IWS: No epiphanies on mobile, Wi-Fi integration

SAN DIEGO--Though the integration of mobile networks and wireless LANs appears destined, and technology capable of delivering voice over WLANs is drawing much notice, there’s still no clue on when, how or even why it should happen.

Most national mobile carriers have engaged in resale partnerships with Wi-Fi hot spot operators that give them a share of Wi-Fi revenue, but there seem to be few other drivers to motivate carriers to spend capex budgets on integrated network schemes or handsets, according to Mario Morales, vice president of semiconductor research at consulting firm IDC. Morales led a panel at the International Wireless Symposium in San Diego that discussed these topics, but despite a persistent line of questioning aimed at figuring out what exactly could drive carriers to invest in the integrated mobile/Wi-Fi vision, he came away with little to change his perspective.

“Carriers aren’t interested in mixing these services yet, because they’re doing fine keeping them separate,” Morales said, adding that he doesn’t expect to see a large number of fully integrated mobile/Wi-Fi chipsets on the market until sometime in 2005.

“A lot of Wi-Fi technology is being deployed, but there are a lot of questions why carriers would want to get involved,” Morales said. “We’re driving Wi-Fi hardware prices into the ground, and carriers are still losing money as it is.”

Though experts on Morales’ panel mostly talked of Wi-Fi in positive terms, they indirectly supplied support for a more pessimistic view. Paul Struhsaker, chief technology officer of the WLAN business unit at Texas Instruments referred to discussions with Nokia in which the handset maker has told him it expects about 30% of all handsets to be Wi-Fi enabled by 2005. Still, he added, “People want one platform, not separate devices, for the wide area and local area networks, but we still can’t figure out how companies can make money on hot spots.”

Stephen Forte, founder and CEO of Ascendant Telecommunications, which sells a server that integrates mobile voice and WLAN coverage for enterprises, suggested, “Applications will make the integration of these technologies run, but it will be a very gradual transition. Companies always put off investing in a vision until it’s right in front of them.”

Sai Subramanian, vice president of product management and strategic marketing at Navini Networks, said end users will not be willing to pay a premium for any broadband service, including Wi-Fi, which underlines the need for carriers to deploy cost-effective infrastructure.

Morales concluded that carriers and IT service companies are at a crossroads right now figuring out who will move first to deliver Wi-Fi and voice over WLANs to enterprises. “I don’t think large carriers will do it, so we could see a new kind of service company intervene to address those needs.”