From McKinsey Quarterly (via News.com):
Wi-Fi–known among techies as 802.11–is an alternative means of Internet access: Simply hook up an inexpensive Wi-Fi base station (a chip plus a transceiver) to a high-speed Internet connection such as DSL, a cable modem, or a T1 line and place this base station within a couple of hundred feet of a house. All people in the vicinity who have a very inexpensive Wi-Fi device in their PCs or PDAs can then share low-cost, high-speed access to the Internet without having to pay individually for more expensive dedicated DSL or cable modem service.
Even better, with exciting new technologies such as mesh and ad hoc networks, improved Wi-Fi devices could create overlapping Wi-Fi networks in hotels, airports, office buildings and malls. Strings of linked Wi-Fi networks can stretch through apartment buildings, campuses and neighborhoods. Forget about digging up streets for fiber to every building or about erecting forests of towers. Wi-Fi can stretch the fabric of Internet connectivity, cheaply and painlessly, over any community to points where traffic is aggregated onto high-speed fiber backbone networks.
Wi-Fi exploits the spectrum used by gadgets such as cordless telephones and microwave ovens–airwaves that haven%u2019t been auctioned or allocated to an exclusive user. This is the proverbial free lunch of spectrum. At last, Internet access can be easy, cheap, always on, everywhere. And Wi-Fi access is fast: Indeed, with a fiber rather than a DSL or cable modem connection from the backbone network to the Wi-Fi base station, the transfer speed of Wi-Fi can be faster than the typical speeds of those technologies.
A fiber connection of this sort would make it easy to download, stream, and swap movies–or vast volumes of corporate data–not only to computers but also to a new generation of flat screens equipped with Wi-Fi chips. People will be able to make telephone calls by speaking into microphones in their lapels or on the edges of their computer screens.