Information-based horizontal applications include directories
and guides, which users can access and customize according to
their interests, such as headline news, business news, specific
company news tracking, weather, sports results, or stock information.
Wireless Internet applications will add value to news
and information by increasing users’ ability to access up-to-theminute
time-sensitive news while mobile. The one thing we
can all agree about is that if you wait too long, it’s no longer
news.
Wireless applications will enable users to wirelessly access
condensed versions of news and information that is relevant for
that particular moment in time. This access will often supplement
other methods for accessing this data but will add value
by providing timely access and notification of important events.
Key drivers for news and information applications are:
• Time sensitive data. Unpredictable news or events that the
user has an interest in knowing about as they occur. Weather,
sports scores, and news headlines are all examples of timesensitive
news.
• Access to up to date directories and guides to ensure efficient
actions. That paper phone book won’t always tell you that
your client recently moved his office to a new location across
town!
• Filtered access. News and information can be condensed and
filtered based on pre-existing rules and profiles according to
the user’s interests.
Some of the application areas for news and information
where wireless mobility will add value include:
• Virtual newspapers and magazines. Virtual newspapers and
magazines use communication technology to deliver periodical
and advertising information. In 1998, over 80 percent of
consumers surveyed said they believe that the Internet is as
reliable as offline (e.g., printed and television) media sources.
Because of the proliferation of 24-hour cable news channels
and the increase in online news services, average daily newspaper
readership fell to only 58 percent of the United States
population in 1997. This is compared to over 80 percent in
1964. With only 31 percent of the 21- to 35-year-old age
group reading the newspaper, traditional newspapers and
broadcasters are using virtual newspapers and magazines via
Internet to reach a more affluent, younger, demographic
online audience.*
Newspapers rarely duplicate themselves word for word
online, but they often provide more than enough for the reader
without the paper edition. When viewing online newspapers,
readers are not limited to selections of local
newspapers. They have access to newspapers around the
globe. Almost all newspapers have an online version.
Additionally, the online versions are generally free (advertiser
supported) and are available before the paper ones hit the
stands. Online newspapers and magazines tend to offer
expanded coverage into areas such a travel, entertainment,
and culture. They provide exclusive content such as breaking
news, live sports coverage, online shopping, opinion polls,
and discussion groups. However, probably the best advantage
of online newspapers is that they provide advanced search
and retrieve archives to the customer. With increased available
bandwidth, virtual newspapers can take advantage of
video and audio media to add value to their news services.
• Virtual or E-Books. Virtual books or electronic books (ebooks)
are books in digital form that can be displayed and
navigated through by a user. Many virtual books are available
through personal computers or personal digital assistants
(PDAs) via CD ROM or a connection to the Internet.
Portable e-book readers come with leather covers, a built-in
modem, and color screen.
Since 1998, online publishing offered electronic books in
PostScript Descriptor File (PDF) format. E-books offer book
publishers a way to control distribution if they’re able to tie
content to a specific device. In 1999, the total U.S. book
market was approximately $21 billion and the e-books market
share was less than 1 percent,* due in part to poor display
devices, lack of compelling content, and the limitations of the
user’s experience with the display device (which is far outstripped
by those of digital music users).
With the introduction of better display devices and more
content available via the Internet, the marketplace for virtual
books should dramatically increase. It is likely that e-book
vendors will focus initially on vertical opportunity segments
with time-sensitive content, such as mobile maintenance
(service instructions), education (distance learning), healthcare
(telemedicine), and law (case histories) topics. 153
IT Certification CCIE,CCNP,CCIP,CCNA,CCSP,Cisco Network Optimization and Security Tips
ELECTRONIC PHOTO ALBUM
A picture may be worth a thousand words, especially if you’re
on the phone trying to describe something. Wireless applications
will allow users to carry or access images that are stored
locally on the device or on a remote server. The number of
photos most consumers are able to carry with them is limited by
the size and fragile nature of printed photos, but digital photos
take up little space and eliminate fear of loss because copies
are easily made.
Since the mid-1990s, low-cost digital cameras are available
that allow customers to capture and transmit digital photographs.
Because digital cameras allow the customer to manipulate
the digitized photos, they can be enhanced to remove
red-eye, aligned, and unwanted areas can be cut out. These
images can be used to create electronic postcards or greeting
cards. Telecommunication network high-speed data transfer,
combined with store-and-forward service capabilities, will
allow customers to transmit and receive high-quality photographs.
Furthermore, many wireless devices already have the
ability to attach a camera to their data port.
Digital camera revenue is expected to surpass that of film
cameras in 2000 for the first time ever, with $1.9 billion worth
of digital cameras sold in the United States. Digital camera
unit sales are expected to grow from 6.7 million in 2002 to over
42 million in 2005.* Figure 4-5 shows a digital camera attachment
offered by Ericsson that can be connected to a phone to
transmit pictures by email.
on the phone trying to describe something. Wireless applications
will allow users to carry or access images that are stored
locally on the device or on a remote server. The number of
photos most consumers are able to carry with them is limited by
the size and fragile nature of printed photos, but digital photos
take up little space and eliminate fear of loss because copies
are easily made.
Since the mid-1990s, low-cost digital cameras are available
that allow customers to capture and transmit digital photographs.
Because digital cameras allow the customer to manipulate
the digitized photos, they can be enhanced to remove
red-eye, aligned, and unwanted areas can be cut out. These
images can be used to create electronic postcards or greeting
cards. Telecommunication network high-speed data transfer,
combined with store-and-forward service capabilities, will
allow customers to transmit and receive high-quality photographs.
Furthermore, many wireless devices already have the
ability to attach a camera to their data port.
Digital camera revenue is expected to surpass that of film
cameras in 2000 for the first time ever, with $1.9 billion worth
of digital cameras sold in the United States. Digital camera
unit sales are expected to grow from 6.7 million in 2002 to over
42 million in 2005.* Figure 4-5 shows a digital camera attachment
offered by Ericsson that can be connected to a phone to
transmit pictures by email.
IDENTIFICATION OR SECURITY ACCESS
Whether you work in a large or small company or have a membership
to a gym or country club, security access badges have
become part of our personal wardrobe. These access cards typically
identify who we are and give us access to areas that are limited
to authorized persons only. Wireless applications will soon
be able to store these same permissions and offer electronic
identification with an extra touch of security. Badges are typically
passive devices that only need to be swiped or passed over a
reader. Security applications in wireless devices will have the
ability to require users to enter passwords to activate the access
ID. Wireless also enables lost access devices to be recovered easily.
Lost wireless devices that are used for security or identification
purposes may also have GPS location technology that
pinpoints the exact location of the lost or stolen device or simply
confirms that the user has not entered an area that is off-limits.
to a gym or country club, security access badges have
become part of our personal wardrobe. These access cards typically
identify who we are and give us access to areas that are limited
to authorized persons only. Wireless applications will soon
be able to store these same permissions and offer electronic
identification with an extra touch of security. Badges are typically
passive devices that only need to be swiped or passed over a
reader. Security applications in wireless devices will have the
ability to require users to enter passwords to activate the access
ID. Wireless also enables lost access devices to be recovered easily.
Lost wireless devices that are used for security or identification
purposes may also have GPS location technology that
pinpoints the exact location of the lost or stolen device or simply
confirms that the user has not entered an area that is off-limits.
MOBILE ELECTRONIC WALLET
We all have credit and debit cards that we use for various purchases;
some of us even make online purchases at home in
front of the PC. When it comes to inputting these numbers
into a wireless device every time we wish to make an electronic
transaction most of use would rather choose an easier
method of payment. Wireless mobile wallets will allow users to
access account data that is stored in the device or network to
simplify and ease the check-out pain by remembering credit or
debit card information. The mobile wallet automatically reads
the merchants check-out form and inserts user information
into the appropriate fields. In the future more banks and merchants
will experiment with mobile electronic wallets.
some of us even make online purchases at home in
front of the PC. When it comes to inputting these numbers
into a wireless device every time we wish to make an electronic
transaction most of use would rather choose an easier
method of payment. Wireless mobile wallets will allow users to
access account data that is stored in the device or network to
simplify and ease the check-out pain by remembering credit or
debit card information. The mobile wallet automatically reads
the merchants check-out form and inserts user information
into the appropriate fields. In the future more banks and merchants
will experiment with mobile electronic wallets.
ELECTRONIC CALENDAR
Electronic calendars are slowly gaining in popularity as connectivity
improves and devices are able to synchronize data
between PCs and mobile devices. Paper calendars have given
way to Palm Pilots that can share and synchronize data
between the device and the PC. This works great when both
devices have the most up-to-date data but that’s not always the
case. Calendars are often workgroup productivity tools that
allow groups to schedule meetings across multiple calendars
based on the current data. This becomes an issue when you
are away from your desk and enter a new appointment into
your Palm Pilot. Before you are able to synchronize this data
with the group calendar application it’s possible that someone
will schedule a conflicting meeting for the same day and time.
Wireless calendar access will allow you to see an up-to-date
schedule as well as record new entries on the network for all
to see. 149
improves and devices are able to synchronize data
between PCs and mobile devices. Paper calendars have given
way to Palm Pilots that can share and synchronize data
between the device and the PC. This works great when both
devices have the most up-to-date data but that’s not always the
case. Calendars are often workgroup productivity tools that
allow groups to schedule meetings across multiple calendars
based on the current data. This becomes an issue when you
are away from your desk and enter a new appointment into
your Palm Pilot. Before you are able to synchronize this data
with the group calendar application it’s possible that someone
will schedule a conflicting meeting for the same day and time.
Wireless calendar access will allow you to see an up-to-date
schedule as well as record new entries on the network for all
to see. 149
Presence information
• Presence information. The majority of the value of IM over
simple SMS lies in the ability to utilize presence information.
Presence information is simply the ability to know who is
“present” and able to chat and who is not “present” and
therefore not available. Availability is key to making instant
messaging “instant.” The “instant” comes largely from being
able to identify who is available to chat and not waste time in
sending messages to those who are not.
Have you ever sent or received an email that required
action right away? Getting a time-sensitive message such as
“We are going to go get lunch, do you want to join us?” offers
both sender and receiver little value if the message is not
received, and replied to or acted on, in short order.
Although, IM is currently only used for text messaging it
will evolve beyond text very quickly. Text is a form of data.
Future networks will be able to handle higher amounts of
data, enough to allow voice calls over data channels as well
as other media types—pictures, video, audio files, and more.
End users will rely on presence data to control and filter
whom they attempt to contact and who is able to contact
them based on stated availability and user-controlled profiles.
Users will be able to tell the IM system they are available but
also further define availability in any number of ways—available
for work-related contacts only or only available after 5
p.m. for chats about happy-hour plans. This ability to control
and alter a user’s profile limits incoming messages to those
that the user deems currently relevant and useful.
Imagine using presence info the next time you want to call
someone. Often you wouldn’t bother calling if you knew they
weren’t available; you would simply call later or perhaps
choose to call someone else.
You know that those who call you or send you messages
aren’t all your friends or family—businesses such as retailers
are eager to reach out and contact you. Technologies such as
Bluetooth will allow businesses to send information to your
phone as you pass near their location. This initially sounds
good if you want this info but a real inconvenience if you
don’t. What if you could control what you receive? Imagine a
profile that you set up to allow info from restaurants—
menus, specials, seating availability—on a Friday night as you
are walking around looking for a place to eat.
This could be useful. The profile would block messages
from stores and other businesses that you aren’t currently
interested in. This could be reversed the next morning when
you are in shopping mode and could care less about finding
a place to eat. The ability to receive information and begin a
text or voice discussion with businesses you choose is valuable
to both parties.
You benefit by getting access to useful data when and how
you choose with complete control over the filtering process.
Companies benefit by knowing who is truly interested and
not offending uninterested consumers with unsolicited
offers. Presence information is an important tool for
location-based services and other messaging services that value
the ability to target who is available and potentially interested
in the message. 148
simple SMS lies in the ability to utilize presence information.
Presence information is simply the ability to know who is
“present” and able to chat and who is not “present” and
therefore not available. Availability is key to making instant
messaging “instant.” The “instant” comes largely from being
able to identify who is available to chat and not waste time in
sending messages to those who are not.
Have you ever sent or received an email that required
action right away? Getting a time-sensitive message such as
“We are going to go get lunch, do you want to join us?” offers
both sender and receiver little value if the message is not
received, and replied to or acted on, in short order.
Although, IM is currently only used for text messaging it
will evolve beyond text very quickly. Text is a form of data.
Future networks will be able to handle higher amounts of
data, enough to allow voice calls over data channels as well
as other media types—pictures, video, audio files, and more.
End users will rely on presence data to control and filter
whom they attempt to contact and who is able to contact
them based on stated availability and user-controlled profiles.
Users will be able to tell the IM system they are available but
also further define availability in any number of ways—available
for work-related contacts only or only available after 5
p.m. for chats about happy-hour plans. This ability to control
and alter a user’s profile limits incoming messages to those
that the user deems currently relevant and useful.
Imagine using presence info the next time you want to call
someone. Often you wouldn’t bother calling if you knew they
weren’t available; you would simply call later or perhaps
choose to call someone else.
You know that those who call you or send you messages
aren’t all your friends or family—businesses such as retailers
are eager to reach out and contact you. Technologies such as
Bluetooth will allow businesses to send information to your
phone as you pass near their location. This initially sounds
good if you want this info but a real inconvenience if you
don’t. What if you could control what you receive? Imagine a
profile that you set up to allow info from restaurants—
menus, specials, seating availability—on a Friday night as you
are walking around looking for a place to eat.
This could be useful. The profile would block messages
from stores and other businesses that you aren’t currently
interested in. This could be reversed the next morning when
you are in shopping mode and could care less about finding
a place to eat. The ability to receive information and begin a
text or voice discussion with businesses you choose is valuable
to both parties.
You benefit by getting access to useful data when and how
you choose with complete control over the filtering process.
Companies benefit by knowing who is truly interested and
not offending uninterested consumers with unsolicited
offers. Presence information is an important tool for
location-based services and other messaging services that value
the ability to target who is available and potentially interested
in the message. 148
A continuous user interface
• A continuous user interface. Text messaging with SMS can be
very useful for sending short messages back and forth but the
effort required to open and close the application when sending
more than one or two messages to the same recipient in
a short time can be cumbersome. One way to improve the
SMS process is via a continuous user interface that can save
keystrokes and provide a better user experience. This simply
means that the screen scrolls the text as the two users send
each other messages. This eliminates the need to repeat the
process of opening, closing, and addressing messages to the
same person for the duration of the text discussion.
very useful for sending short messages back and forth but the
effort required to open and close the application when sending
more than one or two messages to the same recipient in
a short time can be cumbersome. One way to improve the
SMS process is via a continuous user interface that can save
keystrokes and provide a better user experience. This simply
means that the screen scrolls the text as the two users send
each other messages. This eliminates the need to repeat the
process of opening, closing, and addressing messages to the
same person for the duration of the text discussion.
Interconnection to other online devices
• Interconnection to other online devices. American wireless
users are only now starting to use phones that are capable of
two-way text messaging. One problem is that there won’t be
many other users to exchange text messages with until more
users have a newer SMS-capable phone. Connecting online
PC applications to wireless systems gives the wireless text
users an existing embedded base of PC-based IM users with
which to trade two-way text messages.
IM allows the wireless user to send and receive text messages
to any person logged into the IM system with either a
wireless device or PC. The online population of global IM
users is about 130 million, which increases the size and value
of the network.
Wireless IM requires the user to have the ability to connect
to an IM system. This connection can occur over a number
of different transports such as SMS, circuit-switched data, or
packet-based connections. Some of these methods require
the carrier to have or connect to an IM system that routes
messages between PCs and wireless devices and provides
presence information to users.
users are only now starting to use phones that are capable of
two-way text messaging. One problem is that there won’t be
many other users to exchange text messages with until more
users have a newer SMS-capable phone. Connecting online
PC applications to wireless systems gives the wireless text
users an existing embedded base of PC-based IM users with
which to trade two-way text messages.
IM allows the wireless user to send and receive text messages
to any person logged into the IM system with either a
wireless device or PC. The online population of global IM
users is about 130 million, which increases the size and value
of the network.
Wireless IM requires the user to have the ability to connect
to an IM system. This connection can occur over a number
of different transports such as SMS, circuit-switched data, or
packet-based connections. Some of these methods require
the carrier to have or connect to an IM system that routes
messages between PCs and wireless devices and provides
presence information to users.
INSTANT MESSAGING
Instant messaging (IM) is a very popular fixed Internet application
that allows users to identify who is available for the purpose
of exchanging text messages. IM is different from email or
SMS in that users are able to see “presence” information.
that allows users to identify who is available for the purpose
of exchanging text messages. IM is different from email or
SMS in that users are able to see “presence” information.
MOBILE ELECTRONIC MAIL
Electronic mail (email) is the transferring of information messages
via an electronic communications system. Initial versions
of email could send short text messages of 1 to 3 pages. Email
technology has evolved (standardized) to allow file attachments,
and new versions of email (such as those using Flash
technology) send animation or video clips as email messages.
Email messaging is probably the best single reason for users
to get connected to the Internet. There were over 400 million
email account users in 1998, and the number of email
accounts is expected to top 1 billion by the end of 2000.
Email messaging has been the leading application (“killer
application”) among online users age 18 and younger. Email is
used by greater than 40 percent of online children under age
13, and almost 60 percent of online children between ages 13
and 18. A large proportion of older children spend their time
online communicating with others via instant messaging.
