There has been a lot written about this question over the past few months and unfortunately, a lot of what is being written is one-sided, misinformed, or just downright misleading.  As is true in any competitive sales environment, one must always evaluate the motives of the messenger when reading, or more importantly, acting on any Feature Article, Infomercial or "Advertisement" message about technology.  And, if the subject is purchasing broadband infrastructure to deliver high-speed Internet access, the truth is, there is a lot of sales rhetoric being published.

To begin to understand some of this conflicting information you are hearing, we need to take a look at what has happened in the high-speed Access Service Provider (ASP) industry over the last few years.  Three years ago, the industry was awash with venture capital-backed ASPs promoting "revenue-sharing" business models.  Many of these ASPs were more interested in gaining market share than they were in the technology, its cost, or the economic success of a site. Then, two years ago, with both the ASPs and their customers beginning to wonder why things weren't going as planned and what had happened to the predicted hordes of users who everyone had counted on to pay the bill, the ASPs began scrambling to change their marketing strategy from "it's free" to "it's for sale".

With the early revenue-sharing business models floundering or in bankruptcy and most of those ASPs gone, last year a new generation of ASPs began to appear. Out of necessity, these new players have a very different view of being in the Broadband Access Service Provider business.  Today, by nature of the evolving customer ownership business model, many of the new ASPs have adopted new marketing strategies that promote their beliefs and validate their investment in one delivery technology over another.  Unfortunately, this situation has also created a lot of misinformation where the facts, relative to the selection of the right delivery solution for a particular property, are concerned.

In an increasing number of sites surveyed, if current technology is deployed, the facts don't support the claims by some ASPs that it is considerably less expensive to install one delivery technology over the other.  Ze-Net Technologies began looking at the question of provisioning broadband infrastructure in the MDU/MTU market in 1999, and because we have found no single solution that is best for every application, we developed wired, wireless and even hybrid versions of our ze-net^tm HSIA (High-Speed Internet Access) system for the Hotel Segment. 

In 2002, there are several wired delivery options available that were not being used in most early deployments.  As broadband delivery systems based on traditional Ethernet technology have replaced DSL as the wired delivery option of choice, deployment costs that ran upwards of $800 per room two years ago have fallen dramatically.  For example, in a typical 150 room full-service property, it currently costs about $250 per room to install a full-feature delivery system using Ethernet technology on an existing dedicated Catagory5 cable.  It costs about $300 per room to install an Ethernet solution using the two unused ("dry") pairs within a Catagory3 or higher cable being shared with the telephone system, and the price jumps to around $400 per room if an Ethernet-based solution is installed on telephone cable with only one dry pair.  Where no dry pair exists and it is either too costly or impractical to install new cable, a system using new, higher speed xDSL technology will cost around $450 per room.  Of course, the cost per room comes down in larger properties due to the economies of scale. 

For the same size hotel, a wireless solution based on the current Wireless Fidelity (Wi-Fi) 802.11b standard and technology, can cost in the $300 to $350 per room range to deploy. However, with wireless, the final cost can vary widely because of site logistics, building construction, etc., and in almost every case, some rewiring will be necessary to accommodate the placement of the wireless access points.

Taking a look at the feature functionality of wired vs. wireless, there is no question that on the surface, the wireless solution sounds exciting.  After all, what could be better than being able to move freely around the hotel while remaining connected to the Net?  The argument for wireless broadband access is the same as the one for cellular telephones�isn't it?  Well, not exactly. 

The overriding issue with broadband access is the delivery of larger and larger data files in the shortest amount of time to an ever-increasing number of on-line users. Current computers can use all of the bandwidth that is available and work equally well receiving data at 10Mbps, 100Mbps and even 1Gbps.  All that is needed is delivery capacity or "bandwidth".  If you compare the two major broadband delivery solutions being deployed today, wired Ethernet & wireless 802.11b, wired Ethernet can deliver either 10Mbps or 100Mbps of data to every user on the system simultaneously, while wireless 802.11b delivers 11Mbps to each access point which is then shared by all of the users who are accessing the system through that access point.  So what happens as demand goes up?  With a wired Ethernet solution, every user will receive the bandwidth or "speed" that the system was designed to deliver, while the users of a wireless system will receive slower and slower delivery speeds.  Additionally, the distance between the user and the access point can further reduce the delivery speed in the wireless environment. 

When deciding which broadband delivery solution is best for you, it is a good idea to consider what guest services you want to offer now, and what features or applications that require bandwidth are in your future plans.  If offering a high-speed Internet access amenity is all you're looking for, then there is a lot of "sizzle" in Wi-Fi.  On the other hand, there is a lot to be said for installing a time-tested and secure Ethernet 10Mbps or 100Mbps Local Area Network (LAN) in a hotel today, offering the high-speed Internet access amenity now, and having the capacity to use the LAN to deliver Digital Video on Demand or similar applications that require lots of bandwidth later. 

As a general rule, if the bandwidth requirement of an application does not exceed the design limits of your broadband infrastructure, your system will support that application without degradation.  With Wi-Fi, the rub comes in when the pie that represents the total available bandwidth is sliced into too many small pieces. 

In recognition of the problem, the wireless equipment manufacturers have developed a migration strategy and path for those who deploy Wi-Fi today.  It calls for converting current 11Mbps 802.11b technology to the faster 54Mbps 802.11a, or just overlapping the two technologies in the same space.  From the user standpoint, the only requirement will be a new Network Interface Card (NIC) that supports the still-being-defined Wi-Fi standard for 802.11a, but for the hotel, it's a whole new ballgame.

While 802.11a delivers nearly five times the bandwidth of 802.11b, it has only about 30% of the range.  This means that to provide coverage within the same footprint with 802.11a as you previously covered with 802.11b, it will take up to seven (7) times as many access points.  Each new access point will require a cable to connect it to the other network equipment, labor, etc.  These upgrades will be expensive and should be taken into consideration up front.

How soon you will begin to see pressure to provide some 802.11a service is a good question.  But from some of the questions I've heard lately and the activity at the development and manufacturing level, I would say it's not very far off.  An increasing requirement for wireless bandwidth, the development of a Wi-Fi standard for 802.11a, public demand for the newer technology and resolving a few other technical issues will drive the movement.

As one hotelier put it, "A wireless solution is really a wired delivery system that uses radio technology to span the last few feet.  Since our hotels will ultimately need a lot of bandwidth in every guestroom and space, I've got to remain open-minded as we evaluate each property's needs."

Deciding which delivery technology to deploy at your hotel will depend a lot on what makes your property unique and on the clientele you serve.  Look at which will help you sell more meetings and guestrooms first, which technology best fits both your short-term goals and long-range plans second, and the total deployment costs third.  What is clear is that every hotel will have to deploy a broadband delivery solution to remain competitive. Choosing the solution that best meets the needs of your property today and fits into your long-range, strategic plan just makes good sense. 

Randall Jamison is the President & CEO of broadband solutions provider Ze-Net Technologies, Inc. of Richardson TX.  He has over 20 years experience providing state-of-the-art telecommunications solutions for the hotel industry with Universal Communication Systems, RCA/GE and Telux Corporation.  In 2000, Randall started Ze-Net Technologies and today, he continues his career as an Internet Access Solutions Provider to the Hospitality Industry.  Contact Randall at 972-852-1010 or [email protected].