Subject: [NEXTEL-1] New Wireless Data Standard Threatens 3G

From: [email-masked]
Date: Tue, 26 Aug 2003 23:03:48 -0400

New Wireless Data Standard Threatens 3G
- NEWSFACTOR SPECIAL REPORT

By Jay Wrolstad
NewsFactor Network
August 26, 2003

http://www.newsfactor.com/perl/story/22160.html

It is no secret that wireless operators are struggling to deliver on the
much-hyped promise of next-generation networks that combine voice and data on
cellular networks. Collectively, they have spent billions on licenses and
equipment to roll out a broad array of new data-centric services for customers.
But emerging technologies could offer a leap past so-called third-generation (3G)
systems just as they are getting off the ground.

One such technology is the nascent IEEE 802.20 standard, a member of the 802
family that includes the better-known 802.11b, or Wi-Fi. The Wi-Fi LAN (local area
network) standard has proliferated in recent years by offering broadband wireless
connections for laptops and other mobile devices.

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Struggle for Control

A new standard could change the direction of wireless networking, though. Whereas
Wi-Fi and the newer 802.16 metro-area wireless broadband system are limited by the
range of their coverage areas -- from a few hundred feet to 30 miles or so,
respectively -- 802.20 sits on existing cellular towers. It essentially promises
the same coverage area as a mobile phone system with the speed of a Wi-Fi
connection.

That is why 802.20, or mobile broadband wireless access (MBWA), has generated
controversy in the wireless industry. In some circles, it is considered a threat
to 3G. In fact, the IEEE 802.20 working group assigned to evaluate and develop the
technology for commercial use has put the lid on external communications, because
leadership of the group remains in question.

Those having a vested interest in 3G and those advocating prompt adoption of the
new standard are wrangling for control.
Equipment vendors that stand to lose if 3G goes by the wayside, such as Qualcomm,
also are tight-lipped 802.20. Some critics
accuse them of trying to slow down acceptance of the specification.

Flarion's 4G Alternative

Other companies are pushing ahead with 802.20, though, confident that carriers
will recognize the benefits and revenue potential associated with the jump to what
has been called a "4G" alternative. Flarion Technologies has developed a variant
of 802.20 called "OFDM" (orthogonal frequency division multiplexing), which
currently is undergoing testing with a number of wireless operators worldwide.

Ronny Haraldsvik, vice president of strategy for the company, describes the
technology as an Internet protocol system that delivers on the promise of 3G by
extending the local-area network experience to a wide-area network. But, unlike
the 3G offerings (such as CDMA 1xRT or GPRS) being launched by carriers worldwide,
which rely on circuit-based networks designed primarily for voice communications,
802.20 is a packet-based system optimized for data transmission.
Full Mobility, Nationwide Coverage "The key differentiating factor is that this
provides full mobility and nationwide coverage through cell-to-cell handoff with
access to broadband speeds for any application," Haraldsvik told NewsFactor.
Business travelers, for example, can access corporate networks while on the move
and send information in real-time back to the office -- just as if they were
connected to the local area network there.

Mark Klerer, director of standards at Flarion, explained that the company's 802.20
air interface virtually eliminates problems with latency -- the annoying
transmission delays typically associated with circuit-based networks. In essence,
the OFDM technology slices up wireless spectrum into smaller bandwidth "tones," he
said, enabling frequency hopping similar to that of CDMA technology.

Carriers Show Interest

Users get the same broadband Internet experience they have with a DSL or cable
modem connection, but in a cellular mobile
environment. The average speed of 1.5 Mb per user -- or 3 Mbps peak data rates --
leaves 3G networks in the dust.
Flarion's offering has drawn interest from U.S. carrier Nextel, as well as
operators in Korea and Japan, Haraldsvik said. The company is rolling out its
802.20 base stations, although the standard has not yet been formally approved by
the IEEE, which is a requirement for global adoption. "There is a lot of posturing
going on now, which could result in changes to the performance standard,"
Haraldsvik said. "There are some companies who don't want to see [802.20] happen
too fast." Some equipment vendors are reluctant to pursue it because they stand to
lose their grip on the future of communications networks, Haraldsvik says. But
operators are taking control of the networks, he argues, and OEMs will have to
meet the carriers' needs.

Threat Overblown?

IDC wireless technologies analyst Keith Waryas downplayed the controversy,
pointing out that when Wi-Fi emerged about 18
months ago, it, too, was viewed as a serious threat to 3G, but that has not turned
out to be the case.
The 802.20 specification does offer an extended range for broadband wireless, he
told NewsFactor, but it is not compatible with existing cellular services. "There
is an incumbency issue. Wireless operators now have about 146 million customers
and have spent billions in this market. They already have a channel to those
customers, so it's not likely they will displace their existing networks," he
said.

The analyst also pointed out that the ramp-up time could be lengthy for an
802.20-based system. "Networks take a long time to roll out, and operators have to
work out all of the details, such as billing and authentication. It could be a
threat to 3G, but it's not an immediate threat," he said.

As for what constitutes 4G, Haraldsvik said it is too early to offer a clear
definition. "But operators, OEMs and enterprise customers have made it clear that
they want an end-to-end packet-switch system, which is what our technology can
deliver," he said
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