Subject: [NEXTEL-1] SBC Communications will deploy more than 20,000 Wi-Fi "Hot Spots"

From: [email-masked]
Date: Thu, 07 Aug 2003 01:42:18 -0400

US : SBC Communications announced a groundbreaking initiative to deploy more than
20,000 Wi-Fi (wireless fidelity) hot spots in 6,000 venues over the next three
years and create an integrated Wi-Fi and third-generation (3G) wireless service to
deliver unprecedented coverage that enables customers to enjoy a comparable
broadband experience at home, in the office and on the road.

The new Wi-Fi service, to be called FreedomLink(SM), will be available by the end
of 2006 in more than 6,000 hotels, airports, convention centers and other venues
throughout the SBC 13-state region. SBC companies plan to augment this extensive
deployment through a roaming agreement with Wayport, Inc., a leading Wi-Fi service
provider. The roaming agreement will give SBC customers access to Wayport services
in more than 650 locations nationwide, including 565 hotels, eight airports and 75
restaurants. Wayport will also provide services that include Wayport's access
control and customized SBC splash pages. To give subscribers access to additional
hot spots, SBC companies will also pursue roaming agreements with other Wi-Fi
service providers.  "SBC companies have a legacy of aggressively deploying
important emerging technologies that our customers want, and our Wi-Fi deployment
continues that tradition," said Edward E. Whitacre Jr., SBC chairman and CEO.
"What sets us apart from other companies currently offering Wi-Fi is the breadth
of our deployment strategy, the pricing flexibility and our history of reliable
service that we'll bring to consumers and businesses. With our existing network
infrastructure, Cingular assets, brand awareness and large base of DSL customers,
SBC companies are in the best position to meet the growing demand for a
consistent, wireless broadband experience."
Leveraging Existing Network Infrastructure

To address customers' need for access to corporate LANs, the Internet and
broadband applications, SBC companies will use their various assets to deploy the
Wi-Fi hot spots. Where possible, the companies plan to use their public telephone
infrastructure to establish access points and use SBC DSL or T1 service to
transport data from the access point to the network.

Capital costs and fixed expenses associated with deploying the hot spots will be
relatively low. By using the existing SBC network infrastructure, the companies
will be able to deploy Wi-Fi quickly and cost-effectively.

SBC companies plan to deploy more than 1,000 Wi-Fi hot spots in several hundred
venues by year-end, more than 9,000 hot spots in 2,000 venues by the end of 2004
and more than 20,000 hot spots in 6,000 venues by the end of 2006. The company
will continue deploying hot spots after 2006, and the availability of an
integrated Wi-Fi and 3G service will further enhance the customer experience.

Integrating Wi-Fi and 3G Service

SBC Communications will use its relationship with Cingular to bring to market a
service that combines the strengths and benefits of Wi-Fi hot spots and 3G
wireless data services. The service will allow subscribers to move between their
home or office SBC broadband service, SBC FreedomLink Wi-Fi hot spots and
Cingular's network, while experiencing not only speed and mobility, but service
consistency and simplicity as well.

To provide true 3G wireless data services and speeds, Cingular is currently
deploying Enhanced Datarate for Global Evolution (EDGE) technology. EDGE is a
software enhancement to Cingular's General Packet Radio Service (GPRS) data
network. To deliver an integrated Wi-Fi and 3G service, SBC companies and Cingular
are working on a solution to allow roaming between home and office LANs, Wi-Fi hot
spots and the Cingular GPRS/EDGE network so that subscribers can experience
broadband Internet access regardless of where they are. Users could experience
speeds between 2 and 5 megabits per second between access points and their
Wi-Fi-enabled devices on the SBC FreedomLink Wi-Fi network and up to 170 kilobits
per second on Cingular's EDGE network. The integrated service is expected to be
available in late 2004 or early 2005.

Adding Value Through Bundling

Initially, the FreedomLink service will be offered to customers on a transactional
basis with a one-time fee for daily sessions. Shortly after the initial service
launch, the companies will introduce a subscription service that will offer
subscribers unlimited access for a monthly fee, with deeply discounted pricing for
customers who combine FreedomLink with other SBC services and packages, including
SBC Yahoo! DSL and SBC Total Connections, the company's flagship bundle, which
includes local, wireless, DSL and long distance (where available) service. Final
pricing will be announced when the service becomes available.
"Adding Wi-Fi to the SBC service portfolio will make our bundling strategy even
more powerful and successful," said Ray Wilkins, president, SBC marketing and
sales. "The FreedomLink service will generate incremental revenue and
significantly improve our ability to attract and retain customers, and the pricing
will reflect our bundling strategy - the more customers spend with us, the more
they will save." The initial target market for the FreedomLink service is frequent
business travelers and the large embedded base of SBC broadband customers. SBC
companies are the nation's leading DSL provider with 2.8 million subscribers.
Targeting the existing SBC customer base will lower acquisition costs and speed
Wi-Fi adoption.

Business Wi-Fi Offerings

SBC companies are exploring a comprehensive solution that will allow businesses to
use the mobility of wireless broadband to improve employee productivity in the
office and on the road. Today, SBC companies offer wireless LAN products and
services to business customers, including site surveys, installation, wireless LAN
equipment and VPN solutions for enhanced security. Businesses can use wireless
LANs for voice and data services, enabling their employees to experience the
productivity benefits that mobility provides in the office. Once employees become
"untethered" in the office, they often want the same benefits in their homes and
on the road.  SBC companies will meet this emerging business need by creating a
potential bundle solution that allows Wi-Fi public hot spots to serve as an
extension of a corporate wireless LAN, enabling employees to enjoy a consistent,
secure online experience wherever they go. The comprehensive solution will include
Wi-Fi access and consulting and network support services, including VPN solutions
that provide the level of security that businesses require. By offering this
solution to companies and not merely pursuing individual end users, SBC will
accelerate the adoption of Wi-Fi in the marketplace.  In addition to establishing
hot spots at primary venues, SBC companies also plan to provide a turnkey product
that enables small-business customers to quickly become a hot spot and
differentiate themselves in the marketplace. The businesses would then offer Wi-Fi
access to their customers.

Building Upon Current Wi-Fi Success

SBC companies are already a significant player in the Wi-Fi market, and the public
hot spot deployment will build upon the success they have experienced with
enterprise and residential customers. Today, SBC companies provide wireless LANs
to businesses and colleges, and home Wi-Fi gateways to SBC Yahoo! DSL customers.
"We're currently selling 2,000 home Wi-Fi gateways a day," said Wilkins. "Our
aggressive efforts to enable SBC Yahoo! DSL and enterprise customers to enjoy the
benefits of wireless broadband access have paved the way for the FreedomLink
service.  Now, customers can come to one source to get a single, consistent
broadband experience in the home, office or on the road."

http://www.3g.co.uk/PR/August2003/5710.htm

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