Wireless email will grow quickly as society adapts to email as
a more vital lifeline of communications, and especially as people
begin to appreciate the convenience and freedom of being
able to connect from anywhere. Additionally, as the wireless
email landscape matures, advanced capabilities such as voiceenabled
text-to-speech, real-time synchronization with desktop
and calendar, intelligent filtering, and security will make wireless
email services a “need to have” rather than “want to have.”
via an electronic communications system. Initial versions
of email could send short text messages of 1 to 3 pages. Email
technology has evolved (standardized) to allow file attachments,
and new versions of email (such as those using Flash
technology) send animation or video clips as email messages.
Email messaging is probably the best single reason for users
to get connected to the Internet. There were over 400 million
email account users in 1998, and the number of email
accounts is expected to top 1 billion by the end of 2000.
Email messaging has been the leading application (“killer
application”) among online users age 18 and younger. Email is
used by greater than 40 percent of online children under age
13, and almost 60 percent of online children between ages 13
and 18. A large proportion of older children spend their time
online communicating with others via instant messaging.
Wireless email will grow quickly as society adapts to email as
a more vital lifeline of communications, and especially as people
begin to appreciate the convenience and freedom of being
able to connect from anywhere. Additionally, as the wireless
email landscape matures, advanced capabilities such as voiceenabled
text-to-speech, real-time synchronization with desktop
and calendar, intelligent filtering, and security will make wireless
email services a “need to have” rather than “want to have.”
PERSONALIZED COMMUNICATIONS
Personalized communications consist of applications and services
that are based on access to and manipulation of the user’s personal
data. This includes services such as personal information
management, calendar and scheduler management, email messaging,
unified messaging, chat, and community participation.
Wireless Internet applications will add value to personalized
communications by increasing a user’s ability to access
personal data while mobile. We’ve all experienced situations
where some small piece of data isn’t there when we need it. But
no matter how hard we wish we had not forgotten that contact
name, phone number, date, or account number, it still refuses
to magically appear. Wireless applications will enable users to
wirelessly retrieve data that may be typically stored in various
other digital systems. These applications will often be a substitute
for another method of access but will add value by retrieving
just enough data to get the task done.
Key drivers for personalized communication applications are:
• Time sensitive data. Data that has a very short useful life—
wait too long and you’ll miss out on some opportunity.
• Security and privacy. Data that you might not want to carry a
hardcopy of for fear of losing it—account numbers, passwords,
and personal information that you’d rather not carry
with you.
• Access to others. Applications that allow users to contact and
receive messages from others regardless of the method used
by the sender—emails, faxes, voice mail, instant messages,
electronic reminders, and other personal communication.
Other application areas of personal communications where
mobility will add value include the following:
that are based on access to and manipulation of the user’s personal
data. This includes services such as personal information
management, calendar and scheduler management, email messaging,
unified messaging, chat, and community participation.
Wireless Internet applications will add value to personalized
communications by increasing a user’s ability to access
personal data while mobile. We’ve all experienced situations
where some small piece of data isn’t there when we need it. But
no matter how hard we wish we had not forgotten that contact
name, phone number, date, or account number, it still refuses
to magically appear. Wireless applications will enable users to
wirelessly retrieve data that may be typically stored in various
other digital systems. These applications will often be a substitute
for another method of access but will add value by retrieving
just enough data to get the task done.
Key drivers for personalized communication applications are:
• Time sensitive data. Data that has a very short useful life—
wait too long and you’ll miss out on some opportunity.
• Security and privacy. Data that you might not want to carry a
hardcopy of for fear of losing it—account numbers, passwords,
and personal information that you’d rather not carry
with you.
• Access to others. Applications that allow users to contact and
receive messages from others regardless of the method used
by the sender—emails, faxes, voice mail, instant messages,
electronic reminders, and other personal communication.
Other application areas of personal communications where
mobility will add value include the following:
CONTENT DELIVERY
Content delivery involves the transport of information from a
source (content provider) to its destination (customer). The
customer usually selects to receive content (such as travel
directions or flight status information). The service provider
may charge a fee for access or may receive a percentage of the
fee paid by the recipient to the content provider (royalty fee).
Some of the more popular content providers include mapping
companies (for directions), music, flight status, weather information,
and other real-time or near real–time information
sources. The actual information content is often provided
through an application service provider (ASP) and transferred
through an Internet portal (gateway). The ASP usually manages
and updates the content, and the wireless provider provides
the transport to the end customer.
source (content provider) to its destination (customer). The
customer usually selects to receive content (such as travel
directions or flight status information). The service provider
may charge a fee for access or may receive a percentage of the
fee paid by the recipient to the content provider (royalty fee).
Some of the more popular content providers include mapping
companies (for directions), music, flight status, weather information,
and other real-time or near real–time information
sources. The actual information content is often provided
through an application service provider (ASP) and transferred
through an Internet portal (gateway). The ASP usually manages
and updates the content, and the wireless provider provides
the transport to the end customer.
PERSONALIZATION
Many of these applications and services are increasingly being
tailored to individual tastes. As people customize services to suit
their use of the Internet, its usefulness will increase considerably.
The wireless device tends to be a personal device with a
single primary user, unlike personal computers that are commonly
shared among users. Because mobile devices are frequently
used and almost always with the user, wireless operators
can exploit the wireless device’s access to time- and locationcritical
information. As these services, content, and applications
become more personalized and location based, users have richer,
more rewarding, and more relevant experiences. This information
will be based on the user’s own information—“my
news,” “my banking,” “my investment portfolio”—to make it
absolutely specific and relevant to the user.
Additionally, every user will be able to create his own content
including video, animation, still images, and text and all
the information will be in digital, transferable form. User-generated
content will be a very important portion of the multimedia
Wireless Internet business model. The importance of
the Wireless Internet device as an instrument for information,
entertainment, and transactions will increase as physical
boundaries dissolve.
tailored to individual tastes. As people customize services to suit
their use of the Internet, its usefulness will increase considerably.
The wireless device tends to be a personal device with a
single primary user, unlike personal computers that are commonly
shared among users. Because mobile devices are frequently
used and almost always with the user, wireless operators
can exploit the wireless device’s access to time- and locationcritical
information. As these services, content, and applications
become more personalized and location based, users have richer,
more rewarding, and more relevant experiences. This information
will be based on the user’s own information—“my
news,” “my banking,” “my investment portfolio”—to make it
absolutely specific and relevant to the user.
Additionally, every user will be able to create his own content
including video, animation, still images, and text and all
the information will be in digital, transferable form. User-generated
content will be a very important portion of the multimedia
Wireless Internet business model. The importance of
the Wireless Internet device as an instrument for information,
entertainment, and transactions will increase as physical
boundaries dissolve.
MESSAGING—THE FIRST WIRELESS INTERNET APPLICATION
If you are reading this book you probably already know that short
messaging service (SMS) or text messaging is getting to be a
pretty hot topic these days. Everyone has heard about the SMS
explosion in Europe and Asia—5 billion in March 2000, 9 billion
in September 2000, and over 53 billion in the first 3 months of
2001. Amazing isn’t it? Then again—short messaging started a
long time ago, before digital phones or cellular even! Back when
all they had was an alphabet and two towers—or two hilltops to
be exact.
The Greeks invented the first wireless text messaging
before the birth of electricity. Back around 400 BC the Greeks
developed a way to represent each letter in the Greek alphabet
using a combination of five torches, lit and unlit, to spell out
messages from one hilltop to another.
It wasn’t perfect—bad spelling, slow throughput, “wind
static,” and size were issues. And in the end it was much like
today: They still didn’t have great coverage in the valley and
wearing the equipment on your belt made you look like a geek.
Wireless technology has allowed people all over the world
to maintain business and social connections regardless of location.
This emphasis on personal communications will carry
over into Wireless Internet applications through various forms
of messaging. Messaging applications allow users to send short
pieces of information to others in near real time but allow the
recipient to reply when convenient. Messaging applications
will also follow the evolution from simple text to full multimedia,
and in the process teach consumers a new way of communication.
Messaging applications will be used in ways that
simple voice communications have not been used and such
applications are critical to the success of the Wireless Internet.
The initial demand for Wireless Internet usage comes from
young users. Simple text messaging has been the first real wireless
data success story for European and Asian carriers. Those
of you who think that this was a well-planned and orchestrated
strategy might be interested to know that it didn’t quite roll
out that way. The first SMS was sent from a PC to a GSM
phone back in December 1992. Even though it was available in
the majority of GSM networks and devices soon after, SMS did
not actually take off until almost 1999. The challenges with
simple text messaging were very similar to the challenges
Wireless Internet applications face today.
GSM carriers and device manufacturers have evolved SMS
over the years to overcome challenges in:
• Screen size
• Navigation
• Text input
• Billing
• Interconnection
• Roaming
Although SMS is now a primary source of revenue growth
for many GSM carriers worldwide it is an application still very
much in its infancy. Carriers in the Americas, especially TDMA
and CDMA carriers, have been slow to roll out simple text messaging
services within their own networks. Closed networks,
devices not capable of originating messages, and billing issues
have hindered the critical mass needed for mass adoption, but
progress is being made. Most U.S. carriers have launched simple
text messaging and are working towards promotions to
encourage trial and usage. Interconnection among competing
carrier networks is in discussion, and companies offering data
clearinghouses for SMS have opened for business.
SMS, as a first Wireless Internet application, offers consumers
more than voice can. Concerned carriers are discovering
that SMS doesn’t cannibalize voice usage, despite being an alternative,
but actually supplements and may increase voice traffic.
When compared to voice, text messaging is described as
being less intrusive, more accurate, and more private as well as
being fun, addictive, and lower cost than making a wireless
phone call. Users often send text messages to communicate
things that they would not or could not in a voice call.
The initial demand for Wireless Internet in North America
came from the mobile professional and business user. The lack
of simple text messaging on cellular phones created a market
for simple text messaging devices such as the RIM BlackBerry
device (Figure 4-3) that allows users to send and receive short
email messages. The initial high cost of these devices and services
has resulted in quicker adoption by business enterprise
rather than the consumer youth adoption that is occurring outside
of North America.
Whether we start with young consumers or business professionals,
growth will depend on efforts to further educate the
market about the possibilities of Wireless Internet services,
applications, and content. 142
messaging service (SMS) or text messaging is getting to be a
pretty hot topic these days. Everyone has heard about the SMS
explosion in Europe and Asia—5 billion in March 2000, 9 billion
in September 2000, and over 53 billion in the first 3 months of
2001. Amazing isn’t it? Then again—short messaging started a
long time ago, before digital phones or cellular even! Back when
all they had was an alphabet and two towers—or two hilltops to
be exact.
The Greeks invented the first wireless text messaging
before the birth of electricity. Back around 400 BC the Greeks
developed a way to represent each letter in the Greek alphabet
using a combination of five torches, lit and unlit, to spell out
messages from one hilltop to another.
It wasn’t perfect—bad spelling, slow throughput, “wind
static,” and size were issues. And in the end it was much like
today: They still didn’t have great coverage in the valley and
wearing the equipment on your belt made you look like a geek.
Wireless technology has allowed people all over the world
to maintain business and social connections regardless of location.
This emphasis on personal communications will carry
over into Wireless Internet applications through various forms
of messaging. Messaging applications allow users to send short
pieces of information to others in near real time but allow the
recipient to reply when convenient. Messaging applications
will also follow the evolution from simple text to full multimedia,
and in the process teach consumers a new way of communication.
Messaging applications will be used in ways that
simple voice communications have not been used and such
applications are critical to the success of the Wireless Internet.
The initial demand for Wireless Internet usage comes from
young users. Simple text messaging has been the first real wireless
data success story for European and Asian carriers. Those
of you who think that this was a well-planned and orchestrated
strategy might be interested to know that it didn’t quite roll
out that way. The first SMS was sent from a PC to a GSM
phone back in December 1992. Even though it was available in
the majority of GSM networks and devices soon after, SMS did
not actually take off until almost 1999. The challenges with
simple text messaging were very similar to the challenges
Wireless Internet applications face today.
GSM carriers and device manufacturers have evolved SMS
over the years to overcome challenges in:
• Screen size
• Navigation
• Text input
• Billing
• Interconnection
• Roaming
Although SMS is now a primary source of revenue growth
for many GSM carriers worldwide it is an application still very
much in its infancy. Carriers in the Americas, especially TDMA
and CDMA carriers, have been slow to roll out simple text messaging
services within their own networks. Closed networks,
devices not capable of originating messages, and billing issues
have hindered the critical mass needed for mass adoption, but
progress is being made. Most U.S. carriers have launched simple
text messaging and are working towards promotions to
encourage trial and usage. Interconnection among competing
carrier networks is in discussion, and companies offering data
clearinghouses for SMS have opened for business.
SMS, as a first Wireless Internet application, offers consumers
more than voice can. Concerned carriers are discovering
that SMS doesn’t cannibalize voice usage, despite being an alternative,
but actually supplements and may increase voice traffic.
When compared to voice, text messaging is described as
being less intrusive, more accurate, and more private as well as
being fun, addictive, and lower cost than making a wireless
phone call. Users often send text messages to communicate
things that they would not or could not in a voice call.
The initial demand for Wireless Internet in North America
came from the mobile professional and business user. The lack
of simple text messaging on cellular phones created a market
for simple text messaging devices such as the RIM BlackBerry
device (Figure 4-3) that allows users to send and receive short
email messages. The initial high cost of these devices and services
has resulted in quicker adoption by business enterprise
rather than the consumer youth adoption that is occurring outside
of North America.
Whether we start with young consumers or business professionals,
growth will depend on efforts to further educate the
market about the possibilities of Wireless Internet services,
applications, and content. 142
MOBILE PORTALS
Now that devices are moving towards an operating system that
makes it easy to download and run applications designed for
small mobile devices, users need a point of entry to the Internet.
A mobile portal is such a gateway or entry point, adapted to
the particular circumstances of wireless mobile access to the
Internet. In addition to optimizing access to the Wireless
Internet, mobile portals aggregate and structure content and
links and provide navigation tools. Mobile portals provide links
to applications that can be purchased and downloaded onto the
device and used on- or offline. Although Internet portals have
existed for some time, these existing fixed-line portals are
designed for fixed wireless access; they have content and revenue
strategies that do not easily fit the needs of the mobile user.
Fixed line portals have brand recognition and access to content
deals but no real experience with wireless. Wireless operators
have experience in dealing with wireless voice users but
know little about the portal business. The mobile portal startups
often have experience in both areas, but lack brand recognition
and financial resources. Despite these limitations the
start-ups do have an advantage because they are focused on the
market and not distracted by nonmobile operations.
The revenue model for mobile portals is a combination of
subscription, advertising, and transaction revenue. Portal operators
that have an existing billing relationship with end users
currently have an advantage in terms of billing but all portal
operators will eventually offer “mobile wallet” services that
enable users to pay for items (including services and subscriptions)
over the same wireless connections. The mobile wallet is
a password-protected area in your phone which contains your
credit card or debit card information. When you want to purchase
something, all you need to do is retrieve the virtual credit
card to complete the purchase.
Users will not be easily convinced to pay for access to content
that is freely available on a fixed Internet connection.
Content value must come from filtered and analyzed information
as well as from secure and personalized services that maximize
end user communications while minimizing time spent
navigating and searching.
The mobile portals of today allow network operators to finetune
services and applications to meet the requirements of
their customers, allow operators to gain control over content,
and position the customer base to be migrated to Wireless
Internet applications, content, and portals, while creating entry
barriers for other competitors.
makes it easy to download and run applications designed for
small mobile devices, users need a point of entry to the Internet.
A mobile portal is such a gateway or entry point, adapted to
the particular circumstances of wireless mobile access to the
Internet. In addition to optimizing access to the Wireless
Internet, mobile portals aggregate and structure content and
links and provide navigation tools. Mobile portals provide links
to applications that can be purchased and downloaded onto the
device and used on- or offline. Although Internet portals have
existed for some time, these existing fixed-line portals are
designed for fixed wireless access; they have content and revenue
strategies that do not easily fit the needs of the mobile user.
Fixed line portals have brand recognition and access to content
deals but no real experience with wireless. Wireless operators
have experience in dealing with wireless voice users but
know little about the portal business. The mobile portal startups
often have experience in both areas, but lack brand recognition
and financial resources. Despite these limitations the
start-ups do have an advantage because they are focused on the
market and not distracted by nonmobile operations.
The revenue model for mobile portals is a combination of
subscription, advertising, and transaction revenue. Portal operators
that have an existing billing relationship with end users
currently have an advantage in terms of billing but all portal
operators will eventually offer “mobile wallet” services that
enable users to pay for items (including services and subscriptions)
over the same wireless connections. The mobile wallet is
a password-protected area in your phone which contains your
credit card or debit card information. When you want to purchase
something, all you need to do is retrieve the virtual credit
card to complete the purchase.
Users will not be easily convinced to pay for access to content
that is freely available on a fixed Internet connection.
Content value must come from filtered and analyzed information
as well as from secure and personalized services that maximize
end user communications while minimizing time spent
navigating and searching.
The mobile portals of today allow network operators to finetune
services and applications to meet the requirements of
their customers, allow operators to gain control over content,
and position the customer base to be migrated to Wireless
Internet applications, content, and portals, while creating entry
barriers for other competitors.
EMERGING DEVICES
A broad range of applications for the Wireless Internet will warrant
a variety, of access devices. The incumbent handset manufacturers—
Ericsson, Motorola, and Nokia—have the benefit of
years of experience in building consumer terminals, integrated
voice service, and have expertise in next-generation wireless air
interface standards. Many of today’s products already offer
WAP microbrowsers and SMS. Competition will be intense
among the many manufacturers vying for market share, and this
will ultimately benefit consumers through lower prices.
