Full speed ahead Metricom storms wireless computing niche

Most cellular and PCS operators so far have steered clear of the wireless data road-particularly the road toward mobile computing applications-in lieu of building digital networks that can provide high-quality voice transmission. Metricom has decided to pass them on the shoulder.

In the past two weeks, the company-a provider of flat-rate, low-cost wireless access to the Internet, intranets and e-mail at speeds that rival landline modems-has announced a new president, a new partner and plans for providing a new performance level. If its joint venture and technology upgrade schemes work, Metricom will be well on its way to dominating its chosen niche.

"Our strategy is to be the fastest and most reliable wide area wireless data company in the world," said Don Wood, who was promoted last week from executive vice president to president of Metricom. "If you look at any of the wireless data alternatives out there, we have the lead in speed and price.

The first component of Metricom's strategy-code-named Autobahn-is to revamp its network to provide its Ricochet service at a speed of 85 kb/s by the end of 1998. That phase will involve both changing out existing poletop radios and providing customers with higher-speed modems, said Greg Dalzell, Metricom's director of product marketing.

Metricom is likely to turn to outside vendors for that equipment, which the company has to date manufactured on its own, Dalzell said. "Our core competency is the manner in which we deal with the wireless spectrum," he said.

The company is also considering purchasing licenses in the upcoming wireless communications services auctions for the 2.3 GHz band to aggregate spectrum and provide even higher-speed service-potentially as high as 250 kb/s.

To avoid being overburdened by the costs associated with such an expansion, Metricom has formed a joint venture with KeySpan, a subsidiary of utility company Brooklyn Union Gas, that will broaden its network footprint to 45 million potential customers and allow Metricom to leverage KeySpan's existing structures.

"When we pair with utilities, one of the major difficulties we have is well on its way to being overcome: the acquisition of real estate," said Dalzell. "It's one of the best methods we have now to expand.

"They're taking the right steps: They're going after improved bandwidth and coverage, and they're going after marketing channels," said John Ledahl, director of wireless programs at Dataquest. "I liken it to the buildout of some of the nationwide PCS ventures.

The two companies are initially investing $25 million each in infrastructure and service marketing in the region, which encompasses-along with other regions-New York City, Detroit, Philadelphia, Chicago and Boston. Metricom currently offers service in Seattle, the San Francisco Bay area and Washington.

"The intention here is to build urban markets-that's where most of the portable computing market is," said Wood.

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