A fresh outlook on 3G

Despite the bright neon lights and array of sounds that fill the Las Vegas strip, the Wireless 2001 show did not deliver a loud bang. Most major wireless infrastructure providers simply reiterated their technology strategies and core network offerings. In fact, Cisco Systems decided not to exhibit at all, focusing instead on private meetings with partners and customers.

However, demos and announcements seemed to create a positive outlook for 3G compared with the reality check that came out of the GSM World Congress.

Though Wireless 2001 was somewhat quiet, live demos and other announcements helped further validate directions companies are taking with their 3G products and services. The show may not have been particularly news-breaking, but it was evident that the general attitude of the industry has changed and folks have settled down from the hype surrounding wireless and the move to data.

Proof is in the pudding

Ericsson had a demo set up just outside the Sands Convention Center to prove that its WCDMA technology works, though it will be a while before it can be implemented.

In a van equipped with terminals, microphones and video cameras, Ericsson took potential customers and other interested parties on a ride around the convention center and through a tunnel to demonstrate that WCDMA is a reality that will function inside and out (see photos at left and on page 54).

During the demo, high-speed services such as video streaming and other messaging capabilities were transmitted via WCDMA technology and back to its stationary location outside of the convention center.

Months before the wireless show descended upon Vegas, Samsung had a laboratory set up to demonstrate that its technology is sound. On Oct. 1, 2000, Samsung helped SK Telecom of Korea deploy its 3G system in commercial operation by providing the radio access network equipment, including the base transceiver systems and controllers. Samsung had originally partnered with 3Com to work with the carrier on its data core network, which was one of the first deployed in the world.

“The handsets and the infrastructure are working in Korea… that is the best living laboratory in the world, demographically speaking,” said James Daley, vice president of wireless systems for Samsung Telecommunications America.

Via its Flexent cdma2000 3G wireless system, Lucent Technologies conducted demonstrations of the Sierra Wireless 1x radio transfer technology (1XRTT) AirCard, the first Sierra PC card to comply with a 3G wireless network standard.

“Applications are of great interest, and we are looking at ways to retain value,” said Brian Bolliger, director of global wireless marketing at Lucent. “Companies pay a fortune for spectrum, and if they can commercialize data, it would be a creative way to get additional revenue. AirCards do that.” The AirCard is expected to be commercially available later this year. Besides Lucent, Sierra also has relationships with Sprint PCS and Verizon Wireless.

One day before the show's kickoff, Verizon and Lucent announced that they had strengthened their relationship by committing to a three-year, $5 billion 3G contract. This was a vote of confidence for Lucent and all vendors looking to partner with carriers for 3G.

“The good news about Verizon is that it is willing to make an investment,” said Adrian Nemcek, senior vice president and general manager of the global telecom solution sector's office of strategy at Motorola.

Qualcomm was pleased about Verizon's and Lucent's agreement. “cdma2000 is proceeding ahead, and we are excited about Sprint PCS and Verizon's plans,” said Irwin Jacobs, chairman and CEO of Qualcomm, at a press conference. “Time to market looks favorable, and cdma2000 is more efficient in terms of spectrum for voice and data.”

Although Jacobs said that he hopes WCDMA will be deployed on time, he believes it is more likely that its commercial deployment will not take place until 2004 or 2005. “If there is a delay of 3G it will not be because one of the modes [or standards] used to get there is being delayed.”

Instead he cites spectrum issues. “My own belief is that both will be competitive technologies,” Jacobs said. “But coverage favors cdma2000, which goes into existing spectrum, while WCDMA must make use of new spectrum, which involves new cell sites and backhaul.”

During the week of the show, Japan's KDDI and Qualcomm announced the completion of a cdma2000 1x Evolution Data-Only (1xEV-DO) trial in cooperation with Hitachi, Sony and Kyocera. The trial, conducted between July 2000 and February 2001 in the Tokyo metro area, enabled applications such as streaming video, Web browsing and e-mail to run at data transmission speeds of up to 2.4 Mb/s.

Besides striking a deal with Lucent, Verizon also announced that it has deployed Nortel infrastructure in Las Vegas and San Diego to make its networks 1XRTT-ready for the transition to 3G. The networks are designed to support the evolution to 1XRTT, which Verizon intends to begin deploying later this year.

Apps on the side

Ericsson believes that it is well-positioned to work with operators that have evolving networks because it can incorporate various types of equipment that can evolve as the network evolves, said Phillip Hester, director of product and technical marketing for CDMA systems at Ericsson. “CDMA equipment was not originally designed with packet data in mind,” he said. “We believe our key advantage is that our equipment was designed with the next phases of 3G in mind.”

Beyond technology and infrastructure, Ericsson also discussed its CDMA Internet services platform, introduced to help providers deploy mobile Internet applications rapidly. The platform, which can be deployed in 2.5G networks and smoothly transitioned to 3G, is an open architecture that allows integration of third-party applications.