One of the major challenges for the handset vendors is to
design phones with simplified text entry and Web navigation.
Typing out text messages on cellular handsets is cumbersome,
as is navigating through the menus of many phones. Features
such as Tegic’s T9 predictive text input are useful but require
some practice to become familiar enough to be useful.
A new range of products is emerging that will compete with
the traditional handset for a share of the Wireless Internet terminal
market. Palm and Handspring are adding wireless functionality
to PDAs, as are new Pocket PC handhelds from Sony,
Hewlett-Packard, and Compaq. The competition among these
devices will be intense as manufacturers jockey for position in
this rapidly growing device market segment. All of these devices
will help build the momentum of the enterprise market as they
become tools for corporate users to access company data and
read and respond to emails.
One challenge to creating wireless applications has been the
ability to write programs that could be loaded and run on
devices with proprietary operating systems. Devices such as cellular
phones have traditionally used an operating system that
did not allow for new programs to be added, and most manufacturers
do not release details that would allow developers to
integrate a new application into an existing device’s software.
PDAs have been easier to develop applications for, because
platforms such as Palm and WinCE were created with software
developers in mind. The drawback to PDA software has been
the lack of wireless connectivity.
As cellular phones and PDAs absorb each other’s features
and abilities it’s becoming harder to tell the difference between
a PDA and a phone. PDAs that are capable of connecting to the
Internet and making voice calls now compete with cell phones
that are able to run and display applications. One thing that
these two types of devices share is common software platforms
that enable users to add and use wireless applications.
Some device manufacturers are also designing handhelds that
integrate other devices such as digital camera, music player, and
others that result in some interesting combinations. These new
all-in-one, “Swiss Army Knife”-style mobile devices may not necessarily
meet the needs of the power user, but will eliminate the
need to carry multiple gadgets. For instance, Samsung and Sprint
PCS offer an MP3 phone and in Japan, camera phones have been
available for the past couple of years. Leading device designers
such as the United Kingdom firm of Seymour Powell are planning
future devices that may no longer look like today’s cellular
phones, but take into account people’s usage habits, resulting in
products that make viewing, listening, entering information, and
interaction with the device much simpler and intuitive. While
some of these new hybrid devices may be compelling, we do not
believe that they will ever completely replace the basic wireless
phone. Additionally, any large scale phone replacement cannot
occur until the proper wireless network architecture is in place,
which we believe will not occur until 2004.
As device manufacturers offer more functionality in their products:
color screens, always on access, camera, music players, faster
processors, more memory—these all will consume more power.
Vendors will need to develop power minimization strategies in
addition to new features. The current line of products include:
• Basic wireless phone. The primary functions of basic wireless
phones include voice calls, Caller ID, voice mail, short
messaging, basic address lists, and Web browsing. The units
have small displays.
• Smartphones. These devices are basically wireless phones
with PDA-like features embedded in them. They have a separate
alpha keyboard, calendar, address book, personal information
management (PIM), and color screen. An example is
the Nokia 9210 Communicator (Figure 4-2).
• Two-way pagers. The primary benefits of two-way paging
are the reliable national coverage, strong in-building reception,
and long battery life compared to cellular phones. The
major drawback of the messaging-only pagers is that their
Web browsing capabilities are much less advanced than those
of smartphones, pocket PCs, and PDAs. Examples include
the RIM Blackberry and Motorola.
• PDAs/pocket PCs (with embedded or external modems).
Personal organizers, many of which now come with a color
screen and have the ability to use Windows applications such
as Excel and Word. These include Palm, Compaq iPAQ,
Casio, Handspring, and Hewlett Packard.
(See Chapter 2 for more detailed information on operating
systems like Palm, Symbian/Epoc, WinCE, and J2ME—a version
of Java.) 138
a variety, of access devices. The incumbent handset manufacturers—
Ericsson, Motorola, and Nokia—have the benefit of
years of experience in building consumer terminals, integrated
voice service, and have expertise in next-generation wireless air
interface standards. Many of today’s products already offer
WAP microbrowsers and SMS. Competition will be intense
among the many manufacturers vying for market share, and this
will ultimately benefit consumers through lower prices.
One of the major challenges for the handset vendors is to
design phones with simplified text entry and Web navigation.
Typing out text messages on cellular handsets is cumbersome,
as is navigating through the menus of many phones. Features
such as Tegic’s T9 predictive text input are useful but require
some practice to become familiar enough to be useful.
A new range of products is emerging that will compete with
the traditional handset for a share of the Wireless Internet terminal
market. Palm and Handspring are adding wireless functionality
to PDAs, as are new Pocket PC handhelds from Sony,
Hewlett-Packard, and Compaq. The competition among these
devices will be intense as manufacturers jockey for position in
this rapidly growing device market segment. All of these devices
will help build the momentum of the enterprise market as they
become tools for corporate users to access company data and
read and respond to emails.
One challenge to creating wireless applications has been the
ability to write programs that could be loaded and run on
devices with proprietary operating systems. Devices such as cellular
phones have traditionally used an operating system that
did not allow for new programs to be added, and most manufacturers
do not release details that would allow developers to
integrate a new application into an existing device’s software.
PDAs have been easier to develop applications for, because
platforms such as Palm and WinCE were created with software
developers in mind. The drawback to PDA software has been
the lack of wireless connectivity.
As cellular phones and PDAs absorb each other’s features
and abilities it’s becoming harder to tell the difference between
a PDA and a phone. PDAs that are capable of connecting to the
Internet and making voice calls now compete with cell phones
that are able to run and display applications. One thing that
these two types of devices share is common software platforms
that enable users to add and use wireless applications.
Some device manufacturers are also designing handhelds that
integrate other devices such as digital camera, music player, and
others that result in some interesting combinations. These new
all-in-one, “Swiss Army Knife”-style mobile devices may not necessarily
meet the needs of the power user, but will eliminate the
need to carry multiple gadgets. For instance, Samsung and Sprint
PCS offer an MP3 phone and in Japan, camera phones have been
available for the past couple of years. Leading device designers
such as the United Kingdom firm of Seymour Powell are planning
future devices that may no longer look like today’s cellular
phones, but take into account people’s usage habits, resulting in
products that make viewing, listening, entering information, and
interaction with the device much simpler and intuitive. While
some of these new hybrid devices may be compelling, we do not
believe that they will ever completely replace the basic wireless
phone. Additionally, any large scale phone replacement cannot
occur until the proper wireless network architecture is in place,
which we believe will not occur until 2004.
As device manufacturers offer more functionality in their products:
color screens, always on access, camera, music players, faster
processors, more memory—these all will consume more power.
Vendors will need to develop power minimization strategies in
addition to new features. The current line of products include:
• Basic wireless phone. The primary functions of basic wireless
phones include voice calls, Caller ID, voice mail, short
messaging, basic address lists, and Web browsing. The units
have small displays.
• Smartphones. These devices are basically wireless phones
with PDA-like features embedded in them. They have a separate
alpha keyboard, calendar, address book, personal information
management (PIM), and color screen. An example is
the Nokia 9210 Communicator (Figure 4-2).
• Two-way pagers. The primary benefits of two-way paging
are the reliable national coverage, strong in-building reception,
and long battery life compared to cellular phones. The
major drawback of the messaging-only pagers is that their
Web browsing capabilities are much less advanced than those
of smartphones, pocket PCs, and PDAs. Examples include
the RIM Blackberry and Motorola.
• PDAs/pocket PCs (with embedded or external modems).
Personal organizers, many of which now come with a color
screen and have the ability to use Windows applications such
as Excel and Word. These include Palm, Compaq iPAQ,
Casio, Handspring, and Hewlett Packard.
(See Chapter 2 for more detailed information on operating
systems like Palm, Symbian/Epoc, WinCE, and J2ME—a version
of Java.) 138
ADDING VISION TO VOICE
When the average consumer thinks of wireless technology
most have a difficult time imagining anything but voice services.
We are conditioned to think of cellular or wireless devices
as things you talk into and not look at or read.
Even the youngest users quickly understand how to use
today’s cellular phones—dial and talk. It’s not uncommon to
observe young children grabbing and chatting on a parents’ cell
phone, even if it’s not really turned on. The point is that they
get the concept of wireless voice. Unfortunately most cell
phone users (even non-toddlers) do not use the many voicerelated
features embedded in their phones, much less envision
how they might someday use them for nonvoice applications.
Wireless devices will start with basic features and gradually
evolve as technology and end user perceptions grow. This is
not unlike the evolution of the personal computer. Many of you
will remember when computers were very limited, and you
have witnessed the evolution from a text-only device with one
method of input, through the stage of simple graphics and
crude sounds (buzzers!), and finally to the full a multimedia
PCs of today.
Applications track the capabilities of devices and networks
as well. Early PCs were connected to nothing more than the
electrical outlet on the wall and were capable of sharing only
via the popular “sneaker network”—put the files on a floppy
(remember those 5.25-inch disks that truly were “floppy”?) and
walk them to the intended destination.
PC applications moved from simple text menu–driven programs
to applications that use color, pointing devices, multimedia
images, and concert quality sound—and these are just
the tax preparation programs! Modern day computer games are
capable of experiences that are closely approach virtual reality.
Wireless Internet devices will follow the same path, albeit
in a condensed timeframe. The first nonvoice wireless applications
will be those that use simple text—displays have become
larger with better resolution to accommodate even this simple
text. The next stage will be very simple graphics not unlike the
simple graphics first experienced on PCs—if you look too
closely, you’ll see the same jagged edges and low resolution. As
network data speeds, device processing power, memory, and
displays improve we will see wireless applications that can take
advantage of still images, sound files, and finally the 3G vision
of fully wireless multimedia.
This gradual evolution is important for the adoption of applications.
In part this will allow consumers to experiment and
learn how best to utilize this new method of Internet access. It’s
difficult for most consumers to assess the value of wireless applications
that they have not yet experienced. In turn, this makes it
hard to determine exactly what applications users will be willing
to pay for and even harder to understand how much they will pay.
Even applications that enable relatively obvious services such as
weather alerts or driving directions cannot be fully appreciated
out of the context of a real world usage situation.
most have a difficult time imagining anything but voice services.
We are conditioned to think of cellular or wireless devices
as things you talk into and not look at or read.
Even the youngest users quickly understand how to use
today’s cellular phones—dial and talk. It’s not uncommon to
observe young children grabbing and chatting on a parents’ cell
phone, even if it’s not really turned on. The point is that they
get the concept of wireless voice. Unfortunately most cell
phone users (even non-toddlers) do not use the many voicerelated
features embedded in their phones, much less envision
how they might someday use them for nonvoice applications.
Wireless devices will start with basic features and gradually
evolve as technology and end user perceptions grow. This is
not unlike the evolution of the personal computer. Many of you
will remember when computers were very limited, and you
have witnessed the evolution from a text-only device with one
method of input, through the stage of simple graphics and
crude sounds (buzzers!), and finally to the full a multimedia
PCs of today.
Applications track the capabilities of devices and networks
as well. Early PCs were connected to nothing more than the
electrical outlet on the wall and were capable of sharing only
via the popular “sneaker network”—put the files on a floppy
(remember those 5.25-inch disks that truly were “floppy”?) and
walk them to the intended destination.
PC applications moved from simple text menu–driven programs
to applications that use color, pointing devices, multimedia
images, and concert quality sound—and these are just
the tax preparation programs! Modern day computer games are
capable of experiences that are closely approach virtual reality.
Wireless Internet devices will follow the same path, albeit
in a condensed timeframe. The first nonvoice wireless applications
will be those that use simple text—displays have become
larger with better resolution to accommodate even this simple
text. The next stage will be very simple graphics not unlike the
simple graphics first experienced on PCs—if you look too
closely, you’ll see the same jagged edges and low resolution. As
network data speeds, device processing power, memory, and
displays improve we will see wireless applications that can take
advantage of still images, sound files, and finally the 3G vision
of fully wireless multimedia.
This gradual evolution is important for the adoption of applications.
In part this will allow consumers to experiment and
learn how best to utilize this new method of Internet access. It’s
difficult for most consumers to assess the value of wireless applications
that they have not yet experienced. In turn, this makes it
hard to determine exactly what applications users will be willing
to pay for and even harder to understand how much they will pay.
Even applications that enable relatively obvious services such as
weather alerts or driving directions cannot be fully appreciated
out of the context of a real world usage situation.
MOBILITY VALUE
As the Wireless Internet adds new value to staying connected,
short response times assure the validity of information.
Productivity is no longer confined to a specific location. There
are potentially hundreds of applications that will drive the
demand for Wireless Internet access, including multimedia
messaging, which will make it possible to combine conventional
text messages with richer content types—photographs,
images, voice clips, and eventually video clips. Two of the
fastest-growing industries in the world—entertainment and
mobile communications—may profit hugely as lifestyles
change, with people experiencing more and rapid bursts of free
time. Fast access to entertainment is increasingly appealing to
all sections of society and many wireless handsets and devices
are already used for entertainment. SMS services led the revolution
in enjoying entertainment on the move, but we are now
on the edge of a new era, as the Wireless Internet begins to
offer even more sophisticated services.
Increasing demand for Wireless Internet access comes from
the convergence of Internet and cellular telephony. The
Internet or World Wide Web (WWW) has had a profound
impact on our lives, both on a personal and business level.
short response times assure the validity of information.
Productivity is no longer confined to a specific location. There
are potentially hundreds of applications that will drive the
demand for Wireless Internet access, including multimedia
messaging, which will make it possible to combine conventional
text messages with richer content types—photographs,
images, voice clips, and eventually video clips. Two of the
fastest-growing industries in the world—entertainment and
mobile communications—may profit hugely as lifestyles
change, with people experiencing more and rapid bursts of free
time. Fast access to entertainment is increasingly appealing to
all sections of society and many wireless handsets and devices
are already used for entertainment. SMS services led the revolution
in enjoying entertainment on the move, but we are now
on the edge of a new era, as the Wireless Internet begins to
offer even more sophisticated services.
Increasing demand for Wireless Internet access comes from
the convergence of Internet and cellular telephony. The
Internet or World Wide Web (WWW) has had a profound
impact on our lives, both on a personal and business level.
ACCESS VERSUS APPLICATIONS
Remote access and more specific wireless applications will be
key drivers for wireless industry growth in the next decade.
Accompanying this phenomenal growth are substantial opportunities
for those mobile operators, equipment manufacturers,
and developers that can answer end users’ demand for customized
value-added services, applications, and content. With
the convergence of communications and computing evolving
into the next generation, 2.5G and 3G wireless broadband
companies, service providers, devices manufacturers, and content
developers are focused on identifying and developing the
“Killer App.”
It’s important to clarify the difference between wireless
Internet access or transport and wireless applications. Access
or transport is simply a wireless connection to the Internet that
allows users to access the same content and applications they
would from a fixed-wire connection. Wireless access adds value
to users of those laptop PCs that are capable of displaying and
running applications that have been designed for PCs. This
type of wireless access allows many new methods of conducting
business in places that do not have wired connections available
such as remote job sites, airports, and in cars.
Whereas mobility adds value to the Internet, not everyone
would consider a laptop to be the most convenient mobile
device to carry with them. Size and weight are important to
mobility and therefore smaller devices are more suited to
mobile usage although not as capable for running applications
designed for the large screens, abundant processing, and large
storage enjoyed by the typical personal computer.
Smaller devices such as smart cellular phones and PDAs
are much easier to carry and are small enough to fit into a
pocket or purse with little difficulty. Small size is great for
mobility but not so good when it comes to using and viewing
applications made for PCs. For the wireless customer, gateways
and middleware players are being developed to enable content
from traditional Web sites to be usable and viewable on wireless
devices. Vertical applications are being developed that are
specific to users’ wireless needs. Many of these new information
content services and applications are specifically tailored
to a fast-paced, mobile lifestyle that provides for accessibility
anytime, anywhere.
The Wireless Internet enables applications to fulfill the
needs or desires of end-users with a variety of smaller devices.
And although these devices have “access” or connectivity to the
Internet, it’s the applications that make the difference.
Consumers do not care or need to know how underlying
communication and Internet technology networks function or
be further confused with various standards; they just care that
an application does what they want. An enormous amount of
marketing research has been conducted to better understand
what content is useful and which applications can best display
and interact with this content. Progress has been made in wireless
application development but much more is yet to be done
to truly understand how to provide value to users of wireless
devices.
APPLICATION AND SERVICE CATEGORIES
There will be no single “killer application” for Wireless Internet
service because there are many high-value user applications.
These services includes:
• Personalized communications
• News and information
• Entertainment and lifestyle
• Location-based services
• Access and connectivity services 133
key drivers for wireless industry growth in the next decade.
Accompanying this phenomenal growth are substantial opportunities
for those mobile operators, equipment manufacturers,
and developers that can answer end users’ demand for customized
value-added services, applications, and content. With
the convergence of communications and computing evolving
into the next generation, 2.5G and 3G wireless broadband
companies, service providers, devices manufacturers, and content
developers are focused on identifying and developing the
“Killer App.”
It’s important to clarify the difference between wireless
Internet access or transport and wireless applications. Access
or transport is simply a wireless connection to the Internet that
allows users to access the same content and applications they
would from a fixed-wire connection. Wireless access adds value
to users of those laptop PCs that are capable of displaying and
running applications that have been designed for PCs. This
type of wireless access allows many new methods of conducting
business in places that do not have wired connections available
such as remote job sites, airports, and in cars.
