Subject: [NEXTEL-1] Nextel Gets Nudged in Push-To-Talk Realm

From: Marcel <[email-masked]>
Date: Sat, 19 Apr 2003 04:27:40 -0400

Nextel Gets Nudged in Push-To-Talk Realm
By Jay Wrolstad
Wireless NewsFactor
April 17, 2003

By now, most TV viewers have seen the ads with actor Dennis Franz
using Nextel's Direct Connect instant communication service to
chat with his wife as he shops. Departing from his well-known
tough guy character, New York cop Andy Sipowicz, Franz does his
best to persuade the viewing audience that he really is not a
shill for the carrier.

Maybe he means it -- Nextel might not actually need his help. The
company has virtually cornered the push-to-talk (PTT) market with
its offering of a walkie-talkie-type connection for mobile phones.
Still, that has not stopped other IT providers and operators from
going after a piece of the action.

Togabi Technologies (http://www.togabi.com/) is one of them;
PacketChat is its alternative to Nextel's voice over IP (VoIP)
wireless packet-data service. Togabi is taking a two-pronged
approach to the market, providing PacketChat as a client to phone
manufacturers and as a server product to wireless operators.

The Push for PTT

Togabi can take on Nextel because PacketChat works on more
networks, says company spokesperson Andrew Rimkus. Direct Connect
is available only on Motorola's iDEN system and handsets, but
PacketChat runs on the more widespread GSM/GPRS and CDMA 2000 1x
wireless networks, as well as Wi-Fi (802.11) local-area networks.

"The packet-data networks needed to support push-to-talk are being
set up by all of the major carriers, and this quick communication
channel is now gaining a lot of traction," Rimkus told NewsFactor.
"We have the software they need to get PTT up and running."

Targeting Device Makers

PacketChat offers instant one-to-one and one-to-many PTT calls and
is based on standard IP technologies. It can be integrated into
any 2.5G or 3G wireless handset, or distributed through
infrastructure partners to wireless operators.

Togabi recently inked a deal with handset maker Samsung for its
product, and has similar agreements with IT providers HP(NYSE:
HPQ) and Commworks. PacketChat is sold as a software license on a
one-time, per-subscriber basis. Commercial availability is
expected in summer 2003, with a number of GPRS and CDMA carriers
worldwide currently conducting trials, said Rimkus.

End users of the service are expected to come from both the
enterprise and consumer markets.

Instant Gratification

"We see push-to-talk as the first application for our software,
with other real-time voice and data applications, such as
multimedia, group-entertainment content delivery and multiplayer
games eventually using the same infrastructure," he said. Togabi
sees PTT as instant messaging with voice, and foresees carriers
offering chat groups as well as information services like 411
number lookup.

Indeed, PTT has gained traction among major players in the
wireless industry. Verizon Wireless, Sprint PCS and AT&T Wireless
all reportedly have plans to deploy such services in the near
future. Nokia is developing PTT products for GSM/GPRS networks,
and Qualcomm has Qchat, a CDMA version of PTT for which Nextel now
holds exclusive rights.

Togabi competes directly with Sonim (http://www.sonimtech.com/)
and Winphoria, (http://www.winphoria.com/) two companies that
offer similar software-based systems.

Challenges Ahead

"Nextel has demonstrated a higher RPU (revenue per user) than
anyone else, based primarily on its Direct Connect service," said
IDC wireless analyst Keith Waryas, "but the uniqueness is wearing
off as others enter the market." He did note that Nextel aims to
stay ahead of the curve by extending Direct Connect from a local
to a nationwide service.

For Togabi and others, though, there are some challenges. PTT
suffers from latency -- pauses of a second or more between pushing
the phone's walkie-talkie button and receiving a call -- that is
typical of handling voice calls on a data network. Also, Waryas
told NewsFactor, customers have to purchase a new handset, and
widespread acceptance of PTT will hinge on roaming and/or
interoperability agreements among carriers.

That said, Direct Connect has developed a strong following among
construction and transportation businesses that appreciate the
convenience of instant communications. "If location-based
applications can be added, PTT could also generate interest as a
sales force automation tool," Waryas said. "There is some
opportunity for these services."

http://www.wirelessnewsfactor.com/perl/story/21295.html

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