Bluetooth all bark, no bite

Still baby teeth

Bluetooth has been a high-tech buzzword for about two years, but it hasn't lived up to expectations. Last month, at the CeBit trade show in Hanover, Germany, show organisers tried to create the largest Bluetooth network allowing visitors to connect to a data network wirelessly--but the experiment failed.

With Bluetooth, consumers create their own wireless networks, allowing devices such as personal digital assistants, cell phones and PCs to exchange information. Transmission speeds can reach up to 720Kbps within the 2.4GHz band--the same band as 802.11b, also known as Wi-Fi.

Although Bluetooth and 802.11b complement each other in several ways, the two standards also compete because consumers will likely use them for the same function. With Bluetooth, data from a notebook would be sent by an internal Bluetooth radio chip to a cell phone.

Under 802.11b, data is transmitted directly to an 802.11b receiver, which would be wired into an Ethernet network. To work, 802.11b requires that the user be inside or near a structure containing a transmitter.

While some thought this could be an impediment, airports, hotels and office buildings are rapidly installing 802.11b transmitters. Notebook manufacturers are also opting to install 802.11b transmitters over Bluetooth transmitters. The 802.11b standard defines transfers rates of 11Mbps in the 2.4GHz radio band.

Another factor in its favour is that 802.11b depends upon the same networking protocols and standards as traditional networking, so adaptation should be fairly easy.

Research firm Allied Business Intelligence estimates that manufacturers will ship 1.4 billion Bluetooth products in 2005, which is considerably more than its 20.2 million estimate for Wi-Fi shipments. However, Wi-Fi has the advantage now, with products based on its technology already shipping.

Other big-name manufacturers in the Bluetooth standard group include Ericsson, IBM, Intel, Nokia, Toshiba, 3Com, Lucent Technologies, Motorola, Compaq Computer and Dell Computer. In total, there are about 2,000 companies in the group.

Bluetooth borrows its name from the 10th century Viking King Harald Bluetooth, who united Nordic nations under one religion.

News.com's Ian Fried contributed to this report.

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