Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Friday, May 09, 2003

Telmex ISP ventures first in WiFi

Prodigy, Telmex-owned Internet service provider (ISP), one of the biggest in Latin America, expanded services after introducing 802.11b technology, better known as WiFi.

Through Prodigy, Telmex launched WiFi services with around 100 hotspots. For the time being, Prodigy Móvil will be available in the Federal District, where access site offer is concentrated; Guadalajara; Monterrey; some points in Cancún; and the airport in Puerto Vallarta. To year-end, the company plans to expand service coverage, and reach between 300 and 400 hotspots.

Telmex bet places Prodigy as a pioneer in the implementation of WiFi among the biggest ISP in Latin America. As explained by Eduardo Díaz Corona, Sub-director of Telmex Internet platform, to Convergencialatina, the idea is to add value to offers, and attract new clients. It is estimated Mexico has some 800,000 portable computers and a similar number of PDAs, though most of the devices are not yet fitted for 802.11b connections.

WiFi launchings showed the existing synergies among Carlos Slim¿s firms. Most of the sites are placed in Sanborns shops, also owned by the entrepreneur. But, besides, WiFi may be used to supplement Telcel¿s GPRS networks. In this sense, with a mix of service offers, Slim¿s firms will cover a wider spectrum of mobile data services. Thee will thus hit rival strategies. In fact, given cell scarcity, the cellco Iusacell introduced mobile data services CDMA 1X as a wireless connection alternative for laptops.

Currently, Prodigy Móvil is offered to ADSL and dial-up customers of the ISP for an additional US$ 5 and US$ 10 fee in their monthly bills, respectively. In case of being an outsider, the WiFi service costs US$ 20. Prodigy ended March with 1.23 million clients, 97,645 of which use ADSL.

WiFi (wireless fidelity) is a generic term to mention any product or service running o n the standard 802.11b. WiFi wireless networks operate o n unlicensed bands between 2.4 and 5 GHz radio bands, with transmission speeds of up to 11 Mbps. For accesses, speeds vary according to network setup, though starting from 256 Kpbs.

WiFi services are usually criticized as, given operation o n free use bands, they can experience interferences. Díaz Corona explained the technology used “spots” interferences and changes frequency. Nonetheless, he pointed it is not advisable that more than three operators render services from the same site. “Therefore, it is essential to get there first”, he asserted.

To launch WiFi, Telmex used the infrastructure provided by Cisco Systems and Lucent Technologies. The operative and management system has been provided by Tut Systems, a California-based firm.

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