To: LarsA who wrote (9747 ) 3/9/2001 4:23:25 AM From: Mika Kukkanen Read Replies (1) | Respond to of 34857 Ericsson denies BLIP is a threat to operators Ray Hegarty Mar 08, 2001, 06:07 PM ET From www.the451.com ties in with what I posted earlier. New York - Ericsson denies its recently released BLIP (Bluetooth Local Infotainment Point) hardware platform could destroy wireless carriers' plans for location-based revenue. Wireless operators and corporations will use BLIP as complementary technology to support the existing and new packet-based infrastructure, claims Ericsson's BLIP general manager, Peter Lundin. BLIP aims to offer local instant access to information, entertainment, m-commerce coupons and last-minute deals. The BLIP concept comprises stand-alone local platforms, or hubs, that will enable users within a short distance of each other to communicate via Bluetooth-enabled devices. Bluetooth is the wireless technology that connects electronic devices using short-range radio links. Ericsson envisions a wireless world in which consumers will use the nearest BLIP server station to access instant Web information. "Imagine travel information and timetables that can be transmitted to a Bluetooth-enabled device," said Lundin. In theory, BLIP can support full-fledged wireless connections, and Bluetooth-enabled mobile phones don't have to be tied to operators' cellular networks, bypassing them by using an unbilled Bluetooth connection instead. For the operators, it is not just a matter of Bluetooth eating into wireless airtime. Data services such as email, Internet browsing, subscriptions, advertising and online transactions could be lost to wireless operators, with the value going to Bluetooth access providers instead. At present, Bluetooth is restricted to communication within a 10-meter (33-foot) radius, but later versions of the standard are expected to extend the distance to 100 meters. But rather than BLIP technology giving rise to rival Bluetooth network providers offering competing wireless data and voice services, Lundin argues that wireless operators will integrate BLIP technology with their existing network infrastructure and business plans. Ericsson is already actively discussing such partnerships with operators to provide a new service channel, he claimed. The first BLIP access server is due to be deployed this summer in Sweden. Prices will begin at $3,000. But despite Ericsson's protestations to the contrary, a one-time expenditure of $3,000 provides significant savings over ongoing 3G airtime costs, and effectively creates a low-cost fixed-network infrastructure for all types of data transmission. Ericsson is in a difficult position. As one of the primary infrastructure providers, it stands to make a lot of money from wireless operators' 2.5G and 3G buildout. Yet BLIP and similar Bluetooth access servers threaten to cut into the very reason operators are investing so much in cellular licenses and data equipment. Operators are currently searching for new business models that will increase their revenue and customer loyalty while lowering their costs. Location-relevant services provide an opportunity to get customers to pay a premium for mobile communications, helping the operators avoid the commoditization of wireless voice service. Ericsson's BLIP is only the latest Bluetooth Internet access server to become available. Red-M, a UK-based division of Madge Networks, launched its Bluetooth Internet access server technology last year. Red-M is much more forthright about the opportunities Bluetooth presents to enterprises and the threat it poses to wireless operators: "Many of the current applications for WAP have been limited by the available network bandwidth. By combining WAP with Bluetooth, we are able to deliver WAP services at up to 100 times faster than those offered on current cellular networks. We believe this will help stimulate the demand for WAP applications and drive the market for mobile data communications solutions," said Red-M product line manager Graham Carter during the launch of the company's WAP gateway on the 3000AS Bluetooth access server last month. As similar products begin to enter the market, and as Bluetooth enabled mobile devices begin to proliferate, an alternative service sector may spring up.