Wi-Fi, WEP, WAPI, and world markets

[tw]

Wi-Fi is a neat idea without killer application. Currently it has been advocated as a solution to rural (mud hut) computing, using a laptop in a coffe house or hamburger joint, homes of smart appliances, or a means of getting internet access in areas of downtime such as airports. However it really has not taken off.

Based upon standards of the 802.11 standards committee using encryption such as WEP. Now the Chinese have thrown a monkey wrench into the growth wheels. China, one of the largest potential markets depending on who's market projections you read, has decided to ban Wi-Fi. Not to stifle the technology. China has declared WAPI as the standard. WAPI has serious technologoical advantages such as public key encryption, better security, etc. China has declared WAPI and not Wi-Fi as the wireless standard in China. Considering that most Wi-Fi products will be assembled in China, this is a serious problem.

But then China has taken a step farther. Only the 11 Chinese manufacturers have access to complete WAPI specs. Intel is said to have obtained a copy. But officially, the world will not see the WAPI spec until after the Chinese have forced their better standard upon the world.

Needless to say, 802.11 is furious. They are being made irrelevant by a China that is only doing what the US once would do with technology - force a standard upon the world. Moreso, this threatens to increase Wi-Fi prices much like the US has done with HDTV by forcing an inferior standard incompatible with the rest of the world.

What makes this interesting is that China has repeatedly trying to force their standards on the world using their potential market size and growing manufacturing base as leverage. They did same with CDMA - Qualcomm now suing for patent infringement. Using intellectual property rights to manipulate world markets iis a whole new wrinkle in how world markets operate - especially since more of what the US consumes is dependent on Chinese factories.

[russotto]

WEP is previous-generation. Next generation WPA is already here (and being made by Chinese companies, just like the old stuff).

Whether China mandates WAPI for home market or not, they aren't going to get it forced upon the rest of the world. Even Ma Bell didn't have that kind of power, back in the day.

[tw]

Problems with world WiFi standards continue:

from NY Times entitled Intel to Stop Selling Wi-Fi Chips in China
The Chinese government has passed a law stating that, starting June 1, all Wi-Fi chips sold must comply with the Wired Authentication and Privacy Infrastructure (WAPI) standard. The encryption algorithm was developed in China and is controlled by local Chinese companies.

Intel spokesman Chuck Mulloy said Wednesday that while his company and others have looked at the technology, the Santa Clara, Calif., chipmaking giant has not figured out a satisfactory way to incorporate the standard into its existing line of Wi-Fi chips. As a result, Intel will stop offering its Wi-Fi chips in China after the beginning of June, because selling them would be illegal, he said. ....

Broadcom, one of the larger Wi-Fi chipmakers, also plans to stop shipping chips to China, but it said it is trying to resolve the issue.

To put the lessons of economics in perspective, America did same with HDTV. We created a standard incompatible with the rest of the world. As a result, one cannot watch HDTV in moving vehicle or in areas of ghosting - weak TV signals. IOW we got the inferior technology only because political powers wanted to lock in the TV market for Zenith, et al rather than provide consumers with the best products.