Does your phone roam in Rome? The technology is improving, but standards still ground the global warrior
americasnetwork.com
October 1, 1999
By Charles Mason
ireless telecommunications has been a boon to
business people everywhere. That is, until they try to take
their phones with them to another nation. In such cases, more
often than it should happen, wireless subscribers face service
difficulties.
Roaming is relatively painless in some regions, such as Europe. If you really
want to see unhappy customers, however, try telling European travelers that
they have to check their wireless phones at the door when entering the United
States. Or tell U.S. subscribers that their phones are no good in Asia.
Conflicting standards and frequency bands often make roaming impossible. Yet
international roaming is not just about having the right hardware that will work
in various bands and with various air-interface standards. It is also about
carriers having agreements in place with each other and having their own
internal houses in order to support their subscribers as they roam.
One traveler?s travail
Some carriers seem to not quite understand that global warriors are good for
business. Take, for example, the case of a traveler from Washington, D.C. to
the United Kingdom. Recently, this customer of a major nationwide personal
communications services (PCS) carrier flew to London and thought, with his
Ericsson world phone, that he would be good to go upon landing. Little did he
know that his PCS carrier at home had other ideas.
The customer, who is a wireless industry insider and very knowledgeable about
how the business works, went to two phone centers in London, only to be told
that he should contact his home carrier. Upon doing so, using a landline phone,
of course, the home carrier told him that he had to fill out a form to "get
permission" to roam overseas. The subscriber was anything but happy but
agreed to fill out the form, which he faxed back to the U.S.
However, his phone still would not work. He was then told that he had to
ensure his bill was fully paid up before he could roam. After paying his bill via
credit card over the landline phone, he still could not get the "world" wireless
phone to work.
Another call eventually straightened out the situation and he was on the air.
"Once I got everything squared away, the service was fantastic," he says,
noting that callers could simply dial up his stateside number and connect with
him throughout the UK. "But the hassles they put me through were ridiculous.
They lost a lot of money from me."
More networks equal more demand
No one knows precisely how much demand there is for global wireless
roaming. Some analysts point to the burgeoning deployment of wireless
networks and say that undoubtedly people will want to use these networks
when they travel. Recent statistics indicate that wireless is growing in parts of
the world where there is a need.
Cellular growth in Africa, for example, exceeded 20% during the second
quarter of 1999, surpassing all other regions, according to The Strategis
Group?s (Washington, D.C.) quarterly report, "Strategis dataBank: World
Cellular/PCS Subscribers and Operators." Latin America and Eastern Europe
followed, both with 16% growth rates. Deployment and expansion of digital
cellular networks in emerging markets proliferated over the first half of 1999,
contributing to overall performance.
At the global level, worldwide cellular/PCS subscribers grew by 11% during
the past quarter, reaching 385 million users, according to the report.
Time division multiple access (TDMA) and code division multiple access
(CDMA) subscriber levels demonstrated the strongest quarterly gains, growing
20% and 18%, respectively. Global system for mobilization (GSM), however,
still clearly dominates, capturing 61% of the world?s total subscriber base.
Europe is the leading GSM market, accommodating nine of the top 10 GSM
service providers worldwide. Italian operators Telecom Italia Mobile (TIM)
and Omnitel are the frontrunners, accounting for almost 7% of the GSM
subscriber base worldwide in the second quarter of 1999.
The handset issue
There are a number of reasons that wireless often stops at the border. One is
the multiplicity of frequency bands and air-interface technologies in use today.
Wireless carriers throughout the world operate primarily on 800 MHz, 900
MHz, 1800 MHz and 1900 MHz. Frequencies used depend on the spectrum
licensed in a particular nation.
As for air-interface technologies, carriers use GSM, TDMA, CDMA and
personal digital cellular (PDC). In addition, analog technology is also still widely
used.
Normally, a handset is designed for one air-interface technology or, as is the
case in the U.S., for example, sometimes two ? one analog and one digital.
And each handset usually operates only within one radio band.
Building handsets that offer more than one band and more than one
air-interface technology is more costly and, until a couple of years ago, was
relatively difficult technically.
