MOBILE DATA TAKES CENTER STAGE: Wireless, data go hand-in-hand at Wireless 2000

The Cellular Telecommunications Industry Association's Wireless 2000 show in New Orleans last week marked a turning point in the industry. As recently as two years ago, it would have been difficult to imagine the founders of Microsoft, America Online and Amazon.com onstage at a wireless event. But it happened last week.

Although wireless players fear the entrance of such heavy hitters into their established businesses, they eagerly gathered to hear them speak.

While it's hard to know how much of their strategies those luminaries revealed - after all, some wireless operators view them as competitors - they expressed intentions to partner closely with operators and share revenues. As proof, the companies entered into many deals, including AOL's partnerships with Sprint PCS and Nokia, Microsoft's deals with Vodafone AirTouch and Nextel and Amazon.com's pairing with Bell Atlantic Mobile and Sprint PCS.

"We recognize that it's very complicated and hard to build a wireless business," said Steve Case, chairman and CEO of AOL. "We'd rather work together and partner than try to recreate ourselves."

"It's a big pie - there's room for lots of people to do well," said Jeff Bezos, CEO and founder of Amazon.com.

But not all operators are welcoming the new players. The leader of the largest wireless operator doesn't intend to help the AOLs or Yahoo!s gain access to wireless subscribers.

"We're happy to do deals with an AOL or Yahoo! but one step removed," said Chris Gent, CEO of Vodafone AirTouch. "We have a high ground we do not wish to give up."

Meanwhile, as content discussions continue, operators must enable their networks to carry data and applications. The convention hall was populated with the usual vendor suspects showing data solutions and a new community of companies from the Internet world.

Nortel Networks has begun a mobile IP trial with Vodafone AirTouch in Dallas that aims to demonstrate how today's networks will migrate into full packet-based networks. Nortel plans to decrease the cost of transporting a packet from 37cents per megabit to 4cents per megabit.

Nokia is doing its part to support operators' transitions into the data world with the new Artuse Max portal platform. Operators can use their own brands on the portal and can use the platform to develop applications and provision services. "Operators look at application service providers as a threat to their business plans," said Mike Walters, system marketing manager of North American customer operations for Nokia.

At its booth, Lucent Technologies showcased an instant messaging application with Yahoo!, a location-based content application with Strategy.com and a unified messaging application - all based on its data gateway.

Operators are moving forward with new network solution trials to enable new types of data services. BAM plans to roll out CDMAp 1X in mid- to late-2001. BAM also is developing more applications aimed at horizontal users, beginning with a relationship with Amazon.com. "We recognize that the horizontal market is ready to go," said Dick Lynch, chief technology officer for BAM.