Verizon Unveils Wireless Internet Service
CHICAGO (Reuters) - Verizon Communications (NYSE:VZ - news), the largest U.S. local phone company, on Tuesday launched a service that will provide customers with wireless Internet access on high-speed networks throughout New York City.
Verizon, which is based in New York, said it activated 150 WiFi access points or "hot spots" in the city and plans to activate 850 more by the end of the year. It said its deployment would mark the largest such initiative by an Internet service provider in a single U.S. city.
WiFi, or wireless (news - web sites) fidelity, is an ultra high-speed wireless Internet connection usually available within a radius of a few hundred feet of a transmitter. Laptop computers or other portable devices with WiFi cards tap into the wireless access points, which are physically connected to high-speed networks.
The emerging technology presents a challenge to traditional wireless networks, which are ubiquitous but offer Internet access at slower speeds.
Verizon's move is its first foray into the so-called WiFi technology. The company said it will evaluate offering the service in its other markets along the East Coast as well as Texas and Hawaii.
T-Mobile, a unit of Germany's Deutsche Telekom (DTEGn.DE), is currently the nation's largest provider of WiFi, although other telecommunications companies have announced partnerships with WiFi service providers to hedge their bets. T-Mobile offers WiFi service in Starbucks (NYSE:SBUX - news) cafes and Borders (NYSE:BGP - news) bookstores as well as at numerous airports.
In contrast to T-Mobile's for-fee service, Verizon is offering WiFi exclusively to its Internet customers free. For example, this means a Verizon Online customer from another state could access any of the hot spots in New York City, using their account login and password.
However, a New York City resident, who doesn't subscribe to Verizon's Internet service, cannot use the hot spots.
"This is purely an access technology," said James Otterbeck, senior vice president of emerging markets for Verizon, in a telephone interview.
Otterbeck said he considered WiFi as simply an extension of the services its Internet customers already pay for. Verizon has no immediate plans to open the service up to non-Verizon customers.
Verizon said its customers will be able to surf the Web at high speeds from parks, bus stops and public squares at up to 300 feet from its hot spots, located at public telephones.
"Using pay phones as WiFi hotspots to blanket a city is a stroke of genius," said independent telecommunications analyst Jeff Kagan. "Broadband revenues could also help keep the pay phone business profitable going forward."
Otterbeck said the company will gauge customer interest before setting up WiFi hot spots in other cities.
"Any place that you see Verizon pay phones could in the future be logical places for Verizon HotSpots," he said.
The company said its access points are currently located in some of the city's most heavily trafficked locations, such as the Upper East and Upper West Sides, Columbia University, Greenwich Village, Wall Street and Battery Park.
A map of Verizon HotSpots can be found on its Web site,
www.verizon.net/wifi. The access points can be identified by a symbol in red and black.