However, that is all changing. Handsets capable of dealing with multiple bands
and multiple air-interface technology are now slowly hitting the market. And
more are on the way. Handset manufacturers that are producing or planning to
offer global terminal units include Ericsson (Stockholm, Sweden), Bosch
Telecom (Munich, Germany) and NEC (Tokyo).
"We see a lot of support from vendors," says John Groatland, manager of
corporate communications at Omnipoint (Colorado Springs, Colo.).
Indeed, many analysts say that the fastest solution to the roaming problems
facing globetrotters is the development of new multifunctional handsets.
"Rather than make fixes on the infrastructure end, it makes a lot of sense to
offer specialized handsets," says Larry Swasey, senior wireless analyst with
Allied Business Intelligence Inc. (Oyster Bay, NY). It is still a small minority of
customers that needs global roaming options, so why spend a lot of money on
the network at this point."
Give me the same number
Some travelers get around current problems by using different handsets,
depending on where they are at the moment. True seamless global roaming
means using your own handset and your own regular phone number.
While so-called world handsets can overcome the differences in frequency
bands and the different air-interface standards, there still need to be fixes
implemented on the carriers? end to ensure trouble-free roaming. In addition,
customers want more than their regular phone number. They want to bring
along their enhanced services, such as voice mail, when they travel.
Tom Williams, vice president of sales, Americas Region, for Logica (Lexington,
Mass.), a company that markets a roaming internetworking gateway (RIG)
product for the wireless industry, says that while technical limitations are being
overcome, the business side is still well behind.
"There is a shortage of data on just how much demand for global roaming there
is and how quickly it will increase," he says. "People are just not sure of the size
of the market."
As a result, Williams says that carriers with natural synergies for encouraging
global roaming ? such as recently merged Vodafone/AirTouch with its
European/U.S. footprint and BellSouth International with its heavy presence in
Latin America ? will continue to push ahead while others may wait.
The Iridium World Roaming Service
links incompatible wireless networks
and separate charges into a
relatively simple solution.
Logica?s RIG product is an example of how some vendors are working to give
carriers choices. Working on the network side, an RIG provides the network
elements required to allow connectivity between two network types. The
application features include:
Updating location information in the subscriber?s home network;
Translating subscriber profiles;
Adding services to the profile, such as data, fax and short messaging
capabilities; and
Authenticating the subscriber.
Such services will become popular to customers and carriers alike, Williams
says, by allowing all charges to be billed to home carriers in their local
currency. Moreover, the services will allow subscribers to make calls just like
at home ? no language barriers, hotel charges or other travel headaches.
Omnipoint?s Groatland says that while his company?s seasoned international
roaming services attract less than 10% of its subscriber base, those customers
are particularly important to a wireless carrier.
"The international traveler tends to be the heaviest user of wireless," says
Groatland. "They are excellent customers and we make a lot of money from
them."
The GSM advantage
Because of its current global dominance, GSM carriers have a leg up in offering
global roaming services. That situation will change as multiple air-interface
handsets, capable of operating on CDMA and GSM systems, for example,
come to market in increasing numbers next year.
Microcell Connexions, a wholly owned subsidiary of Microcell
Telecommunications Inc. (Toronto), has roaming arrangements with 34 carriers
in 20 countries around the world, in addition to the United States. Roaming is
now available to Microcell customers throughout most of Europe and in Asia;
there are arrangements with Hong Kong, Singapore and most recently Taiwan
and New Zealand.
Microcell?s executives say that the company?s use of GSM technology has
provided particular strengths in this area.
"GSM technology is the only PCS standard that offers user-friendly
international roaming," says Norman Wai, chief operating officer of Microcell
Connexions. "The GSM subscriber identity module (SIM) card is like a
communications passport to the world."
A GSM SIM card is a 16K microprocessor that holds the customer?s
subscriber information. Globally, all GSM wireless providers have SIM cards,
giving travelers the ability to use their personal calling features on rented
phones.
Handsets can be rented through companies such as Rent Express, which will
deliver handsets to customers? offices or homes.
GSM is currently deployed in over 100 countries.
