Smart phones make Wi-Fi hotspots hot

Star Tribune (Minneapolis)

MINNEAPOLIS — Lisa Helminiak, who uses her iPhone as a computer as much as to talk, has declared her independence from the slow- cell-phone network.

Instead of using AT&T’s network, she’s using her phone’s Wi-Fi capability to connect to the Internet via speedier Wi-Fi hotspots.

“AT&T’s 3G cell network is kind of plodding,” said Helminiak, a partner in Minneapolis software company Azul 7. “When I get on Wi-Fi, it’s definitely faster.” That makes it more practical for her to view online maps and download iPhone apps, programs written specifically for the phones.

Helminiak is one of millions of smart-phone users whose phones have both cellular and Wi-Fi capability. These dual-connection smart- phone users are accelerating the growth in the number of Wi-Fi hotspots, which are wireless Internet access zones a few hundred feet across.

While there are a few big Wi-Fi hotspots, most are much smaller: at the airport, hotels, restaurants, coffee shops and corporate offices.

A recent report by research firm In-Stat of Scottsdale, Ariz., predicts the use of hotspots will be up 47 percent worldwide this year, driven largely by smart-phone use.

The reason is speed. Cell-phone networks typically can download data at a million bits per second — or less — over long distances. Wi-Fi hotspots use faster, short-range wireless links that are backed up by speedy wired Internet connections.

As a result, hotspots are typically several times faster than cellular, say iPhone users in the Minneapolis area.

The cell-phone companies aren’t alarmed by the Wi-Fi trend, because it makes their phones more attractive and reduces congestion on the cell-phone networks. AT&T was so convinced of the trend’s importance that it acquired for-pay Wi-Fi hotspot provider Wayport in 2008.

“The cellular companies are a major driver of Wi-Fi growth,” said Frank Dickson, research vice president for mobile Internet at In-Stat. “So we expect that more cell phones will have Wi-Fi.”

This year 128 million cell phones with Wi-Fi were shipped worldwide, and in 2010 that will increase to 184 million, Dickson said. In response, the number of Wi-Fi hotspots worldwide is expected to grow 21 percent over the next year to 245,000, he said.

“Wi-Fi has gone from being in first-tier locations such as airports and first-class hotels, to second-tier places such as convention centers to third-tier locations that are less densely populated, such as small coffee shops, retail stores and malls,” Dickson said.

Other smart-phone users agree that hotspots are the way to go. Jamal Carlson of Minneapolis is always on the lookout for a Wi-Fi hotspot so he can connect his iPhone to the Internet at high speed.

“A lot of times, you can’t download songs on the spot unless you have a Wi-Fi connection,” said Carlson, a supervisor in the treasurer’s department at Fairview Health Services, a network of hospitals and clinics.

The spread of free Wi-Fi at restaurants, coffee shops and other retail locations also has spurred interest.

“If I can get free Wi-Fi, I grab it,” said Hastings iPhone user Anthony Alongi, director for the dislocated worker program at the Minnesota Department of Employment and Economic Development, “because a Wi-Fi connection is superior to the cellular network in most instances.”

While it’s hard to prove cell phones are the reason, Wi-Fi use is up significantly at Caribou Coffee, which offers free access in its chain of coffee shops. There was a 15 percent increase in the number of times people logged in to Caribou Wi-Fi from June 2008 through November 2009 said Alfredo Martel, senior vice president of marketing for the Brooklyn Center-based chain.