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Wi-Fi goes to Washington
As bad as the crisis in the telecommunications industry may be, things may be about to get worse. That’s because Wi-Fi (wireless fidelity) Internet access—which is significantly cheaper than its DSL and cable modem alternatives and can be faster—is threatening the business models of cellular carriers, phone gear makers, and providers of high-speed DSL and cable data services.
The take-away: The key question for Wi-Fi is how the government will react to the new technology—either by helping to shelter companies whose revenues are threatened or by siding with consumers and letting the voice of the market be heard.
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© 1992-2003 McKinsey & Company, Inc
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