Subject: [NEXTEL-1] Nokia says operators want walkie-talkies

From: [email-masked]
Date: Tue, 17 Jun 2003 15:06:39 -0400

Nokia says operators want walkie-talkies

REUTERS[ TUESDAY, JUNE 17, 2003 08:45:48 PM ]

HELSINKI: Mobile carriers are eager to launch a new walkie-talkie service and
faster Internet connections using so-called EDGE networks, the world's largest
mobile phone maker Nokia said on Tuesday.
The new services could save operators money and will be offered globally later
this year and early next, Nokia executives said at an annual strategy update for
journalists.

Investments in EDGE technology by western European operators may further delay
investment in much more expensive third generation (3G) networks, analysts said.
EDGE was long ignored in Europe, but cash-starved operators now see it as a way to
squeeze more value out of their existing networks.

"We're selling EDGE to operators around the world, also in eastern and western
Europe," said Rene Svendsen-Tune, senior vice president for sales and marketing at
Nokia Networks.

EDGE, offered alongside 3G, is an intermediate technology which offers faster
Internet access than current mobile networks, but does not match the speed and
reliability of full-fledged 3G networks.

EDGE costs a fraction of a 3G network, and operators with relatively modern mobile
phone networks can simply upgrade to EDGE and triple their capacity, Svendsen-Tune
said.

But he added that many European operators either have old networks or obligations
to build 3G networks. For many of them, it could be cheaper to invest in 3G.

Roger, and out

The new walkie-talkie service would allow the user to push a single button on an
ordinary mobile phone to gain immediate voice access to a selected group of
friends or colleagues, without any dialling or ring-tones.
It could be offered over any Internet-enabled mobile phone network and could
potentially help operators boost their margins.

The service mimics one developed by U.S. mobile carrier Nextel and wireless
equipment maker Motorola several years ago. It has helped Nextel achieve average
revenues per user of some $70 a month, some $15 above the U.S. average and double
the European and western European average.

"Interest in this service first came from operators in the Americas, which are
close to the success story," said Juha Akras, manager for Nokia's Internet
Protocol Networks. Virtually all European and Asian operators have also expressed
interest.

"Together with the handsets, we'll see this service in the market in the first
half of next year," he said.
The main difference with Nextel's proprietary service is that Nokia and its rivals
Ericsson and Siemens are developing an open industry standard, which will
eventually allow a mobile phone user to chat to a friend on another network in
another country by pressing a single button.

In many cases there is no need to buy a new handset. If supported by an operator,
the walkie-talkie service could be downloaded on existing mobile phones, Akras
said.

http://timesofindia.indiatimes.com/cms.dll/html/uncomp/articleshow?msid=27814

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