Chris Burneko stopped in a downtown Starbucks cafe, not just for a latte, but to check his e-mail, corporate network and browse the Internet on his laptop ahead of an important meeting.
Using a wireless-fidelity [wi-fi] card plugged into his computer, Burneko, a local computer consultant, uses the "hotspot," or access point at many Starbucks locations to hook in, without wires, to a high-speed Web connection.
"It's great," he said. "This is my office away from from my office. I'm so used to working like this, the only bad thing is the noise."
As millions of portable computers become equipped to go wireless, tens of thousands of access points, or "hot spots" are being set up in airports, hotels, cafes and other locations in the US market and around the world.
Experts estimate about 10,000 hotspots have been set up worldwide, but that number is rapidly growing; big companies and small start-ups are rushing to get in on the action, giving the market a "Wild West" atmosphere.
"This is a grassroots networking initiative, and nobody is sure how they're going to make money," says Ken Dulaney, vice president of mobile computer at Gartner Group, a technology research firm. "They're making a gold rush play, it's a territory grab."
Gartner estimates that wireless network spending will rise from US$1.7 billion in 2001 to US$3.9 billion in 2007.
The Yankee Group estimates that wi-fi service revenues in North America alone will reach US$1.63 billion by 2007 as the number of users (mostly business users) grows to 5.36 million.
Wi-fi allows anyone with a computer and a special plug-in card to connect to the Internet through various access points, within a range of a few hundred meters, using a technical standard known as 802.11, at a blazing speed of that is faster than most wired connections.
What this means is that people can take their laptops to a cafe, airport or park with a "hotspot" and access the Internet, corporate networks and e-mail.
Dulaney said the new wi-fi technology fulfills the high-tech dream of "connectivity" everywhere, or a ubiquitous Internet.
"It's like the days when electricity was first run through the house. The Internet is truly becoming pervasive," he said.
But analysts say it will take years to get enough hotspots to get a critical mass, and even more time for companies to make money off wi-fi. For now, say analysts, Asia is leading the race to establish hotspots, while North America has the largest number of wi-fi-enabled computers.
Some access points are offered free in hotels or cafes in an effort to draw customers, as is the popular center in New York's Bryant Park that brings some executives outdoors into a virtual office.
Other service providers require a monthly subscription -- Burneko pays US$30 a month -- or a pay-as-you-go subscription, usually about US$10 for daily access.
Gartner warns that wi-fi could be hurt by "Napsterization," as users get accustomed to free access.
But some big backers are entering the market. Cometa Networks, a venture backed by AT&T, Intel and IBM, was set up in December in an effort to build a nationwide US wi-fi network with 20,000 hotspots. But a Gartner report said Cometa will need more access points and "will do well if it breaks even by 2007."
Dell has begun shipping laptops with wi-fi integrated, eliminating the need for plug-in cards. And Intelwill soon release a new microprocessor with wi-fi incorporated.
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