Google's Hot Spot: Privacy

When Google launched Gmail, its free email service, privacy advocates raised a stink over the company's practice of virtually looking over the reader's shoulder to target ads based on the topics of the conversations.

A Google representative said the company "really cares about privacy, and we do everything we can to protect privacy."

Swapping a little personal information for free wireless access doesn't sound like an onerous cost, say some observers.

"If Google is responsible and they don't get too big brotherish about looking at my surfing habits, I think it is acceptable for them to make use of that data to offset the cost of an otherwise expensive-to-operate security service," says Marcos Lara, founder of the Public Internet Project, the group that runs the Bryant Park WiFi service.

Google's massive popularity and deep pockets have helped create a great deal of speculation about what industries it has targeted for plundering. A joint news conference with Sun Microsystems (SUNW Quote) Monday is expected to create a software threat to Microsoft (MSFT Quote). And Google's instant messenger service, GoogleTalk, is expected to one day rival telcos in the calling business.

Wherever Google goes -- or is rumored to go -- hyperbole tends follows.

But in wireless Internet access, a Google rep says the company has no designs to extend its San Francisco ambitions outside city lines -- let alone to unwire the world.

So far, however, the company seems to like what it has seen in taking the advertisers closer to Google users.

"Google is gingerly dipping its toe into this WiFi thing seeing what results and the lessons learned will determine the next step," says ABI's Lucero. "Going forward with San Francisco means they've seen that there's something there."