The considerable hype around third-generation (3G) wireless communications technology may be exposed as a lot of hot air if a new wireless access technology based on radio waves succeeds commercially over the next few years.
The system, known as 802.11b, may deliver cheap and reliable wireless access to the internet much sooner than the expensive 3G wireless networks, yet to be built here by mobile phone operators.
Part of the reason is that it uses open frequencies available to everyone rather than the closed controlled and governed spectrums for which licences are required. Although the technology has been attracting a lot of attention in the US, a company in Killarney, Co Kerry, has just switched on the Republic's first 802.11b wireless network.
The development of this technology has been led largely by internet and electronics enthusiasts, with networks springing up in various US and British cities, but commercial companies are starting to assess the potential of the system.
A number of US companies - including Cisco Systems, Lucent Technologies and 3Com - already offer various off-the-shelf hardware products compatible with the standard. Dell says that more than 50 per cent of its laptops sold in North America come with the 802.11b wireless card enabling broadband wireless access.
Wireless internet software company Wapprofit has built a wireless network based on 802.11b technology in Kerry, where local visitors with a wireless card can access the internet for free within about a mile of its headquarters. The company has set up a separate subsidiary, Visitor Based Networks (VBN), to sell the service. It is currently planning to invest up to £750,000 (€953,000) in wiring a small town on the west coast of Ireland with a broader 802.11b network that may span up to 20 miles.
Although the 802.11b spectrum is unlicensed, Ms Etain Doyle of the Office of the Director of Telecommunications Regulation has looked into regulatory issues regarding the use of the spectrum as a medium for data communications.
"It's too late to regulate it because it operates around the world," said Mr Peter Bellew, chief executive of Wapprofit.
Indeed, Ms Doyle announced this week that she would permit the provision of short-range public access services in the 2.4GHz and 5GHz bands using technologies that are exempt from licensing under the Wireless Telegraphy Acts.
"This will enable network operators and their customers to gain full advantage from emerging high-speed data standards such as Bluetooth, Hiperlan, and IEEE 802.11b series of radio local area network products, many of which are now readily available in the Irish market place," said Ms Doyle. "Operators will be free to use these bands subject to certain technical restrictions, on a non-exclusive basis."
According to Mr Bellew, the core technology of 802.11b has been used by the military over the past 30 years and was kept largely hidden for decades. Now that the technology is being used for data communications and networks can be built using off-the-shelf equipment, networks are popping up all over Britain, built by groups of enthusiasts.
In the US, companies have already begun to seize on the commercial potential of 802.11, thanks to the proliferation of the laptop PC lifestyle.
Such networks require no connection points and users can move around freely with their notebook computers or personal digital assistants.
Companies like MobileStar and Wayport are installing networks in airports and hotels, and even Microsoft and Compaq have got in on the act with the deployment of networks in every Starbucks coffee outlet in the US.
Networks can be built using equipment from companies such as Cisco Systems, Lucent Technologies and 3Com, which already offer various hardware products compatible with the standard. It represents a strong growth area of their business. In addition, VBN are in talks with a number of mobile operators in the EU who are interested in adding 802.11b products and services to their range.
The network uses ethernet technology, which is already used on most office network systems. At the moment, 802.11b networks can transmit up to 11 megabits per second (mbps). Before the end of the year, a new standard called 802.11a is expected to be up and running and is believed will eventually supersede 802.11b because it is said to be capable of transmitting at speeds of up to 54 mbps.
Who will 802.11b be targeted at in the Republic? "We think the initial take up will be in the education and healthcare sectors and among various professionals who have to keep moving around," says Mr Bellew. However, other potential markets are cropping up every day, he says.
Travel operator Tele Holidays, based in Kerry airport, has just bought a 802.11b wireless port for one PC, costing less than £500. Tele manager Mr Basil Sheehan says being able to move equipment freely around the office will be a boon during the busier periods. It also means lower maintenance with no wires to worry about, he said.
It's clear the system offers many of the advantages of 3G at a much cheaper price. One reason is that 802.11b is unlicensed, so companies offering the service do not have to pay extortionate fees to gain exclusive access to it.
However, there are inherent security weaknesses because of the fact that it uses off-the-shelf equipment. It is also vulnerable to interference because the spectrum is shared by a variety of users and systems, according to the regulator. Some countries actually ban the use of the spectrum for commercial purposes because it would contribute to crowding of the overall spectrum.
Mr Bellew insists security is not an issue as the equipment comes with in-built security, sufficient for normal residential use. He says for commercial use, a virtual private network to bolster the standard security is recommended.
