AT&T now says that any "FastConnect" subscription, even its DSL Lite offering of 768 Kbps down/128 Kbps up, qualifies for Wi-Fi Basic. The new statement reads: "AT&T Wi-Fi Basic service is FREE and already included if you subscribe to AT&T High Speed Internet, AT&T U-verseSM High Speed Internet, or AT&T FastAccess® DSL—all speed plans included.

There's still a $10 per month fee to upgrade to Wi-Fi Premier, which includes over 70,000 locations worldwide, along with the missing U.S. hotspots, but their Web site says that you have to have a 1.5 Mbps or faster connection to get the $10 per month upgrade. That may be out of date. That ordering page also says you need 1.5 Mbps or faster for free Wi-Fi, so that tends to confirm it hasn't been fixed. (It's even hosted at sbc.com, so perhaps that's part of the vestige of an older system, harder to update.)

Please note that iPhone subscribers still don't get free Wi-Fi on AT&T's Basic network.

The Zune doesn't include a Web browser or any Internet focused features; it's not an iPod touch. But you can use Wi-Fi to browse the Zune Marketplace for music and games, and download new songs in programmed channels, music selections created by a variety of artists and stations. Zune offers both music purchases and a subscription for unlimited music listening. The new models range from $149 for an 8 GB flash model to $249 for a 120 GB hard drive-based player.

The feature I'm most interested in is Buy from FM, which leverages the built-in FM tuner and very low-bandwidth data that's already pushed over analog AM/FM. (See my write-up of this feature from last week.) With Buy from FM, when you're listening to radio stations that participate, you'll be able to click a button and buy the song you're listening to if you're connected to a Wi-Fi network. Zune Pass subscribers can download the song at no additional charge. If there's no Wi-Fi network, the song download or purchase is queued.

Wayport's marketing head Dan Lowden said, "Obviously, it's cool because folks who already own a Zune device and just need to do an upgrade will be able to use this just as with any of the new Zune devices that they start selling as soon as possible." (Microsoft may have a little accounting work to do: Sarbanes-Oxley doesn't let you enhance a product in the market without a fee if you realize the revenue all at once.)

The benefit for Wayport is to have yet another hefty but undisclosed fixed sum underlying its fixed infrastructure costs. In the past, Wayport has done deals with Nintendo, ZipIt, and Eye-Fi to allow all devices in a category unlimited access at McDonald's locations. McDonald's obviously gets more customers, or existing customers who spend more time or visit more frequently.

A partnership with a hotspot operator means that Microsoft doesn't have to provide tools and their users endure frustration in joining a network. "We're experts enabling one click to get this network connected," Lowden said. He noted that Wayport has opened test labs to work with manufacturers in Japan, San Francisco, San Diego, and Seattle. "We're working with these guys from day 1 to make sure it's one click to get connected," he said. I'd also note that San Diego happens to be where Qualcomm's headquarters are located, not that Lowden gave me any tip-off there.

And I have to just say: burn, burn, burn on Apple. Despite Apple partnership with AT&T, which relies on Wayport to operate the AT&T-branded hotspot network and resells access to Wayport's own network, iPhone and iPod touch users have no inclusive Wi-Fi service. AT&T slipped a few times and ostensibly opened up their network or released details that iPhone users would gain free hotspot access--like all AT&T's fiber and all its standard and premium DSL customers.

As Wi-Fi becomes an expected part of any handheld gadget, the venues in which Wi-Fi is used multiply beyond cafes and hotels. Lifestyle locations--which could be clothing stores, nightclubs, ski resorts, and the tops of mountains suddenly become places where people want the same kind of access they have at home. Ultima thule is already unwired.

Cablevision will ultimately spend about $300m in building a Wi-Fi network exclusively for its customers; 2.4m of these customers qualify to use the service at no cost. There's no pay as you go option, no monthly subscription; you're either a subscriber of theirs, or not. It's a fascinating strategy, because they're leveraging all these dollars as a tool to crack its competitors in the market. With increasing competition from telephone companies that are offering television service, cable companies need to compete on voice, data, and video, as well as well as on mobile offerings. When the network is built, Cablevision can conceivably offer Wi-Fi telephony service, too.

I'm dying to know what the reduced churn rate and increase in subscriptions will be in six months. Given that hotspot access costs $10 to $30 per month depending on the network, Cablevision is delivering something of value. It's great honey for new subscribers and glue to keep current subscribers.

The company is claiming that with this latest activation, they have the largest Wi-Fi network for consumers in the U.S. They're likely correct. The only other public access network of scale that's being used by large numbers is in Minneapolis, and based on what I know about both networks, Cablevision probably deserves bragging rights. The network in Taipei, Taiwan, is likely still larger, but I haven't heard any usage number in nearly two years; at that point, subscription rates were 10 percent of what had been projected.