future, esp. at these costs. Third, by not actually buying these wISPs, Dayton won't have very much control over them, and won't have much to insure against competition. Fourth, eCompanies..need I say more?


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    • identicon
      david, 20 Dec 2001 @ 8:20am

      Re: No Subject Given

      i have to agree with russell on a couple of points. while i do believe in the future of 802.11 (as opposed to 3G public networks), i do think dayton has some serious challenges. by setting unlimited pricing across private networks, sky becomes ultimately responsible for quality of service...something that isn't a given in wireless yet and that he has no control over in this situation. also, the pricing is (no pun intended) sky high. ricochet and mobilestar both had problems at $55+ a month price point. until we get down to a sub-$30 price point, i think that pay as you go is a much better option.

      that said, i believe that tying a series of 802.11 POPs together has more potential than a large capital outlay play like mobilestar. sky will just have to tweak the model as time goes on...

      [ link to this | view in chronology ]


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