Whereas mobility adds value to the Internet, not everyone
would consider a laptop to be the most convenient mobile
device to carry with them. Size and weight are important to
mobility and therefore smaller devices are more suited to
mobile usage although not as capable for running applications
designed for the large screens, abundant processing, and large
storage enjoyed by the typical personal computer.
Smaller devices such as smart cellular phones and PDAs
are much easier to carry and are small enough to fit into a
pocket or purse with little difficulty. Small size is great for
mobility but not so good when it comes to using and viewing
applications made for PCs. For the wireless customer, gateways
and middleware players are being developed to enable content
from traditional Web sites to be usable and viewable on wireless
devices. Vertical applications are being developed that are
specific to users’ wireless needs. Many of these new information
content services and applications are specifically tailored
to a fast-paced, mobile lifestyle that provides for accessibility
anytime, anywhere.
The Wireless Internet enables applications to fulfill the
needs or desires of end-users with a variety of smaller devices.
And although these devices have “access” or connectivity to the
Internet, it’s the applications that make the difference.
Consumers do not care or need to know how underlying
communication and Internet technology networks function or
be further confused with various standards; they just care that
an application does what they want. An enormous amount of
marketing research has been conducted to better understand
what content is useful and which applications can best display
and interact with this content. Progress has been made in wireless
application development but much more is yet to be done
to truly understand how to provide value to users of wireless
devices.
APPLICATION AND SERVICE CATEGORIES
There will be no single “killer application” for Wireless Internet
service because there are many high-value user applications.
These services includes:
• Personalized communications
• News and information
• Entertainment and lifestyle
• Location-based services
• Access and connectivity services 133
WIRELESS INTERNET APPLICATIONS, SERVICES, AND ACCESS-ENABLED SOLUTIONS
Wireless Internet applications are software programs that
require wireless communication technology that can
take advantage of the mobility and high-speed data transmission
offered by advanced data services and networks. Many of
the communications applications and services that were available
for mobile communications in the 1990s were limited by
slow-speed (less than 10 Kbps) data transmission. Using 2G
mobile systems, it was not possible to offer streaming video,
rapid image file transfer, or high-speed data file transfer services.
New high-speed networks will enable applications that
process images, color, and moving video to provide users with
a far richer experience than possible using voice alone.
Much of the demand for wireless data access has come from
a combination of the availability of Internet information applications
and low cost mobile communication. The Internet’s
standardized global collection of interconnected computer networks
has allowed access to information sources that provide
significant benefits to those companies and individuals looking
for specific knowledge. The Internet has created a culturechanging
awareness of many new information services.
In the late 1990s, new, low-cost, high-speed connections to
the Internet became available. The resulting rapid market
growth of Digital Subscriber Line (DSL) and cable modem
technology has stimulated the development of new applications
that are only possible via broadband high-speed connections.
In the early twenty-first century, consumers are
becoming aware of these new broadband multimedia applications
and the transition back to low-speed text-based services is
difficult. In the near future, as high-speed wireless networks
are deployed, cellular phones and PDAs will be converted into
portable stereos and video players. These new combined
devices eliminate the need to carry various gadgets, offering
consumers convenience.
Already many consumers are aware of the benefits of wireless
mobile service and broadband applications. Potential
Wireless Internet customers may only need to be made aware
that these services can be delivered via high-speed wireless
data communication services to convert them from the traditional
wired (e.g., Internet access) to new wireless services.
Of key importance for 3G technologies are those broadband
applications that provide the mobility, low cost installation,
and rapid deployment that competing broadband
technologies cannot provide. 131
require wireless communication technology that can
take advantage of the mobility and high-speed data transmission
offered by advanced data services and networks. Many of
the communications applications and services that were available
for mobile communications in the 1990s were limited by
slow-speed (less than 10 Kbps) data transmission. Using 2G
mobile systems, it was not possible to offer streaming video,
rapid image file transfer, or high-speed data file transfer services.
New high-speed networks will enable applications that
process images, color, and moving video to provide users with
a far richer experience than possible using voice alone.
Much of the demand for wireless data access has come from
a combination of the availability of Internet information applications
and low cost mobile communication. The Internet’s
standardized global collection of interconnected computer networks
has allowed access to information sources that provide
significant benefits to those companies and individuals looking
for specific knowledge. The Internet has created a culturechanging
awareness of many new information services.
In the late 1990s, new, low-cost, high-speed connections to
the Internet became available. The resulting rapid market
growth of Digital Subscriber Line (DSL) and cable modem
technology has stimulated the development of new applications
that are only possible via broadband high-speed connections.
In the early twenty-first century, consumers are
becoming aware of these new broadband multimedia applications
and the transition back to low-speed text-based services is
difficult. In the near future, as high-speed wireless networks
are deployed, cellular phones and PDAs will be converted into
portable stereos and video players. These new combined
devices eliminate the need to carry various gadgets, offering
consumers convenience.
Already many consumers are aware of the benefits of wireless
mobile service and broadband applications. Potential
Wireless Internet customers may only need to be made aware
that these services can be delivered via high-speed wireless
data communication services to convert them from the traditional
wired (e.g., Internet access) to new wireless services.
Of key importance for 3G technologies are those broadband
applications that provide the mobility, low cost installation,
and rapid deployment that competing broadband
technologies cannot provide. 131
IN A NUT SHELL…
The potential market for the Wireless Internet, by all accounts,
will be a substantial and sustainable one as people embrace
what may be gained by anywhere, anytime connectivity to the
varied content found on today’s Web.
The Wireless Internet will most certainly provide society
with new experiences and freedom, and unprecedented access
to information. The Wireless Internet frees consumers from
location and time constraints, making it possible to shop for
merchandise or initiate transactions from virtually anywhere,
day or night, without sitting in front of a PC.
Because the number of wireless devices exceeds the number
of home and office PCs, and this gap will widen in the coming
years, the impact of wireless users will be the major driver
for future content. Traditional Web sites will adapt to accommodate
the various screens of many handheld devices, each of
which will be designed for various applications. The Wireless
Internet untethers an endless stream of information, new solutions,
and opportunities for human communications by offering
wireless connectivity to the vast knowledge and resources
of a networked world.
will be a substantial and sustainable one as people embrace
what may be gained by anywhere, anytime connectivity to the
varied content found on today’s Web.
The Wireless Internet will most certainly provide society
with new experiences and freedom, and unprecedented access
to information. The Wireless Internet frees consumers from
location and time constraints, making it possible to shop for
merchandise or initiate transactions from virtually anywhere,
day or night, without sitting in front of a PC.
Because the number of wireless devices exceeds the number
of home and office PCs, and this gap will widen in the coming
years, the impact of wireless users will be the major driver
for future content. Traditional Web sites will adapt to accommodate
the various screens of many handheld devices, each of
which will be designed for various applications. The Wireless
Internet untethers an endless stream of information, new solutions,
and opportunities for human communications by offering
wireless connectivity to the vast knowledge and resources
of a networked world.
WIRELESS BUSINESS ENTERPRISE
Over the next five years, corporate users will join consumers in
the wireless service user base. This trend has already started as
companies use wireless technologies to connect corporate
information technology (IT) systems with customers, employees,
suppliers, and partners. Companies realize the benefits of
providing wireless access to email, instant messaging, portals,
and corporate systems. These benefits include reduced administrative
overhead, increased efficiency, and a more rapid distribution
of information throughout an organization.
For mobile professionals, a wireless device allows access to all
sales literature, provides answers to questions about unfamiliar
products or services, and permits check-in with the home office
for timely reports, expenses, and inventory status, among other
things. Enterprises are using wireless devices with an Internet
browser to provide remote access to corporate data—up-to-date
access to recent sales, current orders, proposals in progress, and
accounts receivables. The key to ensure the acceptance and
usability of these devices is to design them be customized for the
precise information needed by the user; thus, only relevant information
is displayed rather than the wealth of information usually
displayed on management information systems.
the wireless service user base. This trend has already started as
companies use wireless technologies to connect corporate
information technology (IT) systems with customers, employees,
suppliers, and partners. Companies realize the benefits of
providing wireless access to email, instant messaging, portals,
and corporate systems. These benefits include reduced administrative
overhead, increased efficiency, and a more rapid distribution
of information throughout an organization.
For mobile professionals, a wireless device allows access to all
sales literature, provides answers to questions about unfamiliar
products or services, and permits check-in with the home office
for timely reports, expenses, and inventory status, among other
things. Enterprises are using wireless devices with an Internet
browser to provide remote access to corporate data—up-to-date
access to recent sales, current orders, proposals in progress, and
accounts receivables. The key to ensure the acceptance and
usability of these devices is to design them be customized for the
precise information needed by the user; thus, only relevant information
is displayed rather than the wealth of information usually
displayed on management information systems.
TEENAGERS DRIVE WIRELESS INTERNET GROWTH
Much of the demand for Wireless Internet usage comes from
teens and young adults. Wireless Internet growth will be driven
by people growing up with the Internet and wireless communications
as an integral part of their lives. This is especially
true among the younger segments of society, where the adoption
rate of new technology is rapid. That generation of children
growing up with access to the Internet throughout the
United States, Western Europe, and Japan is incredibly adept
at using technology, whether through school work, video
games, chat rooms, buddy lists, or short messaging. As this
Internet-literate generation joins the workforce, their spending
will increase, as will their acceptance for newer, more enabling
applications and devices. Jupiter found that teenagers represent
12 percent of the European online population, and in
June 2001 Europeans ages 12 to 17 spent nearly 8 hours
online. As this trend continues, Web sites must be designed for
the specific characteristics of their target audience: boys seek
novelty and entertainment, whereas girls enjoy fulfilling goals
and feeling part of a community.
A research study from the Pew Internet and American Life
Project has found that 73 percent of U.S. teenagers aged
between 12 and 17 (or 17 million people), use the Internet.
Furthermore, three-quarters of online teens say they would miss
the Internet if they could no longer use it, whereas almost half
say being online has improved their relationship with friends.
Nearly a third say it has helped them to make new friends. The
top five online activities for teens are email, surfing for fun, visiting
entertainment sites, using instant messaging (IM), and
researching hobbies. Only 31 percent have made purchases
online. About 13 million teens, or 74 percent of all online teens,
use instant messaging (IM). Only 44 percent of online adults
use IM. Nineteen percent of teen IM users say IM is now the
main way that they communicate with their friends.
When it comes to wireless phones, teens just can’t keep
their hands off them and stop talking. It is predicted that by
2004, more than half of U.S. youth, over 43 million, will own
a wireless phone and three out of four will use one. Teens want
the flashiest, most featured models— a stripped down phone is
“just not cool” nor is a grey or black model that looks just like
Dad’s. Teenagers are very fashion conscious, and major manufacturers
such as Nokia, Motorola, and Ericsson are all focusing
on new designs that appeal to the young generation. Both
carriers and application developers are focused on specially targeted
content, including sites providing shopping, news,
games, entertainment, education, and youth-oriented content. 127
teens and young adults. Wireless Internet growth will be driven
by people growing up with the Internet and wireless communications
as an integral part of their lives. This is especially
true among the younger segments of society, where the adoption
rate of new technology is rapid. That generation of children
growing up with access to the Internet throughout the
United States, Western Europe, and Japan is incredibly adept
at using technology, whether through school work, video
games, chat rooms, buddy lists, or short messaging. As this
Internet-literate generation joins the workforce, their spending
will increase, as will their acceptance for newer, more enabling
applications and devices. Jupiter found that teenagers represent
12 percent of the European online population, and in
June 2001 Europeans ages 12 to 17 spent nearly 8 hours
online. As this trend continues, Web sites must be designed for
the specific characteristics of their target audience: boys seek
novelty and entertainment, whereas girls enjoy fulfilling goals
and feeling part of a community.
A research study from the Pew Internet and American Life
Project has found that 73 percent of U.S. teenagers aged
between 12 and 17 (or 17 million people), use the Internet.
Furthermore, three-quarters of online teens say they would miss
the Internet if they could no longer use it, whereas almost half
say being online has improved their relationship with friends.
Nearly a third say it has helped them to make new friends. The
top five online activities for teens are email, surfing for fun, visiting
entertainment sites, using instant messaging (IM), and
researching hobbies. Only 31 percent have made purchases
online. About 13 million teens, or 74 percent of all online teens,
use instant messaging (IM). Only 44 percent of online adults
use IM. Nineteen percent of teen IM users say IM is now the
main way that they communicate with their friends.
When it comes to wireless phones, teens just can’t keep
their hands off them and stop talking. It is predicted that by
2004, more than half of U.S. youth, over 43 million, will own
a wireless phone and three out of four will use one. Teens want
the flashiest, most featured models— a stripped down phone is
“just not cool” nor is a grey or black model that looks just like
Dad’s. Teenagers are very fashion conscious, and major manufacturers
such as Nokia, Motorola, and Ericsson are all focusing
on new designs that appeal to the young generation. Both
carriers and application developers are focused on specially targeted
content, including sites providing shopping, news,
games, entertainment, education, and youth-oriented content. 127
MADE IN JAPAN: THE LAND OF THE RISING WIRELESS INTERNET
The Japanese market has given the world a glimpse of what the
Wireless Internet might look like, and it is a prime force in the
direction and momentum of the Wireless Internet market. NTT
DoCoMo is Japan’s leading mobile phone operator and largest
ISP and the world’s leader in Wireless Internet access. Since
starting its data service (called i-Mode) in February 1999, NTT
DoCoMo has seen its subscriber base grow to top 26 million as
of August 2001; it averages 40,000 to 50,000 new subscribers
per day. This spectacular growth is driving NTT to implement
3G technologies that will provide for greater capacity and allow
creation of new applications. Only about 15 percent of Japanese
consumers and business people access the Internet via PCs.
Thus to many of NTT’s i-Mode customers, the i-Mode is synonymous
with the Internet. According to NTT DoCoMo, the “i”
stands for interactive, Internet, and independence.
In Japan, businesses from airlines to television stations to
banks all provide their services via i-Mode. DoCoMo earns a 9
percent fee from content providers that charge for their information.
DoCoMo has four revenue models: monthly subscription
fees, per-packet data transmission fees, commissions on billing,
and revenues for traditional voice services. In 2000, DoCoMo
reported that 70 percent of i-Mode traffic came from users in
their teens to early twenties, with about 60 percent of i-Mode
traffic going to official sites that specialize in entertainment.
According to NTT DoCoMo, the average total bill for i-Mode
data transmission is about $13.00 (U.S.) per month. Equally
impressive, the average i-Mode user generates an additional 36
percent increase in revenue over voice-only subscribers. Much of
this increase can be attributed to direct access, use of data packets,
and increasingly higher voice minutes of use.
The increase in voice usage is interesting in that we believe
it represents a hidden upside to most United States business
models. Even more impressive is i-Mode’s transmission speed
of only 9.6 Kbps. Even at this “slow speed,” some of the best
selling applications are (surprisingly) cartoon-character screen
savers that download each day for $1. The i-Mode service has
been so successful that at times DoCoMo has curtailed its
advertising in efforts to slow down subscriber growth while
improving network capacity. When DoCoMo launched i-Mode,
it had 67 Web site providers: By the end of the first year, there
were 721 information providers responsible for 1,280 sites on
DoCoMo’s main i-Mode menu, and third party developers had
created another 31,085 i-Mode sites. Additionally, it was
announced in February 2001 that that Google had developed a
new technology that gives i-Mode users in both English and
Japanese access to the more than 1.3 billion Web pages Google
has indexed to date. Google’s technology converts a request for
a standard HTML Web page to be viewable on an i-Mode
handheld device. i-Mode’s success is enhanced by the huge
number of content sites available to the subscriber.
To better understand the reason for i-Mode’s popularity, and
the rapid and overwhelming adoption of the Wireless Internet
by the Japanese people, we must look at Japan itself. In Japan,
space is at a premium—homes and offices are small and there
is very little extra room to accommodate PCs, monitors, and
printers. Furthermore, Japanese society is traditionally an early
adopter of technology in general and it is a commuter culture.
Today, only about 15 percent of Japanese consumers and
business people reach the Internet using PCs. The remaining
85 percent are willing to accept the limitations of smaller display
screens and keyboards on wireless handheld devices.
Furthermore, the price of PC Internet access via landline phone
is higher in Japan when compared to the United States or
Western Europe. The average costs are $20 per month plus $2
per hour of use. The installation price of a home phone line is
approximately $700, as compared to a cellular connection for
$28; and i-Mode users pay only for the number of packets used.
Because the Japanese are traditionally early adopters of new
technologies, they have been very quick to adopt new i-Mode
products and services. For example, Japanese consumers have
purchased dog collars that transmit their animal’s location to
their wireless device, PC, or fax machine. Entertainment-related
sites where you can download images, ringing tones, play
interactive games, read your horoscope, find dating services,
weather, and news are most popular. Because the majority of
Japanese students and employees commute (usually by train or
bus) an average of 30 to 40 minutes per day each way, they have
ample opportunity for mobile communications and entertainment.
Pocket-size devices are really well-suited to these commuter
environments where, more often than not, there is no
room to even open a newspaper. Even a small notebook computer
is too big to carry on a bus or train, whereas the i-Mode
device is the perfect size to be held in one hand. Table 3-7
shows the popularity of i-Mode content by category. Figure 3-10
shows preferred mode of access to the Internet in Japan.
