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AT&T, Cometa Cut Wi-Fi Hotspot Access: Page 2 of 2

In addition to the rapid growth of paid Wi-Fi sites, free Wi-Fi sites are also being launched in growing numbers. For instance, in Austin, Texas--which bills itself as "the free-est wireless city in the world"--more than 25 free Wi-Fi sites have been launched. Customers at Starbucks, which offers a paid Wi-Fi service, often sit down for coffee and log onto free Wi-Fi service transmitted from nearby Schlotzsky's sandwich shops.

While the Wi-Fi consumer market is increasingly marked by free services, market-research firms predict corporate use will boom. For instance, the Dell'Oro Group predicts Wi-Fi use in the enterprise will grow from $431 million in 2003 to $1.1 billion in 2008. In addition, business users are more likely to sign-up for paid Wi-Fi service offerings.

McDonald's has been testing Wi-Fi in more than 200 of its fast-food locations in the U.S. In addition to Cometa, its service providers in the trials include Wayport and Toshiba's Computer Systems Group. The fast-food company has remained upbeat on its Wi-Fi prospects and has said it will also likely rollout the service in the hotspots it is testing in 25 countries.

While AT&T has cut its consumer Wi-Fi service, the firm continues to add business Wi-Fi sites and views that market as a growth business.