A Digital One Rate for data?: AT&T Wireless takes PocketNet to the masses

In November, AT&T Wireless Services celebrated the rebirth of its cellular digital packet data PocketNet service, driving it into the business market, then quickly taking it back to the drawing board.

Last week, the company re-launched the service as a wireless Internet offering. With catch phrases such as "unlimited access" and "no extra charge," the Digital PocketNet service might do for data what Digital One Rate did for voice.

When the company originally reintroduced the service, it focused on the business market because it was not ready to give consumers offerings that it deemed suitable, said Tom Trinneer, vice president of data product development for AT&T Wireless. Last week's third shot proved it's more than ready.

"To offer this takes a lot of effort in terms of putting together partnerships and compelling value propositions," said Mohan Gyani, president and CEO of AT&T Wireless.

Customers that get the service will have access to the Web sites that the carrier has relationships with and can choose between free and paid service.

The carrier is offering service on a tiered basis. The basic plan, which includes access to more than 40 Web sites and a personal Web site for use on a wireless Internet phone, is free when combined with any of the carrier's digital voice plans.

The Plus Plan costs $6.99 per month and includes everything from the basic, plus e-mail and faxing services. For $14.99 per month, the premium plan adds in access to calendar, contacts and to-do lists. The two digital multinetwork Internet phones the carrier uses are the Mitsubishi MobileAccess T250 and the Ericsson R-280LX.

Although the company could not comment on the longevity of the free plan, it claims it is not just a promotion.

"If people stay on with the basic plan for the life of their subscription, then we may keep it," Trinneer said.

This would not be the first time the carrier would place a large emphasis on consumer interests, Gyani said. "Clearly we have listened to what the consumer wants and know how to package it in an affordable way," he said. "This is why we are offering tiered service. [When using the Internet], we want them to know that there is not a meter ticking."

Despite AT&T Wireless' 40 relationships with Web sites such as CNET, Yahoo! and eBay, some analysts believe an increased emphasis on the variety of consumer-friendly wireless Internet applications is required.

"Carriers need to have a customer value proposition, and with this [offering] really nothing has changed but the price," said Andrew Cole, vice president of Renaissance Strategy. "They need to have a breadth of easy-to-use applications. This is what is missing, and they need to work on it until we get there."

Geoworks, the Alameda, Calif.-based wireless application service provider, purchased AirBoss Wireless Systems from Telcordia Technologies, giving it patented mobile communications software products and consulting services that provide enhanced wireless access to corporate data over a variety of wireless networks and devices.

"This acquisition fleshes out our line of business," said Rhonda Jobe, vice president of marketing for Geoworks. Initially, the company focused on the business-to-consumer market. With AirBoss, it gains presence in the business-to-business market because AirBoss products are carrier-grade and can be sold to deploy B2B solutions.

Geoworks won't comment about the offerings until the deal closes around mid-June. However, Geoworks does plan to integrate AirBoss' wireless technology into its full line of products, including Mobile ASP and Mobile Site. It first will focus on synchronizing the marketing and sales staffs and then take a closer look at how to integrate the two technologies.

AirBoss' products are network independent and have supported BellSouth Wireless Data's network, cellular digital packet data, analog and digital cellular, GSM, satellite and wireless and wired LANs, Jobe said.

The combination of the two companies could be beneficial to carriers because AirBoss products, which have worked over BellSouth's mobile data network, can produce usage on wireless networks.

"We see the need for ASPs for wireless carriers and the whole industry," said Elliott Hamilton, an analyst with The Strategis Group. "But they must be able to take their [offerings] and customize them to make it more identifiable for carriers because no carrier wants the exact same thing as another."

The complementary nature of both companies was a driving force behind the acquisition, as was Geowork's desire to have a better variety of data applications. "Companies cannot do this [wireless data] alone, and they need to merge or strike partnerships," Jobe said. "We believe strongly that we cannot wait to do all of the development ourselves."

Before AirBoss, Geoworks had more of a server-based architecture. Now it can work from more of a client-based platform, she said.

In addition, the acquisition gives Geoworks a larger footprint in the U.S. after having focused mostly on the European and Japanese markets.