Because of the unique characteristics of Japanese society, it
remains to be seen how quickly other societies and cultures
embrace the Wireless Internet experience. Acceptance will
depend on packaging and pricing, and quality and quantity of
compelling content and services. However, as the Japanese
experience clearly demonstrates, acceptance of the Wireless
Internet is high when things are done right. 126
Wireless Internet might look like, and it is a prime force in the
direction and momentum of the Wireless Internet market. NTT
DoCoMo is Japan’s leading mobile phone operator and largest
ISP and the world’s leader in Wireless Internet access. Since
starting its data service (called i-Mode) in February 1999, NTT
DoCoMo has seen its subscriber base grow to top 26 million as
of August 2001; it averages 40,000 to 50,000 new subscribers
per day. This spectacular growth is driving NTT to implement
3G technologies that will provide for greater capacity and allow
creation of new applications. Only about 15 percent of Japanese
consumers and business people access the Internet via PCs.
Thus to many of NTT’s i-Mode customers, the i-Mode is synonymous
with the Internet. According to NTT DoCoMo, the “i”
stands for interactive, Internet, and independence.
In Japan, businesses from airlines to television stations to
banks all provide their services via i-Mode. DoCoMo earns a 9
percent fee from content providers that charge for their information.
DoCoMo has four revenue models: monthly subscription
fees, per-packet data transmission fees, commissions on billing,
and revenues for traditional voice services. In 2000, DoCoMo
reported that 70 percent of i-Mode traffic came from users in
their teens to early twenties, with about 60 percent of i-Mode
traffic going to official sites that specialize in entertainment.
According to NTT DoCoMo, the average total bill for i-Mode
data transmission is about $13.00 (U.S.) per month. Equally
impressive, the average i-Mode user generates an additional 36
percent increase in revenue over voice-only subscribers. Much of
this increase can be attributed to direct access, use of data packets,
and increasingly higher voice minutes of use.
The increase in voice usage is interesting in that we believe
it represents a hidden upside to most United States business
models. Even more impressive is i-Mode’s transmission speed
of only 9.6 Kbps. Even at this “slow speed,” some of the best
selling applications are (surprisingly) cartoon-character screen
savers that download each day for $1. The i-Mode service has
been so successful that at times DoCoMo has curtailed its
advertising in efforts to slow down subscriber growth while
improving network capacity. When DoCoMo launched i-Mode,
it had 67 Web site providers: By the end of the first year, there
were 721 information providers responsible for 1,280 sites on
DoCoMo’s main i-Mode menu, and third party developers had
created another 31,085 i-Mode sites. Additionally, it was
announced in February 2001 that that Google had developed a
new technology that gives i-Mode users in both English and
Japanese access to the more than 1.3 billion Web pages Google
has indexed to date. Google’s technology converts a request for
a standard HTML Web page to be viewable on an i-Mode
handheld device. i-Mode’s success is enhanced by the huge
number of content sites available to the subscriber.
To better understand the reason for i-Mode’s popularity, and
the rapid and overwhelming adoption of the Wireless Internet
by the Japanese people, we must look at Japan itself. In Japan,
space is at a premium—homes and offices are small and there
is very little extra room to accommodate PCs, monitors, and
printers. Furthermore, Japanese society is traditionally an early
adopter of technology in general and it is a commuter culture.
Today, only about 15 percent of Japanese consumers and
business people reach the Internet using PCs. The remaining
85 percent are willing to accept the limitations of smaller display
screens and keyboards on wireless handheld devices.
Furthermore, the price of PC Internet access via landline phone
is higher in Japan when compared to the United States or
Western Europe. The average costs are $20 per month plus $2
per hour of use. The installation price of a home phone line is
approximately $700, as compared to a cellular connection for
$28; and i-Mode users pay only for the number of packets used.
Because the Japanese are traditionally early adopters of new
technologies, they have been very quick to adopt new i-Mode
products and services. For example, Japanese consumers have
purchased dog collars that transmit their animal’s location to
their wireless device, PC, or fax machine. Entertainment-related
sites where you can download images, ringing tones, play
interactive games, read your horoscope, find dating services,
weather, and news are most popular. Because the majority of
Japanese students and employees commute (usually by train or
bus) an average of 30 to 40 minutes per day each way, they have
ample opportunity for mobile communications and entertainment.
Pocket-size devices are really well-suited to these commuter
environments where, more often than not, there is no
room to even open a newspaper. Even a small notebook computer
is too big to carry on a bus or train, whereas the i-Mode
device is the perfect size to be held in one hand. Table 3-7
shows the popularity of i-Mode content by category. Figure 3-10
shows preferred mode of access to the Internet in Japan.
Because of the unique characteristics of Japanese society, it
remains to be seen how quickly other societies and cultures
embrace the Wireless Internet experience. Acceptance will
depend on packaging and pricing, and quality and quantity of
compelling content and services. However, as the Japanese
experience clearly demonstrates, acceptance of the Wireless
Internet is high when things are done right. 126
FINLAND: THE LAND OF THE MIDNIGHT SUN, REINDEER, AND MOBILE PHONES
In Finland, the number of the households having a conventional
telephone has decreased during the past ten years from
94 percent to 78 percent. Simultaneously the amount of
households having a mobile phone has shown a very rapid
growth from less than 5 percent to 73 percent. By 1998, more
Finnish households had a mobile phone than a conventional
telephone. Approximately 88 percent of households in Finland
have at least one mobile phone, and more than 20 percent of
these households have more than one mobile phone, which is
up from 65 percent in 1999. More than 20 percent of households
in Finland have only a mobile phone (one or more), and
that number may grow in a few years. (Source: Statistics
Finland; www.cellular.co.za/news.)
Finns in particular have a strong affinity to their Nokia
mobile phones. In 2000, over 1.4 million new phones were
purchased (in a country with just over 5 million people). These
phones are used to send messages, especially by teens. In
2000, over 1 billion SMS messages were sent. Furthermore,
wireless phones are also being used in a variety of mobile transactions.
For example, to purchase beverages from GSMenabled
vending machines, the user dials the number indicated
on the machine, which results in the release of the soft drink
from the machine. The cost of the beverage appears on a
monthly bill, together with the charge for the phone call.
telephone has decreased during the past ten years from
94 percent to 78 percent. Simultaneously the amount of
households having a mobile phone has shown a very rapid
growth from less than 5 percent to 73 percent. By 1998, more
Finnish households had a mobile phone than a conventional
telephone. Approximately 88 percent of households in Finland
have at least one mobile phone, and more than 20 percent of
these households have more than one mobile phone, which is
up from 65 percent in 1999. More than 20 percent of households
in Finland have only a mobile phone (one or more), and
that number may grow in a few years. (Source: Statistics
Finland; www.cellular.co.za/news.)
Finns in particular have a strong affinity to their Nokia
mobile phones. In 2000, over 1.4 million new phones were
purchased (in a country with just over 5 million people). These
phones are used to send messages, especially by teens. In
2000, over 1 billion SMS messages were sent. Furthermore,
wireless phones are also being used in a variety of mobile transactions.
For example, to purchase beverages from GSMenabled
vending machines, the user dials the number indicated
on the machine, which results in the release of the soft drink
from the machine. The cost of the beverage appears on a
monthly bill, together with the charge for the phone call.
EUROPEAN EXPERIENCE
Most countries in Europe, specifically the Scandinavian countries
and Finland, are focused on communications and mobility.
Wireless telephony has been part of European life for most
of the past two decades. In these countries, more than 60 percent
of the populations use mobile phones. In many cases the
use of mobile phones is so popular that it has dramatic impact
on the growth of conventional landline phones. Consequently,
mobile phones are replacing conventional phones in certain
households and lifestyles. As such, it is predicted that by
2004, one third of all Europeans—over 200 million people—
will regularly use Internet services on their mobile phones,
according to research company Forrester. As this Internet
fever takes hold in Europe, more Europeans are racing to
route e-commerce through mobile phones. It’s estimated that
within the next two years more Europeans will be surfing
through a Web phone than a PC. The Wireless Internet is
poised to become the most important channel for online banking
and financial services in Europe.
Across Europe, new wireless data services and applications
are being launched. As operators make the transition from circuit-
switched to higher speed data services, they and the market
will provide applications that make use of the resources
available to further drive usage of the network. They will also
have to make a move away from time-based billing and examine
the alternative revenue streams that are available to applications
providers. In Western Europe, 45 out of 57 mobile
network operators in 18 countries, representing approximately
90 percent of all the mobile phone users in Europe, have
already created online portals.
and Finland, are focused on communications and mobility.
Wireless telephony has been part of European life for most
of the past two decades. In these countries, more than 60 percent
of the populations use mobile phones. In many cases the
use of mobile phones is so popular that it has dramatic impact
on the growth of conventional landline phones. Consequently,
mobile phones are replacing conventional phones in certain
households and lifestyles. As such, it is predicted that by
2004, one third of all Europeans—over 200 million people—
will regularly use Internet services on their mobile phones,
according to research company Forrester. As this Internet
fever takes hold in Europe, more Europeans are racing to
route e-commerce through mobile phones. It’s estimated that
within the next two years more Europeans will be surfing
through a Web phone than a PC. The Wireless Internet is
poised to become the most important channel for online banking
and financial services in Europe.
Across Europe, new wireless data services and applications
are being launched. As operators make the transition from circuit-
switched to higher speed data services, they and the market
will provide applications that make use of the resources
available to further drive usage of the network. They will also
have to make a move away from time-based billing and examine
the alternative revenue streams that are available to applications
providers. In Western Europe, 45 out of 57 mobile
network operators in 18 countries, representing approximately
90 percent of all the mobile phone users in Europe, have
already created online portals.
MARKET CASE STUDIES EUROPEAN AND JAPANESE ENVY
Why does it seem that most of the rest of the world has a better
communications system? We often hear that Europe and
Japan are ahead in terms of wireless technology; surprised
Americans have a hard time understanding why they don’t have
the latest in devices and systems. Although there are many factors
that have contributed to the apparent head start of Europe
and Japan, one of the most important is geographic size and
population density. In short, they simply have less space to
cover and often more people in that smaller space.
Cellular gets its name from the system of cell use and
reuse that essentially divides up the area to be covered into
cells. Each cell can only handle a certain amount of traffic
before it, too, needs to be divided into smaller cells to increase
capacity. The first analog cellular systems employed frequencies
that covered a relatively large area while handling a modest
amount of traffic. As the popularity of cell phones
increased, more and more analog cell sites were needed.
Digital 2G systems were designed to handle this increasing
traffic by utilizing more efficient digital systems that required
less power and could fit more calls into the same amount of
bandwidth. These digital 2G systems were not only more
expensive that 1G analog systems but required more cell sites.
This greatly increased the total build-out costs of service
provider network infrastructure.
Because many European countries could fit into the United
States several times over, and Japan could fit into Europe several
times over, European and Japanese operators could roll out
a 2G network with more complete coverage for less money
than could an American operator. We see this same effect in
the coming 3G systems—is anyone really surprised that Japan
will have it first?
Americans shouldn’t feel too badly: the United States is
the home of the PC-based Internet, whereas Europe and
Japan want bandwidth for the mobile phones. By mid-2001
over 65 percent of European Union citizens had a mobile
phone, more than twice the percentage who had home
Internet access. In some countries, Finland and Sweden for
example, mobile penetration levels have reached 70 percent,
and there are some predictions that some countries may reach
100 percent penetration (one for every man, woman, child,
and dog—yes, even pets can wear communication collars that
track their location. Imagine being able to call your pet via the
built-in attached speaker). Mobile communications is a global
$200 billion industry with a growth rate of 12.5 percent a
year. European wireless operators spent an astronomical $130
billion in 2000 on licenses (a staggering amount to spend on
“air”) to offer 3G services, and will have to spend as much to
build out their networks. As global culture continues to merge,
disparities will eventually equalize as each nation learns from
other’s advances.
communications system? We often hear that Europe and
Japan are ahead in terms of wireless technology; surprised
Americans have a hard time understanding why they don’t have
the latest in devices and systems. Although there are many factors
that have contributed to the apparent head start of Europe
and Japan, one of the most important is geographic size and
population density. In short, they simply have less space to
cover and often more people in that smaller space.
Cellular gets its name from the system of cell use and
reuse that essentially divides up the area to be covered into
cells. Each cell can only handle a certain amount of traffic
before it, too, needs to be divided into smaller cells to increase
capacity. The first analog cellular systems employed frequencies
that covered a relatively large area while handling a modest
amount of traffic. As the popularity of cell phones
increased, more and more analog cell sites were needed.
Digital 2G systems were designed to handle this increasing
traffic by utilizing more efficient digital systems that required
less power and could fit more calls into the same amount of
bandwidth. These digital 2G systems were not only more
expensive that 1G analog systems but required more cell sites.
This greatly increased the total build-out costs of service
provider network infrastructure.
Because many European countries could fit into the United
States several times over, and Japan could fit into Europe several
times over, European and Japanese operators could roll out
a 2G network with more complete coverage for less money
than could an American operator. We see this same effect in
the coming 3G systems—is anyone really surprised that Japan
will have it first?
Americans shouldn’t feel too badly: the United States is
the home of the PC-based Internet, whereas Europe and
Japan want bandwidth for the mobile phones. By mid-2001
over 65 percent of European Union citizens had a mobile
phone, more than twice the percentage who had home
Internet access. In some countries, Finland and Sweden for
example, mobile penetration levels have reached 70 percent,
and there are some predictions that some countries may reach
100 percent penetration (one for every man, woman, child,
and dog—yes, even pets can wear communication collars that
track their location. Imagine being able to call your pet via the
built-in attached speaker). Mobile communications is a global
$200 billion industry with a growth rate of 12.5 percent a
year. European wireless operators spent an astronomical $130
billion in 2000 on licenses (a staggering amount to spend on
“air”) to offer 3G services, and will have to spend as much to
build out their networks. As global culture continues to merge,
disparities will eventually equalize as each nation learns from
other’s advances.
VOICE INTERACTION: LINKING THE WEB BY VOICE
Voice portal services began in 1999 with a handful of vendors,
including General Magic and Wildfire, forging the way. Since
then, several dozen vendors have appeared. Most of these services
were initially offered free of charge. Wireless devices are
increasingly using speech technology as an alternative user
interface to access applications.
Excite, Yahoo!, Tellme, and many other Web sites allow people
to communicate using both voice and text. Users can check
email; receive voice messages; and access news, weather, stock
quotes, and sports results from their phones. Additionally,
many handheld devices are incorporating voice interaction
technologies to aid in navigation and operation of the device.
Voice is the simplest human-to-machine interface, and as such
can become a standard way to navigate and enter data on wireless
devices, whereas a visual display will probably remain the
preferred way to receive and view it. Acceptance of speech as a
user interface will vary by region because of cultural and social
factors. (The safety issue of operating a handheld device while
driving a vehicle should cast a favorable light on use of speech
recognition technologies.) Personalization will be key for customer
adoption of voice processing technology. Just as users
personalize their information on the Web, customizing their
voice portal will reduce lengthy set-up menu processes and permit
users to quickly move to the desired content. Better delivery
and performance and more dynamic content will contribute
to greater acceptance. According to Giga, voice recognition
services will grow at 70 percent annually, and revenue from
voice portal applications will grow to $45 billion by 2005.
including General Magic and Wildfire, forging the way. Since
then, several dozen vendors have appeared. Most of these services
were initially offered free of charge. Wireless devices are
increasingly using speech technology as an alternative user
interface to access applications.
Excite, Yahoo!, Tellme, and many other Web sites allow people
to communicate using both voice and text. Users can check
email; receive voice messages; and access news, weather, stock
quotes, and sports results from their phones. Additionally,
many handheld devices are incorporating voice interaction
technologies to aid in navigation and operation of the device.
Voice is the simplest human-to-machine interface, and as such
can become a standard way to navigate and enter data on wireless
devices, whereas a visual display will probably remain the
preferred way to receive and view it. Acceptance of speech as a
user interface will vary by region because of cultural and social
factors. (The safety issue of operating a handheld device while
driving a vehicle should cast a favorable light on use of speech
recognition technologies.) Personalization will be key for customer
adoption of voice processing technology. Just as users
personalize their information on the Web, customizing their
voice portal will reduce lengthy set-up menu processes and permit
users to quickly move to the desired content. Better delivery
and performance and more dynamic content will contribute
to greater acceptance. According to Giga, voice recognition
services will grow at 70 percent annually, and revenue from
voice portal applications will grow to $45 billion by 2005.
COMPUTER SALES
In 2000, according the IDC, approximately 101.4 million desktop
PCs were shipped, generating $141 billion in revenues.
Many new consumers were attracted by low prices, higher
capabilities, and stylish colorful designs. During the same period,
a total of 26 million notebook computers, valued at $57.7
billion, were shipped worldwide, based on IDC research.
Additionally, most PC vendors support at least one wireless protocol
and many offer services to facilitate the transition to a
wireless computing environment. It is projected by many leading market research firms that within the next two to three
years, the desktop PC market will decline in favor of wirelessenabled
portable PCs, handheld Pocket PCs, and other devices.
Wireless phones, PDAs, pagers, and modems are expected
to surpass PCs as the most popular Internet access devices.
Shipments of Wireless Internet devices will sustain doubleand
triple-digit growth over the next few years. Mobile electronics
sales may rise to $10.5 million in 2001, as consumers
continue to enjoy the ease with which they can access information
and entertainment and stay in touch with friends and
family. Wireless phones maintain the largest share of that category,
with sales forecast at $3.7 billion in 2001, a 16 percent
increase over 2000, according to the Consumer Electronics
Association (CEA). While the PDA market in the United States
continue to be strong, the Yankee Group projects 13 million to
be sold in 2001, growing to over 26 million in 2003.
