Sunday, May 13, 2007

Starbucks is Not Free, Not Safe

Starbuck's offers wireless Internet access at thousands of locations.

The service is not free.
It is not safe.

Does Starbucks have a social responsibility to educate it's users and resolve the problem?

The Problem is Identify Theft

Identify theft is the loss of names and passcodes that allows hackers to gain control of user accounts. The well publicized cases normally address theft of databases containing millions of account records.

Wireless Internet access at hotspots using Wi-Fi exposes users to identity loss. The New York Times, San Jose Mercury News, and the Los Angeles Times have all reported on the problem. Although it is harder to prove, millions of users may have lost identity control - unknowingly.

Wi-Fi broadcasts data over a space that is one football field in length in every direction. Using no encryption or faulty encryption, the information can be easily gathered by hackers. Even though the Starbuck's service requires a log-in, the data is still encrypted and easily viewed by any hacker. It's not safe.

Technical personnel enjoy arguing the issue. For example, MetroFi, Google, and Earthlink publicists claim their networks are secured - referring to their wireless backhaul. AT&T and T-Mobile shift the responsibility to the users. The arguments simply confuse the public and hide the problem.

The reality is that Wi-Fi use at hotspots is not safe.

Why Starbuck's?

The Starbuck's wireless service is managed by T-mobile. McDonald's provides a service through AT&T Freedom Link. Thousands of restaurants provide unsecured service. Why should Starbuck's shoulder the blame for the problem?

Starbuck's has the largest footprint of wireless service. It is the most visible brand that is affiliated with wireless use at hotspots. When asked about hotspots, the majority of customers respond with Starbucks. Starbuck's is the leader. Leadership shoulders additional responsibilities.

Starbuck's provides a paid service that requires login. The false inference is that the login protects users. It does not.

Millions of customers assume that Starbuck's should be trusted. With wireless, the trust is misplaced. If Starbucks is to be trusted, then Starbucks should educate and solve the problem.

This is not Starbuck's legal responsibility. It is Starbuck's social responsibility.

Voice Your Opinion

Are you aware of the problem? Does Starbuck's have the social responsibility to resolve the problem? Voice your opinion.

Saturday, April 14, 2007

Free versus Paid Hotspots

Hotspots are public venues like restaurants and cafes that provide Internet access for wireless users.

The myth is that Starbucks, McDonalds, and airport hotels dominate the scene and access generally requires a subscription or day-pass.

True hotspot users know, this is a total myth.

Free access dominates. Independent providers out number paid hotspots by 3 to 1. Free users out number paid users by 10 to 1.

Origin of the Myth

Starbucks was one of the first major chains to provide wireless service. When we talk to users, most equate hotspots to Starbucks. Starbuck's claims that 5,000 of their 10,000 locations offer wireless access. This coverage is huge, but insignificant when compared to the true number of hotspots.

www.Jiwire.com claims leadership as the information source for hotspots. Jiwire aggregated the data from many providers and claims to be the authority for hotspot locations. The data mostly merges Barnes & Noble, Borders, Starbucks, McDonalds, airport hotels, UPS, and Fedex locations.

Jiwire does not cover the free venues that out number the paid venues by many folds. Attempts to post free locations are simply ignored.

False Information

Jiwire does have partnerships with providers like T-mobile, Boingo, AT&T Freedom Link and others. Further, Jiwire distributes their database through Google, Yahoo, and MSN. Thus, the myth is supported by false data from all the major portals.

Based on this false data, one would conclude:

  • Starbucks dominates hotspots.
  • Wireless access at public venues generally require a fee.
  • Most wireless users go to Starbucks.
These conclusions are all wrong.

Survey by City

Our door-to-door survey of Cupertino and Saratoga in California revealed 3 times more hotspots than those listed by Jiwire, Google, Yahoo, and MSN. All the missing hotspots are free hotspots. Users use these free hotspots more frequently than paid hotspots.

Our survey has expanded into more cities and the pattern continues to be the same.

The Hotspot Reality

If the pattern extends to the entire country, we would conclude:

  • 70% of the hotspots are free. This compares to Jiwire's 20% free number.
  • The free hotspots are growing. The paid hotspots are flat or declining.
  • 150,000 hotspots exist in the USA, not the 50,000 reported by Jiwire.
  • Frequent wireless users go to the free hotspots.
  • Most laptop users at Starbucks are leaching from free, neighboring venues or using mobile networks at dial-up speeds.

Thus, Starbucks does not equate to hotspots. Independent, free hotspots dominate the market.

End the myth!