News

Wi-Fi in Australia: The Same Story

Frustrated by the economics of running an ISP at the whim of Telstra, Australia's ILEC, small ISP Megalink has deployed a wireless network based on a modified version of 802.11b to circumvent the telco.

by Niki Scevak of australia.internet.com [January 25, 2002]

Frustrated by the economics of running an ISP at the whim of Telstra, small provider Megalink has deployed a wireless network based on a modified version of the 802.11b to circumvent the incumbent telco and thus provide broadband access independently. Last year saw little improvement. Although rates were dropped by 30 percent in December and other sharing mechanisms such as leasing a portion of the spectrum on the local loop were introduced, profitable business cases have yet to surface.

Originally a wireline ISP, Megalink founder Brenden Cooper quickly was ensconced in the all too common experience. "What we didn't know and do know now is that the more money you make the more Telstra charged," Cooper said.

The political fighting and frustration over DSL still has a way to go and so telecommunications companies—particularly smaller ones—cannot wait. One means through which to avoid Telstra's local loop is by using wireless networks.

For those not au fait with these strange collection of numbers, 802.11 is the wireless networking standard governed by The Institute of Electrical and Electronics Engineers (IEEE). Its original incarnation—802.11b—can transmit data at a rate of 11 Mbps.

Although not originally conceived as a 'last mile' technology, several companies have modified 802.11 technology to solve the problem of transmitting over long distances. One, KarlNet—a company heavily involved in the creation and development Apple's Airport product—has created a product called Turbocell that allows outdoor access provision over large distances.

Cooper says that Megalink now covers "around 85 percent of Melbourne and its surrounding suburbs, up to 50 km from the CBD." The design is such that there are only four cells on the network, located at distances varying from 24km to 48km apart.

For consumers, the price is not all that different from ADSL and cable. Megalink offers a 'reasonable usage' plan for A$154 per month, however does not guarantee the access speed. A separate product does offer committed rate access, but at a premium.

In some ways, price is not the point. We mention it only to show that it is competitive with current offerings. What's interesting is the creation of another mechanism through which to provide broadband Internet access that is independent of incumbent telcos. Wireless has long promised this, however the 3G technologies—such as CDMA 2000 —that can offer broadband access are still years from deployment and worse yet will seemingly be owned by the very same largest telcos.

Rogue technologies, such as Karlnet's modified 802.11 product, offer significant opportunity for smaller ISPs—especially considering the 2.4 Ghz spectrum they operate in is unlicensed.

—End