Flarion: It's All Systems Go For All-IP Wireless - CRN December 13, 2001
Flarion: It's All Systems Go For All-IP Wireless
Start-up seizes momentum for technology rollout
By Kristen Kenedy
Start-up Flarion is capitalizing on delays in next generation wireless service rollouts to gain momentum for its all-IP wireless data technology.
The company, which began field-testing in November with an unnamed major carrier, said it aims to provide high-speed wireless data services at a lower price than those available through traditional wireless carrier networks.
No one doubts the time is right to offer such a service, as Sprint, Verizon and AT&T Wireless are all in the process of launching next-generation wireless services slated to be available in the second half of 2002.
The industry has been waiting for these services for some time. Many observers hoped to see 3G, or third-generation wireless services, by now, but what's expected in 2002 is 2.5G, somewhat of a stopgap until 3G can be rolled out cost-effectively in the United States.
Enter Flarion. Company executives said its radio interface technology can be deployed at existing broadcast sites, eliminating the need for costly antenna upgrades. Once a network is deployed, Flarion expects carriers to be able to offer unlimited wireless broadband priced at about $40 per month, roughly comparable to the price of DSL or cable Internet service.
"We are the equivalent of an edge router," said Bob Suffern, vice president of engineering at Flarion, based here. "You don't have to have any of these conversion boxes between our network and the wired network. We are architected from the ground up to do packet-switched data, which is much more efficient for a large number of users."
Based on a technology called flash Orthogonal Frequency Division Modulation (OFDM), Flarion's system was originally developed by Bell Labs. The technology uses RadioRouter base stations that communicate to flash OFDM-enabled notebooks and handhelds. Suffern said data speeds are expected to range from 1.5 Mbps to 600 Kbps.
The trick for Flarion is to get in front of the pack in the competitive wireless market, say solution providers and analysts. It may be getting a head start with a deal unveiled last month in which Philips Semiconductors agreed to build OFDM chips for modems and other devices.
"One of the lessons learned from the 2G network [rollouts] in the United States is it doesn't make sense to go with a proprietary network," said Martin Dunsby, a global leader of Deloitte Consulting's New York Wireless Initiative.
Using a known standard such as GRPS or WCDMA for next-generation service allows carriers and device makers to mass-market wireless handhelds, phones and modems, Dunsby said.
"Flarion's technology is good," said Charlie Galvin, an analyst at Forrester Research. "The main problem they face is overcoming the hegemony that exists for today's wireless data solutions."
Flarion said in November that it had raised $45 million in its second round of funding. Among the investors were Pequot Capital and Cisco Systems. In June 2000, the company closed its first round of financing, totaling $12.5 million, with investors from Bessemer Venture Partners, Charles River Ventures, Pequot and Lucent Technologies.
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Woke up in 2002 to find that nothing has really changed in wireless, yet. :^> Rob |