3G Moves To Center Stage
BRAD SMITH
MARCH 26, 2001
Spectrum And Computing Create Their Own Buzz
LAS VEGAS —The formal
messages coming out of last
week's CTIA Wireless 2001 show
may have focused on spectrum
and the increasing importance of
computing in wireless
communications, but much of
the off-stage attention
highlighted another topic.
The biggest buzz? Carriers
talking about what's actually
happening with third-generation
networks. While the show took
place in the world's gambling
capital, carriers don't seem to be
placing bets on the availability
of new spectrum. Instead, they
are focused on doing the best
with what they already have.
One observer who also attended the 3GSM World Congress in Cannes, France, in
February noticed a big difference in the attitudes of participants at that show and
those at CTIA Wireless 2001. While Cannes was filled with doom and gloom
about 3G, optimism actually seemed to prevail in Las Vegas.
Of course, European carriers already have shouldered $100 billion in debt to pay
for their spectrum–a burden U.S. carriers won't face for more than a year.
Still, the larger service providers were out in full force with a plethora of
announcements. Cingular Wireless, Sprint PCS and Verizon Wireless all unveiled
their plans to roll out next-generation networks, while two other carriers
announced voice access for their Internet services. AT&T Wireless has picked
Tellme Networks to provide its voice portal services, and Qwest Wireless
expanded its relationship with BeVocal.
'This shows that 3G is here and it is real,' said Jim Gerace, vice president of
corporate communications for Verizon Wireless. The carrier announced it had
deployed CDMA 1XRTT packet data in Las Vegas and San Diego, as well as
signing a $5 billion deal with Lucent to build its 3G network.
Cingular Wireless discussed its deployment of GPRS across its GSM footprint in
California and Nevada and will expand the technology into other portions of its
GSM network this spring and summer. Kris Rinne, Cingular's technology vice
president, also said the carrier remains committed to using the next-generation
technology called EDGE (enhanced data rates for global evolution) for its TDMA
network but is considering an interim step using GPRS.
Sprint PCS, meanwhile, detailed its 3G path, starting with a CDMA 1X
implementation that will be nationwide in 2002.
One hitch in these well-laid plans is the lack of handsets. CDMA carriers will have
to wait until the end of this year before handsets are available to take advantage
of 1X. Cingular is luckier with regard to its GSM network because those handsets
are expected to ship in April.
Even with all the hoopla regarding 3G announcements, no one denied the need
for more spectrum to meet the needs of those new networks. CTIA CEO Tom
Wheeler repeatedly hammered away at the issue. Nokia CEO Jorma Ollila,
Motorola CEO Chris Galvin and Ericsson CEO Kurt Hellstrom also made spectrum
concerns part of their keynote appearances, although Galvin was the only one on
the CTIA stage. Ollila spoke live via a satellite link from Helsinki, Finland, and
Hellstrom appeared on videotape. All three called for cooperation across the
industry to find ways to make 3G spectrum less expensive.
Galvin said that if builders of the nation's railroads had been forced to pay for
rights of way, Chicago still might be the country's most westerly rail point.
Wheeler pressed new FCC Chairman Michael Powell on the spectrum topic during
a Tuesday keynote in which Powell indicated that the FCC may provide some
spectrum relief this year in the form of removing the 45 megahertz spectrum
cap. Powell expressed a willingness to work as a partner with the industry rather
than strictly as a regulator.
The FCC doesn't have complete control over spectrum, Powell said, because the
military owns some of the frequency bands eyed for 3G. And he said he is
concerned that Congress seems more interested in auctioning spectrum to raise
money for the U.S. Treasury than in establishing sound policy.
The head of the FCC's wireless division, Tom Sugrue, also said the FCC is
focused on finding 3G spectrum but doesn't think the U.S. wireless industry is in
a crisis just because it has fallen behind Europe.
As expected, the computing and Internet community grab bed a lot of attention
at the show, both on the main stage and on the floor. Intel CEO Craig Barrett,
Microsoft CEO Steve Ballmer, Dell Corp. CEO Michael Dell and Yahoo! co-founder
Jerry Yang all gave their visions of the wireless Internet.
Barrett and Ballmer questioned whether the industry should think of the wireless
Internet as being separate from the wired Web, arguing that it really is a mobile
subset. Ballmer demonstrated several new Microsoft products, including Outlook
Web Access, Outlook Mobile Access and Outlook Mobile Manager, and he talked
about the company's upcoming Mobile Information Server.
Dell said his company's current wireless interest revolves around integrating the
802.11b Wi-Fi standard into its laptops. Yang announced that Yahoo!'s instant
messaging service was available through Verizon.
The one sure bet at CTIA? The industry is moving full speed ahead into the next
generation of services. |