Powertel Inc. (West Point, Ga.) in August became the latest U.S.-based GSM
carrier to step up its global roaming activity. The company?s international plan
is available for travel in 30 countries outside of North America, through more
than 50 carriers. To date, Powertel has roaming agreements with carriers in
Austria, Belgium, Chile, the Czech Republic, Denmark, Finland, France,
Germany, Greece, Hong Kong, Hungary, India, Ireland, Israel, Italy,
Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal,
Singapore, Spain, Sweden, Switzerland, Taiwan, Turkey and the United
Kingdom. Powertel customers will pay $2 per month for the international
roaming feature and per minute calling charges, which vary by international
carrier.
"International roaming agreements with other countries are in the works," said
Rod Dir, chief operating officer for Powertel. "Demand for international service
increases as our subscriber base grows."
Dir says that the service will take advantage of the fact that customers don?t
just want to stay in touch via voice, but increasingly want access to data.
"Our customers can make and receive calls as well as check voicemail and
email, browse the Internet, send and receive faxes, two-way messages, and
most other features available in North America," he says.
Some analysts say that the growth of wireless data and the need to keep in
contact with e-mail and corporate intranets, will be a major boost to
international roaming.
Powertel is offering its customers the Ericsson dual-band I888 World Phone
handset. Another option is to rent an international-compatible handset and
remove the SIM card from the Powertel handset and place it in the second
phone while traveling abroad. Rental of a 900 MHz or 1800 MHz handset can
be arranged through Powertel. Either way, the Powertel number and service
follow the customer.
The satellite option
For some wireless customers, the truly global roaming experience will come
from satellite augmentation.
Several systems, including Iridium (Washington), Globalstar (San Jose, Calif.)
and ICO Global (London) are aiming their services at such markets. (Only
Iridium is currently in commercial operation.)
Sprint PCS (Kansas City), for example, now offers customers who travel
outside the United States interconnection with Iridium North America (Tempe,
Ariz.). That company is the North American division of Iridium LLC, the
troubled but still very much operational mobile satellite system.
Sprint PCS customers who purchase the Iridium World Roaming Service and
Iridium handset keep their Sprint PCS phone number while traveling
internationally. The Iridium World Roaming Service links incompatible wireless
networks and separate charges into a relatively simple solution by registering
subscribers on the local wireless network with their regular wireless telephone
number. In addition, calls made and received by Sprint PCS customers on
Iridium phones appear on the customer?s Sprint PCS bill.
In the future, the agreement between Iridium and Sprint PCS will also provide
international travelers the ability to roam onto the Sprint PCS network when
visiting the United States.
Worldwide wireless subscribers are expected to more than double in the next
decade. However, current communications networks cover only 10% of the
Earth. [Okay, it's now 10% :-)...]
The Iridium system routes previously incompatible calls through land-based
telephone systems when customers are within range of terrestrial wireless
network coverage. When no wireless coverage is available, the phones
communicate directly with the 66 low-earth-orbiting satellites, which function as
wireless phone antennas in the sky.
Several vendors are coming to market with handsets that facilitate international
roaming, not only on terrestrial networks but also on a combined terrestrial and
satellite basis.
Ericsson (Stockholm, Sweden), for example, is currently developing a range of
satellite phones. These phones will work literally around the world. The
pocket-sized phones will be dual mode, meaning they can switch from a
cellular network to a satellite network depending on the coverage. The first
product line of phones will be capable of being used on GSM networks and
can switch to satellite communications when there is no GSM coverage. Other
satellite phones will be used in GSM or advanced mobile phone service
(AMPS) networks, in addition to the satellite networks.
Ericsson?s R290 is a dual-mode satellite/GSM 900 mobile phone that is on the
market. The Ericsson R290 offers comprehensive coverage across the globe
via Globalstar?s (San Jose, Calif.) 48-satellite network. That means full GSM
900 access in cellular areas and satellite communication throughout most of the
world.
The Globalstar network is due to begin its country-by-country launch at the
end of this year. The R290 satellite will be available at the end of 1999 or
beginning of 2000.
October 1 , table of contents
Copyright 1999 Advanstar Communications. Please send any technical comments or
questions to the America's Network webmaster.
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