Approximately 11 percent of PDAs had Internet access, while
Jupiter projects that the number of U.S. PDA users interacting
with Web data and content will approach 14 million by 2005.
Major consensus holds that within the next three to five
years, the majority of devices that tap into the Internet for data
will not be wired personal computers, but rather a mix of handheld
devices—including cellular phones, PDAs, pagers, and
Pocket PCs. Research firm IDC projects that the worldwide
market for these devices will grow to over 67 million units sold
and $18.1 billion in revenues by 2005. Many of these devices
shall also offer to the consumer new and integrated features
and functions such as cameras and music players, which will
make it more convenient for consumers to carry only a single
device. Many of these devices will take on new form factors—
designs which look less like a phone. These new devices will be
designed to make viewing and entering information easier.
This same period will also witness the emergence of
human-to-machine and (though still embryonic), machine-tomachine
communications, provided by embedded wireless
communication links for data exchange. This will improve work
flow for the business user and create new opportunities for
companies. This trend accelerated in Europe and Japan.
Examples of human-to-machine communications via wireless
networks already exist, allowing people to access content and
applications from network servers. One example of machineto-
machine communications is vending machines. A wireless
device embedded in the machine communicates with a central
computer that keeps track of how many soft drinks or other
items are left; it lets suppliers know when the vending machine
needs to be restocked. The device may also notify the central
computer when the vending machine is in need of repairs.
These devices can be attached to home appliances such as
refrigerators, air conditioners, and security systems to control
lights, activate alarms, and provide climate control. Other
embedded devices will monitor environmental factors like carbon
monoxide levels. In the vehicular environment, these
devices will provide navigation aids and also work as security
and theft-prevention devices. Referred to commonly as telematics,
which is the blending of computing and wireless
telecommunication systems, which creates useful applications
for automobiles and trucks. Telematics systems often use global
positions systems (GPS) or cell-based technologies to facilitate
location-based services such as roadside assistance offered
by companies such as GM’s OnStar. For telematics to become
successful and widely accepted, car manufacturers have to
agree on a standard for hardware and operating system, otherwise
companies have to build specific versions of their applications
for each auto manufacturer, resulting in a segmented
industry.
In the United States alone, there are over 210 million
existing cars and sales of new cars are about 17 million per
year. Worldwide annual sales of new cars are over 50 million.
According to the Yankee Group, 50 percent of new cars and 90
percent of highend vehicles will have telematics to keep users
connected while in the car in 2006, which equates to a market
over $25 billion. Furthermore, on the enterprise side,
there are over 40 million fleet vehicles in the United States
alone, which includes trucking, delivery, and service vehicles.
We believe that in the not-to-distant future, connectivity with
the Internet for many consumers will be via wireless device
and not home PC.
The U.S. mobile phone market is expanding with an additional
11 percent of households expected to purchase a wireless
handheld device in 2002, according to a survey conducted
by Takar Nelson Sofres Intersearch. We find that over 40 percent
of Nextel’s subscriber base has data-capable handsets and
more than half of Sprint PCS subscribers have data phones.
These run text-based microbrowsers that can only surf limited
numbers of Web sites, but that number is growing. Using push
technology, it will be possible for sites to alert users of downloadable
content, based on customized settings. These early
trailblazers will fundamentally change Internet usage patterns
from one or two long sessions a day on an office or home PC
to dozens of low-intensity sessions a day for specific Web clips
or data points. (Figure 3-6 shows projected U.S. data-only
service growth, while Table 3-5 shows worldwide handheld
shipments.) 116
PCs were shipped, generating $141 billion in revenues.
Many new consumers were attracted by low prices, higher
capabilities, and stylish colorful designs. During the same period,
a total of 26 million notebook computers, valued at $57.7
billion, were shipped worldwide, based on IDC research.
Additionally, most PC vendors support at least one wireless protocol
and many offer services to facilitate the transition to a
wireless computing environment. It is projected by many leading market research firms that within the next two to three
years, the desktop PC market will decline in favor of wirelessenabled
portable PCs, handheld Pocket PCs, and other devices.
Wireless phones, PDAs, pagers, and modems are expected
to surpass PCs as the most popular Internet access devices.
Shipments of Wireless Internet devices will sustain doubleand
triple-digit growth over the next few years. Mobile electronics
sales may rise to $10.5 million in 2001, as consumers
continue to enjoy the ease with which they can access information
and entertainment and stay in touch with friends and
family. Wireless phones maintain the largest share of that category,
with sales forecast at $3.7 billion in 2001, a 16 percent
increase over 2000, according to the Consumer Electronics
Association (CEA). While the PDA market in the United States
continue to be strong, the Yankee Group projects 13 million to
be sold in 2001, growing to over 26 million in 2003.
Approximately 11 percent of PDAs had Internet access, while
Jupiter projects that the number of U.S. PDA users interacting
with Web data and content will approach 14 million by 2005.
Major consensus holds that within the next three to five
years, the majority of devices that tap into the Internet for data
will not be wired personal computers, but rather a mix of handheld
devices—including cellular phones, PDAs, pagers, and
Pocket PCs. Research firm IDC projects that the worldwide
market for these devices will grow to over 67 million units sold
and $18.1 billion in revenues by 2005. Many of these devices
shall also offer to the consumer new and integrated features
and functions such as cameras and music players, which will
make it more convenient for consumers to carry only a single
device. Many of these devices will take on new form factors—
designs which look less like a phone. These new devices will be
designed to make viewing and entering information easier.
This same period will also witness the emergence of
human-to-machine and (though still embryonic), machine-tomachine
communications, provided by embedded wireless
communication links for data exchange. This will improve work
flow for the business user and create new opportunities for
companies. This trend accelerated in Europe and Japan.
Examples of human-to-machine communications via wireless
networks already exist, allowing people to access content and
applications from network servers. One example of machineto-
machine communications is vending machines. A wireless
device embedded in the machine communicates with a central
computer that keeps track of how many soft drinks or other
items are left; it lets suppliers know when the vending machine
needs to be restocked. The device may also notify the central
computer when the vending machine is in need of repairs.
These devices can be attached to home appliances such as
refrigerators, air conditioners, and security systems to control
lights, activate alarms, and provide climate control. Other
embedded devices will monitor environmental factors like carbon
monoxide levels. In the vehicular environment, these
devices will provide navigation aids and also work as security
and theft-prevention devices. Referred to commonly as telematics,
which is the blending of computing and wireless
telecommunication systems, which creates useful applications
for automobiles and trucks. Telematics systems often use global
positions systems (GPS) or cell-based technologies to facilitate
location-based services such as roadside assistance offered
by companies such as GM’s OnStar. For telematics to become
successful and widely accepted, car manufacturers have to
agree on a standard for hardware and operating system, otherwise
companies have to build specific versions of their applications
for each auto manufacturer, resulting in a segmented
industry.
In the United States alone, there are over 210 million
existing cars and sales of new cars are about 17 million per
year. Worldwide annual sales of new cars are over 50 million.
According to the Yankee Group, 50 percent of new cars and 90
percent of highend vehicles will have telematics to keep users
connected while in the car in 2006, which equates to a market
over $25 billion. Furthermore, on the enterprise side,
there are over 40 million fleet vehicles in the United States
alone, which includes trucking, delivery, and service vehicles.
We believe that in the not-to-distant future, connectivity with
the Internet for many consumers will be via wireless device
and not home PC.
The U.S. mobile phone market is expanding with an additional
11 percent of households expected to purchase a wireless
handheld device in 2002, according to a survey conducted
by Takar Nelson Sofres Intersearch. We find that over 40 percent
of Nextel’s subscriber base has data-capable handsets and
more than half of Sprint PCS subscribers have data phones.
These run text-based microbrowsers that can only surf limited
numbers of Web sites, but that number is growing. Using push
technology, it will be possible for sites to alert users of downloadable
content, based on customized settings. These early
trailblazers will fundamentally change Internet usage patterns
from one or two long sessions a day on an office or home PC
to dozens of low-intensity sessions a day for specific Web clips
or data points. (Figure 3-6 shows projected U.S. data-only
service growth, while Table 3-5 shows worldwide handheld
shipments.) 116
WIRELESS SUBSCRIBERS AND INTERNET GROWTH
This new market is powered by fast-growing demand for mobile
and Internet services and complementary technologies that allow
people and information to be increasingly interconnected. The
penetration of wireless service subscription continues to increase
dramatically around the globe. It is almost impossible to be in a
place where no one uses wireless phones. Continued growth in the
United States, Europe, and Japan is strengthened by emerging
wireless device industries in China, India, and Latin America.
Riding on this wave of growth, the number of wireless subscribers
by mid-2001 exceeded 119 million subscribers in the United
States alone, according to the CTIA, and the number of U.S.
Internet users topped 167 million based on Nielsen NetRatings.
Furthermore, over 60 percent of U.S. households have online Web
access. The Strategies Group predicts that wireless data penetration
will reach 60 percent in 2007, from just 2 percent in 2001.
This massive growth is attributed to the aggressive rollout of highspeed
services and applications and consumer acceptance.
Furthermore, over the next several years, the majority of devices
that tap the Internet will not be home or office PCs, but rather
wireless devices. This trend is accelerated in Japan and Europe,
where the Wireless Internet is transitioning from text-based short
messaging (SMS) to digital audio and video broadcasting. The
demand for high-bandwidth wireless applications and connections
to corporate networks from the field is fostering the development
of and demand for Wireless Internet networks. Figures 3-1, 3-2, 3-
3, and Table 3-4 break down United States and global Internet and
wireless use.
The growth of the Wireless Internet is directly linked to
the success of the wired, HTML-based Internet. The Yankee
Group, a major research firm, estimates that by 2005, approximately
56 million people in the United States, or almost 20
percent of the population, will regularly tap into the Wireless
Internet over a voice-enabled device; a major investment
banking firm takes an even more optimistic outlook, projecting
115 million subscribers in the same period. The Wireless
Internet will exploit the gold mine of content available in digital
format from Internet servers designed originally for wired desktops. Many of the largest players, such as AOL, Yahoo!,
and Microsoft are charging forward into wireless as a key
growth initiative. Carriers such as AT&T, Nextel, Sprint PCS,
Verizon, OmniSky, Metricom, Vodafone, and many others
offer Wireless Internet access through cellular phones, PDAs,
RIM pagers, and various other devices. Figure 3-4 shows projected
Wireless Internet growth in the United States and
Figure 3-5 shows projected growth worldwide.
and Internet services and complementary technologies that allow
people and information to be increasingly interconnected. The
penetration of wireless service subscription continues to increase
dramatically around the globe. It is almost impossible to be in a
place where no one uses wireless phones. Continued growth in the
United States, Europe, and Japan is strengthened by emerging
wireless device industries in China, India, and Latin America.
Riding on this wave of growth, the number of wireless subscribers
by mid-2001 exceeded 119 million subscribers in the United
States alone, according to the CTIA, and the number of U.S.
Internet users topped 167 million based on Nielsen NetRatings.
Furthermore, over 60 percent of U.S. households have online Web
access. The Strategies Group predicts that wireless data penetration
will reach 60 percent in 2007, from just 2 percent in 2001.
This massive growth is attributed to the aggressive rollout of highspeed
services and applications and consumer acceptance.
Furthermore, over the next several years, the majority of devices
that tap the Internet will not be home or office PCs, but rather
wireless devices. This trend is accelerated in Japan and Europe,
where the Wireless Internet is transitioning from text-based short
messaging (SMS) to digital audio and video broadcasting. The
demand for high-bandwidth wireless applications and connections
to corporate networks from the field is fostering the development
of and demand for Wireless Internet networks. Figures 3-1, 3-2, 3-
3, and Table 3-4 break down United States and global Internet and
wireless use.
The growth of the Wireless Internet is directly linked to
the success of the wired, HTML-based Internet. The Yankee
Group, a major research firm, estimates that by 2005, approximately
56 million people in the United States, or almost 20
percent of the population, will regularly tap into the Wireless
Internet over a voice-enabled device; a major investment
banking firm takes an even more optimistic outlook, projecting
115 million subscribers in the same period. The Wireless
Internet will exploit the gold mine of content available in digital
format from Internet servers designed originally for wired desktops. Many of the largest players, such as AOL, Yahoo!,
and Microsoft are charging forward into wireless as a key
growth initiative. Carriers such as AT&T, Nextel, Sprint PCS,
Verizon, OmniSky, Metricom, Vodafone, and many others
offer Wireless Internet access through cellular phones, PDAs,
RIM pagers, and various other devices. Figure 3-4 shows projected
Wireless Internet growth in the United States and
Figure 3-5 shows projected growth worldwide.
INTERNET AND BROADBAND
The United States leads the world with over 167 million Internet
users of which more than one third have broadband connectivity,
according to a study by Arbitron. This study concluded that
64 percent of Internet users who have broadband access were
connected through their workplace, and the balance have home
access. The Internet has transitioned from text-based email
and file transfer in the mid-1990s to digital audio broadcasting
and animated advertising in early 2000. The demand for high
bandwidth applications such as animation, video streaming,
and high-speed connections to corporate networks has led to a
multi-megabit bandwidth race. Digital subscriber line (DSL) and
cable modem technologies are main contenders for this high
bandwidth race, followed by emerging wireless networks.
In the autumn of 2000, the U.S. Department of Commerce
found that 51 percent of all American homes had a computer,
and that nearly two-thirds of American Internet users had
bought something online. These percentages are similar to
those of other developed nations, as depicted.
By 2001, there were over 2.3 million DSL customers in the
United States. Estimates show the market for DSL customers will
reach 7.74 million residential customers and 1.83 million business
lines, for a total of 9.57 million DSL lines deployed by 2003.
High-speed connectivity is a commodity. As service providers
adapt their networks and strategies to meet the demand for
high-bandwidth services and applications at reduced cost, some
are attempting to capture high-bandwidth customers by offering
access to key information service providers (e.g., a specific
Internet service or digital video provider).
The customers’ key interest in high-bandwidth service
includes speeding up large file transfers, viewing high-resolution
images and enabling multimedia applications such as streaming
audio and video. The attempt of service providers to restrict
access to certain information content providers is likely to divert
attention from developing cost-effective high-speed networks
and create opportunities for other providers to offer access to
other information content providers.
Early adopters of broadband services are affluent. Of broadband
users, 21 percent of these households have annual
incomes over $100,000. Broadband users are also twice as likely
to be active online purchasers when compared to low-speed
users.* Additionally, most of these users also have cellular
phones, PDAs, and other handheld devices such as digital cameras
and music players.
In a recent survey of online consumers, 80 percent stated
that they would pay approximately $25 per month for broadband
access alone; 26 percent of those said that they would pay
$50 or $60 for a package of broadband-enabled applications
(including premium quality downloadable music or video files)
in addition to the cost of broadband access.† Tables 3.2 and 3.3
show the number of users and market penetration of wireless
access worldwide.
As cellular technology connects phones, PDAs, and other
devices across networks, wide area networks (WAN), local area
networks (LAN) and the personal area network (PAN), we see
the emergence of IEEE’s 802.11B as the de facto wireless
WAN standard. As major corporations including Cisco,
Compaq, Dell, and others are designing their products for
faster cable-free network setup in offices and corporation campuses,
we believe that the home market will also adapt, according
to a study conducted by the Aberdeen Group, the home
network market, including both wireless and wired initiatives
will hit $13 billion by 2005.
users of which more than one third have broadband connectivity,
according to a study by Arbitron. This study concluded that
64 percent of Internet users who have broadband access were
connected through their workplace, and the balance have home
access. The Internet has transitioned from text-based email
and file transfer in the mid-1990s to digital audio broadcasting
and animated advertising in early 2000. The demand for high
bandwidth applications such as animation, video streaming,
and high-speed connections to corporate networks has led to a
multi-megabit bandwidth race. Digital subscriber line (DSL) and
cable modem technologies are main contenders for this high
bandwidth race, followed by emerging wireless networks.
In the autumn of 2000, the U.S. Department of Commerce
found that 51 percent of all American homes had a computer,
and that nearly two-thirds of American Internet users had
bought something online. These percentages are similar to
those of other developed nations, as depicted.
By 2001, there were over 2.3 million DSL customers in the
United States. Estimates show the market for DSL customers will
reach 7.74 million residential customers and 1.83 million business
lines, for a total of 9.57 million DSL lines deployed by 2003.
High-speed connectivity is a commodity. As service providers
adapt their networks and strategies to meet the demand for
high-bandwidth services and applications at reduced cost, some
are attempting to capture high-bandwidth customers by offering
access to key information service providers (e.g., a specific
Internet service or digital video provider).
The customers’ key interest in high-bandwidth service
includes speeding up large file transfers, viewing high-resolution
images and enabling multimedia applications such as streaming
audio and video. The attempt of service providers to restrict
access to certain information content providers is likely to divert
attention from developing cost-effective high-speed networks
and create opportunities for other providers to offer access to
other information content providers.
Early adopters of broadband services are affluent. Of broadband
users, 21 percent of these households have annual
incomes over $100,000. Broadband users are also twice as likely
to be active online purchasers when compared to low-speed
users.* Additionally, most of these users also have cellular
phones, PDAs, and other handheld devices such as digital cameras
and music players.
In a recent survey of online consumers, 80 percent stated
that they would pay approximately $25 per month for broadband
access alone; 26 percent of those said that they would pay
$50 or $60 for a package of broadband-enabled applications
(including premium quality downloadable music or video files)
in addition to the cost of broadband access.† Tables 3.2 and 3.3
show the number of users and market penetration of wireless
access worldwide.
