Difference between revisions of "Cost of Setting up a Wi-Fi Network"

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The low cost of setting up a Wi-Fi network is one of the driving factors for its popularity besides being able to provide information anywhere and everywhere. To set up a Wi-fi network an access point or a gateway is required which send and receives radio signals and a Wi-Fi radio is required to be embedded in the devices like PC, PDA,Laptops etc. The major difference of a Wi-fi network as compared to other networks is that Wi-Fi operates in the unlicenced 2.4 -5 Ghz radio bands. So there is no cost of obtaining a licence as compared to other networks which have to pay billion of dollars to obtain a licence for a spectrum for transmission.
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The prices of Wi-Fi access points and radios are falling sharply. The cost of a Wi-Fi radio chip which was around $16 in 2002 will drop to under $2 in 2006. Similarly the cost of Wi-Fi Aceess points which were around $1000 in 2002 are under $100 now and are expected to fall further. Also the Wi-fi card that was around $700 in 2000 is almost under $50 now and is approaching to be provided as a standard feature in most of the new PC's being manufactured today. Because of these low price to set up a Wi-Fi network and without any licence fees to be paid millions of wi-Fi networks have been set up as they also provide better speeds as compared to the traditional broadband and cellular networks.
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Besides the cost of setting up the network the cost advantage of the Wi-Fi network is further enhanced by the usage charges for accessing data through a Wi-fi network which is a fraction to what is being charged by 3G cellular companies to provide data services. A typical data transfer over a 3G network costs aroung $1-$4 per megabyte whereas the same cost over a Wi-Fi network come out to be around $.01 per megabyte.
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* Unlicenced Spectrum of 2.4 Ghz and 5Ghz
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* Low cost Wi-Fi access points
* Low cost of Wi-Fi radios
* Low cost of Wi-Fi radio chipsets
* Increased competition
* Increased number of Wi-Fi hardware manufacturers
* Support from the PC industry to counter data services from 3G companies


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* Interoperability of Wi-Fi equipments
* Roaming agreements and fees charged by different networks
* Limited range of a single access point
* Coverage across cities and different countries
 
== Paradigms:==
 
* Low cost Wi-Fi hot spot for around $200
http://www.accelenet.net/wireless_low.html
 
* Wi-Fi Card around $50
 
* Wi-Fi Access Point under $100
 
* A city wide Wi-Fi network to cover the city of Philadelphia will cost $10 million
 
http://www.accelenet.net/wireless_low.html
 
* Monthy operating estimated profit of a cafe hot spot estimated around $116 and monthly operating profit of a hot spot at airport around $14,167
 
http://www.boingo.com/wi-fi_industry_basics3_3.html
 
== Experts:==
 
* 802.11 & Cellular: Competitor or Compliment by Bill Gurley
 
http://shrikant.emergic.org/archives/2003/03/
 
== Timings:==
 
== Web Resources:==
 
* http://www.boingo.com/wi-fi_industry_basics3_3.html
 
* http://shrikant.emergic.org/archives/2003/03/
 
* http://www.fiercewireless.com/topics/wifi.asp
 
* http://www.wi-fi.org/OpenSection/articles.asp?TID=5
 
* http://www.bitpipe.com/rlist/term/Wi-Fi.html

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