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It's irony, people! Or is that satire?: The FCC's decision yesterday to essentially re-gut the remaining DSL business by eventually disallowing line-sharing and allowing ILEC (Incumbent Local Exchange Carriers) to restrict access to any new high-speed digital final miles they deploy should hearten those in the wireless ISP business. Never has the there been such a call to action for an industry.

While the FCC rules will be challenged in court and may once again drag out over years and years while Covad burns -- or thrives depending on how interim rules are enforced -- the likelihood is for higher prices for consumers for DSL services, while those services are likely to also remain highly restricted because the ILECs can be sure that they won't have serious competition.

Cable modem network operators have made it clear that they think 128 Kbps upstream speed is reasonable for consumers, who have subscribed in great numbers. So this leaves residential and business users with few affordable options. Many businesses can pay for full or fractional T1 service, or they can opt for business DSL (as I have done: 768 Kbps SDSL for $250 per month).

But tens of millions of people would assuredly want more if given a decent price and independence from the local monopolies, whose monopoly power has been reasserted in these rules. That "more" could easily come from wireless ISPs.

Wireless ISPs should heed answer this call: the wired market isn't going to serve the customer at a reasonable price and a reasonable speed. With new entries in the wISP CPE (customer premises equipment) all the time, like Proxim's new $300 street price MP-11 system with custome self-install, or Etherlinx's set of inexpensive CPE and CO (central office) style devices, a wISP can be highly competive for installation cost, while offering an extremely high discount off DSL for symmetrical high speeds of 1 to 5 Mbps.

I would guess that any investors holding off on putting money into wISP will see yesterday's announcements as the key to opening up their checkbooks and pushing deployment. If DSL and cable won't become cheaper--although there have been some price drops which can't be sustained given the earnings performance at all Baby Bells, cable operators, and related firms--there's only one way out. Through the air.

Here's Dana Blankenhorn taking a similar stand to mine, but urging Earthlink to take a leading role in the wISP world. I'd go a step further: if Earthlink rolled out wISP service they could couple this with their existing agreement with Boingo and let their wISP customers get a cheap Boingo membership thus tying wISP broadband with wISP hot spot.

For good insight on the regulatory front, read Kevin Werbach's take, which links you to other views. Kevin is a former FCC staffer.

Other News

You Could Make a Dead Man Broadcast: The Rolling Stones have an extensively networked operation on the road based on Wi-Fi and linked via satellite because land-based high-speed service is difficult at their venues (which seems odd, given how many traveling groups depend on it). This business-oriented article explains the Stones organization's use of Wi-Fi for communication among themselves, for updating the Web site with live details of concerts, and for providing a lifeline back to family and loved ones.

Decentralize homeland security: An interesting meld of homeland security and smart mobs is positing in this article, which points out several ways in which distributed networks and intelligence could be effectively used to keep people safe. Unfortunately, the US has an entirely centralized mentality, even while funding decentralized, mesh-based battlefield systems for soldiers!

Intel shows mesh networking: In one swoop, Intel has validated the notion of mesh LAN and MAN (metro area) networking by demonstrating a lab version of it and discussing the uses they expect (and are obviously planning for).

GSM operators should consider Wi-Fi: At the Cannes GSM Association meeting, operators were considering and encouraged to add Wi-Fi to their offerings to better compete with wireline services.

Asian hot spot rollout could quickly offer voice alternative: The Asian Wall Street Journal reports on how the rapid rollout of hot spots across Asia could play out into a cheap alternative to cell phone service with the bonus of data. The article notes over 10,000 hot spots having been deployed. (And note to Tokyo's Mr. Berger: Wi-Fi isn't public domain; the IEEE owns it, among other parties. It's just out there for use.) [via TechDirt]

Dude, where's my Wi-Fi?: The Wi-Fi Caravan of cars down Interstate 5 has begun with backing from technology firms eager to get some promotion. Sounds like fun, but friends don't let friends IM while driving.

More on Proxim's new MP-11 line: I promise a full report on this myself based on a briefing I received, but enjoy 802.11 Planet's excellent rundown as usual.