As cellular technology connects phones, PDAs, and other
devices across networks, wide area networks (WAN), local area
networks (LAN) and the personal area network (PAN), we see
the emergence of IEEE’s 802.11B as the de facto wireless
WAN standard. As major corporations including Cisco,
Compaq, Dell, and others are designing their products for
faster cable-free network setup in offices and corporation campuses,
we believe that the home market will also adapt, according
to a study conducted by the Aberdeen Group, the home
network market, including both wireless and wired initiatives
will hit $13 billion by 2005.
THE WIRELESS INTERNET MARKET
Forecasts for the Wireless Internet market span a wide
range, however, all are in agreement that while the market
is still in its infancy, it is poised for enormous growth over the
next several years, due to large numbers of people who will
have access to it with their handheld devices. Other platforms
besides mobile phones, personal digital assistants (PDAs), and
Pocket PCs will be able to access the Wireless Internet, appliances,
motor vehicles, and other machines will also play a significant
role. For the Wireless Internet to be successful, it is
important to educate the market of its possibilities and develop
compelling applications that will take advantage of devices
that can accompany people and provide “anytime, anywhere”
access.
range, however, all are in agreement that while the market
is still in its infancy, it is poised for enormous growth over the
next several years, due to large numbers of people who will
have access to it with their handheld devices. Other platforms
besides mobile phones, personal digital assistants (PDAs), and
Pocket PCs will be able to access the Wireless Internet, appliances,
motor vehicles, and other machines will also play a significant
role. For the Wireless Internet to be successful, it is
important to educate the market of its possibilities and develop
compelling applications that will take advantage of devices
that can accompany people and provide “anytime, anywhere”
access.
SESSION INITIATION PROTOCOL (SIP)
The Session Initiation Protocol (SIP) is an application-layer
control protocol that can establish, modify, and terminate multimedia
sessions or calls. Like MGCP, SIP is text-based. SIP
came out of the Internet Engineering Task Force (IETF) in
1998 as an RFC. It has rapidly gained widespread support,
including Microsoft’s announcement that SIP will be supported
in the next generation Windows XP product.
SIP uses a “request-response” model like that used in
Hypertext Transfer Protocol (HTTP). There is one major difference
between MGCP and SIP—a call agent is not necessary
to mediate between clients. An SIP interface is shown in
Figure 2-19.
The usefulness of SIP for multimedia is almost limitless.
Sessions can be unicast or multicast and include multimedia conferences, distance learning, VoIP, or similar applications.
Some examples of multicast protocols include email, news
groups, Web pages, and the like. SIP also supports the ISDN
and Intelligent Network telephony subscriber services for personal
mobility, which is important for the Wireless Internet.
SIP is reliable, scalable, and can be used with other protocols.
Development is fast because it is very similar to HTTP,
thus making the addition of feature-rich applications very quick
to implement. Initially H.323 and MGCP may be the protocols
of choice for tomorrows’ media gateways and soft switches but
SIP and Megaco will be strong contenders as they mature.
No matter which protocol or protocols become the favorite,
soft switches will be flexible enough to adapt. This adaptability
makes network service providers very happy. Unlike old legacy
switches, this new breed of switches will be quick to accept
added features or changed services without waiting months for
a manufacturer to modify the switch design. 104
control protocol that can establish, modify, and terminate multimedia
sessions or calls. Like MGCP, SIP is text-based. SIP
came out of the Internet Engineering Task Force (IETF) in
1998 as an RFC. It has rapidly gained widespread support,
including Microsoft’s announcement that SIP will be supported
in the next generation Windows XP product.
SIP uses a “request-response” model like that used in
Hypertext Transfer Protocol (HTTP). There is one major difference
between MGCP and SIP—a call agent is not necessary
to mediate between clients. An SIP interface is shown in
Figure 2-19.
The usefulness of SIP for multimedia is almost limitless.
Sessions can be unicast or multicast and include multimedia conferences, distance learning, VoIP, or similar applications.
Some examples of multicast protocols include email, news
groups, Web pages, and the like. SIP also supports the ISDN
and Intelligent Network telephony subscriber services for personal
mobility, which is important for the Wireless Internet.
SIP is reliable, scalable, and can be used with other protocols.
Development is fast because it is very similar to HTTP,
thus making the addition of feature-rich applications very quick
to implement. Initially H.323 and MGCP may be the protocols
of choice for tomorrows’ media gateways and soft switches but
SIP and Megaco will be strong contenders as they mature.
No matter which protocol or protocols become the favorite,
soft switches will be flexible enough to adapt. This adaptability
makes network service providers very happy. Unlike old legacy
switches, this new breed of switches will be quick to accept
added features or changed services without waiting months for
a manufacturer to modify the switch design. 104
MGCP/MEGACO
The Media Gateway Control Protocol (MGCP) specifies communication
between call control elements and telephony gateways.
It is a text-based protocol. Media gateways are telephony
gateways that convert circuit-switched voice signals to data
packets for multiservice packet networks. The Internet
Engineering Task Force (IETF) created MGCP to address
some of the perceived shortcomings of H.323. See Figure 2-18.
The main purpose of MGCP is to place control of call signaling
and processing intelligence in call agents or media gateway
controllers. (Call agents and media gateway controllers are
synonymous with and similar to the gatekeeper functions in
H.323 and are also called soft switches.) A new version of
MGCP, released in August 2000, is called Megaco or H.248.
Although Megaco was created for the same purpose, Voiceover-
IP, it differs from MGCP because it supports a broader
range of networks and devices such as ATM, Remote Access
Servers, Multi-Protocol Label Switching routers (MPLS),
Digital Subscriber Line Access Multiplexers (DSLAMs), and
more.
Because Megaco is very new, interoperability testing is
ongoing. It appears to answer many of the deficiencies of
H.323 and will become very important as we move toward
Voice-over-IP networks. It is somewhat unclear at this time if
Megaco will replace MGCP or just supplement it. Megaco is
more suited for media applications than MGCP, but MGCP
may be a better choice for nonmedia-centric applications, such
as MPLS-based session control.
between call control elements and telephony gateways.
It is a text-based protocol. Media gateways are telephony
gateways that convert circuit-switched voice signals to data
packets for multiservice packet networks. The Internet
Engineering Task Force (IETF) created MGCP to address
some of the perceived shortcomings of H.323. See Figure 2-18.
The main purpose of MGCP is to place control of call signaling
and processing intelligence in call agents or media gateway
controllers. (Call agents and media gateway controllers are
synonymous with and similar to the gatekeeper functions in
H.323 and are also called soft switches.) A new version of
MGCP, released in August 2000, is called Megaco or H.248.
Although Megaco was created for the same purpose, Voiceover-
IP, it differs from MGCP because it supports a broader
range of networks and devices such as ATM, Remote Access
Servers, Multi-Protocol Label Switching routers (MPLS),
Digital Subscriber Line Access Multiplexers (DSLAMs), and
more.
Because Megaco is very new, interoperability testing is
ongoing. It appears to answer many of the deficiencies of
H.323 and will become very important as we move toward
Voice-over-IP networks. It is somewhat unclear at this time if
Megaco will replace MGCP or just supplement it. Megaco is
more suited for media applications than MGCP, but MGCP
may be a better choice for nonmedia-centric applications, such
as MPLS-based session control.
H.323
H.323 defines packet standards for terminal equipment and
services for multimedia communications over local and wide
area networks communicating with systems connected to
telephony networks such as ISDN. The initial version of this
standard came from the International Telecommunications
Union (ITU) in June 1996.
It defines communication over IP-based local area networks
(LANs). A later version (v2), adopted in January 1998,
extended it over wide area use and general-purpose IP networks.
Several subprotocols are included under H.323 relating
to call setup and signaling.
Four components for a multimedia communication system
as shown in Figure 2-17 include terminals, gateways, gatekeepers,
and multipoint control units (MCU). Gateways and
gatekeepers are used in negotiation for PSTN connections,
whereas MCUs enable multiparty audio and videoconferences.
One drawback of H.323 is that it is somewhat complex and
inflexible. However, it is ISDN-based and relatively easy to
build applications across it. For many applications, H.323 is
satisfactory, but falls short for more advanced implementations
and solutions.
All things considered, the most likely scenario is that multiple
protocols will be used with H.323, such as SIP for
exchange between soft switches and gateways and MGCP for
call setup, because H.323 is too complex and time consuming
to set up a call.
services for multimedia communications over local and wide
area networks communicating with systems connected to
telephony networks such as ISDN. The initial version of this
standard came from the International Telecommunications
Union (ITU) in June 1996.
It defines communication over IP-based local area networks
(LANs). A later version (v2), adopted in January 1998,
extended it over wide area use and general-purpose IP networks.
Several subprotocols are included under H.323 relating
to call setup and signaling.
Four components for a multimedia communication system
as shown in Figure 2-17 include terminals, gateways, gatekeepers,
and multipoint control units (MCU). Gateways and
gatekeepers are used in negotiation for PSTN connections,
whereas MCUs enable multiparty audio and videoconferences.
One drawback of H.323 is that it is somewhat complex and
inflexible. However, it is ISDN-based and relatively easy to
build applications across it. For many applications, H.323 is
satisfactory, but falls short for more advanced implementations
and solutions.
All things considered, the most likely scenario is that multiple
protocols will be used with H.323, such as SIP for
exchange between soft switches and gateways and MGCP for
call setup, because H.323 is too complex and time consuming
to set up a call.
HOME RF
Another industry group, the Home Radio Frequency Working
Group (HRFWG)—made up of members of industry leading
companies such as Compaq, Ericsson, HP, IBM, Intel,
Microsoft, Motorola, and others—created the Home RF
Standard Specification. Home RF combines elements of
802.11 and Digital Enhanced Cordless Telecommunications
(DECT) but supports only up to 2 Mbps. It is aimed at homes
and small businesses.
The price of Home RF is generally less expensive than
802.11 but performance is considerably less. The devices operate
in the 2.4 Ghz ISM band just as 802.11 devices do. In actuality
Home RF competes more with Bluetooth than 802.11. It
was designed for embedded applications in appliances and
computing equipment such as printers. Only time will tell if
this standard prospers.
Group (HRFWG)—made up of members of industry leading
companies such as Compaq, Ericsson, HP, IBM, Intel,
Microsoft, Motorola, and others—created the Home RF
Standard Specification. Home RF combines elements of
802.11 and Digital Enhanced Cordless Telecommunications
(DECT) but supports only up to 2 Mbps. It is aimed at homes
and small businesses.
The price of Home RF is generally less expensive than
802.11 but performance is considerably less. The devices operate
in the 2.4 Ghz ISM band just as 802.11 devices do. In actuality
Home RF competes more with Bluetooth than 802.11. It
was designed for embedded applications in appliances and
computing equipment such as printers. Only time will tell if
this standard prospers.
HIPERLAN2 FEATURES
Other than the high data rate and
QoS features, HiperLAN2 includes including the following:
• Automatic frequency allocation
• Security support
• Mobility support
• Network and application independent
• Power save mode
Automatic frequency allocation is especially important
because this allows for easy installation without the need for
complicated frequency planning such as that required for cellular.
The access points use a built-in support for automatic
transmission frequency allocation.
HiperLAN2 networks also supports authentication and
encryption. A handoff mechanism is managed by the mobile
terminal based on received signals from each access point.
Connections are maintained just in cellular (hopefully maybe
even better). The HiperLAN2 network may also integrated with
a variety of fixed networks.
A power save mechanism is based on mobile terminal-initiated
negotiation of sleep periods. A request is made to the
access point for a low power state and a specific sleep period.
At the end of the sleep period, the mobile terminal searches for
a wake up indicator from the access point, and in the absence
of that, sleeps the next period, etc.
QoS features, HiperLAN2 includes including the following:
• Automatic frequency allocation
• Security support
• Mobility support
• Network and application independent
• Power save mode
Automatic frequency allocation is especially important
because this allows for easy installation without the need for
complicated frequency planning such as that required for cellular.
The access points use a built-in support for automatic
transmission frequency allocation.
HiperLAN2 networks also supports authentication and
encryption. A handoff mechanism is managed by the mobile
terminal based on received signals from each access point.
Connections are maintained just in cellular (hopefully maybe
even better). The HiperLAN2 network may also integrated with
a variety of fixed networks.
A power save mechanism is based on mobile terminal-initiated
negotiation of sleep periods. A request is made to the
access point for a low power state and a specific sleep period.
At the end of the sleep period, the mobile terminal searches for
a wake up indicator from the access point, and in the absence
of that, sleeps the next period, etc.
HIPERLAN AND HIPERLAN2
HiperLAN or more recently, HiperLAN2 are standards
approved by the European Telecommunications Standards
Institute (ETSI). HiperLAN2 is the most recent version. It is
an interoperable standard providing high-speed, broadband
connectivity for wireless LANs in corporate environments,
public “hot spots” and home environments
HiperLAN2 provides a 54 Mbps data rate on the globally
allocated 5.15–5.3 GHz band. It also may be used in the
17.1–17.3 GHz band in certain geographic locations. It surpasses
the IEEE 802.11a standard with both greater security
and traffic prioritization capabilities. HiperLAN2 also
includes mechanisms for handoffs between WLANs and 3G
mobile systems.
Currently several European manufacturers are implementing
solutions that provide a wireless Virtual Private Network
(VPN) solution for HiperLAN 2 which includes authentication
and encryption. This will enable wireless mobile users to have
a secure connection to their corporate networks when traveling
through so called “hot spots,” such as airports, hotels and conference
centers.
HiperLAN2 achieves its high data rate by using a frequency
multiplexing method called Orthogonal Frequency Digital
Multiplexing (OFDM) with various physical layer modulation
schemes as shown in Table 2-2.
OFDM is particularly efficient in time-dispersive environments,
i.e. where the radio signals are reflected from many points
such as in offices. The basic idea of OFDM is to transmit broadband,
high data rate information by dividing the data into several
interleaved, parallel bit streams, and let each bit stream
modulate a separate subcarrier. HiperLAN2 is time-division multiplexed
and connection-oriented. It can be used for point-topoint
or point-to-multipoint connections. A dedicated broadcast
channel is also included. Each connection can be assigned either
a simple relative priority level or a specific QoS in terms of bandwidth,
delay, jitter, bit error rate, etc. Hiperlan2 uses an approach
for the Access Channel that differs from the OSI model but is
very similar to the IEEE 802-11 standard as seen in Figure 2-15.
HiperLAN2 was designed for short range communications,
about 150 feet maximum. It is primarily meant to be used in a
stationary environment but does support mobility up to 4.3
feet/second. It may be used on networks with or without infrastructure
to support isochronous traffic such as audio or video
with minimum latency. It can support asynchronous traffic
data of 10Mbps with immediate access. HiperLAN2 is also
compatible with ATM.
Radio-based wireless LANs tend to exhibit randomized
“bursty” traffic patterns which can result in performance
issues. Many factors have to be taken into consideration, when
quality of service is to be measured. Among these are:
• Landscape topography
• Elevations that might cause shadows
• Multi-path from signal-reflection surfaces
• Signal loss through absorbing surfaces
• Quality and placement of the wireless equipment
• Number of stations
• Interference
• Etc.
These and other factors have been figured into the
HiperLAN2 specification to allow for a certain level of Quality
of Service guarantee.
Figure 2-16 depicts a typical topology of a HiperLAN2 network.
The Mobile Terminals (MTs) communicate with one
Access Point (AP) at a time over an air interface. As a user
moves from one AP to the next, handoffs can take place. In an
ad hoc networks, the MTs communicate directly., can also be
created, but their development is still in early phase. The
HIPERLAN/2 is planned to be finalized by the end of 1999.
approved by the European Telecommunications Standards
Institute (ETSI). HiperLAN2 is the most recent version. It is
an interoperable standard providing high-speed, broadband
connectivity for wireless LANs in corporate environments,
public “hot spots” and home environments
HiperLAN2 provides a 54 Mbps data rate on the globally
allocated 5.15–5.3 GHz band. It also may be used in the
17.1–17.3 GHz band in certain geographic locations. It surpasses
the IEEE 802.11a standard with both greater security
and traffic prioritization capabilities. HiperLAN2 also
includes mechanisms for handoffs between WLANs and 3G
mobile systems.
Currently several European manufacturers are implementing
solutions that provide a wireless Virtual Private Network
(VPN) solution for HiperLAN 2 which includes authentication
and encryption. This will enable wireless mobile users to have
a secure connection to their corporate networks when traveling
through so called “hot spots,” such as airports, hotels and conference
centers.
HiperLAN2 achieves its high data rate by using a frequency
multiplexing method called Orthogonal Frequency Digital
Multiplexing (OFDM) with various physical layer modulation
schemes as shown in Table 2-2.
OFDM is particularly efficient in time-dispersive environments,
i.e. where the radio signals are reflected from many points
such as in offices. The basic idea of OFDM is to transmit broadband,
high data rate information by dividing the data into several
interleaved, parallel bit streams, and let each bit stream
modulate a separate subcarrier. HiperLAN2 is time-division multiplexed
and connection-oriented. It can be used for point-topoint
or point-to-multipoint connections. A dedicated broadcast
channel is also included. Each connection can be assigned either
a simple relative priority level or a specific QoS in terms of bandwidth,
delay, jitter, bit error rate, etc. Hiperlan2 uses an approach
for the Access Channel that differs from the OSI model but is
very similar to the IEEE 802-11 standard as seen in Figure 2-15.
