Vodafone and WiFi

The Register reports this morning that Vodafone is not going to build its own network of WiFi (wireless internet) hotspots. Instead, the company is going to resell use of existing operators' networks to its users, using an SMS text message billing system. This looks like a smart idea. There are already concerns that there are going to be way too many hotspots for a limited number of WiFi users, and many of the best locations - the places where businesspeople congregate, like airport lounges and hotel lobbies - are already bagged. Worse, there's a real fight on for quite a limited number of users at the moment. While the user base should grow quickly as more laptops come with WiFi as standard (thanks to Intel's Centrino technology) a late arrival like Vodafone would have to pay premium prices to join the party in any meaningful way. This way, the mobile giant can minimise risk and focus its efforts on 3G mobiles, while still offering its business customers a service that's likely to become quite popular in the medium term.