Andrew Seybold's Outlook Commences Two- Part Series on
True Costs of Wireless Data Communications
July 9, 1998
BOULDER CREEK, Calif.--(BUSINESS WIRE) via
NewsEdge Corporation -- Andrew Seybold's Outlook,
the leading analytical newsletter serving the
mobile-computing industry, has published the first
article in a two-part series on the types and comparative
costs of wireless data communications services available
today.
The second article will be published in late July.
The first article deals with one-way, 1.5-way (one-way,
with network response), and two-way paging, and with
four different wireless packet data offerings. Editor in
Chief Andrew M. Seybold applies a consistent model to
each that projects the costs for a stated number of
messages per month, as well as how these costs are
determined.
Paging offerings include local/regional and nationwide
solutions offered by SkyTel, PageNet and PageMart.
Packet data network solutions include ARDIS/American
Mobile Satellite Corp. and BellSouth Wireless Data
(BSWD), both of which claim 90 percent-plus coverage
of the United States; CDPD or Wireless IP, with about 50
percent, provided by several vendors; and Ricochet
service from Metricom Inc., now in three cities and which
Metricom plans to build out to 10 more.
The article also considers various devices available for
each solution.
While there is enthusiasm for wireless data
communications, (believers) are divided among
themselves, Seybold noted.
"Some believe that the only viable type of wireless data
is that which is delivered over a packet-radio system," he
said. "Others believe that all must be accomplished
using only Internet Protocol. Still others believe that
while wireless data is important, we should wait for
higher-speed networks.
"Some who really understand the promise of wireless
data, feel that this is not a one-size-fits-all market...
Creating a demand for mobile connectivity and mobile
data requires, among other things, an understanding of
what is available today, how it can best be used, and the
types of data for which each is best suited.
"It must be easy to make the connection between the
network, the mobile device and the sources of
information as determined by the user. The pricing
scheme must be easy to understand, and the monthly
cost must be reasonable. "
Packet data services are putting pressure on paging
companies offering two-way wireless messaging with a
move toward flat-rate pricing, a model that works today
because neither ARDIS, BSWD, nor CDPD networks are
heavily loaded, Seybold observed. The model does not
work for one-way paging networks because they are
already heavily loaded and providers are trying to find
ways to reduce the amount of data sent over their
networks.
"When we compare (wireless data pricing) to wireless
voice pricing at 'teen' cents per minute rates, wireless
data costs appear high," he writes. "We believe that as
user demand increases, prices will fall and more
companies will embrace flat-rate data pricing to keep
their users happy. "
Elsewhere in the issue, Seybold examines ramifications
of the merger of AT& T and TCI, noting such issues as
emergency backup, communications security, signal
leakage, and the potential deterioration of service
quality.
"Most of our concerns have to do with how robust the
service offering will be," he writes. "AT&T set the
standards for service reliability even during the worst of
times. The Regional Bell Operating Companies (RBOCs)
have continued the tradition. In most places, phone
service is the utility with which we experience the fewest
outages.
"I want to save money as much as the next person. But
not at the expense of having to wonder whether I will
have dial tone when I need it."
The Outlook's monthly application article explores how
the Torrance, Calif., Municipal Police Department
implemented previously cost-prohibitive mobile data
communications capability in its patrol and investigative
vehicles by sharing resources with the department in the
neighboring community of Inglewood.
Andrew Seybold's Outlook is a monthly perspective of
issues affecting the mobile-computer and
communications industries. For a free issue, subscription
information or information about allied activities, contact
Ruth Johnson at Andrew Seybold's Outlook, P.O. Box
2460, Boulder Creek, Calif. 95006-2460; telephone
408/338-7701; fax 408/338-7806; e-mail,
rjohnson@outlook.com; or visit the Web site:
www.outlook.com.
CONTACT: Andrew Seybold's Outlook | Ruth Johnson,
408/338-7701 | or | Victor Wortman Co. | Victor Wortman,
310/393-6281
[Copyright 1998, Business Wire]
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