Subject: [NEXTEL-1] An information generation gap:

From: [email-masked]
Date: Wed, 15 Oct 2003 23:23:16 -0400

An information generation gap:

October 15, 2003 2:00am

One of the most frustrating characteristics of modern technology is
that no sooner have you got it out of the wrapping than something
else comes along claiming to be better.

Third generation (3G) telecommunications networks have been
promising lower prices to chat on mobile phones and greater capacity
to provide new services such as video calls - though many would-be
3G network operators have still to flick the switch.

However, a new group of technology companies is already touting
products which, it is claimed, can provide something faster, cheaper
and more simple to install than 3G.

Imagine driving down the highway at 60mph but having access to a
broadband web connection so the kids in the back can watch their
favourite film straight from the internet. Flarion Technologies of
Bedminster, New Jersey, claims it can do just that with its wireless
broadband service.

Or perhaps you would like your local school to operate a wireless
broadband network so children can complete multimedia homework
assignments without having to shell out for their own high-speed
internet connection. Douglas County School System, 25 miles west of
Atlanta, Georgia, is testing such a system with Navini Networks, a
Texas technology company.

Meanwhile, in New Zealand, Walker Wireless is rolling out Woosh, the
first nationwide high-speed wireless internet network, using systems
from a company called IP Wireless.

Each of these attempts to satisfy a demand for wireless web surfing
have developed slightly different technologies for the purpose, but
the principle is much the same. A network is created in a similar
way to traditional mobile phone networks using cell sites attached
to buildings or free-standing masts. For the user, the experience is
akin to wi-fi hotspots, the local broadband wireless networks, where
a card slotted into a laptop or a special personal computer modem
enables you to surf at high speeds.

The new contenders in the wireless broadband market have gained a
foothold in part because of the failings of 3G network
technologies. "3G as it was envisioned was for high capacity voice
and high-speed data," says Iain Gillott, principal of wireless
strategy consultancy iGillott Research. "3G as it's turned out is
really high-capacity voice and more data, but it hasn't really
addressed the issue of supplying high-bandwidth data."

Some 3G networks have yet to see the light of day - most noticeably
those trying Wideband Code Division Multiple Access (WCDMA), the 3G
standard of choice for GSM-based mobile phone operators. "WCDMA has
turned out to be a lot harder to put in than mobile phone operators
thought," Mr Gillott notes. "By the time they get WCDMA right,
another thing has come along."

Other 3G standards, such as the evolution data-only (EV-DO) network
launched recently by Verizon Wireless in Washington DC and San
Diego, California, have met the business demand for fast data access
on the move but are spectrum hungry.

"If you have got the spectrum to convert to EV-DO, it is great,"
says Mr Gillott. However, he notes that US mobile phone operator
Sprint PCS, which has less spare spectrum than Verizon Wireless,
chose not to install EV-DO when it had the opportunity.

Not that the rival providers of broadband wireless service care
whether they are replacing 3G or enhancing existing deployments.
Their biggest challenge is to find a purpose and a market to buy
their new devices, according to Michael Thelander, a member of the
wireless telecoms research team at Deutsche Bank.

"Although there is competition between these companies, they look to
each other to succeed because it is better for the whole broadband
wireless market," he says.

They may find a role as a wireless complement to the wired broadband
services offered by traditional phone companies and cable operators,
Mr Thelander claims. Alternatively, they could fill holes in
wireless coverage by mobile phone operators.

Nextel Communications, a rival of Verizon Wireless and Sprint PCS in
the US, is considering bypassing 3G altogether and using one of the
alternative technologies. Nextel consciously avoided the rush to
build 3G networks, in part because its existing iDen mobile phone
technology was packet switched and could therefore handle basic data
applications at much higher speeds than conventional circuit
switched technology.

"We look at 3G as just faster narrowband," says Tom Kelly, Nextel's
chief operating officer. "We define broadband as being in the
megabit or better category, which is clearly what we don't get today
with most 3G networks."

Nextel has been kicking the tyres on technology provided by Flarion
and other suppliers. However, Mr Kelly says the company is not going
to rush into something until he knows it works and there is a
consumer demand. "When you deploy a new technology that gives
broadband speeds, the question you need to ask is, 'Will the
customer really pay?' " he says. "One of the broadband applications
customers talk about is downloading entertainment. But if it costs
$25 to download a movie to my home, then I am still going to go to
Blockbuster, where I pay only three bucks."

Michael Thelander at Deutsche Bank agrees price will be a vital
factor for broadband services: "You don't want to give it away, but
if you charge a premium, you have to justify it."

Perhaps the greatest advantage held by the new providers of
broadband wireless services is that their technology is up and
running. This is more than can be said for many would-be 3G network
operators.

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