Via the original article, the Harvard Broadband Communication Laboratory provides this explanation of Free-Space Optical Communications and gives some insight as to why this method doesn't work very well unless used under optimal conditions:
"Free space optical communications is a line-of-sight (LOS) technology that transmits a modulated beam of visible or infrared light through the atmosphere for broadband communications. In a manner similar to fiber optical communications, free space optics uses a light emitting diode (LED) or laser (light amplification by stimulated emission of radiation) point source for data transmission. However, in free space optics, an energy beam is collimated and transmitted through space rather than being guided through an optical cable. These beams of light, operating in the TeraHertz portion of the spectrum, are focused on a receiving lens connected to a high sensitivity receiver through an optical fiber."
The hurdles with this form of "wireless" are many, and it really only gets optimal speeds in places like space. Rain, fog and snow can all affect the transmission here on Earth. Even wind has a tendency to make the beam "wander" off course. [Corriere Della Sera via Hot Hardware]
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