Wi-Fi Sales Bomb Coming In

(MoneyWatch)  You may have heard about the new Wi-Fi spec, announced today, that that challenges Bluetooth. And it's true, it could. But it's offering a whole different level of challenge to Wi-Fi equipment vendors.

Any device supporting the standard will be able to directly connect to any other such device. They will be able to exchange data, and not just on a pair-wise basis, but also in groups. That suggests a number of consequences (as there always are):

• Bluetooth is out in the long run, not immediately, because why support both when eventually you'll just need Wi-Fi?
• Companies with a major business in access points have a big problem, because the bottom is about to drop out of their business. You've got a wireless card in your computer, so why do you need a router to set up a network at home or in the office?
• Companies that make connector cables also have a problem. Suddenly your camera, MP3 player, or what have you will connect without wires. Now the device vendors stop supplying cables as a standard feature to increase product margins a bit.
• Every vendor has massive security problems. How are you going to set up a secure wireless link or de facto network without entering a password? And if you don't make that possible, how do you keep from being blamed for implicated in some kind of security breach? This is going to be a hacking feeding frenzy, once it's out.

It's a pretty interesting concept, but there will be a train wreck or two as the industry tries to implement it -- and figure out how to keep its revenues up.

Image via stock.xchng user hisks, site standard license.