Mobile Operators Catch the Data Bug [IRID data plans]
totaltele.com
By Joanne Taaffe at CommunicationsWeek
International
26 February 1999
Mobile operators visiting the GSM World Congress in Cannes
last week were inundated by equipment vendors pushing data
services, and particularly IP, as the latest panacea to cut costs,
reduce customer churn and provide new services.
Even Iridium LLC, which launched its satellite voice operations
only four months ago, got the data bug. The company fleshed
out its plans for a second-generation system, designed to
handle data at up to 128 kilobits per second and based on the
next-generation constellation of satellites, which it intends start
to phasing in from about 2003.
"We are working on next-generation constellations...with 3G
groups" said Craig Bond, vice president, market development, at
Iridium, adding that the company would target
"64-Kbps/128-Kbps throughput for handheld devices."
Lucent Technologies Inc., Nortel Networks, Motorola Inc. and
Cisco Systems Inc. were among those touting the cost benefits
of using an IP transport layer on top of GPRS, CDMA and
eventually UMTS.
"Wireless is simply the last kilometer of IP connectivity,"
according to Bruce Nelson, Cisco's chief science officer,
speaking at the opening plenary session.
Nortel's IP stance is equally strong. "My fundamental belief is
that the world will be IP-based over the next few years," said
Pascal Debon, president of Nortel's Mobility division.
Operators are also keen to ramp up data services and provide
Internet access not just for the immediate revenues, said a GSM
specialist at Dutch operator KPN, but also to prepare for the
potentially lucrative data services in development.
And carriers are already rolling out limited data services over
existing GSM networks. France Telecom used the GSM
Congress to launch its trial of services using Wireless
Application Protocol 1.0. The service will offer users information
about weather, road traffic and travel routes, as well as the
banking services and directory services.
But despite the enthusiasm for data services, one concern is
that manufacturers are not following up marketing claims
quickly enough with products.
Handset timetable
Nortel promises to have GPRS handsets ready by the end of this
year, which, the vendor hopes, will result in a rollout of GPRS
services by operators next year—the same year that Nortel's
Debon believes "UMTS will be ready in Japan."
But regardless of concerns, most operators are betting on a
demand for services once the technology arrives. "E-mail will be
very popular when we get it to work in the proper way—we
need GPRS and software that makes it virtually immediate," said
Matti Makkonen, executive vice president of Finland's Sonera
and manager of the operator's mobile communications division.
Proof of interest is that operators are prepared to pay for UMTS
licenses even while standards remain undefined.
GSM carriers that started services recently, however, may have
to upgrade networks that have not yet provided a significant
return on their initial investment. One such is Italy's Wind, the
joint venture between Deutsche Telekom, France Telecom and
Enel SpA, which began service last week. "It's a risk," said
Bruno Baumann, Telekom's assistant director of international
communications management. "We decided to invest in
Italy...but the license award was delayed and we wasted a lot of
money," he added.
Frequency needs
Iridium's move into data is less sure. The operator needs to
secure a larger slice of frequency in order to transport data.
Currently Iridium has 5.15 megahertz of frequency. "It's not
enough," said Bond. "We're petitioning the FCC and other
international bodies."
Iridium has its eyes on a chunk of the spectrum currently
occupied by Inmarsat. Whether it is awarded the frequency or
not, Iridium is adamant that its next-generation satellites will be
equipped for data.
But John Bensche, an analyst with Lehmann Brothers in New
York, questions whether many people will surf the Net at the
rates Iridium promises at the prices it is charging. Bensche
believes Iridium's business plan of targeting voice services at
multinationals with far-flung operations remains sound.
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