HiperLAN2 was designed for short range communications,
about 150 feet maximum. It is primarily meant to be used in a
stationary environment but does support mobility up to 4.3
feet/second. It may be used on networks with or without infrastructure
to support isochronous traffic such as audio or video
with minimum latency. It can support asynchronous traffic
data of 10Mbps with immediate access. HiperLAN2 is also
compatible with ATM.
Radio-based wireless LANs tend to exhibit randomized
“bursty” traffic patterns which can result in performance
issues. Many factors have to be taken into consideration, when
quality of service is to be measured. Among these are:
• Landscape topography
• Elevations that might cause shadows
• Multi-path from signal-reflection surfaces
• Signal loss through absorbing surfaces
• Quality and placement of the wireless equipment
• Number of stations
• Interference
• Etc.
These and other factors have been figured into the
HiperLAN2 specification to allow for a certain level of Quality
of Service guarantee.
Figure 2-16 depicts a typical topology of a HiperLAN2 network.
The Mobile Terminals (MTs) communicate with one
Access Point (AP) at a time over an air interface. As a user
moves from one AP to the next, handoffs can take place. In an
ad hoc networks, the MTs communicate directly., can also be
created, but their development is still in early phase. The
HIPERLAN/2 is planned to be finalized by the end of 1999.
UNLICENSED SPECTRUM USAGE FOR WLAN
The Federal
Communications Commission (FCC) specifies the rules for
operating in the unlicensed 2.4 GHz spectrum. The largest
governing concern is harmful interference with authorized
services and must work around any interference that may be
received from phones, microwaves or other RF devices.
The FCC mandates that a device must operate in one of
two ways in the 2.4 GHz ISM band:
• Frequency Hopping Spread Spectrum (FHSS). The frequency
changes in a pseudo-random manner based on a predefined
code.
• Direct Sequence Spread Spectrum (DSSS). The data signal
is broken up into sequences and transmitted to the receiver,
which reassembles the sequences into the data signal.
Future versions such as 802.11g may adopt OFDM if the
FCC decides to support it and the industry can agree to rally
behind it. However, at the time of publishing this book, these
are two very big “ifs.”
It is estimated that more than 7.8 million wireless LAN
chipsets were produced in 2000. A similar number is expected
in 2001. Sales are growing from almost $400 million in 2000
to $1.2 billion by 2005. Costs have dropped during 2001, causing
widespread usage in homes and enterprise systems.
However, 2002 will see the release of more Home RF and
802.11g products also. Parks Associates estimates that, while 5
percent of U.S. households currently have a PC network in
place, as many as 15 percent will have one in five years. Of
that, wireless networking will account for 40 percent of all
those home networks.
Communications Commission (FCC) specifies the rules for
operating in the unlicensed 2.4 GHz spectrum. The largest
governing concern is harmful interference with authorized
services and must work around any interference that may be
received from phones, microwaves or other RF devices.
The FCC mandates that a device must operate in one of
two ways in the 2.4 GHz ISM band:
• Frequency Hopping Spread Spectrum (FHSS). The frequency
changes in a pseudo-random manner based on a predefined
code.
• Direct Sequence Spread Spectrum (DSSS). The data signal
is broken up into sequences and transmitted to the receiver,
which reassembles the sequences into the data signal.
Future versions such as 802.11g may adopt OFDM if the
FCC decides to support it and the industry can agree to rally
behind it. However, at the time of publishing this book, these
are two very big “ifs.”
It is estimated that more than 7.8 million wireless LAN
chipsets were produced in 2000. A similar number is expected
in 2001. Sales are growing from almost $400 million in 2000
to $1.2 billion by 2005. Costs have dropped during 2001, causing
widespread usage in homes and enterprise systems.
However, 2002 will see the release of more Home RF and
802.11g products also. Parks Associates estimates that, while 5
percent of U.S. households currently have a PC network in
place, as many as 15 percent will have one in five years. Of
that, wireless networking will account for 40 percent of all
those home networks.
FEATURES
IEEE802.11 also supports infrastructure networks
and ad hoc networks. One very important characteristic
of 802.11 is that the data rate will be automatically decreased
as signal deteriorates between the access point and the stations.
While 802.11b does include a security mechanism, it has
been discovered to be weak. It also supports station roaming
between access points.
and ad hoc networks. One very important characteristic
of 802.11 is that the data rate will be automatically decreased
as signal deteriorates between the access point and the stations.
While 802.11b does include a security mechanism, it has
been discovered to be weak. It also supports station roaming
between access points.
IEEE 802.11
Wireless Ethernet is IEEE 802.11b today, the IEEE standard
for wireless LAN’s. IEEE 802.11b operates in the ISM band at
11 Mbps. However, several new versions of the standard is
being developed, 802.11a, which supports data rates of up to
54 Mbps, and operates in the 5-GHz UNII (Unlicensed
National Information Infrastructure) band. Another version
802.11g is currently being developed which will support up to
20+ Mbps. Table 2-1 summarizes the different versions of
802.11 and includes HiperLAN2 for comparison. It should
also be noted that the IEEE is working on 802.11e, a standard
that spans home and business environments with QoS and
multimedia support while maintaining full backward compatibility
with 802.11b and 802.11a. This version will support
voice and include a higher level of security than 802.11b. The
release date for the standard is unclear at this time.
The IEEE802.11b specification was finalized in 1999 and
quickly adopted by many companies. However, it was just as
quickly discovered that there are two problems: the security is
weak and the theoretical transmission speeds of 11 Mbps falls
short—real world speed is only about 7 Mbps.
for wireless LAN’s. IEEE 802.11b operates in the ISM band at
11 Mbps. However, several new versions of the standard is
being developed, 802.11a, which supports data rates of up to
54 Mbps, and operates in the 5-GHz UNII (Unlicensed
National Information Infrastructure) band. Another version
802.11g is currently being developed which will support up to
20+ Mbps. Table 2-1 summarizes the different versions of
802.11 and includes HiperLAN2 for comparison. It should
also be noted that the IEEE is working on 802.11e, a standard
that spans home and business environments with QoS and
multimedia support while maintaining full backward compatibility
with 802.11b and 802.11a. This version will support
voice and include a higher level of security than 802.11b. The
release date for the standard is unclear at this time.
The IEEE802.11b specification was finalized in 1999 and
quickly adopted by many companies. However, it was just as
quickly discovered that there are two problems: the security is
weak and the theoretical transmission speeds of 11 Mbps falls
short—real world speed is only about 7 Mbps.
BLUETOOTH
Bluetooth is a low-cost, low-power, short-range radio link for
mobile devices and for WAN/LAN access points. It operates in
the ISM band. The Bluetooth standard was created primarily
to replace serial cables between computers and printers or
other peripherals. Speed and reliability were key considerations.
Bluetooth is capable of both voice and data communications
at speeds up to about 70 Kbps.
Bluetooth technology is an enabling technology for the
Wireless Internet and the mobile user. It can be an Internet
bridge between a mobile device and a wireless access point in
an ad-hoc network, as are other WLAN technologies such as
802.11 or Home RF. However, some features of Bluetooth are
unique to it and not available in other WLAN technologies.
Bluetooth actually creates a Personal Area Network. It is small
enough to be embedded in everyday devices such as headsets
or microphones. It can be embedded in a PDA and automatically
synchronize a computer to a PDA. Bluetooth can also
download a file or picture received on a Wireless Internet
phone to a printer or a PDA or computer.
Applications for Bluetooth wireless technology come from
no only the telecom industry but also from the computer, home
entertainment, automotive, health care, automation, and toys
industries. What good is a wireless Internet session if you must
constantly connect to wired network to print? Bluetooth uses a
low-cost short-range radio link or bridge between Bluetooth
enabled devices. Computers, phones, printers, wireless headsets,
and microphones can all communicate with each other
without wires being dragged about. Bluetooth started as an
idea in 1994 at Ericsson. Today, the Bluetooth SIG boasts
almost 2,500 members with nearly every major communications
company represented.
Bluetooth computer and telecom consumer products will
appear in late 2001 or early 2002. Products in other industry
sectors will become available later in 2002.
The Bluetooth Specification addresses two ranges: short
(around 10 m) and medium (around 100 m). The radio link is
capable of voice or data transmission to a maximum capacity of
720 Kbps per channel. The radio spectrum used is in the unlicensed
ISM band at 2.4 GHz. Modulation is Frequency
Hopping Spread Spectrum (FHSS).
Because Bluetooth encompasses many applications, there is
no single competitive technology. Infrared is a competitor in some
cases but it requires line of sight, whereas wireless LANs have
much greater range. Perhaps the closest competitor is Home RF
but it too is more a wireless LAN than a personal area network.
mobile devices and for WAN/LAN access points. It operates in
the ISM band. The Bluetooth standard was created primarily
to replace serial cables between computers and printers or
other peripherals. Speed and reliability were key considerations.
Bluetooth is capable of both voice and data communications
at speeds up to about 70 Kbps.
Bluetooth technology is an enabling technology for the
Wireless Internet and the mobile user. It can be an Internet
bridge between a mobile device and a wireless access point in
an ad-hoc network, as are other WLAN technologies such as
802.11 or Home RF. However, some features of Bluetooth are
unique to it and not available in other WLAN technologies.
Bluetooth actually creates a Personal Area Network. It is small
enough to be embedded in everyday devices such as headsets
or microphones. It can be embedded in a PDA and automatically
synchronize a computer to a PDA. Bluetooth can also
download a file or picture received on a Wireless Internet
phone to a printer or a PDA or computer.
Applications for Bluetooth wireless technology come from
no only the telecom industry but also from the computer, home
entertainment, automotive, health care, automation, and toys
industries. What good is a wireless Internet session if you must
constantly connect to wired network to print? Bluetooth uses a
low-cost short-range radio link or bridge between Bluetooth
enabled devices. Computers, phones, printers, wireless headsets,
and microphones can all communicate with each other
without wires being dragged about. Bluetooth started as an
idea in 1994 at Ericsson. Today, the Bluetooth SIG boasts
almost 2,500 members with nearly every major communications
company represented.
Bluetooth computer and telecom consumer products will
appear in late 2001 or early 2002. Products in other industry
sectors will become available later in 2002.
The Bluetooth Specification addresses two ranges: short
(around 10 m) and medium (around 100 m). The radio link is
capable of voice or data transmission to a maximum capacity of
720 Kbps per channel. The radio spectrum used is in the unlicensed
ISM band at 2.4 GHz. Modulation is Frequency
Hopping Spread Spectrum (FHSS).
Because Bluetooth encompasses many applications, there is
no single competitive technology. Infrared is a competitor in some
cases but it requires line of sight, whereas wireless LANs have
much greater range. Perhaps the closest competitor is Home RF
but it too is more a wireless LAN than a personal area network.
WIRELESS LANS AND PERSONAL AREA NETWORKS
The Wireless Internet is not just wireless communications across
town or the country. It is also local—sometimes in a home or
office building. Wireless LANs are just becoming popular with
economically priced wireless Ethernet equipment. Standards
such as IEEE 802.11, HiperLAN2, and Home RF are leading the
way to untethered communications in-building or outside over
small areas. Another important development is the Personal Area
Network, also known as Bluetooth. Let’s take a look at each of
these to see how they further promote Wireless Internet sessions. 90
town or the country. It is also local—sometimes in a home or
office building. Wireless LANs are just becoming popular with
economically priced wireless Ethernet equipment. Standards
such as IEEE 802.11, HiperLAN2, and Home RF are leading the
way to untethered communications in-building or outside over
small areas. Another important development is the Personal Area
Network, also known as Bluetooth. Let’s take a look at each of
these to see how they further promote Wireless Internet sessions. 90
OMNISKY
OmniSky’s Wireless Internet service uses the CDPD packetbased
network, encompassing over 172 million people. The
first service began in May 2000. Data rates are 19.2 Kbps and
users are offered a flat-rate monthly fee for unlimited service.
Much of Omnisky’s success can be attributed to the partners
it has chosen to work with: Palm, Handspring, HP, and
Compaq. However, Omnisky should be feeling the competition
when cellular begins next-generation service.
network, encompassing over 172 million people. The
first service began in May 2000. Data rates are 19.2 Kbps and
users are offered a flat-rate monthly fee for unlimited service.
Much of Omnisky’s success can be attributed to the partners
it has chosen to work with: Palm, Handspring, HP, and
Compaq. However, Omnisky should be feeling the competition
when cellular begins next-generation service.
MOBITEX OR RAM MOBILE DATA
Mobitex enjoys wide acceptance as a global standard for wireless
data networks. This technology was originally developed by
Swedish Telecom as a private network similar in purpose to the
Ardis network. The network became commercial in 1986. Since
then, many networks have been deployed in Europe, the United
States, and Australia. The frequency varies by country but the
United States and Canada mainly use 900 MHz. In the United
States, Mobitex is operated by RAM Mobile Data, a subsidiary of
Bell South. There are over 1,200 base stations installed nationwide
with service in more than 7,700 cities and towns, covering
approximately 93 percent of America’s urban business population.
Mobitex technology offers six distinguishing features that
other networks lack:
• Transparent, seamless roaming
• Store-and-forward
• Dependability (99.99 percent)
• Interoperability and connectivity options
• Capacity to support millions of subscribers
• Security second to none
Channels use 12.5 kHz bandwidth and support a data rate
of 8 Kbps. The network operates in the United States at 935
MHz to 940 MHz for the downlink (base to mobile) and 896
MHz to 901 MHz for the uplink (mobile to base).
data networks. This technology was originally developed by
Swedish Telecom as a private network similar in purpose to the
Ardis network. The network became commercial in 1986. Since
then, many networks have been deployed in Europe, the United
States, and Australia. The frequency varies by country but the
United States and Canada mainly use 900 MHz. In the United
States, Mobitex is operated by RAM Mobile Data, a subsidiary of
Bell South. There are over 1,200 base stations installed nationwide
with service in more than 7,700 cities and towns, covering
approximately 93 percent of America’s urban business population.
Mobitex technology offers six distinguishing features that
other networks lack:
• Transparent, seamless roaming
• Store-and-forward
• Dependability (99.99 percent)
• Interoperability and connectivity options
• Capacity to support millions of subscribers
• Security second to none
Channels use 12.5 kHz bandwidth and support a data rate
of 8 Kbps. The network operates in the United States at 935
MHz to 940 MHz for the downlink (base to mobile) and 896
MHz to 901 MHz for the uplink (mobile to base).
RICOCHET
Ricochet is the only wireless packet data network today that
was built from the ground up to handle high speed data, up to
128 Kbps. Modems are available from third-party sources that
allow connection to laptop computers by at least one Pocket
PC. The network has about 41,000 customers in 15 markets as
of July 2001 but the parent company, Metricom, has filed for
Chapter 11 in bankruptcy court, so anything could happen to
Ricochet. On August 8, 2001, Metricom ceased operations of
Ricochet but the company is negotiating with third parties to
buy the Ricochet network. If a third party can buy the network
at a really good price, then Ricochet may continue in some
form. As of the publishing of this book, the outcome is
unknown. The high costs of building out a nationwide network
far exceeded the revenue, and current economic conditions
make financing very difficult.
The Ricochet radio network utilizes several elements
including microcell radios and wired access points. This provides
true Wireless Internet access to information—regardless
of where it resides either on the Web or the intranet, in an
email message or a video clip.
In many ways the Ricochet network functions similarly to a
wireless Ethernet network. Acquisition is a necessary first step
for each radio on the network. The user radio, when first turned
on, must locate neighboring radios and Ricochet modems by
sending out synchronization packets. On acknowledgment from
neighboring radios, it must then get the authorization from the
name server. Only then does it join the network.
The network operates in two Industrial, Scientific, Medical
(ISM) bands of regulated, unlicensed spectrum, the 900 MHz
band and the 2.4 GHz band, in addition to the licensed 2.3
GHz Wireless Communications Systems (WCS) spectrum. The
physical layer uses Frequency Hopping Spread Spectrum
(FHSS) technology.
was built from the ground up to handle high speed data, up to
128 Kbps. Modems are available from third-party sources that
allow connection to laptop computers by at least one Pocket
PC. The network has about 41,000 customers in 15 markets as
of July 2001 but the parent company, Metricom, has filed for
Chapter 11 in bankruptcy court, so anything could happen to
Ricochet. On August 8, 2001, Metricom ceased operations of
Ricochet but the company is negotiating with third parties to
buy the Ricochet network. If a third party can buy the network
at a really good price, then Ricochet may continue in some
form. As of the publishing of this book, the outcome is
unknown. The high costs of building out a nationwide network
far exceeded the revenue, and current economic conditions
make financing very difficult.
The Ricochet radio network utilizes several elements
including microcell radios and wired access points. This provides
true Wireless Internet access to information—regardless
of where it resides either on the Web or the intranet, in an
email message or a video clip.
In many ways the Ricochet network functions similarly to a
wireless Ethernet network. Acquisition is a necessary first step
for each radio on the network. The user radio, when first turned
on, must locate neighboring radios and Ricochet modems by
sending out synchronization packets. On acknowledgment from
neighboring radios, it must then get the authorization from the
name server. Only then does it join the network.
The network operates in two Industrial, Scientific, Medical
(ISM) bands of regulated, unlicensed spectrum, the 900 MHz
band and the 2.4 GHz band, in addition to the licensed 2.3
GHz Wireless Communications Systems (WCS) spectrum. The
physical layer uses Frequency Hopping Spread Spectrum
(FHSS) technology.
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