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Preston Gralla's picture
Preston Gralla

Seeing Through Windows

Will Microsoft launch a free, nationwide Wi-Fi network?

Don't look now, but Microsoft just got into the free Wi-Fi business, and it could be the first move in a nationwide Wi-Fi rollout. The company is teaming with MetroFi to build a free wireless network in Portland, OR, according to the San Francisco Chronicle.

The network will run at a modest one megabit per second; it's free because a one-inch ad bar will appear whenever you browse the Web. If you prefer ad-free surfing, you can pay $20 per month. It will cover 135 square miles in the Portland area.

Why is Microsoft rushing into the free Wi-Fi business? It's certainly not for revenue, which won't even amount to a rounding error on the software behemoth's bottom line. Instead, it's all about Google.

Rumors have long been flying that Google plans a free nationwide Wi-Fi network. It's already building one in San Francisco and its hometown of Mountain View, California. Ironically, Microsoft Wi-Fi partner MetroFi is based in Mountain View. Think there may be some one-upmanship going on?

Why should Microsoft care if Google launches a national free Wi-Fi network? Because it could eat into one of Microsoft's cash cows, Office. Google has been launching a variety of free, Web-based apps including a word processor and spreadsheet. If those apps were available everywhere, there would be less reason for people to buy Office.

So even if Microsoft can't make any money out of a free Wi-Fi network, don't be surprised to see it launch them in an increasing number of cities. It's all about protecting Office.

What People Are Saying

or perhaps it's really to

or perhaps it's really to support the UMPC and Zune v2 empires they are building?

Microsoft knows what they

Microsoft knows what they do. Advertising in WiFi is a very profitable business, it is similar to cell phone services.

Here we go again with these

Here we go again with these Free Ad based Networks.
#1 They are not free, the provider is planning on making money on selling the premium services to commercial accounts.The free part is spin to get Cities to buy into the Service Provider proposal. Someone will have to pay for this or it will fail and the Cities will be stuck with paying for their FREE NET. Anyone ever heard of a performance bond for these Free Providers??

#2 The selling ads approach is unproven and effectively at risk day one as we move into the era of multiple Service Providers (WISP-WiFi,WiMAX Mobile & CellCo)competing for the same Wireless customers and the Microsoft/Google/Yahoo of the ad space competing for ads in the same markets.

We all have a great deal to learn about the business of running a profitable Outdoor Wireless Mesh Network.
The OPEX costs alone could kill many of these 1 & 2 radio networks placing the Mesh Industry at the mercy of the Narrowband CellCo.

Jacomo

And when Microsoft's

And when Microsoft's offering is no more secure than anything else they sell, they create a larger market for their lame firewall/security software.

I do think you're misreading

I do think you're misreading this deal. MetroFi is building the network with their own financing. Microsoft will be selling ads and providing local content on the network. That's pretty clearly the deal, as described elsewhere and in my communications with MetroFi about it. It's completely in line with MSN and Microsoft Live's objectives.

There was a lot of speculation that I thought unfounded about Google building a national network, perhaps using Wi-Fi, and it hasn't panned out. There have been dozens upon dozens of new RFPs since Google agreed to provide a free, subsidized level of service on EarthLink's SF network and to launch what sounds like still a wonky network in Mountain View early this year. Google has been involved with none of them.

Why would Microsoft and Google get involved in ugly, lower-margin businesses that are unrelated to what they do? Much more likely, they will be selling ads and providing content, which they're good at and which is part of their model.

exiled in rural america, yet

exiled in rural america, yet only 12 miles from the nearest town, dial-up is the only option!
how long until wifi/wimax liberates us?