For Motorola, the spotlight was on general packet radio service (GPRS), 3G, Bluetooth and Java 2 Micro Edition (J2ME) technologies. Besides displaying six new GPRS models, including Timeport 7389i, Timeport 280, Accompli 008, V.series 66, Talkabout 192g and the Accompli 009 personal interactive communicator, the company showcased two handsets that were J2ME-enabled. The company also demonstrated some software applications.

Sprint PCS has agreed to collaborate with Motorola to conduct lab trials of how the technology will allow customers to download applications on a wireless phone based on their wants and situations.

“There has been a shift in subscriber gears…. It is no longer about just phones,” said Josh Kiem, director of marketing for the personal communications sector at Motorola. “[Application development] is becoming a part of the infrastructure. Up until now voice was the only app we have been selling.”

Also during the show, Qualcomm announced that it has signed non-binding memoranda of understanding agreements with more than 20 additional software developers and device manufacturers that want to support its Binary Runtime Environment for Wireless (BREW) platform. BREW provides a standard programming environment that enables applications to be developed on multiple handset models.

Qualcomm plans to release the BREW software development kit in May. The kit will include Windows-based tools so that developers can create and test applications in a standard development environment for specific phones.

“The real story of 3G is software and not just phones,” said Paul Jacobs, executive vice president at Qualcomm, during a session focusing on 3G solutions for the global marketplace.

Nokia also had its eye focused on how wireless Internet services might look and be delivered. During a press conference, the company announced that it expects the xHTML browser to be commercially available via its mobile phones early in the first quarter of next year.

The browser, a dual browser that provides full support of WAP 1.2, represents the convergence of the wireless and wired world, said Paul Chelgren, vice president of business development for Nokia Mobile Phones.

“For carriers, xHTML means that they can design content the way they want to have it,” Chelgren said. “And content providers will have the flexibility to design content the way they want to as well.”

While WAP 2.0 has yet to be fully defined by the WAP Forum, Nokia's move to endorse xHTML represents the way the industry naturally is going, Chelgren said. Nokia plans to license the browser in July.

Nokia introduced its 3360 tri-mode phone (TDMA 800/1900/AMPS) and 3320 dual-mode phone (TDMA 800/AMPS) at the show, both of which are Internet-enabled and feature a WAP browser.

Meanwhile, the two areas that Nortel Networks was most focused on at the show were the radio side and the data side, said Mark Tharby, vice president of wireless Internet solutions marketing at Nortel.

“We are focusing on which packets move and where, as well as when it is not just how to move packets,” he said. “The question is: How will the system work as an entity? We focus on infrastructure that is cost effective and then the service layer in order to create an opportunity for apps.”

Nortel and Novatel Wireless announced a non-exclusive agreement to jointly develop and market solutions that feature Nortel's wireless Internet infrastructure equipment and Novatel's access products. “With joint marketing relationships we can grow the business quicker,” Tharby said.

The joint solutions will use Novatel's wireless PC cards, cradle devices and OEM modules for GPRS and 1XRTT standards.

Nortel also announced an enhancement to its Internet-ready wireless base station portfolio to address the needs of service providers licensed to operate in the 850 or 1900 MHz spectrum. Nortel's e-mobility Internet base transceiver stations already were designed to support UMTS, EDGE, CDMA, GPRS and GSM.

As for Cisco, management decided that exhibiting at Wireless 2001 in an official capacity wasn't financially prudent. “Our conclusion to the value and effects of a trade show, given the standing economy, was that it was not the best use of our money,” said Jonathan Shantz, vice president of Cisco's mobile wireless group. However, Cisco held private on-site meetings with partners and customers.

“In the mobile area, we have never been that aggressive. A lot of our products get to customers through partners,” Shantz added.

Indeed, Cisco's wireless play is a relatively new one compared with the likes of Ericsson and Nokia. But as wireless continues to morph with the Internet, Cisco's IP expertise may give it an advantage. “If you look at the core competencies of systems suppliers, not many of them actually have packet experience,’ Shantz said.

Cisco has decided to take a horizontal market approach by pairing up with suppliers such as Motorola, Nokia and Alcatel. “A large portion of the Internet infrastructure can be applied to the [wireless] market,” Shantz said. “In a lot of cases we already have the platforms that only require some level of software enhancement.”

One of Cisco's key wireless offerings, the Gateway GPRS Serving Node, or GGSN, forms an architectural boundary within the operator's network between the wireless and packet environments, Shantz said. GGSN has been deployed through partners such as Motorola, Alcatel, Ericsson and Nokia worldwide to carriers such as AT&T Wireless, BT Cellnet and Deutsche Telekom.

More than hype

After the GSM World Congress, the general consensus was that the industry should take several steps back and revisit 2.5G before making any claims about 3G. The excitement about the next generation of high-speed multimedia seemed to die down a bit as a result of that. This — along with the effect the economy has had on the industry — most likely contributed to the tone of the show.

The show did, however, give infrastructure providers and other attendees a venue in which to display their technology and learn more about what could get 3G networks up and running and what applications will be right for consumers. It might take some time before all this is realized. But companies at least had the opportunity to display their demos, reintroduce their technology and publicize any contracts or partnerships in order to further prove that the industry is moving beyond the hype.

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Michael Hanley contributed to this story.