MobileStar

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MobileStar Network was an early wireless Internet service provider that helped popularize Wi‑Fi by placing hotspots in Starbucks stores, American Airlines Admiral Club lounges, and Hilton Hotels. It was started in 1998 by Mark Goode and Greg Jackson, and Goode coined the term “hotspot” for a place with a Wi‑Fi access point. The company aimed to give business travelers wireless broadband wherever they slept, ate, moved, or met.

Financing came from Greg Jackson, and a predecessor company called PLANCOM moved its ideas into MobileStar. In its Series A, MobileStar drew money from wealthy investors, corporate backers such as Proxim and Comdisco, and institutional investors from New York. The Series B round raised $38 million from the Mayfield Fund and Blueprint Ventures.

MobileStar began with Proxim’s 2.4‑GHz, frequency‑hopping technology and later switched to the 802.11b standard as it became widely adopted. Cisco helped supply much of the early infrastructure. The team faced several challenges, including evolving tech standards, changing business models, no standard billing system, and questions about licensing for sites. The late‑2000 Starbucks deal helped the market mature, and American Airlines and Hilton also joined.

As laptops started to include built‑in 802.11, people began expecting broadband connectivity in more places. The rise of license‑free Wi‑Fi, the iPhone in 2007, and the growth of voice over IP on the 2.4 GHz band showed how valuable ubiquitous wireless could be.

MobileStar shut down in October 2001 after a drop in travel following the 9/11 attacks and a tightening of private equity financing. Its assets and contracts were bought by Voicestream Wireless and, by February 2002, ran as T‑Mobile Broadband. It officially launched as T‑Mobile HotSpot in August 2002, and many original MobileStar employees stayed on to help grow it.