Subject: [NEXTEL-1] Dated Background on Intel, IBM Push for Public Wireless LAN (aka Project Rainbow)

From: Marcel <[email-masked]>
Date: Thu, 05 Dec 2002 14:51:34 -0500

Dated Background on Intel, IBM Push for Public Wireless LAN (aka Project Rainbow)

By BOB BREWIN
JULY 22, 2002

Intel Corp. and IBM are using their technology and investment muscles to push the
development of a
nationwide public-access wireless LAN.

According to reports last week, Intel, IBM and three of the nation's largest cellular
carriers have begun
discussions to form a separate company that would provide nationwide high-speed wireless
data
services based on the 802.11b, or Wi-Fi, wireless LAN standard. The effort is called
Project Rainbow.

Laura Anderson, a spokeswoman for Intel Capital, Intel's investment arm, declined to
comment
directly on Project Rainbow but said that the company views the development of a
nationwide
public-access wireless LAN "as an interesting area." She added that Intel Capital is
considering
investments in "a couple of companies that can put wireless LANs together to make them
into a
wireless WAN."

IBM, which also declined to comment on Project Rainbow, already offers a product it calls
the
Everywhere Wireless Gateway, which lets users roam from cellular to wireless LANs.
Analysts said
this is an essential architectural element for any cellular company considering a move
into wireless
LANs.

The cellular carriers said to be involved in the Project Rainbow talks include AT&T
Wireless Services
Inc. in Redmond, Wash., Cingular Wireless in Atlanta and Verizon Wireless in Bedminster,
N.J. All
three declined to comment.

But Mark Siegel, an AT&T spokesman, said Wi-Fi is viewed "as a complementary technology
for us,
and we are looking to see where it fits in."

Craig Mathias, an analyst at Farpoint Group in Ashland, Mass., said he has no doubt that
one or more
cellular carriers will launch nationwide public-access wireless LANs. "We could have as
many as five
networks," he said.

Welcome Additions

Dennis Eaton, chairman of the Wireless Ethernet Compatibility Alliance, an industry trade
group in
Mountain View, Calf., said that large, well-heeled players are needed to fully develop the
pubic-access
wireless LAN market.

"Right now, coverage is sort of spotty," Eaton said, adding that the problem could be
resolved by a
nationwide network backed by cellular carriers and equipment manufacturers. Any such
network would
take at least two years to develop and deploy, he added.

Intel Capital has already made investments in six wireless LAN start-up companies,
Anderson said,
and it intends to continue making investments in emerging wireless technologies. Two of
the
companies, STSN Inc. in Salt Lake City and iPass Inc. in Redwood Shores, Calif., are
focused on the
public-access wireless LAN market, Anderson said.

IPass provides global, remote access to enterprises and currently offers its users access
to 120,000
dial-up and hotel room Ethernet connections and 400 wireless LAN "hot spots" worldwide,
according
to spokesman John Sidline.

When asked about Project Rainbow, Jon Russo, vice president for marketing at iPass, said
he
expects "larger companies to join a market currently dominated by smaller start-ups, which
are
currently driving growth in this industry."

Christian Gunning, a spokesman for Boingo Wireless Inc. in Santa Monica, Calif., which
offers
public-access wireless LAN service in a few areas, said his company welcomes Project
Rainbow.

"We think the concept is great," Gunning said. "Any sign that large companies are taking
an active
interest in Wi-Fi is good for the industry."

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